Archive for September, 2009

Is debt consolidation smart?

Does debt consolidation hurt your credit, cost anything, and how exactly does it work?

Debt consolidation usually means they (the company) will lump all your debts together and spread out payments for you. They can’t always get you out of debt immediately and some often charge monthly fees, so in the long run, you wind up owing more anyways.
Avoid credit repair agencies that charge a fee to improve your FICO score by removing negative, but accurate, information from your credit reports. No one can force credit reporting agenciess or lenders to remove accurate information from a credit report. credit repair companies often take your money without delivering what they promise, or provide only temporary improvements of
your score, sometimes by removing accurate information that will reappear later.

Your best bet is to get help through a credit counseling agencie. They charge only a small fee and in some cases may waive the fee.

Here is a list of those that are approved by the FTC.
http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

Hope this is of help to you.

My credit score is probably 0 (yes I know that’s not possible) but it’s pretty bad. Say for example I want a $5,000-$6,000 car, how much would I have to put down and how much would the interest typically be?

Check out this site to find the best auto loan just in one minute,

http://best-auto-loan-usa-rate.blogspot.com/

Here you can get free quotes from different auto loan companies in your area, its the best way to find an affordable auto loan with a reliable company.

Best Wishes,

I have a credit card debt is not so much I actually thought I can pay it all off. I received a phone call from the bank and they offered a settlement much less then what I owe. Can this really back fire on me or affect my credit in a really bad way?

Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one - credit-report-free.totalh.com

Hello, Im in much credit card debt, around $40,000, and was wondering if someone knows of a good reputable debt consolidation company that can help me, Thanks.

These are important points to check while searching for a reputable debt consolidation company;

First, while talking with debt consolidation company representative you do not get a clear explanation about what exactly their services are, worst than that, they try to force you accepting some of their debt consolidation loans.

Secondly, there are hidden charges involved by taking their services, for instance an upfront payment is a big no-no warning. Moreover, you need to read thoroughly any documents searching for other kind of fees different of the interest rate, in the case you are applying for a loan.

Thirdly, how about disclosing your financial information before even talking about the services offered with the debt consolidator, there is no reason to do that and you know this is another important warning.

Last but not least, remember that by making good faith payments your are giving debtors proof that the debt is yours, then they can start charging fees because of this payment, some debt consolidators could ask you for voluntary donations or the good faith payment mentioned before, as you can see this is another way to trap you, once the payment is made they will start the status of limitations over.

One good debt consolidation company I know is http://www.consolidate-bills.com . I’ve been working with them 3 times and I am very happy with the result. You should try it.

Good luck

I’d like to know of anyone who has actually used Lexington Law credit repair and of their experience. I have gotten mixed reviews on the company, so I’d like to hear from some actual users. Was it successful? How long did it take? Any problems? How was their communication/customer service? Do you get to talk to a real lawyer ever?

?redit repair work?d fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service - buildcredit.ifastnet.com

There is a law firm that keeps popping up on websites that says they can improve your credit score. Has anyone actuallly tried this service. If so what was your experience with them? Am I better off trying to repair my credit myself.

?redit repair work?d fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service - buildcredit.ifastnet.com

I am thinking of getting a particular credit card to use on a purchase due to the fact it offers money off the purchase. I know this isn’t a great idea, so I’m still thinking about it, but my concern is with my credit. My credit is fairly good right now and I’m wondering if I get the card and cancel it shorty after, how long does it take to build the credit I lost from getting & cancelling the card, back to normal? If it’s just a few points, does that take weeks/months? Thanks.

If you want to do it, heres the right way to keep your score in range..
If it is a store credit offer ( macy card, sears card, you get the idea) it’s not worth the damage to your FICO score. When you open a new line of credit your score drops up to 200 points.. and with store cards usually charging 24% interst, doesn’t adding it to an existing card of 6.9-18% sound a little better.. you’ll be paying a lower interest rate, not adding additional lines of credit, and keeping your score within range of your current number. (Depending on the purchase price it could drop your score up to 100 points, but still better than 200)
Best thing is to pay cash or lay-a-way if possible, if you charge it use this formula to pay it off quicker..
take the price of the item ( example 600 $) divide that by the months you want it paid off ( 12 months) gives you a 100 $ cost… add the 100 dollars to the minimum payment due.. normally 15 dollars is now 115 dollars.. and you’ll pay it off in 13 months.. you gain a month for interest, but increase your score every month you are on time or early.

I am interested in finding a credit repair company that has proven to have a very positive impact on your credit score. I know that the best way is to do it yourself so I would not like to hear responses from people who have no actual company in mind. Thank you.

I tried on my own and got 3 things off. Then signed up with Lexington Law for a small monthly fee and they got another 3 things off. I only used them for 3 months because I was tired of paying them. It was a mistake I should have at least stayed 6 months. I’m not sure what they do differently because what they got off, I’d already tried and failed.

Also, a good resource is…

http://debt.123thebest.info/credit_card.html

All the best to you.

I’ve been seeing these infomercials about people with bad to no credit buying home. How the heck are they doing this? Is it all a scam?

It’s going to get a lot harder to do this with companies like Countrywide in financial trouble. But it is possible for someone a couple of years out of a Bankruptcy to qualify for a mortgage. Why? Because presumably they don’t have a lot of debt. Other ways might include a contract for deed, lease to own or owner financed mortgages where it only really matters that you can make the monthly payment.

Trying to get help with debt by a debt consolidation loan but I can’t approved. I’m behind on payments so I just keep sliding deeper into debt with late fees and I’m trying to pay it but can’t get the help I need. help!

Home equity is a bad idea. If you put all that money on your house and something happens and you cant make the housepayment then they will come and take your home.
There is no easy way out. A written budget would be the first thing you do. Cut back on the things you dont need until you get the debt payed. take a second job for a while.
you could try daveramsey.com and listen to his radio show. he has lots of good advice on money and debt.
i wouldnt go with any company to handle it. They dont do anything that you cant do yourself. What they do is not pay your creditors for months and then try and settle for less. Something you can do yourself if that the route you need to go.
Just remember that if you go with some company to pay your debt and they dont pay then You, and you only are responsible for the debt. Your creditors will sue you and not the company you hire.