Bankruptcy Filing Tips

Credit Relief – Debt Consolidation

If you have been having financial trouble for some time and wondered if there was any credit relief in your future then it’s time to cheer up, the answer is YES!

We have been there ourselves, that’s why we built this site, to help others. If your problems are caused by lapses in good judgment or just plain misfortune we are here to act as a guide to help. So let’s look at some options.

If you don’t get a handle on your past due accounts there is no hope for the future. You already know that but haven’t a clue where to start.

First let’s get a handle on your credit card debt. If you are like most Americans you are maxed out on credit card debt. This must take priority.

The average person in the USA has 11 credit cards according to the banking industry. Eleven credit cards are way too many; you should have not over two or three.

· Your credit cards must not be maxed out. Keep your charges to not over 30% of your limit and whenever possible either pay it off each month. Keep reading and we will show you how.

· If you are looking for credit relief and are considering getting rid of some cards the first rule is get rid of the credit cards you have had the shortest time not the old timers. Part of your credit score is computed by how long you have had the credit card, thus a card you have had for 10 years is worth more than one you got yesterday for credit score purposes.

· Start paying your cards first that have the highest interest. If the company asks for $20 per month, send them $60 if possible. Never just pay the minimum; you will never get out of debt. Keep chipping away at these till you have them paid down.

· When you have the cards with the highest interest paid by approximately 40 – 50% call them and ask for an interest reduction. Tell them that you want to keep their card but unless they give you a rate reduction you are going to pay it off and cancel the card. They will in all likelihood cut the rate considerably.

· Then use the savings to increase the payment on the card with the next highest interest. And so forth, and so forth etc. See, I told you it wasn’t that hard, but it takes discipline – AND don’t add any more to the cards, any of them!

· Set up a budget and live by it. We have budget forms available on our site both the one-month and twelve-month, and they are FREE.

What do I do if my debts are too far behind and my credit card companies won’t work with me?

Let me say first off, try everything before bankruptcy. In 1989 – 90 I owned two businesses, had taken out an SBA loan so I could have some breathing room to grow my company. This was an upholstery business, family owned for 15 years. We had a cash flow problem hence the SBA loan. A friend of mind, a person I had been purchasing some of the products we used came to me about buying him out. This was an older man whom I trusted as if he were my father. Instead he misrepresented the facts to me and I naively bought his company. He wasn’t making the money he claimed and this drained my finances further forcing me into bankruptcy and out of business – undoubtedly one of the saddest days of my life.

So when I say don’t declare bankruptcy if you can avoid it, I know what I am talking about. Plus the new bankruptcy law won’t allow you to wipe the slate completely clean on credit card debt. So let’s explore another option.

A home consolidation loan. This is an option if you own your own home. If you are a renter it is not. If you have a newer automobile, that can also be refinanced.

It is easier for people with bad credit to obtain a secured consolidation loan than an unsecured. A credit card is an unsecured loan and that’s the reason the interest rates are higher than a home or auto loan.

There are two types of home loans; home equity loans and (HELOC) lines of credit against the equity. The home equity loan allows homeowners to take out the equity they have accrued over the time they have lived in their home. Thus if you have a 30 year fixed loan and lived in your home for 10 years you probably have a lot of equity.

However keep in mind that this is secured by your home so if you are not disciplined enough to manage your money you could lose your home and you don’t want that. The (HELOC) line of credit is cash available but you pay nothing unless you tap into it.

Obtaining a HELOC is a good option. We have lenders on our site who specialize in helping people with bad credit. That’s their specialty so check them out and give them a chance to help you solve your problems. Haven’t you suffered long enough? Check them out.

Repairing your bad credit

Once you have managed your past due bills, the next thing you will want to do is start to improve your credit score. Your credit score reflects who you are, so let’s begin to improve that FICO score. Here are the steps.

· Order a copy of your credit report. Order all three. You can get them from our website, we have a direct link.

· Nearly 80% of the credit reports contain some errors according to the credit agencies themselves.

· You have the right to challenge any item that is wrong or outdated and ask that it be removed. You must challenge them individually. They will contact the creditor and then make the decision as to what to do. Don’t be surprised if nothing happens in your favor.

· If you have a lot of errors and don’t get satisfaction then you should consider hiring a credit attorney to get things moving. We recommend Lexington Law because of their track record in this business. As attorneys they know what it takes to clean up your credit report. Can I afford this? Absolutely! They charge a modest monthly fee with a 100% satisfaction guarantee if you are not satisfied! How can you afford not to!

These are some of the steps for obtaining credit relief. You will find much information on this subject on our website 1-800BadCredit.com – Check it out please, you have nothing to lose but bad credit and get the credit relief you need.

About the Author

http://www.1-800BadCredit.com provides up-to-date information for people
with bad credit. Providing auto loans, mortgages and refinance options,
credit cards, Credit Counseling, personal loans, identity theft
protection and advice & tips on saving, budgeting and getting out of
debt. Founded by Dewey & Leslie Kearney who understand bad credit
because they’ve been there too!

http://www.1-800badcredit.com/credit-card-debt-counseling.html

http://www.1-800badcredit.com/bad-credit-repair.html
http://www.1-800BadCredit.com Site dedicated to helping you find credit solutions

1/14/10: White House Press Briefing

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