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Protecting Yourself from a Debt Relief Company

If you are seriously in debt, you may need the help of a debt relief company. These companies promise to get the creditors off of your back, negotiate for you, act as a shield of protection, and guide you to the right way to pay off that debt. Unfortunately, for a majority of these companies, the real goal is to scam you out of any remaining assets that you might have. Here is what you need to know and need to look for in a debt relief company, in order to protect yourself. First of all, why would these companies … Continue reading →

To Get Out of Debt, Start Small

The bills are piling up in the corner of your desk, and it seems that every day the mail brings a new stack to deal with. Although the collection agencies haven’t started calling yet, you know that it is only a matter of time before they do. You want to get out of debt and get back on track, but the whole thing seems so overwhelming. Fortunately, it really doesn’t have to be. Just start small and go from there. Most financial advice about debt will guide you toward paying off the debt with the highest interest rate first. This … Continue reading →

When You Are Swimming in Debt

Have you ever seen HGTV’s “My First Place”? It’s about first-time home buyers looking for the perfect place to call their own, within a set budget. I’m always amazed by how seemingly transparent they are with their finances. I’ve seen a few episodes where the buyers freely divulged how bad their credit scores were as a justification as to why their budget for house hunting was so low. Another episode followed a guy as he tried to repair his credit while house hunting. The show documented the jockeying he did with lenders as he waited for his score to improve … Continue reading →

Pros and Cons of Paying Down Debt

I know what you are asking: “How can there be any cons related to paying down debt?” If you are not careful, there are several ways you can dig yourself deeper into debt trying to pay loans and other bills. In a previous blog I addressed the option of cashing in retirement accounts and other investments to pay down debt. While there are a number of benefits to doing this, there are also quite a few downsides as well. In fact, the Department of Labor went public recently warning Americans that making permanent withdrawals from their retirement accounts is not … Continue reading →

Digging Out of Debt

With gas prices creeping to the $5 mark, I have a feeling that many of us are going to be cash poor very soon. That’s if you aren’t already digging out of debt from losing a job or getting your hours reduced when the economy first started taking a nosedive. Getting out of debt can be very challenging. While some people, whose debt has grown out of control, turn to consumer credit counselors, others take matters into their own hands. Studies show more and more people are borrowing from retirement accounts in order to pay down debt. The problem with … Continue reading →

Paying Down Debt

Who doesn’t want to live a debt-free life? Shelling out hundreds of dollars in interest each year on car loans, credit cards and mortgages is not exactly the financial situation most of us strive to be in. Paying down debt is an arduous process, but it can be made tolerable if you follow a few simple steps: Step #1: Carefully examine the details of your debt. Look at your balances and APRs affiliated with credit cards. In addition, review mortgages or other loans to fully understand the financial parameters you are working with. Step #2: Make a list. Write down … Continue reading →

New Debt Relief Rules

There are many tools available to consumers to help them repay their unsecured debt. If your debt load has gotten overwhelming or unmanageable, you’ve probably been looking at ways to get help. I know how oppressive and insurmountable debt feels. Getting out of debt is a lot like losing weight. When you see the entire dollar amount you have to lose to be financially trim and healthy again, you want to throw in the towel and go shopping. Instead of viewing the entire debt load as a whole, break it up into manageable pieces with changes you can make every … Continue reading →

Evaluate Your Debt Situation

Is debt one of your four letter words? Do you use credit entirely to your advantage instead of letting it control you? My parents taught me to save for what I wanted and buy with cash. My parents taught me that credit cards were useful tools and shouldn’t be used beyond what could be paid off each month. Credit cards are awesome things. You can gain so much from responsible credit card use. You can earn airline miles. You can earn points to buy items. You can earn a percentage of your balance so you end up paying off less … Continue reading →

Debt Settlement

This morning I saw a commercial for a debt forgiveness program. It’s not the first time I’ve seen the commercial and other ones like it. It sounds really great. Just wipe away your credit card debt without declaring bankruptcy. I’ve known for years that you can call your creditors and negotiate a repayment of a fraction of what you owe. The theory is that the creditor will be grateful for any payment and a settled account is better than one that ends in default. What you’ll find, though, is that creditors don’t want to settle the debt. Why should they? … Continue reading →

Bouncing Back from Bad Credit

A bad credit rating can have multiple aspects of your life if you are not careful. While most people are well aware that a bad credit score can make it impossible to secure a loan, there is also a litany of other negatives associated with a dismal credit report. For example, even if you are able to secure a loan from a financial institution, if you have bad credit, you will likely be forced to pay a much higher interest rate. In some cases you may also be hit with fees because lenders consider you a risk. In addition to … Continue reading →