Peter Kenny asked:


Are you falling behind on your monthly bill payments? Consumer credit counseling might be a workable answer for your financial troubles. With credit counseling, you work together with a counselor to decide how much you can actually afford to pay on your bills each month. Your counselor then contacts your creditors to work out a debt management plan that fits with your ability to pay. An advantage to this is that the new payment schedule will often include a lower interest rate, therefore lowering your minimum monthly payment.

Working with a credit counselor under a debt management plan can make your monthly bills easier to pay. In most cases, you will send your payments to your credit counselor rather than to each of your creditors. Your counselor will then be responsible for paying your creditors each month. Keep in mind that even when you’re on a debt management plan, it is smart to watch your credit card accounts to ensure your payments are being applied correctly.

Another important point to watch how your credit accounts are reported on your credit report. Even though you’re making your payments on time each month, you aren’t necessarily paying as you originally agreed. This can have a negative impact your credit score. Additionally, some creditors include comments on your report that indicate you are in a debt management program.

Credit counseling is similar to bankruptcy in the way it affects your ability to obtain new loans. These effects will last as long as you are on a debt management plan and even for an additional few years while you rebuild your credit history.

You should also be aware that as long as you are on a debt management program you will not be able to use your credit cards. It will also be very difficult, perhaps even impossible, to obtain new credit during this time. Being unable to use credit isn’t a negative thing, though. You will find it much easier to get out of debt when you aren’t constantly acrueing more. This is the perfect opportunity to learn to better manage your finances so that once you begin to use credit again you’ll have better money managing skills and will stay out of debt.

Even though credit counseling has some disadvantages, you shouldn’t disqualify it as way to get out of debt. If you are having trouble managing your payments and you are in danger of falling behind on your bills, or are already behind, then credit counseling can keep your score from being too badly damaged.



Brent

Brooke Hayles asked:


If you don’t get on top of your credit problems fast, they will continue to haunt you and eventually consume your life. When you have over committed yourself and the bills are pouring in, the worst thing you can do is just meet minimum payments. You will find yourself getting in deeper and deeper until you are drowning in debt. If you choose to see a consumer credit counselor, you need to ensure they are qualified and authentic in their services.

Who To See?

There are large consumer credit counseling companies with strong reputations, and there are small individuals who are practically unheard of. If you are in over your head, you need to enlist the services of someone who is trained in consumer credit counseling. If you see someone who is a con artist, you could end up with even more problems. Make sure they are certified, and they will be able to help you.

Considering Bankruptcy?

If you have left it too late to seek help, you may find you are forced to go to a consumer credit counseling agency. If you get to the point where you are going bankrupt, you have to see a professional about it by law. The consumer credit counseling agent will provide documentation that enables you to file your claim.

A professional consumer credit counselor will look at your situation in many ways, even if you are considering bankruptcy. They will not only look at how to get you out of debt, but how to get you in a positive financial position. This includes savings plans and improving your credit.

Get Another Point Of View

A fresh set of eyes is sometimes all you need. Someone trained to deal with budgeting and finances may be able to change your budget around for you so you wont need to file for bankruptcy or get to that point at all. You will discuss all your spending habits with them so every area can come under the microscope. Your consumer credit counselor will have some tips and tricks for you on stretching your dollar further that could change your spending habits for life.

Managing your debt will be high on the list for discussion when you meet with the consumer credit counseling agency. They will definitely advise you never to pay minimum amounts off debts, and will teach you what a difference paying extra can make. It will be a high priority to work out how you can completely pay off credit cards ASAP to save money.

Many people with financial difficulties don’t think it is possible to ever regain their credit. This is not true, and the consumer credit counseling agent will show you how it can be done. Every time you pay out a debt, your rating will get better.

You want to come away from your consumer credit counseling meeting feeling like you have a fresh approach to your problem. You want to be sure every base is covered and you know exactly what your plan is and how to execute it. It will take time, but seeing a consumer credit counselor is something you will never regret. You can contact the Federal Trade Commission or The National Foundation for more information or referral to a counselor who specializes in consumer credit counseling.

Be Open And Honest

A fresh set of eyes is sometimes all you need. Someone trained to deal with budgeting and finances may be able to change your budget around for you so you wont need to file for bankruptcy or get to that point at all. You will discuss all your spending habits with them so every area can come under the microscope. It will be a complete waste of time if you aren’t willing to be 100% honest about your situation and how you got into it. Your consumer credit counselor will have some tips and tricks for you on stretching your dollar further that could change your spending habits for life.

Summary:

You don’t need to hide from your debt problems any longer. Do something before it catches up with you and make an appointment with a qualified consumer credit counselor. If you need to file for bankruptcy, the sooner you meet with them the better. After your first appointment, you will have a clear plan and some goals to work towards.



Micheal

anonymous asked:


Credit financing is the best way for a consumer to get items that they want, without needing to have the full payment right away. It enables you to purchase a $30,000 car and make monthly payments for 3-6 years, instead of waiting until you have saved up $30,000 to give to the dealer. Credit financing also turns that $30,000 car into a $33,000-$43,000 car depending on your interest rate and how long you carry the loan. There are many different types of financing, what types you are eligible for depend on your circumstances and credit history.

There three distinct types of credit financing: prime, sub-prime, and secured.

Prime, with the best terms, is usually reserved for consumers who have FICO scores above 700, although some prime lenders may start handing out financing, with less favorable terms, at 650. The most favorable terms are usually given to those with FICO scores over 800 (the top 5% of American consumers).

Sub-prime credit financing is given to consumers who cannot get prime, but also have scores good enough to turn down secured financing offers. Sub-prime credit financing often carries outrageous interest rates and other fees to offset the risk that these companies take by lending money to those with “less-than-perfect” credit.

Secured credit financing is used by those whose scores are too low to even receive sub-prime offers or those who cannot get prime offers, but also do not want to pay the high fees and interest associated with the sub-prime market. These loans can be secured with money equal to the loan or valuable assets.

There are also three distinct categories of credit financing: Revolving, charge, and installment.

Revolving credit financing is usually in the form of a credit card. It is where you are extended an amount of credit and can use that credit as you want, as long as it is kept within the credit limit. You are also allowed to make payments on a revolving account, instead of paying the entire balance each and every month.

Charge credit financing is usually in the form of a charge card or net account. It is where you are given an extension of credit to use as you want, but are required to pay the entire amount each and every month on or before the due date. How many days the due date is after the statement closes will depend on the terms of the account.

Installment credit financing is usually in the form of a loan. It is where you are given one lump sum amount and allowed to slowly pay that amount back within a specified period of months. You cannot continue to re-borrow the paid back portion like you can with the two other categories of financing.

Remember, the most important part of credit financing is making sure you have enough money to cover your minimum monthly payments. This will keep you out of trouble and help keep your credit file clean.



Stephen