Are you afraid of debt consolidation because you worry that your credit rating is going to be negatively affected? If so, then it is time to take a reality check. Debt consolidation loan is definitely a positive step towards improving credit rating. Not convinced? Here are some facts that might sway your opinion.
So, you’ve got bad credit and don’t know where to start to get back on track. Credit repair is not an easy task and you’ll need realistic short-term and long-term goals to bring your score up from the depths. Don’t be fooled by promises of fast recovery, repairing your credit score can take months or even years in certain cases. You must understand that repairing your credit is going to take considerable time and do not be disappointed if you don’t get instant gratification. Fear not, it’s not all doom and gloom. Recovery is not impossible as long as you follow a good plan. Here’s a few ways to get started. (more…)
Do you want to apply for a loan or a mortgage, but don’t know if you’ll qualify because your credit score is too low? Many people have a hard time maintaining good credit and are struggling to survive in an era where your credit score is as important as the balance of your checking account. Having good credit grants you, amongst other things, access to higher credit limits, easier and faster approval for credit, and even a better chance at getting a job. As you can tell, credit is crucial. Do you know how to boost your credit score? If you don’t, here are 19 things you can do to boost and maintain a high credit score. If you do know what to do, take a look anyway. Some of these tips may surprise you. (more…)
Most people think that they’ll be through with student loans by the time they retire, but that’s not always the case. According to the U.S. Treasury Department, the number of people who had their social security paychecks garnished to repay federal student loans in 2012 was 122,056 versus just 6 in 2000. Obviously, there are far more seniors who are getting into trouble with student loan debt than ever before. Part of the reason for this is federal student loans cannot be discharged, even in the case of bankruptcy, unlike other types of debts like credit cards or mortgages. (more…)
Have you ever wondered what happens to your debt when you die? Every case differs depending on the type and terms of the loan, as well as the marital status of the deceased; however there is a roadmap that outlines how most debt is resolved after the death of one of the parties. The first thing that happens is a review of the loan’s terms. If the debt is co-signed it may fall to the co-signer to pay the remaining amount, but if the debt was held in the name of the deceased alone, the tab may fall on the deceased’s estate. If you’re hoping to get some money out of an estate as a surviving heir you’ll have to wait your turn; lenders that are owed repayment get the first crack at the estate. (more…)
The Center for Responsible Lending (CRL) issued a report at the end of 2012 that detailed how predatory lending has impacted the Latino population, devastating their finances. For this special demographic, household wealth declined 66 percent overall. With this loss of income and financial well-being, many Hispanics end up using predatory lenders to finance school and car loans with even more severe effects on their financial status. (more…)
Let’s face it, you need credit. From loans to leases and everything in between, your credit score is the vehicle that will get you there. Your credit score reflects your ability to pay back loans or pay bills on time and in their full amount. It let’s lenders and vendors know that you can be trusted to pay them. It’s a good practice to monitor your credit report and carefully watch your credit score. While you shouldn’t compulsively check your score (this can actually hurt your credit), you should pull your score at least annually. Who calculates your credit score, you ask? Credit scores are calculated by three credit agencies: Equifax, TransUnion and Experian. These companies compare your complete credit history with your recent credit history and use proprietary equations to develop your score. (more…)
Getting out of debt and taking control of your finances should be your number one goal. This does not mean that you can’t take out loans or lines of credit, but rather means you must do so within your means to repay. Many people believe that loans are the reason they are in debt; this may not necessarily be the case. Loans do play a role in getting us in to debt, however they can also be the key to getting us out of debt. Through helping us to consolidate debts as well as to buy things we need, like houses and cars, loans are the key to controlling our debts.
The recent events in Ohio show us that the stress of debt can lead to a sad situation. Terry Thompson of Zaneville, Ohio took his life Tuesday, which may have been due to the $68,000 he owed to the IRS. (more…)
Many file bankruptcy as a last resort to free themselves from their debt. This means starting over financially and after you file you have to rebuild your credit from nothing. Filing under chapter 7 bankruptcy allows you a fresh start. Although bankruptcy usually carries a black mark, there is no shame in recognizing you have a problem and doing what you can to get on the right path.