Debt Consolidation and Management Guide

(Reuters) – U.S. stock index futures pointed to a higher open on Wall Street on Monday, as a jump in oil prices could buoy energy shares, but volumes were expected to remain thin with few investors at work between the Christmas and New Year breaks.

At 0910 GMT (4:10 a.m. EST), S&P 500 March futures were up 0.1 percent, Dow Jones futures were up 0.3 percent and Nasdaq 100 futures were up 0.1 percent.

Oil gained as much as 5.6 percent to nearly $40 a barrel in the wake of weekend violence between Israel and Hamas, rekindling geopolitical fears surrounding crude supplies from the Middle East.

Mining shares will also be in focus after copper futures prices in London and Shanghai rose more than 2 percent as traders hunted bargains following gains in oil prices and a fall in the dollar.

The Chicago Fed Midwest manufacturing index for November was the only piece of macro data expected on Monday, while no S&P 500 company was due to report earnings.

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Credit Card Debt Consolidation

If you want to work on improving your credit history, how long will it take before you can completely repair your damaged credit?  The answer would depend on the weight of your debt and in the situation you’re in.  Remember that no one has exactly the same credit file and you need to evaluate your personal credit status in order to take the appropriate steps.  In this article, let’s discuss the basic steps you can do to repair your bad credit.  After reading this article, you should be able to get an idea on how much time you need to completely repair your credit rating.

Disputes and Credit Repair

The first step in rebuilding credit is to check your personal credit report for errors.  Unauthorized charges or false information may be the reason why you’re suffering from bad credit.  The Fair Credit Reporting Act gives consumers the right to dispute incorrect charges in their credit report.  This is done by sending a dispute letter to the credit bureau who issued your report.

Generally, the process of disputing takes up to 30 days upon the receipt of your dispute letter.  This means, the bureau has only 30 days to complete its investigation about the issue you’re disputing.  After the 30-day period, you should receive a response from the credit bureau regarding your dispute.  If the issue has been resolved, you will also be sent an updated copy of your credit report.

Nevertheless, if you’re disputing more than just one complaint and each one concerns a different creditor, you may need to wait for a longer time.  Ideally, 30 days is given to resolve each complaint with each creditor.

Improving Your Credit Rating

If your credit report is accurate and the reason for your low credit score is untimely payment or overdue charges, it is up to you to repair your credit.  The best way to improve your credit quickly is to pay off all your past due debts to your creditors.  But what if you don’t have the cash to pay off all your debts at once?

One way to reduce your debts is to negotiate with your creditors.  How?  Speak with your creditors and explain your current financial situation.  You need to be honest and admit that you’re having difficulty with your repayment.  Let you creditor know the steps you’ve already taken to keep up with your bills.  Request for a modification of your repayment terms.  You can also ask that some of the fees (such as late penalty charges) be waived from your account. 

Some people may be hesitant to speak with their lenders but if you try, you may be surprised at how most lenders are willing to modify terms for their clients to lighten up their load.  If you don’t think you can negotiate on your own, you can also ask help from a reputable and trusted credit counseling agency to assist you with the negotiation.

Once a negotiation has been reached, be sure that you’ll be able to stick with the new repayment terms.  Be consistent in submitting your monthly payments and avoid incurring new debts until you’ve paid off all your creditors.  If you’re consistent, you should be able to see a progress in your credit history within the first six months.

Read More How Long Will it Take To Completely Repair Your Credit? 

 Debt Consolidation Information

Do you still have a long holiday gift list but find yourself running short on gift-giving funds?

Your credit cards may help you to stretch your budget. No, I don’t mean adding more credit-card debt that could take six months or more to pay off. Instead, as you look for ways to save this year, you should take a close look at the reward points that you might have earned.

Throughout the year, many consumers have ignored their rewards points with the intent of using them for some major purchase. Now may be the time, says Bill Hardekopf, chief executive of LowCards.com and author of The Credit Card Guidebook.

"If you have a reward card, you may have unused points piling up. Redeem these for gift cards or merchandise," he said.

In addition, Hardekopf says that shoppers should also gather unused gift cards and airline miles for savings.

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Free Debt Consolidation Companies

All consumers, in one way or another, have to deal with lenders.  In some cases, lenders pass on the collection of debts to a debt collection agency.  This is especially true when a borrower fails to respond immediately or fails to get in touch with his creditors on time.  When debts are long overdue, a debt collector may resort to harassment or unfair tactics to force a borrower to pay.  Nevertheless, although the borrower has the responsibility to pay, this doesn’t mean that he or she should be treated unjustly.

Borrowers still has the right to privacy and fair treatment.  The Fair Debt Collection Practices Act (FDCPA) was passed in 1978 to protect consumers against illegal debt collection practices of debt collectors.  If you think that your right as a borrower has been violated, don’t be afraid to take action.  Report the debt collector to your State Attorney General’s office and file a complaint to the FTC (Federal Trade Commission). What are some of the provisions included in the FDCPA?  Let’s consider some of them:

The notification provision.  Any debt collector who intends to collect payments from you should send you an advanced notification.  You should be given the complete list of your rights in reference to the FDCPA.     

The right to dispute.  Borrowers can dispute inaccurate charges or erroneous information within 30 days after notification.  If you think there are errors in your billing statement, contact your creditor right away to clarify the issue.  Send a dispute letter to the creditor in question via registered post mail.  Upon receiving your dispute letter, your creditor must take the necessary investigation and stop all its collection activity until the matter has been cleared.

The right to privacy.  A debt collector cannot disclose any information about debt to anyone except the borrower himself.  Debt collectors should not contact your relatives, friends or neighbors to try to collect repayments.  Collectors must not call in your work place especially after being advised not to.  They should not call at your home before 8am or after 9pm.  They cannot use postcards to notify you about your debts.  If a collector threatens to disclose your debts in a public listing, it is a major violation of the FDCPA.

The right to know truth.  Debt collectors should not disguise themselves as another entity (ex. a government prosecutor, an FTC representative, etc.) to force a borrower to pay.  They should not use false threats (ex. a legal suit has been filed, your property would be repossessed, criminal charges, etc.) to impose fear on the borrower.  Always check if the collector is telling you valid information.

The right to respect.  Debt collectors should not use abusive or profane language, threats, or any form of harassment against you.  If you have sent your creditor a letter to stop its collection from you, they should do so.  Nevertheless, take note that this doesn’t exempt you from your duty to repay your debts.  Even if a creditor has stopped its collection activity, you should take the initiative to pay off your debts at the soonest possible time.

Read More  Learning About the Fair Debt Collection Practices Act

Free Debt Consolidation Articles

NEW YORK - Investors poured more money into Treasurys on Thursday, sending yields to record lows again even as the Treasury Department said it would sell record amounts of notes next week.

Usually, a boost in supply would dampen prices and raise yields. However, after the Federal Reserve said Tuesday that it was considering buying long-term government debt, investors are not yet worried about a drop-off in demand.

The 10-year Treasury note’s yield sank as low as 2.04 percent, and the 30-year bond’s yield dropped as low as 2.52 percent. Low yields are good for borrowers with rates tied to Treasurys, but bad for investors in funds that are swarming to Treasury issues for safety.

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Debt Consolidation Information

When stuck in bad credit, many people opt to apply for loans to pay off their creditors.  Although this may seem like a fast solution to any debt problem, everyone should be cautious about it.  In fact, using credit to pay off old debts poses a threat to your financial situation.  What are the consequences of paying debts with another debt?  Is there a better solution to debt problems?

The Risk of Debt

Any kind of debt involves great risks.  Take for instance, a debt consolidation loan.  Some people consolidate their debts by taking out a loan.  Thus, instead of paying multiple creditors, they only have to deal with one creditor – the loan consolidation company.  Instead of paying multiple interest rates, they’re combined debts have now a single interest and much lower rate.  Doesn’t that sound like the perfect solution?

Experiences prove that results are not always as successful.  Unfortunately, many people find themselves stuck in deeper debts than before they applied for a loan consolidation.  The reason?  They were following an unrealistic repayment plan.  Poor management of finances can also make the problem worse.  Instead of addressing the root of the problem, they opted for the easier way out.

Unrealistic Repayment Plan

Remember that after paying off all your debts with a consolidation loan, you’re still not completely free from your obligations.  You have the duty to repay your debt consolidation company.  And this time, there’s no room for any mistake.  You can’t afford to be late or miss another payment.  You have to be very strict about following your repayment schedule.

Unfortunately, some people created an unrealistic repayment plan, thinking that they can handle it without hassle.  Before signing up for debt consolidation, have you carefully considered how much your monthly costs would be?  How much is the interest rate of your loan?  Do you clearly understand the terms and conditions of your debt consolidation company?  Will the interest rate remain the same throughout your loan’s term or is it subject to change at any time? 

Poor Management of Finances

Aside from keeping up with your monthly loan payments, it’s important to pay attention on your lifestyle and spending.  What led you to this kind of problem in the first place?  Do you tend to spend more than what you can afford?  Are you prone to splurges or impulse buying?  Do you set aside funds in your savings account or do you spend every cent of your money?  Do you have difficulty in controlling your spending? 

After zeroing your balance from your credit cards, it could be tempting to use them again without realizing the danger.  Watch out!  Don’t forget that new debts are not covered by your consolidation loan.  If you incur new debts while you’re still in the middle of your debt consolidation, you’re most likely to end up with more debts than you can handle.  Thus, instead of solving your debt problem, a consolidation loan can actually put you in a far worse situation.  If you plan on getting a loan to pay off all your existing debts, you need to prepare your repayment plan and be determined to stick with it until the completion of your loan’s term.

Read More Should You Use Credit to Pay Off Debt?

 Free Debt Consolidation Companies

Have you checked your credit balance lately? Find out what you can afford before charging purchases to your plastic, and you’ll jingle all the way when bills arrive in January.

Lydia Ooi is big on Christmas. She generously spends on her colleagues and family, and just loves hosting Christmas parties. But not this year, though.

“I’m not sitting out Christmas, but with the looming credit crunch I’m definitely toning down my expenses,” confesses Ooi, a, cabin crew.

“I began by drawing up a gift list in August. It took up two whole pages, so I rewrote it. Then I set a budget of RM500. Shopping became a new experience because I paid attention to what things cost, and I had to be creative to stretch the money,” she adds.

The 26-year-old says she’ll be saving RM700 on presents this year.

“I’ll be chipping away at my credit card balance so I don’t turn into a debt-ridden, nervous wreck come New Year.”

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Free Debt Consolidation Articles

A debt consolidation program is sometimes necessary to help a person recover from his debts more easily and quickly. Nevertheless, not all types of debt can be consolidated. In this article, let’s discuss the different types of debt that one can enroll in a consolidation program. But first, let us define what debt consolidation is.

Defining Debt Consolidation

There are two types of debt consolidation program. One is a debt consolidation loan wherein the borrower obtains a loan to pay off all his existing debts to his creditors. Afterwards, he will be subjected to submit a monthly payment to his loan consolidation lender for a lower interest rate.

The other type of debt consolidation program is where the borrower submits his payments to a debt consolidation company. In turn, the debt consolidation company will distribute his payments to creditors as needed. Here, debts with the highest rates are most likely to get paid first to avoid accumulating charges.

For credit card debt, getting a zero balance transfer credit card is another way to consolidate. In this case, a borrower can transfer his existing balances to a zero interest credit card to avoid the additional interest fees. This enables the credit card holder to save money and focus on paying off only the original amount of his debt.

Read More What Types Of Debt Can Be Consolidated?

 Free Debt Consolidation Information

REYKJAVIK, Iceland - Here are a few things selling briskly in Iceland’s capital as Christmas approaches: horse meat, secondhand clothing and used DVDs of The Sound of Music.

Thrift is the new mantra in Iceland, a volcanic island nation just below the Arctic Circle, now trapped in economic deep freeze with rising unemployment, soaring prices and a paralyzed banking system.

"Before, you didn’t think about what you were buying, but now we’ve been woken up," said Holmfridur Kristinsdottir, who sells such delicacies as dried fish and pungent chunks of fermented shark at Reykjavik’s flea market. "When we buy beer now, we buy Icelandic beer - it’s cheaper."

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Free Debt Consolidation Articles

Missing payment on your mortgage could put you in a very dangerous situation.  Three consecutive misses in your payments can force your lender to file for foreclosure.  This is why consumers are advised to pay close attention to their payments.  However, there are times when financial crisis can make it difficult for you to keep up with your payments.  When this happens, what can you do to avoid foreclosure? 

Is there a way to prevent your mortgage lender from foreclosing your home?  In this article, we’ll discuss the steps you can do to save your home property from the risk of foreclosure.  Consider the following tips:

Speak with your lender.  If you know that you won’t be able to submit your payment on time this month, notify your lender right away.  Explain why you’ll be delayed in submitting your payment and when you intend to do so.  But who should you speak with?  Explaining your situation to the wrong representatives of your lending company would be a waste of time. 

Read Full Negotiating Debts with your Mortgage Lender

Free Debt Consolidation Information