Improve Your Credit In 5 Easy Steps

Posted on by Ryan

Are you ready to improve your credit in 5 easy steps? You may be thinking “Improve your credit in 5 easy steps? I have bad credit… Is this applicable to me? Will this work?” Yes! Improving your bad credit score is possible with very little effort. Let’s get started on improving your credit score!

Improve Your Credit In 5 Easy Steps

1. Improve your payment history:

This one is obvious but is so central to restoring a good credit rating that it merits mentioning. There are some simple steps that you can take to help you maintain a timely payment history. Write the due date on the front of the envelope. Just the mere act of writing the date down will help formulate it in your mind and elevate its prominence. Set a specific time each month for paying bills, for example, the second and forth Sunday of each month. By setting aside a time devoted to paying your bills you will avoid a payment slipping your mind. This is another benefit of using online banking for scheduling payments. This way is that it will be easier to set and meet your personal budget. Pay by automatic electronic transfer or by going online. If possible have a reminder sent to you by email, most companies now offer this service and many do it by default.

2. Reduce the amount you owe:

Keeping balances low on revolving credit is very important. The higher the percentage of the balance you owe versus your available credit the worse it is for your FICO score. Try to keep your balances at 10% or less of your available credit. Reducing the amount you owe will also reduce your monthly payments, which will make it easier for you to make timely payments. Transferring your account balances to credit cards with lower interest rates is certainly helpful but remember that paying off debt rather than just moving it around is always preferable.

3. Keep your “length of credit” high:

The higher the average age of your accounts is the better. With all other factors being equal an account that you have maintained for ten years will have a greater positive effect on your credit score than an account which you have had for only one year. Also, keep in mind that if you open too many new accounts all at once the average age of your accounts will drop, which will lower your score.

4. Apply for new credit within a confined time period:

When applying for new credit, if you submit multiple applications to different sources do so in a short period of time, this way they will all be counted as a search for one single loan. If you spread the applications out over an extended period of time they will appear as separate loan inquiries, which will have a negative impact on your score.

5. Maintain a small number of credit cards:

Improve Your Credit In 5 Easy Steps Credit Cards

If you presently do not have any credit cards try to obtain a limited amount of credit cards and make timely payments on them. Having no credit cards at all will have a negative impact on your FICO score. If need be, set up a secured credit card or two. They are very easy to obtain, as they are seen as having an extremely low risk from a bank’s perspective.

How To Stop Impulse Buying

Posted on by Ryan

I’ve received a lot of question about “How to stop impulse buying?” Everything about shopping is designed to make us feel delicious. The bags and boxes, labels and logos all add up to a dizzying experience. Slide in lights, music, colors, shapes, smells and designs and it’s little wonder we succumb. It’s all a science of course, a science whose only purpose is to part us with our money.

It begins with the way things are named and packaged. There are no accidents at the perfume counter or Apple Store. The shapes, names, and images that underpin these objects of desire are chosen for their power to enthral. The pinlights in the ceiling, the fleeting flashing graphics and the artfully arranged displays have all been tested, evaluated and scored. When we walk into a shopping center or department store our path has been planned. The aisles are laid out so as to lead us deeper and deeper into wonderland – Until we land with a bump at the end of the month and realize we’ve hammered the plastic again.

Why do are we predisposition to impulse buying?

When we were children we went shopping and wanted everything. Now we’re grownups we can go shopping and have everything, at least until we hit our credit limit. Shops are enemy territory. 98% of what they sell ends up as landfill. And yet that New Thing compels our attention. That “New Thing” is the thing we now can’t live without. We didn’t know about it until today but now; now we can’t live without it.

In our hearts we know that nothing we buy ever keeps its promise of fulfillment but we carry on believing the spiel over and over again. It’s almost like we’re hypnotized. In a way, some of us are. Some of us are wired to get out of feeling rotten by buying stuff. It doesn’t work, at least not in the long term. A better way to get out of feeling rotten is to prove to yourself that you’re actually quite clever. If something is truly desirable today then it will be equally desirable next week. Rather than snapping everything up immediately put a shopping together and study the retail cycle. Plan a bit. Remember, 10% off doesn’t amount to much if you’re paying 27% interest.

How to stop impulse buying? Recognize you have a problem

If you’re a shopaholic, recognize that it’s an addiction. Other people, people you don’t know, can press a button in your head and make you spend right up to the limit. Impulse buying fills our cupboards with stuff that’s never quite as wonderful as it seemed in the shop. It gives us a momentary rush now, and a comedown at the end of the month. Like all addictions it borrows fun from tomorrow to enjoy today. Like all addictions the buzz never makes up for the payback. And, like all addictions, it can be kicked.

Alcoholics avoid pubs. Shopaholics avoid shops. There’s a life beyond retail. Start enjoying it. Stop shopping.

Debt Relief vs Debt Settlement

Posted on by Ryan

Understanding Debt Relief vs Debt Settlement

Choosing between debt relief and debt settlement could be a little confusing if you do not supply the facts. You may realize you’ll need some form of tax assistance, however, you may not know how to obtain it. If you’re planning on each one of these programs, make sure you understand the benefits and drawbacks of each one.

Debt Relief Overview

The pros of the debt relief company include help organizing and paying down your existing debt. Once you contact a debt management company, they’ll help you contact creditors and are available to some form of agreement to cover less cash every month in your accounts. Although you will still need to pay all the money back, you may well be capable of negotiate more uncommon harassing phone calls and letters.

Debt management services work as a go-between along with you and your creditors. If you are uncomfortable conversing with people on the phone, this can be a great solution. As opposed to feeling intimidated by pushy and quite often obnoxious creditors, let a specialist speak to them. They will fully stand up to your rights as a consumer. The main negative to using a debt management services is that it make a difference your credit. Many lenders view the usage of these kind of companies in the negative manner. For this reason they could be less likely to lend money in the near future. Although, if your credit is in serious trouble, once you’ve gotten your debt in order, you can start to rebuild your credit and acquire back on your journey to financial independence.

Understanding Debt Relief vs Debt Settlement

Additionally, there are benefits and drawbacks to working with a debt settlement company. In case you are seriously in debt, like many Americans today, you will probably find a debt negotiation company more helpful. These professionals can assist you with credit card settlement or most other types of huge loans. Your debt settlement counselor works directly along with your creditors to barter a more manageable amount of money you need to repay. This really is sometimes done by heading out the delinquency fees or area of the interest. Most creditors are happy to find least a of area of the money they’re owed. This is especially valid with credit card settlement. A lot of the bad debts could be interest – therefore the company is not really loosing on much. Saving 40% to 60% is normal with most debt settlement companies.

Another positive part of debt negotiation is that it is pretty quick and the debt will probably be paid completely. For those who have trouble saving money for any settlement payment, the company may also be capable of assist you with that. As long as you’re behind on your own bills, you can use on of the companies to help negotiate a credit card settlement or any other loan payoffs quickly. If you are worried you will likely have to declare bankruptcy, debt consolidation is a superb alternative. An individual bankruptcy will stay in your credit file for quite some time. Tells creditors you might never pay back the money you borrowed. While using settlement option, future creditors will at least see that you made an effort to pay back the money. This should hopefully show that you’ve learned your lesson about borrowing more than you are able to repay.

Debt Relief vs Debt Settlement Closing Thoughts

Just as the debt management companies, your credit will be affected by using debt consolidation. Additionally you need to make sure you might be using a reputable company that has your own interest in your mind. When you’re debt free, be sure you hold the important information. This will help so you do not find yourself in financial trouble again, later on.

Harassing telephone calls can cause one to become depressed as well as less want to make payments on your overdue accounts. When you contact a debt negotiation company, they’ll take care of the telephone calls and you may acquire some solace and feel in control of your daily life again.

Debt Management vs Debt Settlement

Posted on by Ryan

Understanding Debt Management vs Debt Settlement

When looking at debt management vs debt settlement can be a little confusing if you do not have all the facts. You may realize you need some type of financial help, but you may not know how to get it. If you are considering either one of these programs, make sure you understand the pros and cons of each one.

Debt Management Overview

The pros of a debt management company include help organizing and paying off your current debt. When you contact a debt management company, they will help you contact creditors and come to some type of agreement to pay less money each month on your accounts. Although you will still have to pay all the money back, you may be able to negotiate less frequent harassing phone calls and letters.

Debt management services act as a go-between with you and your creditors. If you are uncomfortable talking to people on the phone, this is a great solution. Instead of feeling intimidated by pushy and sometimes obnoxious creditors, let a professional talk to them and stand up for your rights as a consumer.

The main negative to using a debt management services is that it could affect your credit. Many lenders view the use of these types of companies in a negative manner and they may be less likely to lend money in the future. Although, if your credit is already in serious trouble, once you have gotten your debt under control, you can begin to rebuild your credit and get back on your way to financial freedom.

Debt Settlement Overview

Debt management vs debt settlement continued. There are also pros and cons to working with a debt settlement company. If you are seriously in debt, like many Americans today, you may find a debt settlement company more helpful. These professionals can help you with credit card settlement or most other types of large loans. Your debt settlement counselor will work directly with your creditors to negotiate a more manageable amount of money you will need to pay back. This is sometimes done by taking off the delinquency fees or part of the interest. Most creditors are happy to get at least a portion of the money they are owed. This is especially true with credit card settlement. Most of the money owed may be interest – so the company is not really losing out on much. Saving 40% to 60% is common with most debt settlement companies.

Another positive aspect of debt settlement is that it is fairly quick and your debt will be paid in full. If you have trouble saving money for a settlement payment, the company may also be able to help you with that. As long as you are behind on your bills, you can use these companies to help negotiate a credit card settlement or other loan payoffs quickly. If you are worried that you may have to declare bankruptcy, debt settlement is a great alternative. A bankruptcy will stay on your credit report for several years and basically says you could not pay back any of the money you borrowed. Using the settlement option, future creditors will at least see that you made an attempt to pay back the money and hopefully that you have learned your lesson about borrowing more than you can pay back.

Debt Management vs Debt Settlement Closing Thoughts

Just like the debt management companies, your credit will be affected when you use debt settlement. You also need to make sure you are using a reputable company that has your best interest in mind. Once you are out of debt, make sure you have the information you need so you do not find yourself in financial trouble again, later on.

Harassing phone calls can cause you to become depressed and even less like to make payments on your past due accounts. When you contact a debt settlement company, they will take care of the phone calls and you can get some peace and quiet and feel in control of your life again.

Debt Management vs Debt Consolidation

Posted on by Ryan

Understanding Debt Management vs Debt Consolidation

In present times, the terms like debt management and debt consolidation have become part and parcel of our daily lives.

They both are different methods of dealing with debt. Before jump-starting further, let’s discuss the basic difference between debt management and debt consolidation.

Debt Management- A debt management plan is a process to help those people who are mired deep down in the debt crisis. It is done to reduce the monthly payments. You make an agreed monthly payment to the company and in turn they make payments to your creditors based on the agreements.

As the creditors know that you are associated with debt management companies, these companies try to convince creditors to lower down the monthly payment through negotiated interest rate. The amount varies in different cases. Also, sometimes your payment will be reduced to 50 to 75 percent. It may sound good, but it is not applicable in every case. It is applicable in rare cases. You need to shop well before exploring any option.

A debt management program act as an interface between your creditors and you. Now, you don’t have to worry about any pesky calls or their demand letters, a saving grace, isn’t it?

Your income and expenditure is taken into account in establishing this plan.

Debt Management vs Debt Consolidation

Debt Consolidation- It is a process of borrowing money from lender to pay off numerous debts. The result is you have to pay a single debt instead of several debts. Also, if the loan is taken at lower interest rates, it means you are saving on the payment front. Lower payment can also be achieved if you are borrowing tenure is longer than the original debts.

Debt consolidation is based on the assumption that you have a poor financial situation and cash flow that will help you to qualify for the consolidated loan. In simple words, you need to have good credit score to obtain new loan.

Debt Consolidation is a process that is well beyond the reach for most of the people, especially who are under loads of debt. If things have reached to the level, where you’re really struggling to meet your financial obligations and you have very little assets in your kitty, debt consolidation plan is not right for you.

On the other hand, debt consolidation is a great way to simplify things and reduce interest rates.

Debt Management plan is a way to reduce the monthly payment to arrive at a win win situation. It is a plan to get at a workable situation without getting additional loan.

Wrap Up

In nutshell, debt management and debt consolidation are two great options to consider, if you want to settle the payment with your creditors. Apart from this other options available is bankruptcy and voluntary arrangements. Which option is ideal for you, it all depends upon your circumstances.

You should explore all options carefully because it may affect your financial situation.