Get Out of Debt Blog
Life or Debt : A One-Week Plan for a Lifetime of Financial Freedom
Amazon.com:
Freeing yourself from debt is easier than you think! Take it from Stacy Johnson. As creator of the hugely successful Money Talks television news series, Johnson has helped millions of people get out of debt, achieve enduring financial freedom, and earn big from wise investments. Now it's your turn. In this focused, practical, and inspiring new book, Johnson shares the secrets of his amazing program that will win you financial freedom in just seven days.
Strange but true, financial freedom has almost nothing to do with how much you make or what you know about high finance. It all comes down to three basic principles: get rid of the debt that is shackling you, learn to live below your means, and start investing sensibly and consistently.
Posted by Tim on June 15, 2005 | 0 Comments
Debt Priorities
If you have ever come down to bill paying time and realized that you just don't have the cash to cover all of the bills, I'm sure you wondered which bills are top priority to get paid. About.com has a list of Debt Priorities available that start with your Rent/Mortgage and goes on to outline just how important your different bills are.
Posted by Tim on June 13, 2005 | 0 Comments
Is Consolidating Loans Right For You?
Consolidating loans makes sense but only if you can pay a lower interest rate than what you're paying now. This is especially true if you are consolidating mortgage loans. Be aware of your total overall costs to avoid getting deeper in debt than when you started.Have you ever asked yourself why should I consolidate my bills? The simple answer is to reduce your monthly payments and save thousands in interest costs. Here are a couple of things to consider if you want to see if consolidating loans will benefit you.
No matter what kind of loan you shop for get the very lowest interest rate possible. You always want to pay off a consolidating loan in the shortest amount of time to avoid getting deeper in debt. Plan to pay off all of your debts in three to five years starting with the highest interest rate debt first.
Here are some of the best ways for consolidating loans.
Keep Reading...
Posted by Tim on June 13, 2005 | 0 Comments
Another Home Mortgage Scam
Fifty Utah homeowners thought they found a way to make their mortgages disappear into thin air.Instead, they found themselves victims of a scam, $3,000 poorer and, in some cases, facing foreclosure on their homes.
Authorities say Dale Scott Heineman and Kurt F. Johnson may have victimized hundreds of homeowners with their claims that mortgages are invalid because -- according to the duo's sales pitch -- the national banking system is an elaborate hoax.
Heineman was arrested May 28 in California and Johnson is still free.
But like many scams, which Utahns seem to have an uncanny knack for buying into, the victims could have protected themselves by using simple common sense.
Posted by Tim on June 07, 2005 | 0 Comments
How to Choose a Debt Settlement Company
The most important thing you can do when making the decision get help with your debt related problems is to be an informed consumer. It is absolutely critical to do your research. Do not rush into things; this can cause more harm that good. Prior to signing on with any Debt Settlement company, make sure you ask the following questions and consider their responses:
Read the whole article...
Posted by Tim on June 03, 2005 | 0 Comments
Graduates fear debt more than terrorism
They still fear terrorism, and most believe that Americans will experience another attack. But when asked, "What are you most fearful of at this time?" only 13.4% said a terrorist attack; 32.4% answered "going deeply into debt," and 31.2% said "being unemployed."The survey, released today by the bipartisan Partnership for Public Service, finds that 45.1% say they expect to graduate with $10,000 or more in college loans, with 20.6% saying they have more than $20,000 to pay off.
Posted by Tim on May 31, 2005 | 0 Comments
Interest-only Mortgages Have Their Pitfalls
The downside to an interest-only mortgage is that no equity accrues in the home if the buyer isn’t paying any principal. For many Americans, the equity in their home is their single largest financial asset, so taking out a mortgage that doesn’t build equity would seem to be a bad idea. Equity has long been used as a last resort source of funding for emergencies. And yet, with the price of homes rising so quickly these days, many buyers don’t seem to care. Equity can be built two ways – either through paying down the principal or by an increase in the market value of the home. If the value of your home increases, so does your equity, even if you are only paying interest on the mortgage. This is great, so long as home prices continue to increase. But what if prices fall?There are potential problems with interest-only financing. Interest-only mortgages have variable interest rates. If interest rates rise, mortgage payments will increase. If payments increase beyond the level of affordability, homeowners could be forced to sell their homes. This could lead to a glut in the housing market, causing prices to fall. Owners wishing to sell could find that they owe more money than their home is worth and that they have no equity.
Posted by Tim on May 31, 2005 | 0 Comments
How to Get Out of Debt, Stay Out of Debt, and Live Prosperously
Amazon.com:"Millions of consumers have become trapped in a spiral of debt, but there is hope. If you wants to free yourself from the shackles of debt, this book is for you--it can help you "get out of debt, stay out of debt, and live prosperously." Jerrold Mundis writes in a friendly, engaging style, urging readers to stop the cycle of spending. Mundis knows what he's talking about--he, too, was once thousands of dollars in debt and didn't know where to turn. Anecdotes from Debtors Anonymous folks, plus multiple examples from the writer's own life and ledgers, make How to Get Out of Debt an encouraging read, not a condescending one. Once you start your program, you may want to periodically reread some chapters for inspiration--and fun."
Posted by Tim on May 26, 2005 | 0 Comments
Collection Agency Worker Accused Of Impersonating Officer
Police are investigating a New York collection agency, where an employee is accused of posing as a law enforcement officer to obtain payment on a debt.An employee of Alden Associates called a 63-year-old Selma woman and claimed to be a Johnston County Sheriff's deputy, police said. The person ordered the woman to pay a $300 credit card balance from 2003 and said she would be thrown in jail in an hour if she didn’t, police said.
The person also told the woman that she wouldn't see a judge until June or July and would have to "sit in jail" the entire time, police said. The agency also is trying to collect an additional $2,000 in fees for the $300 bad debt, police said.
Officials with Alden Associates have refused to talk with investigators about the incident, police said.
Posted by Tim on May 26, 2005 | 0 Comments
4 journeys back from debt hell
A familial solution
Danielle Rhoades still remembers the taste of debt: peanut butter and jelly sandwiches and tuna fish. That's mainly what she subsisted on for a year -- after living more extravagantly during her first year in New York and racking up a $10,000 balance on her credit card.
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A counselor's care
Vige Barrie recalls the endless phone calls from collectors. They were coming after the $60,000 she owed on more than 10 credit cards. The worst part: She hadn't even been the one saying "Charge it!"
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Crunched by college credit
Thousands of young adults could tell a story much like Paul Canady's: "I got my first credit card by filling out an application at the university center because they were giving away free T-shirts. I didn't think I'd actually get the credit card, and lo and behold, not only did I get it, but it also came with a $2,000 limit . . . In retrospect, that's just absolutely ridiculous.
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The 12-step approach
Owing roughly $100,000 was not Susan's biggest problem. Underlying her distress was the shame of not being able to support herself and her daughter, despite having a doctorate and nursing and medical degrees.
Read the whole article...
Posted by Tim on May 25, 2005 | 0 Comments
Minimum credit-card payments rising
A warning to all those credit cardholders who pay just the minimum amount due each statement: Your monthly bill is probably going to increase, if it hasn't already.Several major card issuers -- including Citibank, MBNA and Bank of America -- have raised or in the coming months will raise the minimum payment required of their cardholders.
Keep Reading...
Posted by Tim on May 25, 2005 | 0 Comments
Payday loans offer fast help -- at a price
Four days before payday, Christi was in a familiar place -- broke -- and facing so many bills that the lure of emergency cash was hard to resist.Her old solution had been to walk down the street to a payday loan shop, write a postdated check for $575 and leave with $500 to hold her until she got paid.
But that temporary fix came with a high price -- a staggering annualized interest rate of 391 percent on a two-week loan. She took out one loan to cover another, and soon had six loans with fees of $800 a month.
Keep Reading...
Posted by Tim on May 24, 2005 | 0 Comments
Free Credit Report? Not likely...
Many people may still not be aware of an amendment to the Fair Credit Reporting Act (FCRA) that Congress passed last year. This amendment allows U.S. citizens to receive a copy of their credit report, for free, once per year. The plan is being rolled out slowly in order to avoid swamping the system, but people living in the West and Midwest can receive their credit reports now, and everyone will be able to obtain a free credit report by September of this year. Those seeking a copy of their credit report should watch out, however, as not everyone who promises a “free” credit report is actually delivering one.These free credit reports may be obtained through the official Website: annualcreditreport.com. Additional information is available at the Federal Trade Commission Website at www.ftc.gov/credit. Obtaining a copy of your credit report through this site is easy, and only requires your name, Social Security number, date of birth, and address. That would seem fairly straightforward, but there are many companies, some legitimate and some not, that are interested in attracting the business of those who seek copies of their credit report, and scams are flourishing.
Posted by Tim on May 23, 2005 | 0 Comments
Credit Counselors?
Do you have experience, good or bad, with a credit counselor or consolidation firm that you'd like to share?I've heard that credit card companies don't consider someone in danger until they've accumulated debt in the order of 3 times their annual salary, which is mind-boggling. I'm nowhere near that (nowhere near my salary, thankfully), but I'm irresponsible enough to have accumulated some high APRs on three cards. I've been paying down my cards for a couple of years, but as soon as I get some breathing room on one or two of them they immediately decrease my limit. (I don't use any of them, I only use my AmEx which I pay off religiously.) Calling them to ask for lower rates, etc, has no effect,
It's time for me to get some help. I'm not drowning, but feeling the current a bit. I know this type of action is likely to be a knock on my credit rating, but better a small knock now than a big crash when an emergency comes along and I have no cash to keep paying down debt.
I know the theory (someone, on my behalf, consolidates my debt into one payment), but most of the firms that advertise seem slimy (non-profit doesn't mean they aren't in it for the money). Any first-hand experiences you can pass one? Any companies/individuals you can recommend?
Read the responses...
Posted by Tim on May 20, 2005 | 0 Comments
How to Find Good Local Credit Counseling
eHow:
- Interview several agencies to choose a qualified credit-counseling service.
- Ask each agency if it is a nonprofit organization, what services it offers and how much the services will cost you.
- Find out if its counselors are certified and if the agency services are confidential.
- Inquire as to how soon a counselor can take your case.
- Request that the agency send you information about its organization and services. Any reputable credit-counseling agency should send you free information. If not, consider this a red flag and go elsewhere for help.
- Check with the attorney general's office or a local consumer-protection agency to find out if consumers have filed complaints about the provider you are considering.
Posted by Dane on May 18, 2005 | 0 Comments
Low-rate student loan consolidation gets green light
A quiet announcement by the Department of Education this week could translate into thousands of dollars of savings for student borrowers by allowing them to consolidate their loans before rates go up July 1.The announcement applies to students with government-backed Stafford loans from banks or commercial lenders. Students who borrow directly from the government have always been free to consolidate while still enrolled, but until this week, it was unclear if borrowers from commercial lenders could.
Keep Reading...
Posted by Tim on May 18, 2005 | 0 Comments
Please Pay For Your Cookies
The following excerpts were taken from the Credit/Debt Recovery blog. Please tell me this guy is kidding...
...we learn that the Girl Scouts are now hiring debt collectors to collect $24,000 in unpaid cookie revenues.How greedy can the Girl Scouts get? This vast corporate entity sells millions of dollars worth of diabetes-causing cookies every year, and they’re hiring thugs to go after $24,000?
It just isn’t fair. This is a naked attack on the sick and the poor;
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This attack by the girl scouts on hard-working families should be remembered the next time they offer to sell you cookies on credit. They know the risks! They shouldn't let people who can't afford to pay write a check for their cookies.
This guy actually has a problem with a company collecting on debts owed? He doesn't have a problem with people taking a product that's for sale and then not paying for it? I really wonder if he would feel the same if people were taking his product without paying for it. Most likey he would have a big problem with that, but, in his mind, since the Girl Scouts make a lot of money it's ok. He's way off on this one.
Posted by Tim on May 17, 2005 | 0 Comments
Credit and Your Consumer Rights
A good credit rating is very important. Businesses inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. They can use it when they choose to give or deny you credit or insurance, provided you receive fair and equal treatment. Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a computer error. Solving credit problems may take time and patience, but it doesn�t have to be an ordeal.The Federal Trade Commission (FTC) enforces the credit laws that protect your right to get, use and maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws protect your rights by requiring businesses to give all consumers a fair and equal opportunity to get credit and to resolve disputes over credit errors. This brochure explains your rights under these laws and offers practical tips to help you solve credit problems.
Posted by Tim on May 17, 2005 | 0 Comments
How To Divorce and Still Maintain Your Credit
Before a divorce, during a divorce, and after getting a divorce you need to concern yourself with credit... credit establishment, credit files and credit scores. Though divorce and credit is a concern for both men and woman, woman tend to have the greater difficulty due to societal standards. Because of this inequity and regardless of the circumstance (divorce or death), I first recommend all woman read the references contained within the article Surviving Suddenly Single.But for all men and woman, essential credit and financial matters must be addressed when contemplating a divorce in order for either and/or both parties to fiscally survive. Even if legally divorced, until finances are divorced, there is still a partnership as will soon be apparent. Here are some key points concerning credit that should be dealt with...
Posted by Tim on May 17, 2005 | 0 Comments
A Different Approach to Personal Finance
How to allocate money according to how available you want it to be and how you have spent it.
Divide up your money into these tiers:
- Retirement
- Major Financial Goals
- Emergency Funds
- This Year's Big Expenses
- Debts
- Getting a little (or a lot) richer
- Live on what's left
via DebtHelpTip.com
Posted by Tim on May 15, 2005 | 0 Comments
Kids with Credit
A report by MSNBC says that more and more kids, as young as 13, are getting their hands on credit cards and debit cards. Considering the current rate of adults in credit card debt, the idea of people with even less of an understanding of the consequences of their actions using credit cards is pretty scary.
If they were given prepaid cards or somehow closely supervised, it can be a good learning tool. Otherwise, stick to cash.
Posted by Tim on May 14, 2005 | 0 Comments
The Credit Practices Rule
If you are one of the millions of Americans who borrows money, buys items on installment credit, or cosigns for another person's debt, you may want to know about the Federal Trade Commission's Credit Practices Rule. The Rule, which became effective March l, l985, prohibits many creditors from including certain provisions in consumer credit contracts. It also requires creditors to provide a written notice to consumers before they cosign obligations for others about their potential liability if the other person fails to pay. Finally, it prohibits one method of assessing late charges.
Read about the provisions and rules...
Posted by Tim on May 14, 2005 | 0 Comments
A novel way to tackle student loans
This year, hundreds of thousands of students are expected to do something never before considered possible in the 40-year history of the Federal Family Education Loan Program: Consolidate their student loans while they are still in school.That would allow them to lock in today's rates on student loans before the rates are poised to rise in July. The current rates available on consolidation loans are as low as 2.88 percent -- the lowest in the program's history. With lenders offering a slew of discounts for automatic and on-time payments, that rate can be knocked down even more.
The opportunity to consolidate loans is one of the key features of the government program, which guarantees loans offered through private banks. It gives people a one-time opportunity to refinance their student debt from different sources into a single, fixed-rate loan.
Keep reading...
Posted by Tim on May 12, 2005 | 0 Comments
Rebuild your credit history with a prepaid debit card
Consumers today are up to their eyeballs in debt. And many people don't realize it until their good credit has been devastated.
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A prepaid debit card is a great solution for a lot of people because the money you spend is your own and in most cases you cannot spend over the amount you have in your account.This is a good solution for people who may have had difficulties with debt or bankruptcy in the past because a prepaid debit card is a great tool for developing invaluable financial management and budgeting skills.
A major bonus of some prepaid debit cards today is that during the sign-up process you are offered an opportunity to sign up for an additional service that will help you rebuild a bad credit history by having your monthly payments reported to one or more of the major credit reporting agencies.
Keep reading...
Posted by Tim on May 12, 2005 | 0 Comments
Bankrupt and Swamped With Credit Offers
Overwhelmed by more than $60,000 in debt, Lenya Garcia filed for bankruptcy protection last July. In January, her case was completed and her debts -- mostly on credit cards -- were dismissed. Less than a month later, a rash of new credit card offers began arriving in the mail.
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Bankruptcy attorneys say Garcia's experience is the norm for debtors emerging from bankruptcy. "I tell my clients they will be inundated with offers," said North Carolina attorney T. Bentley Leonard. The reason is simple, he said: This group of consumers is a very attractive market to lenders because their debts have been wiped out and new debt cannot be forgiven for another six years.
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The solicitations concern bankruptcy attorneys and judges who worry that the credit industry is irresponsibly dangling temptation in front of people who may be desperate for it.
Read the whole article...
Posted by Tim on May 12, 2005 | 0 Comments