Using A Debt Consolidation Service

If you find yourself in bad debt, then you might be considering enroling in
a program for debt counselling. There are companies that offer this type of
service as part of their debt consolidation work. In order to determine if
these services are the best option for your situation, it is important that
you understand what they are and how they work. The form of debt
consolidation that is used most often is the debt consolidation loan. These
loans are used to replace the numerous loans and debts that consumers have
accumulated by giving the client a large sum of money from which the
outstanding amounts can be paid off. Once the loan has been used to pay off
unsecured debts, the client begins to pay back the loan itself.

Debt consolidation services operate by making the payment to the myraid
creditors on your behalf out of the loan that they give you. Instead of
multiple monthly payments, you will only have to pay one bill to one
company. The service will usually find a payment plan that best suits your
needs, whether it is monthly, weekly, or over a fortnight period. The loan
means that you will have a lower monthly payment and a longer time period in
which to repay it.

Where a lot of problem with debt occurs is when people are being paid
monthly and they find that they simply do not have enough money at the end
of the month. A loan can help mitigate this problem as it can be paid on a
weekly basis. The length of the repayment term can also be negotiated with
the service and can be from one year up to several years. Although monthly
payment installmenst will be lower the longer the period is, it is important
to remember that the accrued interest each year may mean that you end up
paying more than you would have without a loan or with higher payments.

Often the businesses that offer consumer debt counseling and consolidation
services will ask if the client would prefer a variable interest rate or a
fixed interest rate. Variable rates mean that the client will be able to
make extra payments at any time without incurring any penalties. Most people
will go for this option as it offers a chance to pay out from under the debt
sooner and people find that they can find teh money to do so. Fixed rates,
on the other hand, mean that if you want to pay off the debt early you may
be penalized by the company.
Obviously, the best option for most people is the variable rate option,
under which they can determine how quickly their debt is paid off, lahtough
the interest rates incurred may be higher.

About The Author: Barry Brokhard very often publishes news on areas related
to business debt and credit repair. Through his reports (such as
http://www.creditenio.com/counselling.html on debt counselling ) he
established his deep knowledge on the topic.

Understanding And Taking Advantage Of Home Equity Loans

The term "equity" may send you looking for a dictionary to learn what it
means. If you are like most people, then you have probably heard the term
used frequently on television thanks to a very hot housing market over the
past couple of years. The following will clarify the term for you, and if
you are a home owner, may even teach you about a loan option available to
you that you didn't even know existed.

What is Equity?

Equity is the amount of something less any debt. In the case of real estate,
for example, the equity in your house is the value of your house minus what
you have left to pay on your mortgage.
If your home is worth $200,000 and you owe $50,000 on your mortgage, then
your house's equity totals $150,000.

A home equity loan allows you to take out a loan based on the equity you've
amassed in your property. Many people take advantage of this option in order
to remodel their home, take a vacation, payoff credit card debt, or even
purchase a new car.

If you own a home and are just learning about this option it probably seems
very appealing. If you decide a home equity loan is for you then you will
need to contact a lender who offers this type of loan. However, it is
important that you make sure and shop around. Get a minimum of three quotes
from different lenders in order to find the best deal. Shopping for a home
equity loan is not much different than shopping for a car or expensive
appliance. Financial institutions compete for business. Give yours to the
one with the best offer.

The Benefit of Home Equity Loans

Many home equity loans are offered with low interest rates.
This is because when you take out a home equity loan your home is used as
collateral. The lender sees this as low risk because if you default on the
loan, the lender can sell your house and recoup most, if not all, of the
loan made to you.

Credit card debt is the biggest reason many people take out a home equity
loan. Credit cards charge interest rates that can be as high as 21%, while
home equity loans charge a rate that can be as low as 4%. For a family with
several thousand of dollars in credit card debt this translates into high
payments each month, especially if the debt is spread over more than one
credit card. A home equity loan offers the opportunity to combine the debt
and repay it using the proceeds of the loan, which in turn will save the
borrower a significant amount of money in interest charges.

Yet others may take out a home equity loan to cover unforeseen circumstances
that arise, such as job loss or illness. A home equity loan can help lessen
the crunch of overwhelming medical bills, as well as allow you or a loved
one to take the time off work necessary to recover without the worry of
financial strain.

If you've worked hard to build equity in your home and you find yourself in
a financial pinch, a home equity loan can be a great help. However, maybe
you want to remodel your house and improve its value even more, or maybe
you're looking to buy that new Mercedes without having that $800 per month
car payment.
Whatever your reason, if you are a homeowner with a significant amount of
equity in your house, feel assured that the years of mortgage payments you
have made have paid off.

About The Author: Read more Finance related articles at:
http://www.myfinance-magazine.com

How to get the best credit card?

Different people have different needs. Depending on who you are and your
circumstances, the best credit card deal for you will vary. I will take you
through the things you should be looking for, but for the best current deals
I suggest you check Money Savings Expert regularly
(http://www.moneysavingexpert.com).

Credit cards allow you to spend a certain amount of money at an interest
rate that will be charged every month. The spending amount that is available
to you can be seen differently. Some see it as an additional amount to
spend, some see it as a ‘risk-free' borrowing opportunity. Credit card
spending is not a ‘free' spending opportunity, as you will need to pay this
money back. This money does not work like a loan, as the amount available to
you is not all cash. However, it can be treated as a ‘loan' and this concept
will be explained later.

Other very important concepts that have to be understood before getting a
credit card, is 0% offers. There are two kinds of 0% offers: on purchases
and on balance transfers.
The first one allows you to spend the money provided to you by the credit
card without paying any interest for a certain amount of time. So, for
example, if the credit card gives you a limit of £500 for three months, then
you can spend £500 against this credit card and not be charged interest for
the first three months since the credit card was opened. However, once this
period of time expires, you will be charged the credit card interest rate.
This interest differs depending on the credit card, so if you intend to pay
this interest, then you ought to look for the lowest interest rate
available. Paying interest can be avoided, unless you have already overspent
too much and are using credit cards to pay off other credit card interest.
In this case you should call some of the debt consolidation companies and
try to get some your credit card debt written off. Another reason why you
might be in the position of paying interest is because you forgot when your
‘0% free time' ended. If this is the case, you will be informed about this
with your first bank statement. Transfer your balance to a different bank or
pay the debt off and avoid any further interest payments.

For those of you who don't have interest payments, you can take advantage of
the 0% purchasing and make some money.
You need a good credit history record to make this work and you also need to
be disciplined. The easiest method is to do all of your normal spending
against the credit card, while putting the money that is coming in into an
interest-earning savings account. For example, if your credit card company
lets you borrow £2,000, and you have £1,000 coming in as a salary every
month, then put the £1,000 into a savings account and do all of your
purchasing with a credit card. There are a few things to watch out
for: credit card companies will charge you for cash withdrawals; your cash
limit is much lower then the full available credit; and choose a savings
account from which you can withdraw easily. At the end of the 0% purchase
period, you will need to return all the money that you have spent against
your credit card. You should have that amount available in the savings
account by then, plus interest.
The interest gained is your earnings for this transaction.
You can earn even more if you chose a credit card with a cashback deal. This
deal will pay you interest on all of your purchases made with the card.
However, you should remember, that this is a money-making technique, rather
then a ‘spend more' opportunity. There is a more complicated trick of making
money from credit cards, details of which are outlined by Money Saving
Expert (2006).

If you are making money from the credit cards, there is no need for you to
get card protection insurance, as you should have enough money to pay off
the credit card debt at any time. At the end of the 0% purchasing period,
you can also transfer the balance to a different card provider.
This is known as 0% balance transfer, but you will be charged a fee for
these transactions, usually around 2%.
However, these fees vary, so you need to check the conditions. There are a
few things to watch out for: the credit limit offered by your bank also
includes your purchases. For example, if the new credit card offers you a
£2,000 limit, with 0% balance transfer for 12 months and 0% on purchases for
three months, and you have transferred £1,500 from your old credit card, you
only have £500 to spend on this credit card. The second thing to watch out
for is your credit score. "Most lenders' scoring systems aren't
sophisticated enough to detect that you're playing this free-cash game. Yet
multiple applications, especially at the same time, coupled with high
outstanding debts, even at 0%, will diminish your ability to get competitive
credit, so the most important thing is to spread card applications out"
(Money Savings Expert, 2006).

However, if you are in the position where you are already fighting the
interest payments, as has been mentioned before, the best thing to do is to
call debt consolidation experts. In any circumstances it is best to pay off
the most expensive credit and store cards first (i.e the ones that charge
the highest interest rates). Furthermore, avoid opening any new credit cards
to pay off the debt. Instead transfer your high-interest debt to lower
interest rate credit cards. For example, if your credit card interest rate
is 16%, while your store card rate is 25% per month, transfer the store card
balance over to the credit card.

Whatever your circumstances, when you do open a new credit card always look
for the longest 0% balance transfer and 0% purchase period, lowest transfer
fee and interest rate charged afterwards. The limit offered to you will not
only depend on your salary and credit rating, but also on the company that
you go with.

Finally, do not forget – don't play the credit card game if you cannot
control it or have a high debt already.

References

Money Savings Experts 2006 "Card Trick" [Available from]:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid
1076883546,34894 (Accessed on: 10/11/06)

Money Savings Experts 2006 "Card Card Shuffle" [Available
from]:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid
1102335753,51771 (Accessed on: 10/11/06)

Money Savings Experts 2006 "Credit Card Newbie MoneySavers Guide" [Available
from]:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid
1103212597,43859, (Accessed on: 10/11/06)

Copyright © 2006 Verena Veneeva

----------------------------------------------------
This article was written by Verena Veneeva professional writer working for
http://www.coursework4you.co.uk You are free to reprint this article;
however should you do so you must place a hyperlink to
http://www.coursework4you.co.uk

Bankruptcy - A Quick Guide

So, what is bankruptcy? I hear you ask. Bankruptcy is the legally stated
inability of a person or organization to pay monies to their creditors. It
is a process designed to eliminate part or all of an amassed debt and to
provide relief to the person who has serious financial problems.

Bankruptcy is a serious issue that will change the way you are dealt with by
services in the financial sector for a long time after you've been
discharged. It is a major decision that must only be taken after a lot of
consideration. When a bankruptcy is initiated, the result is out of the
control of the person involved. Did you know that bankruptcy is recognised
as one of the top life-changing negative events that we experience in our
lifetimes. Also you may not realize that going bankrupt is a fact of life
for many American citizens. Life post bankruptcy is about how you deal with
the various issues you face as you recover.

Whether you choose to go bankrupt is a very personal decision.
There are numerous ways to file bankruptcy for example through an attorney
assisted filing, or by using online bankruptcy services or by a personal
filing. Another thing I should mention is that congress recently passed a
law that will make it harder for certain people to file bankruptcy, but it
is still possible.

There can be lots of reasons a person chooses to file bankruptcy, hopefully
they have thought it through. People with not enough assets or income are
still able to file a Chapter 7 bankruptcy, which will eliminate their debts
entirely after particular assets are forfeited. The fact is you should only
file for bankruptcy when you have made every effort to repay your debts, but
can see no other alternative.

Most folk will have a look at debt consolidation, credit repair firms, or
debt management companies first. If none of these avenues solve your debt
problems, then you will have to consider bankruptcy.

About The Author: James Hunaban is the owner of -
http://bankruptcy.jims-info.com/ - a site dedicated to Bankruptcy
information.

Where To Go For Debt Consolidation

It is one thing to know that you need to go on a debt consolidation plan,
but what exactly is this, and where can you go for information?

Often you will not want to ask friends, relatives or colleagues about a debt
consolidation program because you will not want them to know that your
finances are in such a mess. However, there is a lot of information out
there to help you find what you need without having to ask people you know
questions that can make you feel embarrassed.

The internet is probably the main place that you will find a wealth of
information on debt consolidation. If you go into a regular search program
and just type in 'debt consolidation'
you will be rewarded with more information than you can even take in. Some
of the information you get will be from companies that are in business to
consolidate debt and help people, others will be from consumer forums that
give advice about where to go for help, and still others may be from the
creditors that realize that people get into trouble with too much debt and
want to steer their customers in the right direction.

Spend some time and familiarize yourself with all this information. Read the
testimonials on the websites and read what others have to say elsewhere as
well. Then make the decision that you feel is right for you.

After that you can contact a few debt consolidation companies and see what
they have to offer you and what they charge for their services. Some charge
a small fee while others are heavily subsidized by creditors so that they
can offer their services free of charge. Many also offer other services such
as money management counseling and budgeting. Talk to a few and find the one
that you are most comfortable dealing with and that have a program best
suited to your individual needs.

The most important part of this process is actually taking action and doing
something about your situation. It is very easy to sit back and try to
pretend that everything is under control, when in reality everything is
unraveling and you are becoming more and more uncomfortable with your
financial situation.

Whatever you decide to do, you should do it soon and get things under
control. So do your research, organize your finances and contact a debt
consolidation company to help you out.

About The Author: George Davidsberg is writing mostly for
http://www.creditenio.com , an online site about debt loans and consumer
debt repair. Through his publications (for instance
http://www.creditenio.com/debtrelief.html on debt relief consolidation ) he
expressed his know-how on the topic.

Resisting The Credit Card Urge

Whether you are trying to get out of debt, or stay out of debt, temptation
can be your biggest enemy. Many people get into debt, only to get right back
in within two years. The temptation is having what you want, when you want
it. However, there are ways you can afford to live without that urge and
keep your credit in check.and they aren't hard either!

Only get what you need

Look at your cards and evaluate what you use each one of them for. You may
have a few department store credit cards, and a few cards that you may get
bonuses for such as air miles or Disney points. You don't need those!! The
department store cards, while most offer you a discount several times a
year, often come with one of the steepest interest rates you will ever see.
The trick about the rewards cards is that you can't get the rewards unless
you pay off the credit in full! So if you buy two thousand dollars worth of
junk to get enough air miles to fly to Vegas, you'd better have two thousand
bucks in cash to pay that off so you can actually go! So if you are going to
have credit cards, just have what is absolutely necessary for emergencies,
maybe just one good card with a decent spending limit and low interest rate.

Cut them up!

If you are swearing not to use the cards, then cut them up! If they have a
balance on them, write your card numbers down so you can continue to pay
them off, if not call and cancel them.
That way, the next time you see something you really want, you won't be
tempted to dig that credit card out of its hiding place and charging more
money to it.

Carry Cash

When you go to the grocery store, the drug store, or even out to the bars,
only carry cash and an id. If you don't have your card with you, you can't
spend on it. This also serves as a very good budgeting tool. When you go out
for a night of drinking with your friends say you are only going to spend a
certain amount. Take that amount out of the atm, and when you run out of
money, you are done partying for the night. You may be less tempted to get
those expensive mixed drinks and stick to beer, when you only have a few
bucks left!

About The Author: Visit Debt Sanity to view our http://www.debtsanity.com
online. Also, visit Debt Sanity for help finding Credit Card Debt
Consolidation Services.

Social Pressure: A Cause Of Credit Card Debt

There are many reasons why people go into debt. Some say it is because of
unexpected expenses, others say it is just simply too expensive to live
these days. However, one of the most common reasons people sight for getting
into debt, is the need to feel like they are keeping up with everyone else.
Social pressure in other words, leads many people to unnecessarily spend
money on things that they don't really need so they can feel like they fit
in. It is an age old cycle with devastating consequences.

Socializing your money

All around us, people are spending money. Everyone has that friend who
always wants to pick up the tab for dinner or after work drinks. Some feel
that people do this just to be nice, others feel that people do this to show
off money. Ultimately it causes others to feel that they need to do the
same. It is the same thing with vacations, cars, clothing, and pretty much
every other material thing in life; every time you think you have what you
want, someone upstages you. "Keeping up with the Jones's," is in fact a very
real problem. However, people don't often stop and think how the Jones's are
actually affording all that they have. Do they have a lot of money? Or do
they just put in on credit cards like many of us do? If that is the case,
all we are doing is trying to keep up with the Jones's debt, a game which
should be left alone.

Shift your thinking

Instead of getting jealous every time your neighbor gets a new set of golf
clubs, think about how much you would pay in interest for those clubs. In
fact, maybe he is doing the same thing. New stuff doesn't sound nearly as
good, when you consider how much you are actually paying for it when you
charge it to a credit card. Instead, save up for big purchases, they will be
much more rewarding in the long run. While you are retired, living a life of
leisure, your neighbor is probably still working to pay off all of those
toys he put on credit cards.

About The Author: Visit Debt Sanity to view our http://www.debtsanity.com
online. Also, visit Debt Sanity for more information on
http://www.debtsanity.com/debt_management_tips.shtml

Consolidating Debt - Investing In Debt Management

John Dewey had quoted that a person's money had more value than their
credit. However, today's creditors, like banks, do not share the same view.
A good credit file report history is essential for obtaining personal loans.
However, the inability to repay personal loans causes people to avoid calls
from debt collectors and to miraculously pretend to forget any debts owed to
their creditors.

The resulting fact is that all your banking, financial, purchasing, credit
and store card, and other credit history is reported to credit bureaus by
your creditors and recorded on your credit file. This file is designed to
assist creditors, like banks, to evaluate your credit history and any risk
you may pose in regards to repayments.

Bad credit is not a dead end street, and you can repair and rebuild it in
time with the proper management of your finances.
However, one or more bad credit reports on your file will have you black
listed by the banks, destroy your credit score, and stop you from investing
in something you want, like a car.

A creditor's negative credit report takes up to 7 years before it is removed
from your credit file. However, you still need at least one year of good
credit reporting after that before you can start getting credit or personal
loans again. To avoid waiting 7 years for the item you want, like a car,
even though you may have a very good income and professional status,
consider a problem free, loan for those with bad credit.
Simply, apply to consolidate debt, your debts.

A debt management loan for those with bad credit does have a higher rate
than normal personal loans. However, such a loan focuses on your current
situation and regular and steady employment, whilst ignoring your past
credit report history.

You benefit from promptly fixing your credit report history and credit
score, and you can start to rebuild your life. You have the opportunity to
work towards buying a home or negotiating a lower interest rate on your
credit credit cards.

If you make your payments when they are due, the bad credit history personal
loan will work for you. Without this you cannot benefit from any major
purchases you wish to make, like buying a car. This loan will work if you
make it work.

Again, bad credit report history is fixable and not the end of the line for
you. Most people have experienced bad credit at least one or more times in
their life. Now is the time to rebuild and create your positive credit
future by considering the benefits to you by using a bad credit history,
personal loan and the workable interest rates they provide.

About The Author: Jack Blacksmith published essentially for
http://www.debtania.com , an online site with topics around managing money
and finance. His writings on personal loan to consolidate debt are found on
http://www.debtania.com/personalloan.html in addition to other web sites.

When You're Considering A Home Equity Loan

The average American has about $10,000 worth of credit card debt. Consider
the high costs of daily living that can be attributed to children, food,
healthcare, high gas prices plus the extras, and it's quite easy to see why
many Americans are struggling. Many people have turned to their most
valuable asset, their home, in order to get out of debt and to get back on
track. Home equity loans have helped many individuals do just that.

A home equity loan allows the homeowner to take out the equity in their home
in one lump sum. The loan must be paid back after a set period of time at a
fixed interest rate. Payments must be made every month. This type of loan is
so attractive because it allows the borrower to secure a big amount of cash
at a low interest rate. Home equity loans can be a very good way to pay off
debts, make home improvements, secure a big purchase or simply cash out.

Another great advantage of home equity loans is that the interest one pays
on the first $100,000 is tax deductible. This is in contrast to credit cards
or other unsecured debts, where you get absolutely no tax benefit.

It is important to note that a home equity loan is a secured loan. It uses
ones' home as collateral. This means that if an individual fails to repay
the loan, their home will be repossessed. It is for this reason that anyone
contemplating a home equity loan be absolutely sure that they can re-pay the
loan. If they later find they cannot, not only will their house be lost, but
any equity as well.

Home equity loans can be a good option for individuals needing to borrow
money in order to pay off credit card debt, pay for college tuition or make
home improvements. This type of loan allows for a big cash out at a low
interest rate with tax benefits. However, home equity loans are not without
their risks. Because this type of loan uses ones' home as collateral, it is
absolutely imperative that anyone who chooses to use this type of loan is
able to repay it.

About The Author: For more information on getting better Mortgage Rates and
great money-saving
http://www.lenoxnationalmortgage.com/navigation/index/Second-Mortgage.html
tips, and resources, visit http://www.lenoxnationalmortgage.com