Free Credit Report Repair Guide

I read this article written by an Atlanta BK Lawyer in Atlanta. Not sure how valid the advice is but if it’s true then its very interesting advice.

As a practical matter, this means that the credit card company will not negotiate with you at all until your unpaid balance is at least three months old. Once a debt falls into the 90 day past due column, the collection percentages go way down. This is generally the ideal time to start your negotiations.If you let your account go much longer than 90 days unpaid, you run the risk that the credit card lender will turn it over to an outside collection company or send it to a lawyer for lawsuit. These options may or may not impact your negotiation strategies, but they add complications and unknown elements. You can always start new negotiations with one of these new account owners later - at the outset it is best to negotiate with the actual credit card company.

Debt Negotiation - Secrets to Successful Bargaining With Credit Card Companies

technorati tags:Successful Debt Bargaining

Can you consolidate your debt?

I found this cool little tool on MSN financial which will tell you much you will or will not save by getting a consolidation loan.

You can check it out here.

A word of caution: I am not endorsing this method of debt reduction. For some it works and for others it’s just swapping out one debt for another, because people will not deal with the core root of what got them into debt.

I would recommend the debt roll up method to Crush Your debt!

I get a lot of questions about what exactly debt consolidation is. So here is a quick over view of what DC really is.

DEBT CONSOLIDATION
This can take the form of any of the following:
• Borrowing money to pay off debt
• Borrowing against the equity in your home to pay off debt
• Service provided by both for-profit and non-profit companies who negotiate better rates with your lenders and give you one lump sum payment and then they turn around and make the payment on your behalf
• Bankruptcy

Reduce Your Debt - How To Use Debt Consolidation to Get Yourself Out Of Debt Permanently
By Carrie Reeder

Debt consolidation can get you out of debt permanently if you make it part of a financial plan. Within five years, you can have your unsecured loans paid off and on your way to debt-free living. The key is to plan for the future.

Get Your Bills In Order

If you are in the hole with debt payments, then debt consolidation may be your way out. Debt consolidation programs lower your interest rates on unsecured loans with creditors. With their low fee, they handle payments, account paperwork, and direct dealings with creditors. All you do is send them a monthly payment for all your consolidated bills.

Initially, you will see a slight drop in your credit score, eliminating your ability to apply for more credit. However, within two years you can apply for credit as lenders see your commitment to repaying loans. You can even apply for a mortgage loan at this time.

To make sure you are betting the best deal, shop around for a debt consolidation company. Request quotes on fees and information on their services. While you want the best deal, don’t be lured by false promises.

Pay Bills Faster

Once you have one account paid off, apply that monthly cash toward another account. Not only will you be paying off your bills sooner, but you will be saving money on interest payments. Also consider applying any refunds or bonuses toward your bills.

Also, look for ways you can cut spending, even if just temporarily. Cell phones, cable TV, or eating out can all be reduced or cut out. It is difficult, but keep your eye on your goal of being debt-free.

Plan For Your Future

It is not enough to get out of debt, you also need to plan for your future. You may find a credit counselor can help you create goals and design a budget. You can also find a lot of good information on finances online or through books.

One of your future goals should be creating a financial safety net. Even while you are paying off debt, you should be saving money every month. While a job loss or a major illness can’t be avoided, you can minimize their financial impact by being proactive with your finances.

To view our list of recommended debt consolidation companies online, visit
this page: Recommended Sources for Debt Consolidation Online.

Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.

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