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Articles from Know about Debt Consolidation

Fair Debt Collection Practices Act 2008-01-21 23:10:00 According to Fair Debt Collection Practices Act, debt collectors cannot use unfair, deceptive, or abusive practices to collect debt. It does not technically apply to banks, department stores, and other lenders who collect their own debts, but no reliable lender is permitted to use such practices. Some of the provisions of this act include:Debt collectors can only make reasonable efforts to communicate with the debtor.Consumers may sue collectors for punitive and actual damages.After making contact, debt collectors must send the debtor a written notice detailing the amount of debt, name of the creditor, and giving a time limit for the debt to be disputed.Debt collectors cannot use threats, obscene language, publicize the debt, make annoying or anonymous telephone calls, misrepresent the identity of the collector, the status of the debt, or the consequences for not paying. ...

Fair Credit Billing Act 2008-01-18 03:40:00 According to this act consumers are responsible for notifying the creditor within 60 days of receiving the bill and the creditor must respond within 30 days of notification.This act assures the prompt correction of errors on open-ended credit accounts and protects credit ratings while credit is disputed. This means that consumers who are currently disputing an error on their credit report or credit card cannot have their account charges as delinquent. ...

Fair Credit Reporting Act 2008-01-17 00:50:00 Until recently, consumers were not allowed to view their own credit reports. However, according to Fair Credit Reporting Act, consumers have the right to review their credit report and to have the information on the report corrected if necessary. It promotes the accuracy and privacy of information in reports and requires reporting agencies to maintain correct and complete files. Under the Fair Credit Reporting Act:You have the right to a free report if you can certify that you are unemployed and plan to look for a job within 60 days, You are on welfare, or Your report is inaccurate due to fraud. You may request that agencies do not distribute your name for unsolicited offers. When denied credit, you have 30 days to request a free copy of your credit report. Credit bureaus are responsible for investigating and changing incorrect data on reports and they should re-issue corrected reports to lenders and employers. Only those with legitimate business reasons can access a credit report. You ...

Determine Expenses 2008-01-15 21:12:00 Determining your expenses is very important for your budget. When you add up how much you really spend in a month, you may be surprised. Mainly, there are three kinds of expenses:There are some fixed expenses like house rent do not change from month to month. Flexible expenses are necessary items like elctricity/power bill that have varying amounts.Finally, discretionary expenses are things that you don’t really need, but may be important to you. Travel might not be a necessity, but it may be important for you to visit some of your close friend or relative.Keep every receipt and record each and everything that you purchase, down to that daily candy bar and Cola from the vending machine.Make a list of current amounts of bills. See if there are any areas that you could cut costs? See what areas you could afford some cut backs and enter the new amounts in the adjusted amount column. Then add your total monthly expenses.One more thing to remember, buying fewer name brands can lower your ...

Loan Consolidation 2008-01-04 01:34:00 Loan Consolidation simplify the repayment process by combining several types of federal education loans into one loan. Thus, you have to make just one payment a month. Also, that monthly payment will be lower than what you’re currently paying.You can get a Direct Consolidation Loan available from participating FFEL lenders. Under either program, the loan holder pays off the existing loans and makes one consolidation loan to replace them. If you have subsidized and unsubsidized loans, they’ll be grouped accordingly when you consolidate so you won’t lose your interest subsidy on the subsidized loans.There are three categories of Direct Consolidation Loans: Direct Subsidized Consolidation LoansDirect Unsubsidized Consolidation LoansDirect PLUS Consolidation LoansIf you have loans from more than one category, you still have only one Direct Consolidation Loan and make only one monthly payment.A Debt consolidation company can help guide you as to what the best type of consolidation is ...

Removing Debts With Secured Loans 2008-01-02 22:03:00 The best time to learn about Secured Loans is before you're in the thick of things. Secured loans assist an individual who is in demand of fiscal backing to fulfill his desires. In fact, over the last couple of years they have proven to be an ideal assistance to many persons who were looking for fiscal backing.Secured loans will wrap for nearly any demand that may go across in the living of any borrower. This is because of the nature of pattern of locked loans. Some of the routine features of any secured loan are that they expect a protection to be provided as screen on the region of the borrower. The protection though can be any worthy asset of the borrower, like an automobile or a car. In addition, the loans are accessible to a borrower of any visibility.One thing that makes the disagreement between the success and bankruptcy of any merchandise are the benefits that the merchandise can go upward with for its users. In lawsuit of secured loans, the borrowers go all the potential bene ...

Ways of debt consolidation 2007-12-26 23:26:00 There are number of ways for consolidating your debts. The most common among them is the home equity loan in which you can use your home as collateral to get a loan. As this is a secured loan, its interest rates are low. If you want a loan without security or collateral, the job gets tougher and the interest rates become higher as this will be an unsecured loan. You can use credit card transfers as well but you must repay your outstanding debt within the time frame of the low introductory rate. Retirement funds and life insurance are also worth a try. You can also approach credit unions that offer loans usually at lower interest rates and fees. If you are not yet a member, find out if you are eligible to join one.One more good option is a no-profit counseling agency, which can negotiate with your creditors to get your late fees waived as well as have your interest rates reduced. You can also try to renegotiate the credit conditions with your primary lender. Also, the personal loan from ...

Tracking Your Money 2007-12-25 23:24:00 Sometimes the simplest things can be the hardest to do like tracking your money. Keep track of what you spend, write down everything you spend, and plan purchases in advance. Sounds easy enough, right? For many, finances are a total mystery. But they don’t have to be. Educating yourself on how common financial matters work and learning about your own financial situation will make you a better consumer and less likely to fall into debt. ...

Credit Counseling 2007-12-24 01:52:00 Credit Counseling can be the same thing as debt consolidation. Many companies use “credit counseling” as a nicer way to refer to debt.A second way that credit counseling can be a “good” term is to actually mean counseling. Many credit reduction companies and private financial institutions offer credit counseling as a type of financial planning. Counseling can help figure out how much debt is owed and how to control debt in the future. Credit counseling can also be a negative thing. The credit counseling industry is so profitable that dozens of new companies spring up each month. Many of them are operated by hucksters out to make a buck at your expense. I've also seen on many sites that those who have participated in credit counseling warn those who haven't not to sign-up. ...

Debt Settlement 2007-12-18 23:40:00 The benefit of a debt negotiation service is that clients usually only pay around 50% of the amount they owe to their creditors.Debt settlement or debt elimination is considered a specialty service mostly offered to people who "fall out" of a debt consolidation program or can't make the minimum payment of a debt consolidation program or the people have large outstanding debts on which they haven't paid in the past 3 months. Once you sign up for a debt negotiation program, stop making payments to your creditors (if you were making payments). The debt negotiation company then takes monthly payments from you which it can store in a holding account. During this process of accumulation, the debt negotiation company is handling your creditor calls and negotiating with your creditors for a lower payoff amount.But, be very carefull, Debt settlement or negotiation can severely damage your credit. Many creditors will immediately forward your account to their legal department for collections an ...

Consolidation Loan 2007-12-18 01:45:00 When a lender loans money to payoff all your credit cards and other debt, you have one monthly bill which is paid the lender. Often these loans do not have a lower APR and can be as high as APR's of 24 percent. Even if you do get a decent APR you are still in debt. The big mistake is people give up secured debt for unsecured debt. Most Debt Consolidation Loans are given in the form of home equity loans which means if you do not pay you loose your home. Now ask yourself "Do you really need to add the stress of possibly losing your home with unsecured debt?"Debt consolidation can reduce your bills enough that you can make minimum payments without risking the place you live. ...

Balance Transfer Trap 2007-12-17 01:20:00 Low-interest balance-transfer cards are becoming popular these days, but remember that those rates only last a few months and then you have to switch cards again. The negative side effect of this is that at some point all this activity begins to show up on your credit report, and you start to look like at a bad risk. If you think you can swing from the balance-transfer vines for a few months, just make sure you formally close all your accounts yourself, and then notify the credit-card company to mark the account "closed at customer's request." Otherwise, on your credit report, it will look like the creditor closed your account. Thus making you look like an even worse risk, even when you're doing your best not to be. ...

Loan Deferment 2007-12-13 22:03:00 Debt consolidation may be able to help reduce your monthly payments enough that deferment isn’t necessary. Deferment is a postponement of repayment under various, specific circumstances. It is best to pay loans as soon as possible to improve your credit. For certain types of loans like Federal Perkins, subsidized FFEL Stafford and subsidized Direct Stafford, you don’t have to pay principal or interest during deferment. For unsubsidized FFEL Stafford Loans, unsubsidized Direct Stafford Loans, FFEL PLUS Loans, and Direct PLUS Loans, you can postpone paying principal, but you are responsible for interest of PLUS Loans. You can pay the interest during the deferment period, or the loan holder can capitalize the interest when the deferment ends. Please note that capitalization will increase the loan balance. Schools must automatically defer your Federal Perkins Loans during the time you perform any service that qualifies you for loan cancellation. But, in most cases, you aren’t just gr ...

Some good reasons to Consolidate your Debts 2007-12-13 00:49:00 Put An End To Creditor Harassment: Any calls you receive when you first enroll can be directed to American Debt Resources, Inc. Once a payment plan has been established between ADR and your creditors, the calls will end completely.Make A Single Monthly Payment: When you consolidate your debts, a single monthly payment relieves you of the stress of remembering when to send each individual payment, how to work each payment into your income schedule, and the headache of trying to decide who should get paid and who you can hold off.Faster Pay Off: When you consolidate your debts, you will have lower interest rates and your monthly payment will be made every month, your debt will be paid off in much less time than you could pay it off on your own.Reduced Finance Charges: Because you've enrolled in a Debt Consolidation Program your creditors will grant you lower interest rates as an incentive. In some cases, interest will be eliminated entirely.Gain Financial Freedom: What could feel better ...

Title Loan 2007-12-12 00:55:00 A title loan is a way to borrow money on your automobile title. If you have a clear title in your name, you are eligible for a title loan. When you get a title loan you receive money on your automobile. After the principal and the interest are paid you will receive your title. This is similar to a home equity loan, except the amount of the loan is generally much smaller. But, borrowing against your title is not the best option. You do not actually hold the title to your car when you get a title loan. Not only will you have to pay for the principle plus interest to get your title back, you will lose your car if you default on the loan. Debt consolidation will help pay your bills without giving away the title to your car. It is a safer option that helps pay off your current debt without creating another debt. ...