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…

Credit Cards - A funny Animal

Welcome back to personalmoneystore.com’s payday loans money blog and Part II of this series on personal credit.

Yesterday, in Part I we touched on personal credit and how credit is scored by the credit bureaus who track our financial account information.

Today we will continue our discussion. I’ll talk first about the common misconception regarding building credit that often gets consumers into trouble. I’ll also cover the first steps we will need to take in obtaining our personal credit score.

Common Misconceptions About Building Credit

Credit is a funny animal, and to some degree it works contrary to what we as consumers would consider sensible.

Naturally, we have a tendency to think that if we have a credit card and we make purchases and pay the balance off in full each month, we would get a higher credit score ranking from the credit bureaus.

However, by paying off the entire balance in full each month, the credit bureaus don’t see you as really borrowing any money at all. But, if you pay off your balance in monthly installments, the credit bureaus see you as having a debt and making good on that debt. Therefore, they award you points toward your credit ranking.

It Costs To Have Good Credit

It’s ironic that the the process of establishing a good credit score is achieved through the irresponsible practice of obtaining debt and paying it off more slowly than what would be considered financially smart.

Nonetheless, don’t let this become a crutch. Some consumers fall into the trap of justifying large credit purchases on behalf of their pursuit to obtain that elusive credit score.

Many other things will be addressed throughout this series that will help you strategically build your credit without falling into financial snares that will leave you entrapped in debt.

Many of our customers borrow payday loans just to avoid the late payment penalties on debts they have accrued by making decisions with good intentions but bad financial planning. Don’t let that be you!

The End of the Road for Bad Credit

It's a Hard Road

At this point you may not even know if you have good credit or bad credit. Surely you have some assumptions. After all, nobody pays your bills but you, so you must ask yourself, “Have I been diligent about making my payments on time?”

If so, I would expect at least a fair credit rating, but really there is only one way to find out: obtaining a copy of your credit report.

Obtaining Your Credit Report

Obtaining your credit report is free the first time you request it each year. Each additional request, however, will cost you a little extra money, but the price is usually quite small and affordable.

You are entitled to one free credit report per year from each of the the three main credit bureaus. The first step to achieving or maintaining good credit is to download all three of your credit reports from each of the three main credit bureaus. One may report things about you or your credit history that may be inaccurate and will need to be addressed as soon as possible.

Once your credit is in good standing, you can download free reports from the bureaus individually. That means you can check your credit score every three months, allowing you to monitor your report for discrepancies without having to pay a dime.

To Be Continued…

That concludes Part II of our series on credit. Keep your eyes open for Part III on the payday loans money blog, where we will show you how to obtain your credit reports and understand them.

Credit repair takes a little time, but considering the effects it has on your financial opportunities, it is time well spent.

See you soon!

Does debt have you bound up and feeling like a police officer bound up, not able to reach the donuts? Try consolidating your debt with a home equity loan. (image from flickr)

When struggling with personal debt, you may be tempted to apply for a personal loan, payday loans or try to borrow money from other sources from time to time simply to relieve the financial pressure you may feel weighing in upon you.

In this article we will attempt to address some of the advantages and disadvantages of the various debt payment options that may be available to you to pay down, pay off  and take control of the debts you owe.

Payday Loans

Payday loans, although a valuable service for emergency funds, are not the best option for paying off or consolidating debt. Payday loans are more a source of emergency funds for dire situations, such as when your car breaks down and you need money for quick repairs or if you want to avoid a late payment penalty with a creditor.

Because payday loans usually limit you to a maximum of $1,500, it is likely that a payday loan would not be sufficient to cover and or consolidate your debts anyway. There are better options available to you that can provide you with a lower interest rate.

Withdrawals On Your 401(k)

A lot of people resort to using funds that they have put aside in their 401k savings plan. This is a tempting but ill-advised approach to debt relief.

Remember, the funds that are in your 401k are reserved for your retirement years. Using these funds to bail yourself out of financial trouble today may cause another crisis for you several years from now. You may find at retirement you don’t have sufficient funds in the account to last through your retirement years.

Taking money out of your 401k will cost you more than you think. You have to take into account how much you will be taxed for on the withdrawal of these funds plus the total amount of interest these funds would have acquired between now and the age you retire. This adds up to be a significant sum.

Home Equity Loans

Home equity loans are usually the best option for consolidating and paying off your debts. Home equity loans are obtained by borrowing against the equitable portion of your home’s value. This gives you the advantage of lower interest rates than most other options. Plus, interest paid on home equity loans is tax deductible.

When borrowing against your home equity, be sure to remember defaulting on or failure to pay your home equity loan payments can result in losing your home.

Avoid Repeating The Cycle

The biggest thing to remember when paying off your consumer credit debt, regardless of the options you choose, is to avoid repeating the cycle again by running up your credit card balances that have been paid off.

If you find that your money spending habits are habitually putting you under financial stress, you may find it helpful to work with a debt counseling service that can help you manage your finances in the future. Click to learn more about debt consolidation.

(image from flickr)

Thank you for visiting the payday loans blog at personalmoneystore.com. With the new year just around the corner, it’s time to start thinking of  your 2009 resolutions. There are no better resolutions to be made this coming year than those regarding personal finances.

Consumers across the nation are in a constant struggle to stay on top of their finances. Layoffs and pay cuts are reaching record highs and the credit is crunch causing creditors to increase minimum payments and interest rates. Learning methods that can save you money and exercising those options faithfully may just save your skin in 2009, and getting payday loans if you need to can help make it happen.

Here are a few things to consider for the new year.

Take Inventory of Your Debts

Take the time to sit and put all your outstanding debts on paper so  you can see where you stand financially. Most people who fall into uncontrollable debt have a hard time figuring out how they got there. This is because we never see the big picture when it comes to what we owe. We are used to seeing bite-sized portions of what we owe each time until a bill comes . One day we wake up to find that there is not enough money in the bank to cover our minimum payments.

Record and Visualize Your Debt

Write down each creditor, how much you owe and the minimum payment and interest rate for each creditor you owe.

Next, make yourself a visual chart or bar graph of what you owe total. This is never a pretty thing to look at, but putting it on your fridge or bathroom mirror where it is consistently before your eyes will do some wonderful things for you.

First, it will remind you of your debt on a day-to-day basis so you can be consistent in your endeavor to pay it off.

Secondly, as you pay off your debt you can incrementally mark your chart accordingly. Seeing your progress over time will encourage you to stay in the fight to become debt free.

With this new awareness, you will be amazed at how much extra money you will be able to find each month to apply toward your debt. It’s like payday loans that you don’t have to pay back.

Practice Responsible Spending

(image from flickr)

This coming year you will also want to increase your awareness of the amount of money you spend and the things you spend your money on. A lot of the purchases we make each month are unnecessary or could be planned better to save you money.

When you go to the store it’s better to have an organized list of the things you need. All to often we go to the store hungry and without a list, which encourages us to spend money on “eye candy” or whatever looks good at the moment. What you end up bringing home is usually a lot of expensive junk or snack food.

An organized grocery list will help hold you only buy the things you need and therefore saving you money that you can put toward your debt each month.

Cutting Costs And Making It Count

Besides cutting down your grocery bill, you can also save money in other areas. We all pay more than we have to each month on luxuries we choose.

These luxuries include things like your current television programming package, cell phone package or internet package. If you are serious about paying down and paying off your debt, you may want to consider down-grading your entertainment and communications options by choosing cheaper alternatives.

Making A Better Tomorrow Starting Today

Eliminating debt requires a personal decision and commitment to change that only you can make. Get started today — you won’t regret it!

Stay tuned to the payday loans money blog tomorrow for more helpful tips on paying off your debt in 2009.

Having trouble making your payments when the bills arrive?

Evaluating your credit every three to four months is crucial to maintaining a high credit score. Credit is built slowly overtime and any mark on your credit report as a result of fraudulent activity, accidental discrepancy, or personal irresponsibility can effect your credit score for a minimum of 36 months to 10 years for things as simple as a missed payments to more serious things such bankruptcy, and some of these things can be avoided with the smart and responsible use of payday loans, if need be.

Checking your credit report is simple and easy to do, but dealing with negative marks on your report are not. This article will focus primarily on preventing negative marks on your credit report resulting from a fault of your own.

Avoiding negative marks on your credit report from a fault of your own.

There are two things you can do to avoid making late payments to creditors. The first thing you may consider is a payday loans. These types of loans can be drawn quickly with minimal criteria which is an important factor depending on your need to obtain cash fast. Pay day loans do come with a fees attached which are usually around $15-$25 dollars for every $100 borrowed. This may seem costly to you but it will be much more costly to have a recorded late payment hit your credit report. This has the potential of costing you thousands over the next three years as your interest rates with creditors will be far less than optimal.

Get back on top of your payments using these two tips!

Try for the sympathy vote with a mercy call.

You can also call your creditors and request a payment plan if you are having trouble with your debt load. Creditors don’t want you to default on your payments as they don’t want to turn you over to collections. Collections only result in further losses for your creditors as most creditors end up selling debts to collection agencies for pennies on the dollar. Your creditors would much rather hear from you regarding your inability to pay your debt then to have to call you themselves. They will typically be more then helpful in accommodating you with a payment plan.

Keeping these marks off your credit report should be of highest priority. Do whatever is necessary to accomplish this quickly before thirty days elapse on your account. Once your account hits thirty days overdue creditors will begin calling you and you may find less mercy extended as you have shown no intent to bring your balance back to good standing. The speed at which you address the issue can save you from late charges on your account, defer payments until a specified time that is more convenient for you as well as prevent you from being turned over to collections or credit reporting agencies.

When calling a creditor you will want to remember the following,

1. Be polite and courteous as you will want their sympathy vote
2. Be sure to let the creditor know why you are calling. Don’t give them a long sob story as to why you can’t pay your debt as they have heard it all already. Make your point quickly and clearly and use there name when you address them.
3. Express your desire to make your account current and ask if you can arrange a payment plan. It would be good here to have a payment that you know you can afford ready to present before the representative to whom you will be speaking.

If you would like to print off a sample call script to follow or rehearse from before making a call on a delinquent account, click on the link below.

Call Script for Delinquent Accounts