Finding Best Debt Management Companies

When you see that paying loans is becoming difficult day by day, or you just can’t afford to pay the huge interest on a single loan, it’s time to consult a debt management company to reduce your tension. Consulting such companies is an essential step in the process of debt negotiation. Of course, you can negotiate on their terms and conditions, but it’s very necessary that you take the help of an expert to get rid of your debt.

How Do Debt Management Companies Work?

A debt management company functions as a medium or a middleman between you and your creditors. They help sort out a solution to end all your financial crisis. A good debt management service is one which makes its customers debt free in a fast and professional manner, and also when its customers are relaxed about their financial status, because they know that their expenses are in the hands of financial experts. Such companies offer you the best plans to reduce your financial crisis, so that you don’t have to declare bankruptcy.

A debt relief company tries to sort out the problems in a short period of time, but a major part of this process depends on the customer. The agency converts all your bills from different creditors into one main bill. This way, you have only a single bill to pay. The company also plans out ways to lower the rate of interest on your bills. It will plan out the best debt settlement plan suited just for you, which is based on how much you can pay each month. These companies hire professionals on your behalf who deal with your creditors, so that you don’t have to fuss on your debts.

Top Companies

If you think that you have a lot of loans on your head, then it’s time to look at the option of merging. Merging not only helps you in eliminating the worry of many loans, but also helps in reducing the cost of borrowing. When you talk about the debt management companies, people also consider banks and various other financial institutions. However, they have their own terms and conditions, which are not very suitable.

Consumer Credit Counseling Service
The Consumer Credit Counseling Service (CCCS) is a free registered charity service for people. CCCS employs financial counselors who give free, confidential advice to individuals and families on debt management. In cooperation with the Housing and Urban Development (HUD), CCCS delivers the best services possible.

Credit Solutions of America
They believe in doing fast and effective work. They offer their clients with the best debt management programs and a speedy credit service, which helps settle their debts easily.

Federal Credit Union
The Federal Credit Union is a helping hand from the Non Profit United Way Organization. This organization believes in solving debt problems, bankruptcies, and educating their clients about all kinds of legal proceedings. It’s one of the most respected and widely known debt management companies in the United States.

American Debt Consolidation
This is one of the most recommended debt management companies in the United States. American Debt Consolidation provides their clients with personalized debt management services at a minimal cost.

These were some of the agencies that can help you clear off your loans in a constructive way. When the chips are down and you see no way out, it’s better to take some professional advice from such companies, and solve your financial problems immediately.

Ways to Live Debt-Free

images-7Rising debts are a matter of concern for many people. We find people searching for ways to deal with their debt problems and bring back their old days of prosperity. Living a debt-free life is possible with concentrated efforts from your side. The tips and suggestions provided in the next few paragraphs will help you know things better.

Ensure Income Stability
If you think logically, you can fulfill most of your needs in life by having a stable income. The idea is to have a constant or rising income and make purchases of your choice, from your savings, instead of opting for a loan from a bank or any financial institution. The loan which you get, comes with an interest and this leads to less income in hand, because of monthly installment payments. Interest rates can fluctuate a lot and in times of recession, they can rise to a great level. Ergo, as far as possible, try to make all purchases from your savings.

Realize the Importance of Savings
Living without debt is definitely possible if you can save a good amount of money every month. For this, a lot of financial planning is required. You need to plan your finances in such a manner that you have excess investible surplus, which can be invested in equities or debt instruments to generate more cash. This will help you increase your net worth and possess all things in life you wish for, without having to go to banks for loans.

Avoid Excessive Credit Card Purchases
Exercise strict control on your credit card expenses. Often, many people make excess credit card purchases and end up being in trouble, when the repayment program goes for a toss. Not paying credit card dues on time can result into imposing of late penalty from banks. Late payments or defaults made from your side will result into weakening of credit score which is not good for you at all, if you wish to take any credit in future. Many people have the habit of owning multiple credit cards which can be quite disastrous. What you can do in this regard is transfer all your debt to a single card which will make things simpler.

Take Help from Credit Counseling Agencies
If you have piled up loans beyond your capacity, you should approach some credit counseling agency which can negotiate for a better repayment plan for you with your creditors. This negotiation can result into revised interest rates for you which would be lower than the earlier ones. This would be possible, only after your credit counseling agency is able to convince the lenders that you are sincerely trying to repay their debt. At the same time, you need to be aware that some agencies might not be able to provide you the kind of support and help you need. Hence, finding alternative ways of dealing with high debt are also equally important.

Liquidate your large assets such as residential and commercial properties. Every person needs to introspect and look into his financial position seriously before accepting any kind of loan to avoid falling into financial troubles. Save more, spend less on unnecessary things, and invest as much as you can to live a debt-free life.
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Tips on Choosing the Best Credit Cards

images-5With credit card use comes great responsibility and guidelines are easily found. Don’t overuse them, don’t spend money you can’t afford to pay back, don’t open too many credit accounts, etc. Still, the usefulness of credit cards endures. Credit cards are so useful, in fact, that many companies have noticed the high demand, making the marketplace very competitive for consumer choices. Before you impulsively sign up for a card, take a moment to make sure your plastic suits your needs. And before you write off entirely, consider the benefits.

Credit cards are great tools while traveling because many automatically convert your money into different currencies. They can also serve as identity cards, especially when they include your photo. Credit cards are better than walking around with a lot of cash, which can be stolen, or even traveler’s checks, because stolen cards can be reported sooner and prevented from use.

So what type of card is right for you? The easy answer comes if you have trouble paying off your account balance in full each month or if you’re seeking to consolidate debt. In either case, you’ll want to find a card with a low interest rate. If you pay your balance in full each month or if you’re interested in these cards for the rewards programs, the decision starts to get more complicated.

Fees or no fees?

A no-fee card with rewards is perfect for people who pay their balance in full but don’t use credit cards heavily. For heavy credit card users, a credit card that comes with an annual fee might end up paying for itself in rewards. To fully take advantage of cards with fees, however, you need to do an assessment of how often you actually use credit cards. Otherwise, a no-fee card is your best option.

Navigating the rewards system

To figure out which rewards systems are best suited to your own needs, consider their offers in terms of the dollar amounts you would pay for those rewards. Cash back is easily calculated as cash, as are gift cards to certain department stores, but airline miles and point systems might be more of a challenge. Figure out what you’d pay for those extra airline miles or points and calculate those as monetary value so you can easily compare rewards systems with very different rewards.

One aspect of rewards systems that might make it easy to choose one card over another is when rewards systems maximize benefits for certain types of purchases, like gas or groceries. If you decide to use one of those credit cards, keep it clearly marked in your wallet so you use it as often as possible for the type of purchase that card rewards.

Which companies want you?

It’s important to know from the very beginning what companies will likely deny your application if you have bad credit. Free credit reports are available annually and can be accessed online from different free credit report websites. If you have a bad credit rating, choose a card company that will work with you. To apply for many cards in a short period of time is a bad idea because the more often companies run your credit check, the more likely your credit score will be negatively affected. People who apply for many credit accounts are considered higher risk than people who don’t.

Do your homework

Learn all you can about what cards are most appealing to your particular needs and open an account with the top choice. If you open many accounts to figure out which one you like best with the intention of closing the others, your credit can be negatively affected because many accounts open at once can indicate a high risk.


Tips on Repairing Credit after Bankruptcy

images-4Bankruptcy can leave the biggest stigma on your mind. It can scar you forever. A few who have suffered a bankruptcy or are suffering it will tell you to sit idle. Unfortunately, that’s not a way out of the deplorable situation. There is nothing wrong about being bankrupt, but it’s surely a crime if you choose not to learn from it. The first mistake you make, while on the road of bankruptcy is, mismanagement of money. Your money is important and it is very much a lifeline of any of your endeavors. The state of bankruptcy, leads to bad credit ratings in the market. This can hamper your business plans and the finances required for the same. On the lighter note, the whole process of ‘repair credit after bankruptcy’ is tedious, but possible.

Tips for Repairing Credit
The first step towards repairing credit after bankruptcy, is shrugging of the nonchalant attitude. Hopefully, you must have already done that, if you’ve reached this page. Understand, that credit money or credits cards are that form of money, that are not yours, were never yours and will never be yours. So, you don’t have the right to use them in any way. To explain this better, thanks to all the credit cards and the interest on them, that you’ve reached the bankruptcy condition.

Tip # 1
Hire an attorney, who can compute your exact details of bankruptcy. A lawyer will safely guide you through the turbulence, as he knows all the credit laws and is capable of offering a bankruptcy advice. If you are doing it yourself, then get yourself a trustworthy guide. The other option is to subscribe to the best debt management program for dealing with bankruptcy. Commit yourself for the same, to come clean out of this mess and begin with an open mind. Get the details of the fees charged by the attorneys or look up for any online tool that you will be using. Act in the most co-operative manner while dealing with creditors and other associates.

Tip # 2
Get all the 3 copies of your credit records, from all three credit bureaus, namely Experian, Equifax, and Transunion. Study them in detail, and make a note of all the errors and omissions. Send the copy of these errors and omissions to your creditors and also the references of good credit, which were left out. File a complaint with the FTC or Federal Trade Commission under Fair Credit Reporting Act. If you can’t analyze the credit copies then, get in touch with bankruptcy assistance or a bankruptcy counselor.

Tip # 3
Open a savings account in the bank and deposit a fixed amount, no matter how small it is. Make regular payments to your creditors, till the time the debt is paid off. Try and manage your expenses through your savings account. Overnight miracles are rare, so it will take about 6-8 months to repair the state of your credit. If you have a feasible plan in mind, apply for a low limit credit card, or a secured credit card.

Bad credits scores and bankruptcy can occur due to loss of job or plenty of outstanding bills. Whatever be the case, horrible credit scores are never advisable. Now that you are following the tips, give yourself a budget, within which you must manage your finances. Whenever, you go out shopping, buy in bulk, so that you get a wholesale discount. Recycle and reuse the old items in your house, which will curb the need of going out and buying. Make your payments on time, which will reduce the additional burden of paying late fees or applicable interest. Cash is your hard-earned money and thus comes with a right to spend it. So use it instead of credit cards. It is crucial that you learn to prioritize your needs. Wants and demands, always soar higher than resources. Reconciling the two is the art of optimizing your wealth. Hence, plan your expenses to avoid begging, borrowing, and worrying!