Updates from Corey Landis RSS
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12:24:02 am on September 3, 2009 |
Are you drowning in debt? Do you have sleepless nights, wondering how you can get your paycheck to last longer? Or even worse you’ve lost your job and don’t have a regular income anymore? It can be a nightmare when you find yourself drowning in debt. If this sounds like you, there are options and one of those options is debt settlement. Should you decide to go this route, you can try to settle your debts yourself or retain a debt settlement company. This is your choice to reduce credit card debt.
Debt settlement involves paying each creditor a portion of your debt. The creditor agrees to accept the payment and wipe the slate clean. The amount you didn’t pay is reported to the credit bureaus and in most cases your credit rating will take a negative hit.
Fortunately, you’ll no longer be harassed for payments. And you can use the opportunity to start rebuilding your credit. Typically, this solution works best when you are dealing with unsecured debt such as medical bills and credit cards. It is rarely effective with secured debt, although not totally impossible. Secured debt is debt that is tied to an asset. If this debt payment is defaulted on, your assets are used to compensate for the leftover debt.
Since you’ve reached adulthood, you’ve probably been inundated with all kinds of credit card offers, so it’s not really surprising that you now have thousands of dollars of debt. Your credit score has also probably sunk into ‘poor’ status because of your debt and a missed payment now and then. A poor credit score will give you problems when applying for car loans and mortgages, among other types of loans.
Fortunately, it’s rather easy to get rid of poor credit?but only if you use some smart debt management. You’ve probably seen the TV commercials that claim they can immediately erase all of your debt. This is a huge lie, as getting rid of debt is not an overnight process. Rather, it takes time, and the use of a debt management plan, in order to eliminate debt and raise credit scores. It’s amazing, but many people do not know what their total debt is. Take a little while to figure out what yours is, if you don’t already know. Take out all those credit card statements and add up the balances. While you’re doing this, write down all of your interest rates and the minimum required payments. You’ll be using it when establishing the rest of your plan.
Pay off the card with the highest interest first, while still making the minimum payment on all the other cards. When that card is paid off start paying the one with the next highest interest and so forth down the line. An alternative is to choose the card with the lowest balance. That way you give yourself a bit of motivation when the card is paid off.
Look at your budget and see where you can cut expenses and put that extra money toward paying off your debt. And of course don’t charge anything unless it’s a dire emergency.
You can reduce credit card debt.
Corey Landis contributes to several blogs and websites. Find out how to repair bad credit. If you’re barely keeping your head above water you may need to reduce credit card debt The first step is to get your free credit report and scores.
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12:20:03 am on September 3, 2009 |
Bad credit personal loans can be pretty painful. In addition to high interest rates, you are also forced to contend with inflated late fees. You may not be aware, but many of these loans include prepayment penalties, which means that if you try to get ahead and pay off your loan ahead of schedule, the lender will exact payment of all interest lost in addition to the sum of the principal balance. And, there will most likely be a demand for collateral, an asset you own such as your car or house, since an unsecured loan puts the bank in a very precarious position. Still, there are ways to borrow money even with bad credit.
As a rule, you should have a definitive purpose for any money borrowed. It’s too easy to spend the entire loan amount on impulse purchases. If you don’t really need the cash for a specific reason, you might hold off until you have rebuilt your credit and can get better interest rates and terms from a bank.
Consolidating your debt is an excellent reason to seek out a loan; however, it is best to then close the fore mentioned credit cards and debts, otherwise you risk burdening yourself with even more debt. Before you start applying for loans, find the best lender with the most favorable terms. You’ll want to look at the fine print too. Inquire about any fees and charges to ensure you fully comprehend them.
Don’t apply to every lender you can find. All those inquiries will be reported to the credit bureaus and show up on your credit report. Not only does that lower your credit score a few points the lenders don’t look on it very favorably. They may think you’re trying to get as much cash as possible and then default on the loan.
If you need just a few hundred dollars you may be tempted to get a pay day loan. Think twice because the application fees can be high, as much as 10% of the loan amount. The loan has to be repaid quickly, usually in 30 days or less. If you can’t repay it you can roll the loan over for another 30 days but the application fee has to be paid again.
Loans against your car use the same principle of high application fees. You sign over the title of the car to the lender with the stipulation that when the loan is paid back you get the ownership of the car back. The amount you receive is far less than the blue book value of the car. If you don’t make the payments you lose the car. What’s worse is the lender then rents the car back to you at a highly inflated price. Don’t think you can ignore making the payments and still drive your car. Technically that’s auto theft and you can be arrested.
You can get a personal loan with bad credit but look at all your options and read the fine print.
Corey Landis contributes to several blogs and websites. Find out how to repair bad credit. If you’re barely keeping your head above water you may need to reduce credit card debt The first step is to get your free credit report and scores.
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09:15:48 pm on August 7, 2009 |
Investing in foreclosed real estate can be profitable. Do you have to wait until the foreclosure auction to buy a residential foreclosure property? No. You can buy a property in pre-foreclosure. The time period between the foreclosure auction and the foreclosure notice is called pre-foreclosure. Purchases in pre-foreclosure are in most ways comparable to a common real estate transaction: You negotiate with the house owner, sign a purchase agreement (contract), and proceed with the deal. The big difference is that instead of the house owner choosing to sell the home on his own, he is forced into selling the property to avoid the foreclosure.
You may find a distressed homeowner in the first stage of foreclosure by looking into public notices. It will list the bank’s attorney, and you may contact the lawyer for more information about the property. You shouldn’t be surprised if he is friendly but not especially cooperative: He offers legal services and working as a property receiver is only one of these services. He is paid to organize paperwork and execute the foreclosure sale, certainly not to act as a real estate information hotline.
If you are interested in the house, contact the homeowner immediately. Keep in mind that the homeowner is already under a substantial amount of mental pressure. Don’t be surprised if he doesn’t respond favorably to your request, at least not initially. You will need to be respectful, tactful, and aware of the strain the homeowner is under. They will try desperately to hold onto hope that things may somehow work out.
When the homeowner is relatively receptive to your approach, then you will need to see whether there is sizeable equity in the property. Let’s say that the property has a projected market value of $150,000. You have been able to inspect the property, and other than needing a little exterior repair, it is in good enough shape. You estimate you will spend $5,000 getting the property ready to sell. So, you determine that your walk-away price is $125,000, which leaves you enough room to make the sizable profit you want and at the same time covering the cost of repairs and your holding cost (payments you must make, utilities, etc.). If $125,000 is still owed on the mortgage, you probably will not be able to purchase it for less than $125,000. Although sometimes a homeowner may accept less than the owed amount, the chances are slim.
If a legal judgment has already been made, the homeowner must come up with enough money to satisfy the judgment. When the homeowner doesn’t have much equity in the house, you are unlikely to be able to pull off a price significantly lower than the property’s value. And if you cannot buy under the market value, you will never make enough a profit.
If you manage to get a short sale with the bank on the homeowner’s behalf, you can buy the foreclosed property for less than the balance currently owed and the homeowner does not have to compensate the lender for the difference.
Investing in foreclosures takes time and effort but can result in profits
How to buy foreclosures for less than $1,000? It’s possible. Corey Landis contributes to several websites and blogs on the subjects of how to repair bad credit, debt management, and reducing credit card debt.
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02:18:16 am on July 11, 2009 |
It is possible to get a credit card with a poor credit history, although it’ll take some effort on your part, it can happen. Below are some tips on how to go about it. You might be surprised how easy it is.
Before going any further, I would recommend that you get a copy of your most recent credit report to evaluate your current financial situation. Even if the report is worse than you think, and your credit score is lower than you thought, it’s better to know. That way you can decide appropriately what the next step in the process would follow. Review the credit report to make sure that it’s correct. Sometimes creditors don’t report that an account has been paid off and closed. Or you may find loans or credit cards that belong to someone else that has the same name as you do.
The first tip, and the most valuable one is, to pay off pending debts as soon as possible, especially the smaller ones. All the extraneous credit you can clear off your credit card as soon as possible will be better for you in the long run. Get in touch with your creditors and inquire if they would be willing to settle for an amount less than due. Many will surprise you by agreeing, since a small payment is better than no payment. You may also be able to renegotiate a lower interest rate, or eliminate an annual fee.
Now remember, a clean credit card history means a low interest rate. Keep that in mind in your quest to remove the extra bills of your credit history.
The second tip is to apply for a credit card that is secure from your local bank or an online bank. It’s up to you how to go about it. A secure credit card is issued to you after you post a deposit which equals the amount of credit that has been approved. That deposit secures the credit card. It can’t be used to make any monthly payments. In most cases it won’t be returned until the account is closed or you’ve made on time payments for at least a year.
The third tip is to find someone to cosign for you. That person is then responsible for making any payments or paying off the credit card balance if you fail to do so. Banks are more prone to approve a credit card for someone with bad credit if the cosigner has great credit and a relationship with the bank. The chances for you to get the credit card this way will be high.
Once you receive your second credit card, make sure to use it well and use it responsibly as it will help you build good credit again. Use the card only to make purchases that you know you can pay off every month. Don’t get trapped into running up a large balance, maxing out the card, and then making only the minimum payment every month.
You can get a credit card with poor credit if you know where to look.
FREE report Credit Card Debt Management Need help on how to get out of debt? Corey Landis contributes to several websites on debt consolidation, credit, and loans.
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02:14:10 am on July 11, 2009 |
In case you’re confused regarding whether or not you can get a credit card with a bad credit history, the answer is yes. It is possible for many customers to get credit cards even if their previous history was bad. If you’ve missed payments, had a credit card cancelled or if your FICO score is below 600 it’s going to be difficult for you to obtain a new credit card.
Before applying for any new loan and that includes credit cards check your credit report for any errors or mistakes. It’s possible you could bring your score up enough to qualify for lower interest rate even if it’s a secured credit card.
The best way to go about it would be to apply for a secured credit card. Secured credit cards can be found online but also check with your local bank as well. In a secure credit card you make a deposit which will be equal to the credit on the card with the issuing bank. Banks are comfortable issuing this card since the payment for future purchases have already been made and they cannot incur any losses. The deposit is kept for at least 12 months of on time payments and may be returned at that time. Many credit card companies keep the deposit for the life of the credit card
The interest rates on these secured cards are higher than an unsecured card. The reason is that most individuals who opt for secured cards will pay the higher interest rate because they realize it’s the only kind of credit card they qualify for. In addition the bank knows that as soon as the customer can get an unsecured credit card they will and transfer the balance to the new card.
Secure credit cards also have higher other fees associated with them. Banks make a pretty hefty profit from consumers who are desperate to apply for these credit cards. There can be annual membership fees, processing charges, and greater penalties for late charges. Interest can be earned from the day a purchase was made on the credit card rather than the last day of the billing cycle.
In spite of the high fees, many people who use these secure credit cards use them to fight their way back to a strong credit report. A secured credit card may be their only option to rebuild their credit for the future. Credit cards have almost become a daily necessity.
If you’re someone who is looking to find another credit card due to your previous poor credit card history, the best advice would be to take some time out to look into different cards and determine which the right one would be for you. Even with secured credit cards there can be differences in interest rates, application fees, and annual fees. Find out when or if you can request your deposit back and if there are any pre-penalty fees if you close the account before a certain amount of time has elapsed.
As long as you’re responsible with your new card, your credit card history will be on the right track.
FREE report Credit Card Debt Management Need help on how to get out of debt? Corey Landis contributes to several websites on debt consolidation, credit, and loans.
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02:13:13 am on July 11, 2009 |
In case you’re confused regarding whether or not you can get a credit card with a bad credit history, the answer is yes. It is possible for many customers to get credit cards even if their previous history was bad. If you’ve missed payments, had a credit card cancelled or if your FICO score is below 600 it’s going to be difficult for you to obtain a new credit card.
Before applying for any new loan and that includes credit cards check your credit report for any errors or mistakes. It’s possible you could bring your score up enough to qualify for lower interest rate even if it’s a secured credit card.
The best way to go about it would be to apply for a secured credit card. Secured credit cards can be found online but also check with your local bank as well. In a secure credit card you make a deposit which will be equal to the credit on the card with the issuing bank. Banks are comfortable issuing this card since the payment for future purchases have already been made and they cannot incur any losses. The deposit is kept for at least 12 months of on time payments and may be returned at that time. Many credit card companies keep the deposit for the life of the credit card
The interest rates on these secured cards are higher than an unsecured card. The reason is that most individuals who opt for secured cards will pay the higher interest rate because they realize it’s the only kind of credit card they qualify for. In addition the bank knows that as soon as the customer can get an unsecured credit card they will and transfer the balance to the new card.
Secure credit cards also have higher other fees associated with them. Banks make a pretty hefty profit from consumers who are desperate to apply for these credit cards. There can be annual membership fees, processing charges, and greater penalties for late charges. Interest can be earned from the day a purchase was made on the credit card rather than the last day of the billing cycle.
In spite of the high fees, many people who use these secure credit cards use them to fight their way back to a strong credit report. A secured credit card may be their only option to rebuild their credit for the future. Credit cards have almost become a daily necessity.
If you’re someone who is looking to find another credit card due to your previous poor credit card history, the best advice would be to take some time out to look into different cards and determine which the right one would be for you. Even with secured credit cards there can be differences in interest rates, application fees, and annual fees. Find out when or if you can request your deposit back and if there are any pre-penalty fees if you close the account before a certain amount of time has elapsed.
As long as you’re responsible with your new card, your credit card history will be on the right track.
FREE report Credit Card Debt Management Need help on how to get out of debt? Corey Landis contributes to several websites on debt consolidation, credit, and loans.