CREDIT CARD TRAPS ?

For people with a spotty credit card history or bad credit, it can be difficult to get approved for a regular credit card. There are a number of credit card options that are aimed specifically at people who have bad credit and are trying to rebuilt it. There are also, unfortunately, a lot of folks out there who'll take advantage of the desperation to get a credit card. How do you tell which options are good ones and which are just taking advantage of a bad situation?

What's the catch? Let's take a look at one that I received in the mail the other day. "You are already approved for this credit card!" the letter said in the very first line. All I had to do was call to verify my details and activate my credit card and I could start using it immediately to make purchases 'from our catalog of excellent value items'.

That one letter is a veritable shopping list of everything to watch out for in bogus credit card offers. To list them:

• The card can only be used to purchase items from the company that issues it. Since I have no way to review the items offered without activating the card - for $250 - I have no way of knowing how their prices compare to the prices I'd find elsewhere, but I can guess that the prices will be outrageously high.

• The activation fee is outrageously high already. But I get it back, right? Not exactly. By activating this 'credit card' I'm committing to buy $250 worth of unseen merchandise from a merchant that I don't know.

• Ditto the $199 annual use fee. While many credit cards that are aimed at helping people rebuild their credit have annual fees, the average is $25 to $50. Again, the annual fee is a disguised way of committing you to spending $200 on their merchandise this year - merchandise that I can't evaluate in advance because I have to be a member to see their catalog.

• Rebuilding your credit is the one thing that this 'credit card' will do - but nowhere near as much as if you'd taken that $449 total and invested it in a secured credit card.Our advice is to do exactly that. If you can come up with a $250 activation fee, find a good deal on a secured credit card and put it there instead. In the long run, you'll do far better than if you accept the catalog company's generous offer to allow you to spend your money on their products.

How to Choose Your CREDIT CARD

Credit Cards are now one of the most popular forms of short term debt. The reason for this popularity is that credit cards offer flexibility and convenience that no other forms of finance can provide.

When it comes to determining which credit card is best for you, you need to match the credit card features and benefits to your individual spending habits. Things you need to take into consideration is:

• How quickly do you pay your credit card balance off?


• Is you credit card balance paid off monthly?


• Do you travel much?


• Is your credit card balance generally ongoing, therefore no longer short term debt?


• Are membership rewards important for you?

How do I Choose the right card?

The first thing to remember it that nothing in life is free. Therefore the more benefits the credit card offers, generally higher the interest rate, and the higher the annual fee. You should always remember that the banks are in this to make money, so when they look at packaging a credit card offer, profitability is always high on their agenda.

Low Interest Rate Credit Cards

Low interest rate credit card market is currently being hotly contested. All the traditional banks have low interest rate offers however other issuers are making inroads into this space with very competitive offers.

These cards typically offer no rewards program for their credit cards. An interest free period on these credit cards is pretty much standard at between 40- 55 days, and generally have a late payment fee. Low interest rate cards are good for those people who:

• Generally have an outstanding balance on their credit card.


• Don't seem to be able to pay off purchases within the interest free period.


• Are not interested in receiving membership benefits


• Might be looking for flexibility in regards to medium term credit.

Many low interest rate cards are also offering 0% on balance transfer rates (generally for 6 months) . So if you currently have a high balance on and existing cards which you are trying to pay off, switching onto a card with a lower ongoing interest rate and low balance transfer rates is worth consideration.

Standard Credit Cards

Your standard credit cards generally offer a higher interest rate, membership rewards, interest free days on purchases (generally around 55 days), and a low balance transfer rate for an introductory period. In many cases these cards are what we have been holding for years and they are now coming under pressure with all the new low interest rate cards on the market.

These cards still have a place in the market and might be best for:

• People who are disciplined and pay the card balance off monthly.


• Use the cards for convenience for everyday purchases.


• Buying everything on your card and then paying it off within the interest free period allows you to obtain reward points and not pay interest charges.

Gold Credit Cards

Gold and Platinum credit cards generally have higher interest rates and yearly fees than other cards, however they also have higher rewards associated with the cards as well as other member benefits. When comparing these types of cards it is important to match the associated benefits of the cards to your own specific needs.

Income requirements for these cards can be higher than the standard credit cards, and then available credit limits are also generally higher.These cards might be best for:

• People who are disciplined and pay the card balance off monthly.


• Use the cards for convenience for everyday purchases. Buying everything on your card and then paying it off within the interest free period allows you to obtain reward points and not pay interest charges.


• Travel frequently - can redeem rewards point for flights.

So, when selecting a credit card take all these things into consideration. Decide which card fits your lifestyle choices.Before applying for any credit card, be sure to discuss your specific financial needs with your financial advisor.

ZERO APR Credit Cards

I know it sounds crazy but it's possible to get out of debt by using 0 APR credit cards. The zero APR credit card is a special no interest rate offer that comes from different financial institutions looking for new business. These cards usually offer an extremely low or no interest rate charge during an introductory period. During this introductory time, you aren't charged any interest on the balance owed.

The zero rate cards also allow for transferring your old balance from a high interest rate card to your new lower rate card. This means that you can take your $5,000 dollar credit card balance on your old card that was charging 18 to 24% interest and move it over to the new card at the introductory rate. Moving a high balance credit card to one of these zero APR intro rate cards can save as much as $100 a month. Now consider that if you take that hundred dollars a month and pay down the total amount owed, even if the temporary rate was six months, you saved $600 dollars. The extra money instead of going to interest simply went to pay down the total principal owed.

Another wise financial decision you can make is that once you transfer your credit card balance to the zero APR credit card, close your original high interest rate card account. Having too many credit cards or credit lines available can actually lower your total overall credit score. Closing the high interest account makes sense because it keeps you from continuing to use that card.

One of the worst things anyone can do when using zero APR credit cards as a financial tool is to keep the high interest rate card active in continuing to use it. This is a common mistake of many young adults who instead of using careful budgeting strategies make the assumption that they can handle credit and end up with yet another increase in credit card debt.

Credit card interest rates are getting absolutely ridiculous. To make matters worse, the financial companies behind these cards are charging exorbitant fees whenever they can. This means that if a payment is somehow late, not only do they charge a huge late fee but can also raise your interest-rate. It's in everyone's best interest to get out of credit card debt as quickly as possible, and using zero APR credit card offers can be a good strategy.

Do i need a DMP

What’s all the hype about anyway? Well its all about “credit card debt” in a nutshell. Most of us have it and truth is, we all want to get rid of it. Let’s face it, credit cards can be a GREAT thing, especially when you’re cruising around the mall window-shopping. A few moments later you realize you have this piece of plastic in your pocket and now you can make that “special” purchase. You may think twice, but in the end you’ll reward yourself. Nothing makes us feel better than buying new things. Unfortunately, if you’re not budgeting properly, you’ll dread the day that credit card bill arrives in the mail, and nothing will make you feel worse.

So how do you know you’re a good candidate for enrolling in a Debt Management Plan? Well, if you’re experiencing any of the following examples, you may need to make that DMP call sooner then you think.

• You pay only the minimum (or even worse you pay less then the minimum) on your credit card and think to yourself, as long as you send “something” that’s good enough.
• You use your credit card to buy things like food, gasoline, cigarettes, or beer.
• Your balances are going up and those over limit fees and late fees no longer surprise you. •
• You have more credit cards then a successful gambler has poker chips.
• You’re signing up for every credit card offer in the mail.
• Your credit cards are no longer used for the sake of convenience but rather because you just don’t have any money.
• You’re hiding your purchases from your spouse.
• You change your home phone number in hopes the collection calls will disappear.
• You’ve reached the limit on most of your credit cards and now you’ve developed a significant amount of stress.
• You’re considering bankruptcy as an alternate way of “getting out” of debt.
• You use cash advances on one credit card to pay another credit card.

If you are experiencing any of these symptoms, then your best cure may be a Debt Management Plan. It may be easy getting into debt, but it doesn’t have to be hard getting out of it, if you do it the right way. If you don’t take control of your debt and you fall behind on payments, it will impact your credit report, or even worse, your livelihood.

A DMP is a far better alternative than bankruptcy to get out of debt and a better alternative than a debt consolidation loan or debt settlement. A DMP basically takes all your unsecured debts, and combines them into one monthly payment. However, it is not a loan. Instead of you sending out multiple payments for your credit card bills, you’ll send your credit counseling agency one payment. They in turn disperse it to your individual creditors. If you enroll in a DMP through a 501(c) (3) not-for-profit agency, the fees to start the program should not exceed seventy-five dollars and maybe a lot less then that depending on the state you live in. Either way, it’s a small price to pay considering the amount of money you’ll save in the long run. In this case you will have saved money while nobly paying off the entire debt you owe without

1. risking the loss of your home if you are unable to make the monthly payment on a consolidation equity loan and
2. damaging your credit and paying income taxes on the amount of debt not paid on a debt settlement plan.
3. Once enrolled in a DMP, a certified credit counselor contacts your creditors and negotiates a lower payment on your behalf.
4. Even better, they’ll get them to lower the interest rates, cease collection calls, re-age and report your account “as current” and waive or suspend past due fees and over-limit.

Sounds good, right? Well remember, these benefits provide you with the opportunity to afford the payments and get them “paid off in full”. Depending on your balance and interest rates, your repayment time can take anywhere between 1 to 5 years. Now, that’s a deal! Considering the fact that without a DMP, you may face a repayment time of 8-15 years. Believe it or not, even more then that if you make the minimum required payments each month.

Once you successfully complete the program, the rewards are even better. You’ve rebuilt a better payment history and you’re debt free. So, the next time someone asks you what is a Debt Management Plan and why should I have one.

PLASTIC MONEY

If you see no positive solution to get out of your debt trap related to credit card spending, you might be overlooking a credit card debt consolidation program. Since interest rates of credit cards are likely to be much higher than regular loans, these types of debts get piled up higher and sooner than other loans. If plastic money is not meticulously used, then users may end up paying higher dollar bills than the amount that was actually spent. If you find yourself trapped in a similar situation, discover your way out through effective program to consolidate all your loan and dues in one simple loan or card.

Leverage Credit Card Debts To Reduce With Debt Consolidation.

People with higher credit card debts generally have a poor credit history. This makes them ineligible to get a loan approval. Even if they get a loan, it is at a higher rate because such loans are considered high risk lending. However, you should not lose heart because many companies offer bad credit debt consolidation programs to help you get rid of harassing collection call and steep delayed payment and other charges because of credit card dues. When you take a bad credit loan to consolidate credit card debt, you not only ease the debt burden but also improve your credit rating.

A consolidation program to combine dues from multiple credit cards into one convenient loan is an extremely effective tool in alleviating the pressure of never ending losses that you are incurring every month and still getting no reprieve from the total amount showing as outstanding. The companies that offer loans and or cards for consolidation charge much lower rate of interest that the existing loans and dues and you save substantially on interest payments and charges. Moreover, since these loans for the purpose of consolidating debt are long term, you have to pay an affordable monthly repayment. Thus a credit card debt consolidation plan is all set to help you take a sigh of relief, ease your debt burden and eventually become debt free.

Before you use a program for consolidating plastic money related dues, make sure you have carefully chosen your company.

• Companies charge you for their services even before seeing your papers and debt structure. Experts consider these companies a sham.
• Not all operators are unscrupulous and you can easily find a genuine debt consolidation company that can help you to take control of the situation and get out of the debt trap.
• Genuine companies begin with seeing your papers, current debt status, then, assess your debt situation to offer you an appropriate program which might consist of a debt consolidation loan, counseling, financial management or a combination of all.

The companies would offer you a free online debt consolidation quote and then after assessing your case, they talk and negotiate with your creditors to relieve you from taking harassing calls from creditors. These companies hire representatives and managers to negotiate minimum payments, interests, late fees and penalties with your creditors. These companies might succeed to get some discount on the total amount due.

Numerous companies are operating in the market providing such free and efficient services. Conduct research on these companies and select a good card debt consolidation program that can deliver visible results in a satisfactory manner, have efficient customer support services, at offer you the most competitive rates.

Debt Management Companies

Debt Management is a very simple financial concept hire a qualified Debt Counselor or certified Debt Management Company to pay your unsecured debt.

The Debt Management Company you hire will relieve and eventually reduce your debt by managing your assets effectively and negotiating with your creditor regarding interest rates and monthly payments. This is not a loan so you are no obligated by any contract or other binding paperwork associated with a Debt Management Plan.

When choosing a Debt Management Company you want to make sure and beware of several things.

• Make sure the company registered with the Better Business Bureau (BBB) and has been rewarded the "Reliability Program Online Seal."
• Beware of any companies who want to charge more than $50.00 a month to open your account and work with your creditors.
• Make sure the company is able and willing to answer all your questions, if you feel that the company is "beating around the bush" don't waste your time; find another company.
• If you feel pressured by the Debt Management Company, run, more than like that feeling will not go away.

Once you choose a company and feel comfortable working with them. They will get you started on your way to a debt free future. There are several steps that are generally followed by Debt Management Companies.

• The first step is listing all your creditors and the amounts owed for each. Remember, not all creditors are eligible to be included in a Debt Management Plan.
• The second step is listing all incomes and expense i.e. mortgage, car payments and cost of living payments.
• The third step is deciding how much of your income is available to contribute to your Debt Management Plan. Your Debt Counselor will try their best to settle any debt and eliminate interest rates.
• The fourth step is reviewing and approving your Debt Management Plan. Make sure you understand everything and read the fine print. This last step is crucial; it ensures that you're not in the dark regarding the amount of money being paid out.

As with any financial product there are advantages and disadvantages working with a Debt Management Company. One advantage is the company can lower or eliminate the high interest rates and fees associated with credit card debt. The company can also settle your debts for nearly half of the balance. You only have to make one monthly payment instead of five or ten. The biggest advantage is you will no longer have to communicate with creditors via mail, phone or Internet.

One disadvantage is that creditors to not have to agree to participate in your Debt Management Plan or lower your interest rates. This would still allow some of your creditors to communicate with you and take legal actions against you and still charge you interest and other fees regardless of payment efforts. Also, any settlement agreed upon between your Debt Management Company and your creditors will show on your credit report.

Keep in mind that this is your decision so it is important for you to be comfortable with it. Ask around, see if any of your friends have worked with a Debt Management Company or know anyone who has. Remember, your Debt Management Company will get your started but it is up to you to finish it. Hopefully you will learn how to make educated financial decisions, which will keep you on a debt free path.

Does CREDIT BAND AID Exist ?

Walking into a clinic may be the answer for a physical injury but for credit repairs sometimes it's best to do your own medical analysis. Learn how credit repair clinics can transform your credit into a deadly incurable disease.

It used to be rather simple years ago to walk into a store and purchase whatever item one wished to take home. Modern day technology and little plastic cards with mega logos have been a life saver for some and a death penalty for others. Whether some may think it’s an invasion of privacy, creditors can look into your credit history and verify not only your payment punctuality but your credit score. This 3 digit number can determine your approval for credit or how low or high your monthly payments will be. Not only have creditors gotten into the habit of checking your past, but possible employers and insurance companies as well. This fascination to improve one’s credit report has made many think twice about getting it polished up.

How Can You Recheck Your Credit Report?

If you feel that your credit report is incorrect then you have the right to have it rechecked. According to The Fair Credit Reporting Act, any person can recheck their credit report. Even though the process to review all the paperwork and have it resent is extensive, it’s worthwhile in the end knowing any modification can ultimately change your line of credit.

How Do Credit Repair Services Tangle You Into Their Lies?

Nothing, almost nothing comes for free in life. Especially agencies who promise to erase your bad credit history just so you can start purchasing new items again. Yes it is true, they do all the nasty paperwork, review millions of numbers and mail out professionally typed letters, but some promise miracles and the point of the matter is, it’s not going to happen. How can these agencies promise to erase any record of bankruptcy in your credit report when the law states that such record must remain intact? It makes you wonder exactly what kind of service they are offering. They are only working honorably if they have substantial support from the Fair Credit Reporting Act. The Federal Trade Commission states that there are no authorized credit repair clinics. People get easily tricked into signing or paying upfront for a service promised to clean sweep their credit report. Scams stating that your credit can be protected and repaired only turn out to cause more harm and end up disappearing once they have received your money. Some people have spent over $2,000.00 for credit emergencies.

Take A Walk Through Credit Clinics

It is important to research a company you plan to share your credit report with first. Before anxiously signing away or reaching into your wallet to pay that miraculous debt removal fee, investigate with the Better Business Bureau and The Federal Trade Commission to see if the company has ever had any legal disputes or has had any unlawful transactions. These credit services must obey by the rigorous structures and show the way to the Credit Repair Organization Act. You should be well informed of the company’s name and business address, the turn around time expected for results, a description of procedures and possibility of canceling at any time without having to pay any fees. Do not let a credit service trick you into applying for a Federal ID Number in order to establish a new credit identity. This is a state felony and can cause you to do time instead of a fine. Negative records like bankruptcies and lawsuits cannot be erased from your records and remain for a maximum of up to 10 years.

What The Acts Say ?

The Fair Credit Reporting Act and the Credit Repair Organization Act state that you are entitled to a copy of the Commission Credit File Rights under state and Federal Law. These credit repair services should be out to protect you, not run with whatever hope you have left of correcting your credit history. Be aware of scams and unwritten promises. Be specific about terms and fees involved in services. Even though it may take longer to look into a credit repair service clinic, in the long run your credit can become healthier and have no need to visit a doctor’s office!!

CCCS -- Consumer Credit Counseling Services

And since the fortunes seldom change overnight, we have to do something for ourselves. There is no point in expecting a close one or stranger to bring you out from the hurdles of life. Are you under constant mental pressure because of your failures to meet credit card or loan repayment? Do you receive phone calls and repeated reminders and wondering what has happened to your financial credibility in just a matter of few years? If you unfortunately belong to this group, you surely need some help.

Did you remember the time when you get low score in your exams and wondered why things always go wrong? You will not believe it but all of us share the same feeling in our lives. So, the myth of being alone in the dark phase of life is a shattered story now. Now, do you remember the time when during this bad phase, you came out strongly and exceeded the expectations of all, even yourself, by getting good marks. What was the one thing that took you out of the dark phase and keep you going all these years? Believe it or not, it was your fighting efforts that kept you going. So, what has happened to you now?

If you are not aware, there are some consumer credit counseling services (CCCS) which run debt management plans (DMPs). These agencies can help you to reduce the debt burden on your shoulders after you enter the DMP. You will be given a period of 3-5 years to repay your debts. The debt amount will be lowered in the form of fee waivers and other discounts.

Let us have a quick glimpse of debt management plan. A debt management plan is a method which is used for debt cataloguing, assessment of budget and income, renegotiation of the interest rates as well as payments to the creditors.You can join the debt management plan offered by many lenders. The debt counseling done at the CCCS is completely free. The counseling services are funded in the form of fair share contributions from the creditors. Fair share contribution is an amount paid to the CCCS on the basis of amount collected from the customer by the CCCS with the debt management plan. All the payments due to your creditors from your side are to be directly deposited with the CCCS and not with the creditors directly.

After you return to a positive financial credibility with an effective debt management plan, please make sure that you do not again fall in the trap of false-promising loans or credit card agencies for which the sole aim of business is profit without any regard to the business ethics. Remember, it was you who turned the tables once and it will be only you who will do it again.

Cheap Loans - A Saving Grace

The demonstration effect makes people spend more than they can really afford. For this purpose, they often resort to borrowing and do different things to somehow manage a better living standard. A research shows that many Brits try to imitate the lifestyles of their celebrities even though they are lacing in financial resources. This puts them under pressure and very often they borrow money to maintain the desired lifestyle.

Borrowing money from relatives and friends is also an option, but it is full of risk – the risk to put your relations at stake. Money is a great divider and people lose trust when money is involved. It is likely that you get your relations strained by bringing the money in between the relations and friends. So, it is recommended that you take the help of professional lenders whenever a situation arises that demands extra financial resources.

The best way to take a loan from lender is to shop around and find some competitive bargains. Every borrower aims to get low rate personal loans but all do not succeed. The difference lies in the search that people make and the capability to negotiate with the lenders. To update your information on the loan market, you can take the help from the Internet. There are many online lenders known to provide loans at cheap rates. You should contact them and initiate the loan process by forwarding an application.

Cheap loans are relief for those who cannot bear the burden of huge interest payments. There are borrowers who are not comfortably placed and they still take huge loans just to live a ‘borrowed life.’ This attitude should be discarded if you have to maintain a decent and healthy financial life. If you accidentally fall in tight financial situations, a bad credit score may be assigned to you by the credit reference agencies. In such a case, low rate loans become very difficult to come by.

Cheap loans are used by people for purchasing a new or used vehicle, going on vacations, education, home improvement, etc. If you are deep in debts, you may also think of managing your debts with the help of these loans. The low interest rate on loan is often a result of your bargaining strength and your individual circumstances. Comparison of different loan products becomes vital for you. This way you can eliminate the chances of being cheated by a lender over the rate of interest and other loan terms.

Life Saving Strategy - Credit Counseling

Financial problems can arise due to many reasons. Like one have had illness in the family and was caught without insurance or the necessary savings to pay mounting bills. Maybe one has lost job and is unable to find employment. When one is desperate and feel there is no place to turn, best way is to seek financial counseling. There are several factors to consider when deciding whether financial counseling is an appropriate course of action or not. This information may also be useful when choosing a counseling agency.

What should one expect?

One might consider counseling when one:

• Is being harassed by bill collectors.
• Have mostly credit card debt.
• Have tried to work out a plan with creditors and failed.
• Have not been able to follow a workable budget.
• Can't keep track of mounting bills.

After first call to the agency, one will probably receive a worksheet to list all monthly income and expenses.

• When one meets with the budget counselor, one will develop a budget plan that meets minimum living expenses and debt repayment requirements. At this point decision should be taken, whether one want to participate in a debt-management plan or whether will use the counselor's suggestions and educational resources to manage debt on own, Self-directed repayment plans J

• If decision is to use a counselor's debt-management plan, one of the first actions should be to get credit cards canceled and return them to the creditor. One must agree not to use or apply for additional credit.

• Based on the budget one worked out with the help of counselor, each month one will send money (by money order, payroll deduction, or automatic check withdrawal rather than a personal check) to the counseling agency. Hence, the agency distributes payments to creditors according to the schedule developed and decided upon.

To be successful, one’s repayment plan must be paid regularly and in a timely way. This plan may be extended for as long as 36 months or until the debt is retired. While one participates in a debt-management program, some creditors may agree to reduce or suspend interest charges.

Keen Eye for Repayment - Attention Debtors

Financial organizations offer easy loan alternatives for your varying needs. Any financial organization is prepared to offer loans provided you have means to repay them. There is a variety of lenders accessible in the form of small credit unions, big banks and financial institutions that grant these loans.

The loan repayment is one factor that you must examine before going for any loan plan. You can get relaxations in the period decided for repayment due to exceedingly competitive loan surroundings. Refund period can be different with different loan providers. Most of the times, the financial organizations preffer repayment tenure of up to 5 years. However, you can find a number of lenders who are offering up to 7 or even 10 years for repayment of personal loans. The repayment period affects lots as far as your ease is concerned. You can make your periodical repayments low by choosing a loan plan with longer refund period.

The loans that are taken without any security are known as unsecured personal loans. A variety of loan providers are accessible with a choice of options of personal loans. Personal loans can be utilized for any reason and at times a good credit history is a must to get these loans.

Personal loans are loans for all intentions. To get the unsurpassed loan choice you can evaluate various loan plans on the Internet. People are using Internet these days for their economical requirements because of safety, handiness and promptness. You can also go for an online loan application. You can utilize the loan for debt consolidation, for business development, for buying a comfortable car etc. Both secured and unsecured online personal loans are obtainable for this. Secured online personal loan come with fairly cheap rates of interest and easy settlement terms. It might be because you pledge your asset as security.

Unsecured personal loans provides you fast loans without pledging any equity.

If you are facing inconvenience in getting loans due to bad credit ratings, then online loans can help you. You can get a reference of online personal loan in spite of your bad credit history. As a bad credit holder you are paying a somewhat higher rate of interest for your personal loan. By regularly paying off your installments you can perk up your poor credit record.

Bad Credit Unsecured Loans - Not that Bad in Reality

As the name suggests, bad credit unsecured loans are given to the individual borrowers having bad credit scores. Borrowers can obtain these money provisions without pledging their property. Borrowers take advantage of these money provisions as per their necessities. However, taking out bad credit unsecured loans in the first instance would be the most common mistake. So, never forget to shop around as much as you can, before going for a certain loan. There are dealers who offer loans with zero processing fees. Some lenders throw their services free and there are some who offer even discount. Look through magazines, visit stores, or go through as many online searches as you can to avail an affordable loan deal.

When you have bad credit, it is evidently the time to be financially alert. Along with the bad credit score comes challenges to acquire loans. Lenders reject applications that come from bad creditors, as it involves lots of risks. However, with the increasing competition there are no more rejections. An adverse credit score would not prevent you from opportunities and just in a click bad credit borrowers can now have a loan. Some lenders specially deal with such loan cases with bad credit.It is important to learn about your credit score before you apply for a loan. Your credit report or your credit history contains important information about your payment history, outstanding loans, and inquiries from business when you have requested for loan, public records and collection of information.

The advantage of bad credit unsecured loans is that the borrower is kept free from any sort of pledging of property. Owing to the condition, many applicants who are tenants have started showing their great interest in these money provisions. Seeing the gravity of the candidates’ financial circumstances, the required sum of money is sanctioned by the lender. A number of banks, financial institutions, lenders offer these loans at reasonable interest rates. The payable interest figures are mentioned in the free online loan quotes. Loan quotes and loan calculator assist the borrowers in taking rational decisions according to their budget. Taking a rational decision can also save your money and time.

Borrowers can invest the amount borrowed under bad credit unsecured loans according to their own requirements. Home improvement, children’s education, buying of car, business establishment, medical expenses, and above all the debt elimination, are some of the best utilities of these loans.

High Debt - Collectors Delight

With interest rates rising and the credit crunch driving up the cost of borrowing and putting banks at risk, the financial affairs of the Britons is now in a mess. According to a study conducted by a reputed economic survey agency, since the beginning of this year, people are finding it hard to cover the cost of loans for personal use and other 'extravagances' such as holidays or cars more than 1.5 times compared to last year.

The Financial Services Authority has calculated that a millions of Britons & Americans regularly fall behind with payments on credit cards and bills, and this inability is reflected badly on their credit record. The number indebted Britons has jumped by 20% and is now 1.7 million, more than double the figure ten years ago and this is definitely a grim situation.

If you are struggling with your monthly financial obligations, consolidating debt into one loan one monthly payment definitely helps your budget and helps you sleep peacefully at night. Debt consolidation loan is the answer for your debt burden. Before applying for these loans , you need to work out how much you owe in total, the current monthly bill for all your debts and what interest rates you are paying. These loans definitely offer you a balance. Once you have a balance for your debts, you can repay your old debts easily and can opt for a easy repayment pattern for the new loan.

You can consolidate your debt burden by taking secured or unsecured debt consolidation loan. The later loan plans are offered without any need for a borrower to put up any security. This type of loan can be availed in a shorter time period compared to the former one. These loans are sanctioned depending upon your individual circumstances. Even people with bad credit histories, including County Court Judgments, Arrears, Repayment Defaults, etc can have these loans and make a significant positive change in their credit score.

Less Tention -- --- No Debt Spree

Overspending is a phenomenon common to all. Even the most fiscally matured people overspend sometimes. When you went overboard buying everything you liked, or you indulged on that long awaited vacation, overspending occurred knowingly or unknowingly. There are steps you can take to get rid of those outstanding caused by the overspending and become debt free once more. For this you have to follow some basic steps.

The first step is to stop avoiding the problem of debt. Many of us procrastinate when it comes to unpleasant tasks, and dealing with debt always sits on the top of the list of unpleasant ways to spend your time. However, the sooner you deal with your debt load,the easier it will be to reduce.

The second important thing is to pay the credit card bills as soon as possible. Ideally you should pay the credit card bills on the day they arrive. This regularity puts you in the safer zone. You should remember that every late payment means a negative entry on your credit score. Besides that, credit cards charge exorbitant fees for late payments and calculate interest monthly. Debt management plans always advice to minimize your credit card uses.

The third step to make your debt burden less if applying for an expert debt help and debt management plan. This makes a minimum payment (preferably much more) on all your credit card outstanding. If you have more than one card, they all can be paid at a time. Many people do not have an idea that a late payment on one card will affect other balances. Credit card companies routinely share information, both with the credit-scoring agencies and each other. Any late or missed payment on one credit card could cause your interest rate to rise on all your remaining debts. Hence, you should make your credit card transactions transparent.

The fourth step of debt reduction is about transferring your high interest rate balances to a lower interest rate loan plan. The lower the interest rate the easier the repayment.

Debt management help advices you to free up as much cash as possible to put towards your high interest rate debt. When your payable interest rate is 18%, using excess cash to pay off the balance means you just made a risk free return of 18 percent. If you have money lying idle in a low interest rate savings account, that money might be better used to pay off your high interest debt.

Money - GOOD or BAD

Debts are generated through various sources but we can describe the kinds as two - basically Bad debt and Good Debt. Debt used for consumption is a luxury. Debt used for business is a necessity! You are building something and enjoying the write off.

Good debt is still stressful but if you are smarter about it, you are managing it. Good debt allows you some freedoms that bad debt will never allow. If debt is used to increase your productivity at the office or invest in something with a large potential return, then you may be on the beach somewhere reaping the rewards. Good debt usually provides tax relief or can allow tax relief. Good debt usually comes with a sense of satisfaction and the joy of it can return a thousand fold. The newness can wear down but you smile every time you think about what it is doing for you or your business. Good debt rarely comes with buyer's remorse after the purchase. Good debt will increase your net worth in what you are trying to achieve. Good debt is usually tied to production of a business or personal finances.


Bad debt is debt that generally drags you down. It is a self prison that you put yourself into. The scenario goes like this- Bad debt usually comes with buyer's remorse as it was a whole lot of fun for a day or two then all the romance goes away. What was once new is now old and it doesn't derive the same feelings for you anymore. Bad debt is not productive.


For your home uses that are consumer product driven, I suggest paying cash. Once you have bought it you own it. For business or financial purposes, it is ok to use debt to make money. Using other people's money at a small price is smart. Why tie up your own cash if you don't have to. Do not get sucked in by retailers who make it so attractive to open up a charge card and even give you a discount on that first purchase. Research has shown that once they get you started on charging, you will continue. Be stronger and be smarter in how you deal with your debt, as the rewards are great. I hate charging anything I will eat, sit on, sleep on, or watch that is located in my home. I do not mind charging or financing anything for my business if it is a necessity for making more money. Your dollars will actually go further if you pay cash for bad debt items and charge or finance good debt items. Have a visa and a million dollar idea? Why not take a chance and put your card to work?

DEBT

‘Debt’ is a mode of using future purchasing power before making payment in the present. Debt is generally granted with expected repayment, mostly adding a certain amount of interest. But how come this practice ended up being one of the most talked about’s part of our lives in all these years. Starting from one’s flashy mobile phone, car, to education, to house and in certain cases home Decors too, all comes through various models of loaning facilities.

Initially low interest rates and intense competition among lenders drew millions like us into borrowing to buy our first homes, the dream car, the first wedding gift, a world tour, daughter’s education abroad etc. People not only exchanged rental apartments for partake of that dream but also went beyond there risk taking capacity to make the gains.

Millions borrowed for costly home expansions and renovations. The resulting boom in residential construction and its dependent industries partly created a question in itself. How soon will we get tamed to this new master called DEBT. As housing prices went up, homeowners' "equity" in houses rose, and that allowed them to borrow still more with their higher "home equity" as collateral. If and when either the borrowing or the lending slows, the housing bubble will likely burst. As home buying slows, housing prices will stop rising. Inventories of new homes will become difficult to sell, resulting in lower home prices. Housing construction will stop, raising unemployment in that industry and all others dependent on it. Rising unemployment will likely further depress home prices since the unemployed cannot maintain mortgage payments, lack of collaterals and so on.

Some figures from the AMERICANA….Everybody’s dream country .In 1974, Federal Reserve data show that US mortgage plus other consumer debt totaled $627 billion. By 1994, the total debt had risen to $4,206 billion, and by 2004, it reached $9,709 billion. For the second quarter of 2005, the Fed announced that the nation's debt service ratio (debt payments as a percentage of after-tax income) was 13.6%, the highest since the Fed began recording this statistic in 1980. This showed that how the Growing America fed the reptile (Debt) in the growing days.

As a stock bubble, will there be a housing bubble too?
What would happen to those who are dreaming to make their dreams come true by taking credits on collaterals or otherwise if this industry crashes? It’s like a House of Cards. One card down and millions of Heart Broken…… Think Again….