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Studies have shown that people generally maintain a business relationship with their first card issuer for 15 years, which is why creditors want to get customers when they are young. The relationship lasts so long because the young consumer doesn’t know how to find better deals.
Many people are suggesting that credit card companies are aggressively trying to get students hooked on credit by luring them with T-shirts and other freebies when they apply for cards. This guide is designed to give you the facts you need to be a wise consumer and the tools to use credit to your
Read more…Credit Cards: What You Need To Know
Every day, companies promise consumers who have poor credit histories that, for a fee, they’ll clean up their credit report so they can get a car loan, a home mortgage, insurance or even a job. The truth is, these companies can’t deliver an improved credit report using the tactics they promote.It’s illegal: No one canremove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in up-front fees, you’re left with the same credit report—and a lot less money.
Indeed, attorneys for the Federal Trade Commission, the nation’s consumer protectionagency, say they’ve never seen
Read more…Protect Yourself From Credit Repair Scams
Source: FTC.gov
Before You File for Personal Bankruptcy: Information About Credit Counseling and Debtor EducationProduced in cooperation with the Department of Justice’s U.S. Trustee Program
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.
The Department of Justice’s U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on
Read more…Before You File for Personal Bankruptcy:
When searching through the Internet, you will often see advertisements for personal bankruptcy aid, but how do you know the best choice to make for your situation? This article will give you valuable tips on making the best choice for yourself.
Personal Bankruptcy is a legal action that empowers you to extend some or all of your personal debts.
The most recent bankruptcy policy was established in 1978, and was recently amended in the spring of 2005. The end of the bill is to supply relief and structure to those of us who have gotten ourselves so far into debt that
Read more…Personal Bankruptcy Issues
As things change in ones life, there may come a time when bankruptcy is the only way for debt settlement to happen. Most people fall in love and marry thinking that they will grow old together. When the marriage doesn’t work, there are expenses that need to be paid in order for the divorce to work. That can mean only two things. First, both adults have a lot of money and they just pay everything off before divorcing, or the more likely scenario of declaring bankruptcy to settle the joint estate.
All debts must be settled; it is easier to
Read more…Debt Settlement and Bankruptcy – when divorcing
If you are consistently paying your bills late, credit counseling services may be able to help you negotiate lower interests and payment plans with your creditors. A credit counselor determines your eligibility for a debt consolidation program or debt management plan. The main advantage is that you only need to make one payment per month to a credit counseling service, which then sends the payment to your creditors. You save by paying lower interest rates and avoiding late payments charges. It is also easier to manage a single debt as all your debt repayments are consolidated into a single monthly
Read more…When To Use A Credit Counseling Service
As surprising as this may sound, the vast majority of consumers don’t know what their credit score is. That fact is almost as bad as not knowing what your blood pressure is, because by the same token, by the time you discover that it is not where it should be, it is frequently too late to avoid the detrimental or adverse effects of a poor credit score, or high blood pressure.
Sometimes, credit scores go by the name of FICO scores. Approximately ten percent of your FICO score pertains to a detailed analysis of the number and types of accounts
Read more…Improve Your Credit Rating (United States)
In the late 1980s and early 1990s, the number of credit and debt counseling agencies in America increased significantly. An antitrust lawsuit was filed against the NFCC, arguing that the presence of creditors on the NFCC’s Board of Directors constituted monopolistic practices. As a result of this litigation, creditors agreed to fund non-NFCC member agencies as well.
These sharp increases of credit counseling activity also created other, more serious issues in the industry. By the early 1990s, abuses by certain credit counseling organizations were so significant, it led to criticism of the entire industry.
A credit counseling agency typically receives most of
Read more…Criticism of credit counseling (United States)
After joining a DMP, the creditors will close the customer’s accounts and restrict the accounts to future charges. The most common benefit of a DMP as advertised by most agencies is the consolidation of multiple monthly payments into one monthly payment, which is usually less than the sum of the individual payments previously paid by the customer. This is because credit cards banks will usually accept a lower monthly payment from a customer in a DMP than if the customer were paying the account on their own. Some DMPs advertise that payments can be cut by 50%, although a reduction
Read more…Common features of Debt Management Programs
Regardless of your particular need, selecting the right credit counselor is vital. Unfortunately, some organizations, including some that label themselves “nonprofit credit counseling agencies,” may be more interested in their own bottom line than in helping their clients. A 2005 report by a U.S. Senate investigating committee observed: “Some new entrants to the industry, however, have developed a completely different business model – a ‘for-profit model’ designed so that their non-profit credit counseling agencies generate massive revenues for for-profit affiliates.”
By contrast, the report lauded the National Foundation for Credit Counseling (NFCC) for its commitment to ethical credit counseling that
Read more…Guidelines for Selecting the Right Credit Counselor
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