Jerry Cole asked:




Concept of a consumer debt settlement is to settle a debt with a reduced amount, negotiating with the creditor and to pay a lump sum payment. This type of plan is very effective for debtors who are not in condition to choose a bankruptcy. Benefit to a debtor in this type of settlement that he saves around 60% of his amount and yet pay a lump sum amount in return.

But if we closely watch through the details we will find that a process like consumer debt settlement is not a short term process and as it takes duration of 3-4 years to accomplish a debtor therefore get a reasonable time to save an amount to repay. On the other hand a company which makes effort for a consumer debt settlement takes 10%-15% as a reward of the service provided.

Most encouraging part in this state of affairs is that there are certain working groups which are working to assure that consumer debt settlement should be exercised considering strict code of business ethics in a very professional and healthy manner.

The only thing to watch out here is that even in a condition of settlement a creditor can sue his debtor to recover his sum of amount. Key to learn here is that this act is possible only if your installments are few and there are a couple of months left to go but if you have a huge amount still to pay and want a settlement there are fewer chances that your creditor will sue you and if you borrowed an unsecured debt then the chances for a law sue are nearly to zero.

Benefit for a creditor is that he will at least get a reduced amount which if in the case of bankruptcy and yet keeping an unsecured debt he will just get an egg to peel. Although it is for sure that any type of settlement does affect your credit score but as comparison to file a bankruptcy for a consumer debt settlement is a far better choice to make.

Derek

Nicholas Hunt asked:




Checking accounts offer people a safe way to store their financial resources but have easy access to the money. It used to be said that ‘cash is king’, however, in today’s financial environment, that is not necessarily true. Much of business is conducted online and with electronic machines operated by debit cards. In both cases, people generally use funds maintained in checking accounts to cover payments.

Checking accounts are so-named because historically, people that wanted to access money in the bank had to either go to the bank, or write a check to do so. It is hard to imagine this scenario today. While some people still use checks to pay bills or make other payments, online bill pay programs, debit cards, and other direct withdrawal methods have eliminated much of the reliance on paper checks.

Opening a checking account is fairly simple with most banks. This is especially true with a basic consumer account. Applicants simply complete a form, often done online, and share some personal information with the bank. There are various types of checking accounts that offer different options. Some accounts are free or basic accounts that charge no fees but offer no extra perks for consumers. Other accounts may provide small interest for money in the account or other perks, but may charge monthly maintenance fees.

Retrieving cash from the account is often done through electronic ATM machines rather than in the bank. Payments for products purchased in stores are routinely handled through debit cards that directly pull the funds from the account. Online purchases can be made with debit cards or through e-check programs that pay directly from the account. Many banks offer online bill pay where consumers can even have their bills paid directly from the account as opposed to with a paper check.

Putting money into the checking account is easy as well. Most banks have ATM machines spread through their coverage areas so consumers can use their ATM, or debit cards to make deposits without going into the bank. Many people have their paychecks directly deposited into their checking accounts, which makes the funds more immediately available and reduces potential holds placed on a deposited check.

All of these benefits have made checking accounts much more functional and easier to use for consumers. The competitive banking industry has also caused many banks to offer extra benefits with checking that did not use to be available.

Barry

Martin Lukac asked:




It is possible to be a wise consumer that never faces a problem with a business. Well, much of a problem. The fact is that mistakes, misinformation and just plain rudeness abound in the marketplace. Don’t assume that every business is honest and fair. Don’t assume that you will be trusted or treated well. You should expect a fight sometime for your rights and your money.

Here are some tips to help you become a wise consumer:

Tip #1 — Don’t believe anyone who tells you that you’ve won a lottery, free gas or any other little goody. If you aren’t standing there with a claim ticket in your hand that you purchased, you should just ignore the scheme.

Tip #2 — Read ever contract thoroughly before signing. You want to make sure that you understand every sentence. Make sure that all oral promises are obtained in writing. Remember that “three-day cancellations” only apply to door-to-door or off-premise sales contracts.

Tip #3 — You need to check your credit report several times a year to make sure there are no errors. Go to Annualcreditreport.com for your absolutely free by law credit report. Or call 877-322-8228 to get the forms by mail.

Tip #4 — Do not simply pick a company, such as a contractor, by the size or advertisement. Make sure that you research anyone that you are going to give money to before goods are delivered. Check the company’s track record with the Better Business Bureau and the state attorney general’s office.

Tip #5 — If you have to pay for a prize, it isn’t a prize. It’s a purchase.

Tip #6 — DO NOT give out your Social Security number or personal information to anyone you don’t know.

Tip #7 — Buy a shredder and destroy all personal information and credit card offers before throwing it away. You can learn a lot about someone by reading their mail.

Tip #8 — Don’t ever send your account information through email to anyone. Companies will not ask you to update your account information through email, ever.

Tip #9 — Things that are too good to be true, usually are. You can’t make money stuffing envelopes or buying information about lucrative government jobs. If you could, everyone would stay home.

Tip #10 — You should never pay the full amount for work left unfinished, sign a blank contract or pay a fee in advance for a loan. There are just some things you should hold out on.

Make sure you keep copies of all receipts, refund information and other documents that you are asked to send a company. Lots of companies lose things in the mail.

You can be a wise consumer, all it takes is a little common sense. Trust your initial feelings and don’t jump on good deals without any research. Make sure you check out companies that are requiring down payments thoroughly. Track all of your correspondence with companies and businesses. Note who you talked to, when and what was resolved. If a problem does arise, be persistent. Consider that you may need to contact a lawyer. And spread the word of your experience. Good Luck.

Suzanne

Shaun Patrick Davidson asked:




As you have seen in in my first blog, I talked about the finance option and what it does for you in your purchase decision. Now I will briefly talk about leasing your new automobile, it’s real simple to get the idea. Let’s see if it’s for you.

Topic #2~Lease~Believe it or not, leasing has been around for many years. Unfortunately, most of us that have once leased, have taken the bitter pill and have written off the idea for a lease for future purchases. Back in the hay day, leases were brutal. When the term was over, we were stuck with having to pay the balloon payment or residual. This was known as the dastardly open ended lease. And aside from all that mess, we might of had to pay for wear and tear on the tires, paint, fabric and so on. It all came out of no where and it made us feel like tackling the bank manager into the grass pit. It’s no wonder, leases have been met with such criticism as of late.

Today, there is no such thing as that open lease, which brought much needed aire to those lease faithfuls. There is no such thing as an interest rate, it’s more or less called a money factor. You would only literally pay for the time that you do own the car. And you would only pay sales tax on the payment, not on the whole amount of the purchase price of the car. Whew…what a relief, right? It makes getting into a newer body style/model that much easier, you wouldn’t need to keep investing the cash to pay for a five year old car or maintain it much less.

What other great stuff should you know. A lease allows you to get a much nicer/expensive car for less payment. Additionally, the lease keeps more of your hard earned money in the bank, less you have to put down when you buy. There is a mileage restriction however, but you can easily get a 20,000 miles a year lease, which is more than suitable for most. Secondly, you can usually lease in terms of 2, 3, 4, 5 years to change the payment. In conclusion, a lease is very much a flexible payment plan, eliminates some of the hassles of negotiating rate and price of the car.

So what’s the negative, well it’s not that bad. At the end of the lease, you have a number of options available to you. Just try not to trade your car in six months after you buy it. You can give the keys back, trade in your car, or simply just sell it. You’re not obligated to any negative equity on a lease when your term is up. Just make sure that the tires in good shape, there’s no dents bigger than a silver dollar, and no crack in the windshield. As you can see, a lease is very easy to jump into without too many pitfalls. And it allows you to get the best new models every couple years.

Ronnie

Tom Palange asked:




When developing your budget, it is important to monitor your daily purchases because you may discover that you have developed some expensive habits. Take for instance the daily ritual of stopping for a cup of coffee. Without realizing it, you may discover that you have been drinking away a small fortune.

All too often, individuals unconsciously make purchases that seem insignificant, but over time add up to be a significant amount of money. If you think hard enough, there are probably many casual purchases that you make on a daily basis.

The average cost to buy a cup of coffee and a muffin is $5.00. If you were to stop at the coffee shop everyday during a 7-day week you would spend $35.00. Over time this equates to $150.00 per month or $1,800.00 per year. However, if you were to forego this daily ritual and instead invest that money at a rate of 10% annual return you would have about $1million after 40 years ($948,611.00 to be exact).

As you can see, habits such as this will open your eyes and you may be inclined to think twice the next time that you have the urge to buy a coffee. ACCC encourages you to keep a notebook with all of your daily expenses. Track all of the little items; coffee, takeout for lunch, and afternoon snacks. With just a few adjustments, you can better control your finances and become a better spender.

To download a household budget worksheet go to http://www.consumercredit.com/budget-sheet.htm.

Brought to you by American Consumer Credit Counseling (ACCC). ACCC is a non-profit credit counseling and financial education agency committed to promoting financial literacy. It is our mission to financially empower consumers to regain control of their lives through education and financial management. More information can be found by logging on to http://www.consumercredit.com.

Fernando

Carrie Reeder asked:




Auto buyers with blemished credit may wonder how they can get approved to buy a car. The answer is sub prime auto financing. When seeking a sub prime auto loan the question shouldn’t be just, “How do I get approved?” The better question to ask is, “How do I get approved for the best sub prime auto financing available?”

Prospective car buyers who have a credit score below 620, a history of late payments or a recent bankruptcy will all be candidates for sub prime auto financing. However, all sub prime loans are not created equal and the wise shopper will do a little homework before going out to the car lots.

Pulling you own credit report is a good place to start any time a major credit purchase is being considered. A buyer wants to know as much about his credit record as a potential lender knows. Check your report for inaccuracies and notify the credit reporting agencies if you find any.

Being realistic about the car a buyer can afford also increases the chances of obtaining a sub prime auto loan. This purchase is the first step in repairing less than stellar credit and it may require buying the best car for the buyer’s budget not the purchaser’s dream car.

The largest possible down payment will further help the buyer to find sub prime financing. A down payment may also lower the interest rate of the loan. A lower interest rate generally translates into a lower monthly payment as well.

Just as finding the right kind of car requires shopping finding the right kind of sub prime auto financing requires shopping. An auto dealer makes part of his profit from financing car loans. The car loan made on the lot with the dealer may therefore cost more than auto financing that is arranged before hand by the buyer. Even a consumer looking for sub prime financing may be able to be pre-approved for an auto loan. Walking onto the car lot with a loan in hand gives a buyer more clout in the process of negotiating the auto’s price.

Where are some of the places a shopper with damaged credit can look for an auto loan?

1. Financial Institutions That You Already Have Relationships With – Many banks will help a current account holder to re-establish credit, particularly if the customer has both checking and savings account. Some credit unions are also relaxing their credit standards to include sub prime financing. If the applicant has direct deposit with the institutions and will allow payments to be set up as regular debits this also works favorably.

2. Look For Lenders Through References – Check with The Better Business Bureau, use the yellow pages and ask friends for references.

3. Look On The Internet- Be wary, however, of giving out credit information to anyone who solicits loan business online. This applies equally to anyone who solicits business through the mail or over the phone. Always check a company out before providing it with any sensitive information.

Once several lenders have been targeted, a buyer should sit down with them and be honest about the situation. Many consumers require sub prime auto financing and they should not allow themselves to be pressured or intimidated because they are embarrassed about their credit histories. Receive all offers in writing and take the time to read them carefully and compare them.

Finally, remember that receiving credit is an ongoing process. Making timely payments on a sub prime auto loan can be the first step in revitalizing a poor credit record.

Bruce

Jerry Cole asked:




Do not stay confused or lame about the consumer debt solutions and credit counseling because the factual and updated information about the consumer debts solutions and credit counseling is now in your hands in shape of this article. It is your chance to get to know about the help credit counseling provides when you want a solution for your consumer debt and ease of the consumer debt solution hen you are deep stuck with an unpaid debt or any amount which has the potential to cause you a bankruptcy in future. Read along this article and you will find the tidbits of consumer debt solutions and credit counseling and how they share a relation with each other and how they help you on certain stages of your debt payment.

If we talk about credit cards, with a consumer debt solution like settlement, arbitration or negotiation you may get the jackpot and will easily manage to convince your creditor to come as low as 40% to 60% for a final lump sum payment of the debt as well as, with the help of this procedure, you can also assure yourself that your creditor will give you a complete waive of on interest amount and there is no more penalties or over due payments are involved with your final payment. But just check out what will happen if your debt is a secured one, for example, you pledged your home or any other property may be a vehicle to get that loan.

Do you know what will happen next? Yes, your creditor will make a claim for that security to sell so that he can get back to his amount. That is a time when you seek for an appropriate debt management program, the one with all the favorable aspects which best suits you the best, a company which can provide you the services required and assess your financial capabilities for that settlement whether you are best fitted or not and this is the time my friend when a credit counseling company comes in and evaluates the odds for you and in result advice you with the best management plan.

Shannon

Tom Dawson asked:




Taking full advantage of the pension credit scheme could see older people handle their finances with greater ease, it has been suggested.

According to a spokesperson from Age Concern, claiming the maximum amount of pension credits they are entitled to can make a “massive difference” in retirees’ quality of life. And by receiving extra money on a regular basis the representative suggested that such people could find themselves in a much more favourable financial position, which in turn may help them to service demands on their spending such as utility bills, personal loans and care expenses. Meanwhile, the charity spokesperson stated that consumers who are unaware that they have missed out on money could be able to access “back-dated payments” providing them with “tens or hundreds of much-needed extra pounds per week”.

She said: “This can help to end the stress of finding it difficult to make ends meet. Claiming benefits helps many pensioners to pay their bills, buy better food, help pay off debts, pay for care, put money aside for emergencies and be able to afford small luxuries that make a big difference.”

Although she reported that the introduction of the scheme has helped “lift many pensioners out of poverty”, the Age Concern official asserted that there are still millions of older people who are missing out on benefits to which they are entitled. Consequently, it was suggested that more work needs to be done in simplifying the system to make claiming easier, with the creation of an automatic payments process additionally advised. Meanwhile, the provision of more information and help in languages other than English was also recommended.

The news comes as research carried out by the charity reveals that six out of ten older people are discouraged from claiming for their benefits as a result of a complex tax system. In turn the charity claims that this has led to some 2.5 billion pounds going unclaimed. The spokesperson also pointed out that some consumers are embarrassed about making a claim, dislike the fact the scheme is means-tested or may just be unaware they are eligible to receive money.

Even after receiving pension credits, should they be eligible to do so, older people who find that they are struggling to service various demands on their finances may wish to consider opting for a low-rate personal loan for debt consolidation purposes, in which they may be able to pay off numerous debts quickly and so leave them with more disposable income at the end of each month.

Such a product could be welcomed by retirees, as recent figures by Scottish Widows show the average person who has given up work owes some 38,000 pounds on their mortgage. In addition, a third of older people are indicated as being some 5,900 pounds in the red through personal loans, credit cards and other types of “short-term debts”. Consequently, Ian Naismith, head of pensions market development for the firm, claimed that those approaching retirement, who still owe money on their mortgage, should consider how they will be able to manage their finances when they go on a reduced income, with a consolidation loan one possible way of providing such help with spending.

Lester

Sally Depp asked:




When it comes to credit cards, there are a variety of costs that are not considered by consumers. These costs may not be considered by consumers, but it is important to remember that many of these costs can be expensive and therefore it is important to ensure that you use the card wisely and avoid these common fees which are charged to consumers that regularly take advantage of credit.

Over Limit Fees
Over limit fees are those that are charged to the credit card when the consumer finds that they are over the credit limit. These fees can be as much as thirty five dollars. This can add up, as the fees are often charged for each month that the consumer is over the credit limit. To avoid being over the credit limit, ensure that you make payments to reduce your debt and ensure that you are well-under the limit.

Late and Missed Payment Fees
Avoiding late and missed payment fees can not only save you money when it comes to the fees that are associated with the card, but it can also save you money when it comes to shop around for a new card.

Annual Fees for Membership Based Cards
With hundreds of choices that are available when it comes to choosing a credit card, it is important to realize that you have options. There are numerous cards that are available that have just as many benefits as paid membership cards that can save you upwards of one hundred dollars every single year, as this is the average cost of paid membership type of cards.

Currency Exchange Fees
While shopping online, or using your card in another country, it is important to remember that the exchange fees for the credit card are built into the price. As well as the exchange fees being built into the price of the items which are being bought, there are often charges which are found on the credit card from the card company because the transaction is taking place outside of the regular currency of the account.

Kathryn

Steve A Smith asked:




Many of the Britons who are renting property could be putting themselves under financial pressure, a study has revealed.

According to new research by AA Legal Services, half of those renting a home do not have a written tenancy agreement from their landlord before moving into a property, despite this being a legal requirement. With a significant number of consumers are being priced out of the home-owning market, the company reported that a quarter of these people “being forced to rent”. However, with more tenants revealed to be concerned about the size of their bedrooms rather than how they would be able to reclaim their deposit, it was suggested that many Britons could be leaving themselves open to unnecessary financial pressure upon signing a rent agreement.

Commenting on the figures, James Molloy, head of AA Legal Services, said: “These findings demonstrate how poorly people protect themselves when moving into a rented home. It is vital that you agree your tenancy agreement and check everything, including inventory and utility meter readings, before you accept the keys to your rented home. Yet thousands of people are just not doing so and are putting themselves and their home at risk.”

The study also revealed that more than half (55 per cent) of consumers do not take electricity, gas or water meter readings before moving into a property. As a result, the financial services firm claimed that this could lead to them facing “unexpected bills”, which in turn may see them develop problems meeting other demands on their spending such as credit cards, overdrafts and tenant loans. In addition, a “shocking” 59 per cent of renters are unaware as to their notice period, a move AA suggested could leave people in “the lurch with unbudgeted months of rent to pay”. Findings from the financial services firm also indicated that 55 per cent of respondents do not take the time to make sure that their rental payments are clearly set out and agreed upon, which may see them paying more money than they should each month.

Meanwhile, the financial services firm reported that just over one in five (22 per cent) claim that they have taken steps to ensure their finances will be able to cope with the demands that moving into a rented house or flat can bring. As a result, Mr Molloy advised those consumers who are concerned about a property they wish to rent to seek out advice from a solicitor or some other “reputable organisation”.

Should people renting a home find that they are coming under surging financial pressure, for whatever reason, the taking out a personal loan could help them relieve such stress by merging numerous demands on spending into a single low-rate loan. Speaking earlier this month, Moneyfacts analyst Lisa Taylor reported that borrowers need to take the time to make sure that they are getting a competitive rate of interest on a personal loan, as a number of lenders have increased their rates over the last nine months. She stated that choosing the “wrong” loan could see consumers paying double the amount of interest then is necessary.

Donald