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Fri 7th May, 2010
Posted in Consumer debt, Credit Card, Credit record, Debt Consolidation, Debt management at 3:53 pm by Steve Smith
Although there is nothing wrong with trying to handle your financial woes and paying off whatever debt you have accumulated on your own, you may also be missing out on the benefits that seeking debt help or utilising a debt management plan offers. Unfortunately, a lot of people are still skeptical as to how debt management works and how getting the right debt advice can markedly alter not only their financial status but their lives in general.
Making use of multiple credit cards may seem to good to turn down considering how card companies market the possible advantages of relying on credit so heavily, including free trips to various locations to garnering purchase discounts. What most people don't figure out is that cardholders are essentially being lured into spending more than what they can actually afford. Sooner or later, you end up finding yourself in deep trouble and running out of excuses to give credit collectors who relentlessly demand for immediate payment or even issue disconcerting threats. When your situation comes to this, it is easy to feel as though there is no possible end to such a problem and that you may as well give up everything you own at the risk of going bankrupt. This type of problem, however, is not an isolated case and is being undergone by many other individuals who feel just as desperate and uncomfortable at having drowned in a huge amount of debt.
Getting rid of the stress that comes in dealing with several creditors and their collection units as well as the chance to regain good credit standing are only a couple of the good things that the debt management process can lead to. Under a debt management plan, a debt advisor will be able to help you look at your position in its entirety and come up with a method that should rectify it. You will be given a chance to slowly settle your debt throughout a couple of years or so through a payment plan that may allow fixed monthly payments that are as minimal as possible. Since the debt management company will be taking charge of communication with and payments to your creditors, undergoing a debt management plan no longer requires you to deal directly with your creditors. Credit card companies actually support this kind of setup as it assures them of being able to collect payment over time.
The key in making the most out of debt management is making sure that you avail the services of a legitimate debt management company. Go for the best option among as many as you can get to choose from. Asking around for the help that you need is definitely a step up from the frustration that being in debt can come with.
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Wed 10th Sep, 2008
Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Credit Card, Credit record, Debt management, Homeowner Loans, Missed payments, Personal debt, Personal loans, Property, Secured loans, Tenant loans, UK Finance, Unsecured loans, interest rates at 1:34 pm by Steve Smith
There’s a lot of confusion about credit ratings amongst people seeking personal loans and other forms of credit.
Many people believe – wrongly – that a credit record shows whether a lender has refused credit. This is not the case. Every time you apply for credit a ‘footprint’ is created on your credit record to show other financiers what you have been up to, but no record is immediately made as to whether you took up an offer, or whether it was refused.
One thing that varies from lender to lender is ‘how much is too many?’ Most of us are familiar with the concept that lenders looking at a credit record showing multiple applications may – quite rightly – view this as a sign of someone desperately seeking credit. As this is rarely the sign of a good potential client, many lenders will turn this applicant down on principal.
But how much is ‘too many’ when it comes to applications. Lenders will obviously vary, according to their criteria, but a flag usually goes up if more than four applications have been made at any one time. If the applications are spread across a period of months, the lender will be more lenient.
Another factor that people misunderstand about their credit rating is how much stability affects their core rating.
When you apply for credit – be it a mortgage, a credit card or a personal loan – the lender wants to know more than anything that you will be able to repay. The greater the risk perceived, the higher the interest rate charged, which is why bad credit loans can be so expensive.
Factors affecting this can be whether you are married – a sign of committment – whether you are registered as a voter, how many times you have moved house and even how many times you have moved job.
Someone who is seen as high risk is not necessarily someone with a history of missed repayments and ccjs, but maybe someone who has jumped from job to job, moved house or town many times and generally shown a lack of stability.
So, if you’re wondering why you weren’t offered the best rates available on the loan you wanted, you may need to look deeper than you thought.
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Mon 8th Sep, 2008
Posted in Bad Credit, Banking, Bankruptcy, Borrowing, Consumer Credit, Consumer debt, Financial news, Homeowner Loans, Homeowners, House repossession, Housing news, Missed payments, Personal debt, Personal loans, Property, Secured loans, UK Finance, Unsecured loans, mortgages at 11:39 am by Steve Smith
In surprise news this morning, the US government has announced that it will bail out America’s two largest lenders, Fannie Mae and Freddie Mac.
Whilst this may seem far removed from the daily grind of most people’s lives, the effect of this action will have far-reaching implications around the globe and already has seen a positive affect on global stock markets.
Most UK homeowners will have never heard of either company, but together they are the largest holders of home loans in the world and as the saying goes, ‘when America sneezes, the rest of the world catches a cold’. In the last year they had been suffering unsustainable losses, as the American home loans market went into freefall and this was a large part of the credit crunch being felt by all.
Once confidence was lost in America, Asian backers stopped investing funds and the resulting lack of liquidity on the loans market has meant that everything from business loans to small personal loans has been affected by a lack of funds to be lent.
With this move – long overdue according to finance pundits – investment into America is likely to restart from healthier financial markets which experts hope will begin to halt the recession which is threatening to sweep the world.
What does this mean to the average borrower? Well, funds are unlikely to rush into the market instantly, but finance is a fast moving beast and so hopes are high that relief will be imminent for Western business and individuals. Particularly in America where an estimated 9% of homeowners are behind in loan repayments, risking repossession, bankruptcy and long term bad credit.
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