Unhappy with your credit score?

The credit repair industry has gotten a bad rap. Many companies have claimed to help consumers, only to charge them high prices for things the consumer could do for themselves, for free. Other companies have offered high-quality misleading services as “bringing your credit score up 100 points within two months.” While this claim sounds good, many people found out the hard way that this is an impossibility.

Despite the bad apples, there are some qualified and truly helpful credit repair agencies available. They can work with compromised credit scores and help consumers work hard to bring their rating up. But how do consumers sort through the long list of available credit companies? There are general rules to follow and things to look for when choosing a company. Being aware of these rules can make the decision much easier and the results much more satisfying.

Five factors to watch for

In general there are five factors to watch for when selecting a credit repair company. Consumers should ask these five questions as they research new companies.

1. Is the web site professional? Consumers should look at the company’s web site and scrutinize their “about,” “history” and “contact” pages. In particular make sure the contact page has an 800-number and not just an e-mail for communication. Make sure there is an FAQ page that answers general questions. The history or about pages should have some testimonials that are varied. Also, consumers need to check for extraordinary claims that seem impossible.
2. Does the company seem ethical? It is extremely important that credit repair companies have a code of ethics. Consumers will be sharing pertinent and private information with their account representative, and the utmost care should be put into protecting information. Potential clients also can check with ECRA, Ethical Credit Repair Alliance, and the BBB, Better Business Bureau, to ensure the company follows strict codes of conduct. The BBB search will provide any complaints the company has had and whether they were resolved.
3. Are there a wide variety of services? Again, a credit repair company should be a virtual library of information. Consumers should be empowered by the information included on the web site. A good company will share resources on monitoring credit, maintaining credit, how to remove negative marks from credit and how to move forward with good credit. There will be a transparency built into their business model that benefits the page-viewer, whether or not they decide to sign up with that particular company.
4. Is the cost reasonable? Credit repair companies are businesses, so compensation is to be expected. Make sure the price is competitive and the list of services are wide. Consumers should check with a few companies and compare prices and offerings to find the best option.
5. Does the company offer a wide variety of solutions? People looking to fix their credit are not all equal. There are a variety of needs, and any company should offer a customized solution for every client. The solution provided should satisfy the customer within a workable amount of time.

Good credit repair companies are out there, though they may be harder to find. Consumers should do research and apply their good business sense, but in the end a company like this may be able to bring credit scores and budgets under control.

Learning to cook can help improve your credit score (photo: flickr.com)

Credit repair services are on the rise as people figure out ways to save money and build wealth so they can pay down debt.   Paying down debt is a key element of credit repair, and obviously, it takes money to pay down debt.

But do you realize that if you just stopped wasting money when you buy groceries, clean your house, or pay for auto insurance, you would have the money you need to pay off debts and get your credit report cleaned up?  Here are a few ways to free up cash so you can start paying off those past due debts.

Eat more healthfully

Most of the typical food budget is dedicated to convenience foods that you could make yourself for pennies on the dollar. Instead of buying prepared mixes and processed foods, invest in a good recipe book and learn to cook.  Not only will you eat better and have fun in the kitchen, you’ll save money that you can apply to your credit repair.

Do you always need to buy brand-name foods? If you buy less-expensive generic foods, you’ll get the same quality while saving on your food expenses every month.  If you exercise just a little restraint at the grocery store, you’ll actually eat better and save enough to pay off your credit cards years earlier than you would otherwise. Credit repair is only a matter of living and spending sensibly.  You’ll save money to pay off debts, and you may even find that you enjoy life more!

Use safer household cleansers

Commercial cleansers are big money wasters.  Many of them are just chemical versions of natural cleaners you can make on your own with everyday ingredients. By using essential oils, lemon juice, borax, and vinegar, you can create your own healthful cleansers and save money every month.

Be frugal about energy usage

Energy bills are big-ticket items in any budget, and utility rates are expected to get even worse in the near future. In the winter, make sure you cover all drafts in your house by using plastic on your windows and blocking cracks around your doors. Depending on how well insulated your house is, you may be able to save extra money by using an energy-efficient space heater and turning down the thermostat.

Reconsider comprehensive auto insurance

Comprehensive insurance – coverage for a full range of potential hazards rather than just accidents and theft — can be a waste of money when you’re trying to pay down your debts and improve your credit score. Of course, if you’re making payments on your car, your lender may require you to carry comprehensive insurance.  But if you own your car outright, think about carrying the minimum insurance required by law and save yourself the much higher premiums paid for comprehensive coverage.

Buy a used car

When you buy a new, you lose a huge portion of its value the minute you drive it off the lot. In today’s market, used cars are far from clunkers.  When you buy a newer used car from a dealer, it looks and feels like new, comes with warranties, and has all the new-car bugs worked out.  If you’re in the market for a car, buy a used one and apply the money you save to payment of your debts.  The savings you’ll get by buying used instead of new are so great that if you apply them to your debts, you’ll be well on your way to an improved credit score.

Get ahead of the game right now

Credit repair is not just for people with extra money lying around. If you cut down on expenses right now, where ever you can, you’ll find the extra $100 to $300 per month you need to pay down your debts, even in this economy.  Think how great it will feel to be out of debt and ahead of the game when economic climate finally improves!

Don't let the stormy economy wash away your credit.

Payday loans could save you from the horrible economic environment that we currently live in. The economic crisis is affecting every single one of us, including many major businesses.

It was once thought impossible for high-end shops and even banks to get themselves into difficulty. However, this recent crisis has taken its toll on everybody in the economy. Even the large incumbent businesses are starting to feel the downturn that the economy is experiencing.

Credit Score

Your credit score is a very important number calculated by the credit scoring agencies. This number is calculated depending on the amount of credit you have available to you, the amount you have borrowed and most importantly your risk.

They determine risk by looking at how many times you have been late making payments or received default notices. It’s vital that you understand your credit score because it has a lot of implications for the whole of your life. If you want to live life to the fullest, it’s important that you maintain a good credit score.

Borrowing money

Thanks to the crisis, banks are much less likely to hand out money to people. That’s why it is so important to find a way to protect your payment history.

Credit scores are more important than they have ever been, and they are used for much more than borrowing money. Even if you’re not borrowing money, it’s still important that your credit score is good because it affects other aspects of your life.

Employment

Your credit score will also be used by employers to decide whether or not to employ you. With there being so few jobs around, it is vital that you cling onto your credit score with all your life.

That’s where payday loans come in, when you use one of these short term loans you will be able to make ends meet without incurring financial penalties.

Utilities

Your credit score will also be used to determine whether or not utility companies want to provide services to you. This is especially important if you are considering taking out a mobile phone contract.

Your credit score will always be used to determine your risk, which is why it’s so important. Short term loans can be a real help with this issue.

Insurance

When you take out insurance policies, the insurance company may use your credit score to assess your risk. This means that by using short term loans now you will be able to protect your credit score and pay less on your insurance in the future.

Easy

Using short term loans is really easy because you can apply online without having to visit any offices or hit the streets looking for money. They are also short term loans, which means you can repay them once you get paid so there’s no need to worry about interest rates. These loans are much easier to understand.

Applying

One of the nicest things about short term loans is that they are much easier to apply for than a normal personal loan. Because they are a shorter term, the costs are fixed, which makes budgeting for them much easier.

You can use a payday loan to save your credit history because they will prevent you from going overdrawn at your bank. Payday loans will give you the money that you need to survive without annoying your bank or adversely affecting your credit score.

Complete video course on how to correct bad credit.

You will learn:

• how to identify mistakes,
• tricks to increase your score quickly,
• how to contact the major credit agencies,
• what the scores mean,
• what is a desirable score,
• and how to “beat the system”.

You can be on your way to a much better credit score within 4-6 weeks.

There are many reasons why it pays to be aware of your FICO® credit score. If you’re looking to finance a home, education or automobile, you’ll want to know what your FICO® score is ahead of time. The same holds true when you apply for a credit card. If you monitor your FICO® credit score, you’ll know what interest rate to expect from your lender.

Did you know your FICO® changes over time?

Your financial history, from paying bills on time to the number of revolving credit accounts you have on file, impacts the score on a regular basis. You can track this getting a free credit score report from a Web site like AnnualCreditReport.com, but you’re only entitled to one free report every 12 months. What if you simply want to know when your FICO® score changes?

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Welcome back. CLICK HERE if you missed part three of this article.

You’ve made it to the very end of “Repair Your Credit,” and let’s keep going to the end by taking a continued look at what credit agencies look at when they produce a credit score for you. That score determines how likely you are to get a good deal on a credit card, but typically has no bearing on whether or not you can be approved to receive a payday cash advance loan.

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• What are your spending habits?

How you use your credit is also a criteria examined by the credit bureaus when they develop your credit score. When looking at your credit accounts and account balances, they are able to determine just how conservative you are as a consumer spender. If your credit lines are maxed out or close to your available credit limit, you would be considered much more of a risk.

In contrast, avoiding a revolving credit balance by paying your consumer credit cards off at the end of each month or billing period will show you to be a far more conservative spender and therefore less of a risk to lenders. Just because you make your payments on time does not mean you automatically have good credit. Your spending habits can come back to bite you in more ways than one.

• Age of your credit accounts

It is difficult to determine exactly what model each of the three credit bureaus use to score your credit, as this information is proprietary and confidential. However, the length of time over which you have established positive credit history is likely a key factor in your score. Establishing good credit is a lifestyle of financial responsibility. Your score is determined by analyzing many factors, including your time in good standing.

• Number and frequency of creditor inquiries

Every time you apply for a consumer credit card, car loan, home mortgage etc., you incur a credit inquiry on your report. A credit inquiry is a creditor obtaining your credit information via your consent and social security number. The more inquiries that you have over a given period can greatly affect your credit score. New lenders see a barrage of financial responsibilities for which you may become responsible. This makes you seem a little more risky, as lenders may believe you are overextending yourself.

• Credit variety

There are different types of credit for which you can be approved. Credit bureaus look for a variety of installment loans and revolving loans. Credit bureaus like a mixture of auto loans, credit cards, retail cards, etc. Installment loans are loans that a person borrows once and makes payments until the balance is paid in full. Revolving credit are credit loans that have a revolving balance, with regular payments made. Each time a payment is made, more credit becomes again available for you to use.

Maintaining your credit is an area of your life that you cannot afford to disregard. On your mortgage alone, you can save tens of thousands of dollars on a thirty year fixed mortgage by having a fair credit scored over a poor one, or you can save even more with an exceptional credit score.

Bring mistakes to their attention

Bad credit is a bleeding wound in your financial affairs. It takes time to recover from a serious wound (or black mark on your credit history), so there’s no time like the present to facilitate healing. Unfortunately, even with all you’re doing to improve your credit score, the credit bureaus themselves can sometimes make a mistake on your credit report. If you see a mistake they’ve made, immediately call them on it. It helps to have mistakes removed from your report when you’re on the road to “Repair your credit!”

CLICK HERE if you missed part two of this chapter of “Repair Your Credit.” Since you’re here, let’s talk more about how to get a handle on ugly, old debts.

We’ve talked a bit about this already, but here are some new wrinkles. When dealing with past debts, don’t let them take precedence over your current debts. The newer the reported debt or delinquency, the more detrimental it is to your personal credit. Paying off a past collection will not remove the incident from your report, so be sure to keep your latest bills paid to date and deal with the past as you get around to it. Negative credit history, depending on the type, cannot stay on your report for more than seven years; most incidents leave your credit report after three.

Keep in mind that if you have a large outstanding debt or judgment against you, you should know the statute of limitations for the creditor to collect that debt. Usually it’s four years, but this can vary. Every time that they receive a payment, the statute of limitations resets. If it’s going to take you more than four years to pay off an old debt and a tough decision has to be made, focus on more recent debt. Once the statute of limitations on old debt expires, wait the 36 months and the incident leaves your credit report. Either way, though, if you need quick cash in an emergency, no fax cash advance is an option regardless of your credit.

You want a job? How’s your credit?

Fair or not, more employers than ever are making it a requirement to run credit checks on applicants before choosing whether to hire them. If you’re applying to work at a bank or similar financial field, I can see the wisdom in this. However, it seems foolish to me beyond that. But don’t mind me, I’m riddled with opinions. Employers are likely thinking that a high credit score on the applicant’s part indicates overall responsibility. But life situations change, and credit can be brought down during one low period. That’s why I say that unless you’re planning to work in the field of consumer or commercial finance, run fan away from companies that require a credit check (not a criminal background check, a CREDIT check) before employment. People with past credit difficulties can be just as responsible and hard-working as those with higher FICO scores.

How the credit agencies determine your score

Again, here’s something I’ve alluded to, but let’s look at it in a bit more depth. When credit bureaus are determining your credit score, they tend to do so by looking at the following characteristics evidenced on your credit report:

Late payments

This is an obvious one, but it cannot be stressed enough. If you have delinquent payments on your report, lenders you wish to do business with will harbor some fear of you repeating the delinquency. Remember, late payments will plague your report for three years before cycling off.

Avoid late payments to your creditors any way you can. As a last resort, you can always get a payday loan to avoid a late fee or delinquent payment from being reported to the credit bureaus. This is a far less costly solution to you in the long run, as the interest rates that you will have to pay over the next three years with any new lenders will be higher otherwise with a reported delinquency.

CLICK HERE to continue reading…

CLICK HERE if you missed the first part of this “Repair Your Credit” E-book chapter. Many of these tips seem commonsense, but if they are, why aren’t more of us practicing them in our financial lives? I think it’s because we can all use a refresher once in a while, particularly when it comes to fighting spending habits and the desire for instant gratification at the expense of all else. Debt relief comes primarily from good habits. Military loans or civilian payday loans come from emergency situations. With the right budget and good habits, here’s to fewer emergencies in your future.

Pay bills on time

Letting things slip doesn’t pay in the long run. Paying your bills each month on time and every time is crucial to establishing and maintaining good credit. It does not matter how big or how small the balances are, if payment is overdue by 30 days or more and is turned over to a collection agency, the incident will be reported to the credit bureaus and you will receive a penalty that will affect your credit score for the next three years.

If times are tight and you are faced with a decision to pick and choose which bills to pay, it is smartest to pay bills such as your mortgage payment and all personal credit card bills first. These types of creditors will penalize you and report late payments that will hurt your score. If you have to let a bill lapse, let it be a utility bill or the like. These companies tend to be a lot more lenient and cooperative with setting up payment plans and so forth and avoid reporting to the collection agencies unless absolutely necessary.

Keep credit card balances under control

When it comes to consumer credit cards, just making payments on time is not enough to please credit bureaus. You should never use more than thirty to fifty percent of your total available credit. Tapping your credit cards makes you look like you are an overspending consumer. Keeping your balance to the lower end of this range will pay back big dividends in terms of credit worthiness. The best solution is to keep your debt to a minimum.

If possible, keep your balances at zero by paying off your statements in full each month. This creates a positive pattern of financial responsibility and frees you from the cycle of revolving interest. Remember, your accounts don’t have to carry a balance to establish credit; they just need to be in good standing.

Get a co-signer

One of the easiest ways to establish credit is to piggyback on someone else’s credit. Ask someone you trust and who trusts you to let you be a cardholder on one of their accounts. They don’t have to actually give you the card. Simply listing you as a cardholder causes their credit account information to show up on your credit report, thus giving you a positive boost to your FICO score.

KEEP READING. You’re almost there!

Welcome back to the “Repair Your Credit” E-book. Last time, we talked about eliminating consumer credit debt and considering whether that last line of defense – bankruptcy – was right for you. This time, let’s talk more about you’re going to rebuild your credit without excessive use of online payday loans or credit cards.

Good credit, meed financial success

A big part of financial success depends on building and maintaining your personal credit. Everyone has a credit scored determined by the nation’s three leading consumer credit bureaus. I’m talking Experian, Equifax and TransUnion. The credit score is then used by creditors to judge your financial reputation and how likely they think you’ll be to repay the credit you’re petitioning for them to grant you. The higher your composite score – your FICO score -  the better your financial reputation. You’ll have more opportunities to obtain goods and services through credit. Not only that, but you will receive lower interest rates and be able to borrow larger sums of money that someone with a lower credit score would, whether it’s for buying a car, house, business or anything else.

Establishing a higher credit score will also allow you to obtain a line of credit with your bank. This may sound the same as being able to borrow larger sums of money like I just mentioned, but there’s an added perk: you will have access to funds on a regular basis without prior approval. This type of credit line can be a life-saver for a small business, because it truly does “take money to make money.”

Find your credit score

Start with AnnualCreditReport.com. It is the only guaranteed, FTC-backed source for one free credit report per year. You can obtain additional reports for a fee. However, a simple way around that is to download one free report from one of the three agencies once every four months. While the scores will vary slightly (each agency uses a slightly different scoring mechanism), you’ll have the information you need to discover any discrepancies.

For your information, the average US credit score is 678. A score of 750 or higher is highly reputable and all but guarantees you approval. Here’s a visual to help you see just where you fall into the grand scheme of the credit jungle:

Maintain checking and savings accounts

When you’re making that serious push to repair your credit, one of the first things you should do is make sure you have established a savings and checking account with your bank. If you don’t currently have one, now is the time to get one. Possessing and maintaining bank accounts is a good step to establishing credit. The older your accounts become without incidents such as overdrafts or bounced checks and the more savings you accrue by making regular deposits into your savings account, the more stability and responsibility you will be able to show as a consumer.

But there’s so much more to do. READ ON and see…

You know what you’ve gotten yourself into. Your debts are very real, and it will take effort and negotiation moxie to get your finances to a better place. Now begin to “Repair Your Credit!” CLICK HERE if you missed part four of this article. If you don’t keep up, your credit cards will come alive at night and nibble at your fingers. No credit repair in the world can replace a good set of digits.

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First, negotiating down your debt will not immediately enable you to finish paying off what you owe and walk away with a spotless credit rating. Your credit score will be negatively affected for a period of seven to ten years before the black marks finally drop off your credit report.

Therefore, you must take careful consideration of your future financial plans. If you are already defaulting on payments, your credit is already blemished. Late payments of 30, 60, and 90 days have already been reported to the credit bureaus and will hurt your FICO score for at least 36 months before they disappear.

The big question for you then would be, “is it worth it?” Depending on your debt load, it may be.

Bankruptcy may be your best option

Another thing to consider if you have chosen to negotiate your debt down is how much will you still owe once the debt is renegotiated. It hasn’t gone away; you still owe. How long will it take to pay off the new balance?

Whatever debt is forgiven during the negotiations is looked at as “phantom income” by the IRS. Sounds spooky, but it’s true. You could be looking at a large tax bill for your “forgiveness.” In some cases, this could even change your tax bracket, which could be a disadvantage depending upon your situation. Surely you want to avoid an IRS bill that you can’t pay. If you get in trouble with them, little things like debt consolidation and credit repair will be the least of your worries. Audits, court hearings and jail time are as painful as they sound. And the people in the joint are very real, not phantoms…

Not fun, but sometimes necessary

Also, if the amount of the renegotiated balance you owe on your credit card debt is 50 percent or more of your yearly income, it may be just better to claim bankruptcy. This is not something to take lightly. But the fact is this: your credit is going to be marred for years. If it will take longer than 7 to 10 years to pay off your renegotiated balances, then bankruptcy may be your best option. It will disappear from your credit report in the same amount of time. The only difference is that you won’t be burdened by all the debt while you’re waiting and working to repair your credit.

Bankruptcy is not fun to think about, but it may be the best thing you can do for both yourself and your family. Once it’s done, you will be building your credit again from scratch. Learn from your past mistakes and move on. Then CLICK HERE for the next chapter in “Repair Your Credit.”

Welcome back to “Repair Your Credit.” CLICK HERE if you missed part three of this article on how credit repair and a lessened dependence on payday loans can help you to keep your financial boat afloat.

As you look at your balance transfer options, isolate the best offers and apply for them first. I’m talking lowest APR or no APR for the longest period of time, of course. This is important because inquiries made on your credit history will appear on your credit report and have a negative impact upon your FICO score (if there are many inquiries, in particular). According to the business world, your FICO score is THE indicator of your credit worthiness. Thus, you want to make the best debt consolidation choices possible to repair your credit.

Revisit the results

Once you have found a good, low-interest balance transfer candidate for consolidating your debts, go through the application process. After approval, go back to the payment calculator and determine your savings in both time and money over the life of the debt.

If the ship is sinking

If you have missed several payments resulting in a low credit score, you may not be able to take advantage of the low interest balance transfer options. But all is not lost!

Credit card companies still want your business. But a poor credit history may prevent you from creating new accounts with other creditors. They will view you as a risk. They only want your business under two conditions:

1. That you have some reputable credit and
2. That you currently owe them money.

The second is what you will need as leverage. Because your creditors may not be happy with your payment history, but as long as you owe them money, they are willing to do some surprising things to get some – if not all – of that money into their coffers.

Negotiating with your creditors

Oftentimes, if you are defaulting on payments, creditors will be willing to negotiate a settlement with you. Keep in mind that they must have some evidence of good faith on your part. If you’re too far behind and the balance has grown too high, you may be out of luck here. However, if the mountain is still climbable, creditors may begin to focus more on what they can get back rather than how much you still owe.

Credit debt can often be negotiated down to 25 to 50 cents on the dollar. In other words, if you have $50,000 in credit card debt, a successful recovery negotiation could bring that down as low as $12,500. Think of how much this would decrease the financial stress in your life! You can’t depend upon creditors being amenable to such a change, but if you find yourself in a credit nightmare, it pays to try this strategy out. Be aware, however, that there are some catches when committing yourself to these negotiations. CLICK HERE to read on!

CLICK HERE if you missed the last part of this “Repair Your Credit” E-book article. Let’s continue to charge ahead and see if we can’t hit the bulls eye when it comes to getting your debt under control. Because cash advance loans and mortgage loan modification may be a temporary balm, but habits are what need adjusting in Gilead…

More on the credit card war

Cut those credit cards if you can’t stop yourself from swiping them! The first thing you must do to get those monster interest rates under control is stop increasing your balance by spending. Just say “NO” to instant gratification when it tries to slide plastic from eel skin. Many people have gone so far as to cut the cards up, but online purchases can be made as long as you have the card number, expiration date and CV2 code. Thus, willpower is in order here. Get away from using credit cards, but DON’T close the accounts. Why? Because it helps your credit rating.

If your credit report does not reflect any defaults at the moment, keep accounts open and work at paying them off (but not using them). That will have a great positive impact upon your FICO score. Try to keep only three to five credit card accounts open. If you have more, try to hold onto the ones with the best interest rates, but also consider this. Generally, the more unused credit you have available in relation to credit used, the better. Large limit cards with low interest rates are great to hold on to.

Balance transfers

Credit cards are a cutthroat business. If you have good credit, you can take advantage by negotiating the best offer possible. And a key element on your side during negotiations is the potential for you to transfer your balance from one card to another with a lower balance or more favorable terms and perks. Creditors are aware of this, so they will fight for a customer with good credit. Put it on the table and see what you can get.

As I’ve mentioned before, many cards will allow multiple balances to be transferred. So long as the credit available to credit used ration remains in your favor (try to use 30 percent or less of a card’s available credit and see your FICO score rise) and the card with the lowest APR is receiving your transfers, you’re in great shape. Look for a special transfer rate of zero percent for 12 to 18 months (or better). This means that all you’ll be paying on that is principal during that period, which is ideal.

More benefits of transfers?

Yes indeed! Discover Card has offered promotions in the past where you can continue the zero percent APR transfer rate if you continue to make at least three regular purchases per month. Sure, the purchases won’t be subject to the magic zero APR, but it will keep that rate locked in for your balance transfers. Since the promotion didn’t require a minimum amount on the purchases, you could have kept them small. Check with Discover or your credit card company of choice, as time and the recession have surely changed the offers available.

CLICK HERE to keep reading…

Welcome back to “Repair Your Credit.” CLICK HERE if you missed part one of this article. You’re here because

…enough is enough!

Believe me, I’ve been there. I have receipts from quick payday loans and debt relief to show for it. One day you will awaken to find that all you are able to pay to your creditors is the minimum payments. You simply can’t do anything more, which is unfortunate, because as I’ve already mentioned in this E-book, paying the minimum is the longest, most expensive possible path to take and still be able to pay off an account. If you’re OK with it taking years longer (and costing you much more than the credit you originally used), then paying the minimum is your speed. You shouldn’t go there, however.

Minimum payments are subtle, enticing and ultimately dangerous. They are financial time bombs that will leave your money in disarray if you lean upon them. They may seem convenient and affordable, but they are neither one of those things in the long run.

But they’re convenient for someone!

That’s right – for your creditors. It’s convenient for them because your paying the minimum only amounts to a cash machine in their employ. If you have a $1,000 debt, an interest rate of 18 percent and a two-and-one-half percent minimum monthly charge on your balance, paying it all off by only making minimum payments would take you 13 years. Again, I’ve mentioned this before. You need to know how much damage you can do to your finances with simple decisions, too.

If you’re dealing with multiple debts in this fashion, you’re in trouble. You’ll be spending so much on interest that could have gone to something useful. Like a retirement account, a college fund for the kids, a future vacation… anything truly worthwhile. Don’t follow this path to bankruptcy. Wake up!

Are you bailing water from your sinking ship?

If you are up to date with all of your credit accounts but have slumped into the habit of only making the minimum payments, this E-book is for you. It’s time to take corrective action.

First of all, consider each of the debts you own. Write them down, because the visual reminder should help spur you into action. You want to write down how much you currently owe, as well as the minimum monthly payment and the interest rate they require of you.

The true cost of paying the minimum

After that, go to this calculator. With it, you’ll input the necessary figures for each of your debts. The calculator will tell you how long it will take to pay each of them off. The truth can be sobering, but you must not lose heart. What may appear to be a prison sentence is actually a road map you can and must follow to dig your way out of debt, repair your credit and build wealth. It alone is enough motivation for change.

Next, let’s talk about how to chop these ominous debts down to size. By doing so, you’ll be able to pay them off quicker, while potentially saving money – thousands! CLICK HERE to continue reading…

Welcome back to the “Repair Your Credit” E-book. Last time, we discussed some steps you can take to right the ship if you’ve depended too much upon borrowed money like online cash advance. It’s all about good habits. Now, let’s go further with more helpful strategies and hints you can begin to apply right now. Fewer loans and fewer credit cards can equal fewer worries, once you have your finances under control. Repair your credit today!

Eliminate debt

Perhaps your reason for a payday loan is that you’re trying to keep up to date on your payments with creditors. Perhaps this month you’re falling short and want to avoid late penalties that will put you further in the hole. If you do not have a large amount of total debt and just need a little bit of help to avoid falling deeper, online payday loans can be useful. Avoiding them and choosing penalties and a lower FICO score simply doesn’t make sense.

However, if you’re facing an even deeper struggle to handle everyday expenses and bills, don’t be afraid to seek help.

Shape up

Your goals are twofold. Not only do you want to repair your credit, but you want to travel that road where it takes you – toward creating wealth. So you much be in control of your finances.

How do you get and stay out of debt? There are several strategies that you can implement to put yourself back in control of your financial affairs. I hope this E-book can steer you in the right direction.

Let’s get started

Think you’re alone in your debt trouble? Think again. There’s something you should know about Americans, courtesy of author Kevin Trudeau:

Did you know?

• Between credit, debit and retail charge cards, there is a total of 1.3 billion cards issued in America. The average household has thirteen cards
• Over $1.5 trillion dollars are charged to credit cards annually. 40 percent of U.S. households spend more than they earn
• The average American has $8,400 in credit card debt and pays $950 dollars a year in interest
• 96 percent of all Americans will be financially dependent on the government, family, or charity at retirement
• Nearly one in 100 households in the United States will claim bankruptcy
• Nearly half of Americans have less than $10,000 saved for their retirement

Left unchecked, debt is detrimental to your financial future. As mentioned, the average American pays $950 each year in debt. Wouldn’t you love to be able to put that money to better use, particularly during a recession? When enough is enough, it’s time to get tough on your financial habits. CLICK HERE and we’ll go even deeper into what you can do to take the reins of your finances and repair your credit.

Welcome back. CLICK HERE if you missed part four of this five-part article. Let’s close out this chapter of the “Repair Your Credit” E-book by looking at a few more ways that you can cut down on high-interest revolving credit. The fewer credit cards and installment loans who have to depend upon, the better for your financial future.

Retirement funds

If you currently possess a 401(k) retirement account, you may be able to borrow a loan against it if you absolutely need money. Keep in mind that this should be a last resort for debt consolidation, as your 401(k) is intended to be a part of your long-term financial goals.

The nice thing about these types of loans is that you are paying interest to yourself, not the bank. Be aware, however, that if you quit your job that is providing you with the 401(k), you’ll have to pay the debt in full when you leave. Hardly the kind of thing you want to have to worry about during a recession, is it. Perhaps you shouldn’t borrow from your 401(k). Forget I mentioned it, or at least be sure you won’t be creating undue financial stress for yourself.

Your local bank or credit union

Short term loans and installment loans obtained through portals like Personal Money Store Credit unions offer immediacy and interest rates much lower than you would expect for quick payday loans. However, if you don’t need a bad credit cash advance – i.e., your credit is still decent and you have identified your need for help before defaulting on your accounts – you may be able to apply for and be approved for a loan from your bank or credit union. Since most consumer credit card accounts carry interest rates around 20 percent, you may be able to lower your monthly payment and pay your debt off quicker with such a loan, which may only carry a 10 percent rate.

Consumer credit counseling

There are nonprofit consumer credit agencies that provide debt relief counselors who work will work with you to understand your situation and tailor advice accordingly. These counselors have experience negotiating with creditors and may be able to guide you toward a solution creditors may not be willing to negotiate one-on-one with you.

Typically, these agencies will take into account your outstanding debts as well as the payments you are making on those debts. They will likely get any accrued late fees you have accumulated waived and get your interest rates lowered as well.

Negotiate with your creditors about default

Be upfront with your creditors. If you feel you are about to default on your home mortgage, credit card or other accounts, talking with your lenders could be vitally important for averting financial disaster. If you express that you are on the verge of defaulting on your accounts or going bankrupt, your creditors may be willing to work with you.

Creditors are just as aware as you of the consequence of default and bankruptcy. If you file as insolvent, they won’t be getting their money, even at least a portion of it is typically written off as unrecoverable (”bad”) debt. It can be to their advantage as well as yours if terms are extended. No matter what your means of debt consolidation are, acting quickly is essential to gaining control.

A key element of how you’ll “Repair Your Credit” is making mountains of debt more manageable. CLICK HERE if you missed the last installment of this article.

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Let’s face it. Managing debt can be a long, slow and tedious process. If you find yourself juggling numerous revolving credit accounts each month and relying upon online cash advance and installment loans to make ends meet, you need to find a different path through the woods. It could help you to use methods of debt consolidation. By doing so, you can put all your debt under one umbrella. At the very least, it’s likely you’ll save on interest rates each month, which makes a big difference in the long run.

When is it time to seek debt consolidation help?

Seeking help can be humbling for some and many find themselves embarrassed to seek out the appropriate help. But we’re living in a recession, we aren’t getting any younger – no Benjamin Buttons here – and we want to repair credit here. So if there’s any possibility that you could use help, take action and find it. The longer you wait, the more interest accumulates and the larger your debt pile becomes.

A good time to seek debt help is when you experience the following:

• You can only afford the minimum payments on your credit cards each month
• You’re taking on debt to pay for previous debt. An example would be using your credit card to make payments on other cards
• You write checks from one account to make a payment on another because you lack the money needed to keep up
• You are in or near “maxed out” city
• You’re working more hours or taking up part-time work in addition to your day job so that you can keep up
• You find yourself using credit for essentials like groceries and gas
• You have lost your job and don’t know how you’re going to make the minimum payments

If any of this applies to you, it’s time to take action. Begin thinking about what you can do to manage your debt before it gets out of control.

Credit card balance transfers

If your credit is at least fair (let’s say a FICO score of 660 or better), transferring the balance from a high interest card to a lower interest card might be an option. A key thing to look for here is a card that doesn’t bear an annual fee. Since there are so many banks and credit cards out there that are willing to compete for your business – recession or not – you’re bound to find a transfer option out there that has terms favorable to you. A zero percent interest rate for the life of transferred balances is ideal. Also look for a card that will allow you to transfer multiple balances, if necessary.

Home equity loans

This is the most popular form of debt consolidation, because a person’s home is generally the largest asset they possess. If you currently own a home with some equity left in it (I know, there are no guarantees of that in this economy), you can refinance the mortgage to pay off your debts and, if you’re lucky, you may even get a lower interest rate while you’re at it. Considering how low interest rates still are after the collapse of the American housing market, mortgage loan modification pays. Spread your payments out over thirty years. This gives you some immediate relief and ties all your debt into one payment with your mortgage.

CLICK HERE to see what else you can do…

You want to know how to get out from under the burden of credit cards. You want to “Repair Your Credit.” CLICK HERE if you missed the previous segment of this story.

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If you only make the minimum payments on your accounts, then you are like Atlas. You should plan to bear the weight of your debt upon your shoulders for eternity, because those credit cards are never going to be paid off. Minimum payments may make you feel like you’re saving money because you have more in your pocket afterward, but in the long run, making the monthly minimums actually means that you will pay the maximum amount possible.

Look at it this way (installment loans are better)

Let’s say you have a credit card with a $1,000 balance. The APR is 18 percent and your the monthly minimum payment is calculated at 2.5 percent of your current account balance. That would make your minimum monthly payment $25.

If in fact you make the unfortunate choice to pay the bare minimum payment of $25 each month until your account is paid in full, it would take you 153 months. That’s a shade under 13 years. By paying off  $100 each month, it would only take 11 months to pay off your account. What a difference paying as much toward the principle balance as possible makes each month!

Just in case you don’t believe me, see for yourself (safely, mind you). Here’s a tool from Bankrate.com that can show you just how long it will take you to pay off a debt like a credit card if you’re only making the minimum payment each month.

Want some other tricks for taming monthly expenses?

Sure, cutting down on the impulse purchases and reliance upon revolving credit are essential, but they aren’t enough to supercharge your savings and repair your credit. Here are some ways to cut back on regular monthly bills:

1. Choose to have one telephone only. Many people have a cell phone and a home phone. Choosing one or the other, instead of both, can save you anywhere from $10 to $60 per month, perhaps more.
2. Sign up for a less expensive cell phone plan. Eliminate the data option and surf the World Wide Web from home, don’t pay for extra texting, lower the minutes, whatever.
3. There’s too much bad television. Cut back on all the channels you’re paying for but not watching.
4. Shop smarter. Avoid the many prepackaged food that’s expensive and unhealthy. Whether it’s fast food or grocery fare like Pop-Tarts, sugary cereals, ice cream, or anything similar, you don’t need it. You’re paying for convenience when just a little bit of prep time in the kitchen will end up costing you less money and be better for you. More nutritious, less expensive options include oatmeal, fruits, nuts, vegetables, pastas and small amounts of lean mean.
5. If there’s a sale and you need something, go for it. Clipping coupons is also well worth the effort.
6. Heating and cooling are big price gougers. Try lowering the temperature on the thermostat before you leave for work. Worn weather stripping/caulk around doors and windows can make a significant difference in your heat bill as well. If, upon close inspection, you can see light bleed in from the outside, replace ASAP.
7. Saving water is another positive goal. Take quick showers and do larger loans of laundry at a time.
8. CLICK HERE to continue…

Welcome back.
CLICK HERE if you missed part one of this article. Use installment loans and instant payday loans only when necessary. You can cut the cord on your dependence upon borrowed money and repair your credit starting right now!

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Not long ago, we all dealt in cash. If you didn’t have enough for what you wanted to purchase, you simply couldn’t buy it. It was that simple. Today, there are too many credit card options like Visa, MasterCard and Discover. If we don’t have any plastic, we can draw some quick cash from a local brick and mortar or online payday loan store.

We’ve come to enjoy the convenience of credit and fast cash, and they can in fact be used responsibly. However, as you probably already know, discipline and responsibility are typically lacking in consumers because it is relatively easy to come by personal credit.

If you use your credit card for all your monthly purchases, you’re asking for trouble. At the very least, you must be sure that you do not go over the limit and – if you truly want to repair your credit -  that you do not charge more than you can pay in full each month. This may prove difficult, and I would suggest that you’re much safer using your addition and subtraction skills in service of your checking account, spending only what’s there and making a habit of saving. You can see a remaining balance in your checkbook register (online or on paper), so you’ll know how you stand and won’t be as tempted to flash the “magic” plastic.

Thanks to the world of online banking, there are tools to help you burn through your available credit. One is E-mail reminders that can be set to notify you when you are approaching your limit. By all means, set such notifications to automatically hit your inbox, but DO NOT rely upon them. There will inevitably be a delay before your bank issues the E-mail, so you really have to know where you stand before you make each and every purchase. It’s the safest way to use credit cards (if you must do so).

Paying Off Credit Accounts

When paying off credit card debt, many try to pay off the lower balance cards first. It’s a psychological game we play to make our progression to financial freedom feel faster; in reality, we should pay off the higher interest cards. So if the interest rates on these lower balances are the highest of your credit accounts, you are on the right path. Highest interest rates will cost you the most over time.

One of the worst habits that will lead you into debt quickly is putting things off. Being habitually late on payments add late fees and charges to your already existing balance, but even more damaging over time, it will raise the interest rate. If the existing balance in the account is big, this could cost hundreds of dollars in interest before you get it paid off. And couldn’t you use that extra money for something more important?

CLICK HERE to keep reading…

Identifying Habits That Cost You Money

Welcome back to “Repair Your Credit.” Last time, you saw that the people who use personal loans to keep their credit rating in order aren’t all that different from you and me (demographically). This time, let’s start getting down to the nitty gritty of spending and borrowing habits. The more you get these under control, the more likely you are to step out with good credit.

Let’s start off with a recent survey whose results appeared in USA Today. “If you were given an extra $1,000, what would you do with it?” was the question. Imagine it’s a gift, a stimulus check, or anything else. Here are the results of the poll:

• Save it! (31 percent)
• Pay off debt! (24 percent)
• Splurge! (20 percent)
• Buy essentials! (16 percent)

That sounds smart, doesn’t it? If only one in five people (20 percent) are going to splurge on an impulse buy, that means 80 percent are thinking conservatively, in preparation for a rainy day. We’re certainly there now with the current recession, aren’t we?

Asking yourself tough questions

I think the percentage of impulse buys would be higher, honestly. It’s exciting to spend what amounts to found money, isn’t it? If you’re one of the impulse buyers, step back from the adrenaline rush for a moment and consider your situation. If you can answer these questions in the affirmative before having fun with your money, you’re ready to go

1. Are your debts paid off?
2. Do you have a savings cushion?
3. Have you taken care of your immediate needs?

Let’s be realistic

If the answer to any of the above questions is “NO,” you’re making the wrong decision. No doubt about it. Splurging is fun if you can truly afford it. Unfortunately, most people can’t, and they make themselves slaves to credit, borrowing and the general attitude that saving is something the other guy does. Did you know that the average American owes over $8,000 in consumer credit card debt? In recent years, that’s been trending upward.

There are lots of bad habits that lead us into debt.  If you find that you can personally identify with any of them, take charge now to repair your credit and build more productive financial habits. Such a strong foundation will help you now and protect you against problems in the future.

Have you considered your budget?

Do you currently have a monthly budget or some kind of plan for your expenses and financial goals? If not, get to stepping! A budget is for anyone, not just somebody who needs help staying above poverty level. Having a budget is essential to becoming a financial success and keeping your credit grazing in green pastures. It doesn’t matter if you make $20k, $100k or more per year, a budget can help you recognize just where your money is going each month. You may be able to float from day to day without a budget, but you won’t be on course toward your financial goals. CLICK HERE to keep sailing…

“Repair Your Credit” with information. Knowing that military loans and installment loans can contribute toward a better financial present (avoiding missed bill payments, etc). CLICK HERE if you missed the last part of this article.

More than half of all traffic to the PersonalMoneyStore.com Web site (56 percent to be exact) earns $60,000 or more per year, which includes an above average index number for users who earn $100,000-plus. Where are the opposition’s claims that online payday loans target the disadvantaged? The $100,000-plus earners constitute 28 percent; 27 percent earn $30,000-$60,000 per year. It seems clear to me that PersonalMoneyStore.com users are individuals who have the income to repay their debts. This does not classify them as “victims” of installment loans.

Their education

Increased earning potential and education typically go hand in hand. Recent U.S. Government studies show a clear correlation between a worker’s level of education and their average pay level. Thus, the higher the level of education consumers who use PersonalMoneyStore.com have attained, the higher their pay level. Quantcast shows that rather than “exploiting the uneducated,” PersonalMoneyStore.com works with a customer base that is 64 percent college graduates and 20 percent graduate students. The latter figure in particular is well above the Internet index average.

Minority Exploitation

You can probably figure out how this one is going to go, but let’s go to the Quantcast tale of the tape. Indeed, collected data fails to support claims that short term loan companies exploit racial minorities. PersonalMoneyStore.com traffic is 82 percent Caucasian and 11 percent African-American, according to Quantcast. Both figures are above the Internet index average, the latter significantly so (142).

Are overstretched families being targeted by quick payday loans?

This is another myth dispelled by Quantcast. A whopping 80 percent of PersonalMoneyStore.com traffic has no children between the ages of 6 and 17. And according to the 2000 Census, the largest percentage of American families were those who were married without children (28.7 percent). Interestingly, this is a trend that has been increasing since the 1970s. All of this suggests that personal loan outlets like PersonalMoneyStore.com and others are not exploiting overstretched families.