Finance Classic - Financial News

Step 1: Assess your situation:

What will a lender think if you are having too much of debts and you are seeking new credit from him. Of course, he will deny giving you new credit or even if you have assured him that you would be a risk to his finance, he will charge you the highest interest rates on the new credit. You might already be deep in debts and the lender is digging you deeper into it. Have you figured out how you got into this mess in the first place? Calculate your exact financial position and find out how much you owe to different creditors and make ways to pay them back.

Step 2: Understanding the psychology of spending:

What are your thoughts on your spending habits? Do you spend more than required or do you get tempted at times and use the money from your savings to buy an unnecessary thing? If you are having such habits and attitudes towards money, then it’s leading you towards financial disaster.

Step 3: Create your own budget:

Effective debt management plan begins from that point when you are serious about your spending habits and set priorities. You can create an efficient budget plan and keep it documented. You will realize how your money is spent every day and which of the things are not very necessary on which you spent. You can even take the help of a proficient debt management company who can offer you a free counseling and show you how to get started.

Step 4: reduce your expenses:

You know your sources of income and necessary expenses. When you have reached to the end of the month and find little or no saving, you need to find out ways to cut your expenses and increase your monthly income.

Step 5: find a low cost credit card:

If you make it a habit to pay your credit card bills on time, you will often get good credit card offers and at cheapest rates. If not, you should always look for the lowest interest rate on the balance transfer check

Step 6: Consolidate your debts with a reputed debt management company:

A perfect debt management plan will reduce your monthly payments with your creditors. The debt management company can combine all your monthly bills into one payment and pay off your creditors at the lowest interest rates. Your accounts will stay current in the debt management plan. Stay in touch with your debt management company after you have enrolled for their services. They will keep you updated about your account status and show how your money is applied towards different creditors.

Step 7: Talk to a debt counselor:

There are several debt management companies who are willing to help people and reduce their debt related problems. You should talk to an expert debt counselor about your financial situation. He will give you the perfect debt management plan necessary in your situation. Enrolling in their program is entirely your decision.

Step 8: steps to repair your credit:

While you are learning ways to stay out of debts and managing your finance properly, make sure that you keep a regular check on your credit report. Your credit report should have correct information only from the information providers. You should be able to dispute any item if it is posted incorrectly by the credit bureau. They will verify the item with your creditor and if your dispute is found correct, the item will be removed immediately. Not being pro-active enough to check your credit report can hurt your scores.

Microcredit is very small loans to the unemployed or to the persons who are living in poverty. This small loan can be given to the poor entrepreneurs also.

It can be called a new financial innovation to the developing countries. The people have accepted this concept mirthfully and they have started their life in a new way. Especially the women are very much encouraged by this small finance which is given to them to start their life in better way. In the developing countries most of the women are unemployed and they had to depend on others, but this project is giving them a light in their life and to believe themselves.
Micro credit system allows them to generate income, to build wealth and to avoid poverty. The UN declared 2005 is the “International Year of Microcredit”.

It can be seen in most part of the world that the women are the center of focus of many
micro credit institutions and agencies. There are some causes behind this trend. Loans to the women tend to benefit more to the whole family than to men do. And also giving loans to the women raises their socio-economic status. It is the positive change to the women of their current relationship of gender and class.

We have heard a lot in the magazines or in television that remove bad debt or erase negative entries from your credit report. But the truth is, negative information can’t be removed from credit report. Credit report will show the actual entries. So when you find any advertisement like that, you should understand that it is a kind of scam which is well known as credit repair scam.

• How it works:

The company in which you have enrolled your name for repairing your credit, the company will contact various credit bureaus and tell them that negative information which you have in your report is false. As the credit bureaus want to show accurate information, they will temporarily remove negative information from your credit history. At this particular time the scammer will send you a copy of your credit and will show you that your negative information has been removed.

You may think that it is has been a miracle done by the credit repair company but after few days when the investigation have completed, accurate negative information will return back to your credit report and show accordingly. The important thing to note is that negative information can’t be removed and will show on your credit history for seven years.

Visit this site to gather more knowledge on Credit Repair Scam.

This is really been a major concern now a day that how can we come out from “debt”. Many of us are having this problem and searching the solution of this. Here I am trying to give some of the tips which may help!If you have problem in paying your debts to your creditors then you need to consult your sutiation with him and ask to give some more option to pay or to give more time. Some of the cases, the creditors accept the proposal of the debtor and agree to give some time to him. Here you are getting time to pay your debt off, but where the creditor is not agree to provide further time to you then you need to go to the professionals. The counsellors will be able to give you proper suggestions. He might take his consultant charges. There are some companies also who are giving free counseling.

Make yourself away from further loan. When you are in debt you should try to repay that first before taking any loan, otherwise the situation will become worst. It’s really very easy to get credit cards now a day and it is a fashion to have many credit cards. But you must remember your situation that you are in debt and further loan can push you in deep trouble. So say for “NO FURTHER LOAN”.

This is the time when you will find people with full of plastic money (Credit cards) in their wallet instead of paper note. It is now a fashion to have more credit cards in your pocket. They are easily available also. But this availability is bringing you to the path of debt. Sometimes the amount of debt and interest is within your reach to pay and sometimes not. The problem starts then on. If you are unable to pay them on time it starts building rapidly.

• Effects of credit card debts:

If you have a burden of debt in your life then it can make your life horrible. Suppose you are unable to pay your debts on time, then what may happen? At first the credit card company will ask you to pay your debts but if you are unable to pay them, they will ask the collection companies to collect the money from you at any cost. The collection companies may make your life even worse. They will call you at your home and harass you. Your family will not be out of their attack. Even they can call your office at the time of your work. It is really tough to work handsomely with these immense pressures. This situation will force you to do wrong work and then the pressure from your Boss. So think about your situation now, in your home the phone calls of the collection agencies and in the work the pressure of your Boss. You will feel that you are just pasting by both ends.

• Solution of it:

The best solution is to control the use of your credit cards. The best thing is limiting your number of credit cards first. Use one or two at the time of any necessity. But if you already in immense amount of debt and unable to see any way to pay it in full with huge interest then “credit card debt consolidation” is the best way. There are lots of consolidation company available in the market, choose the best one and consolidate your debts. If you think that the consolidation is also not suitable for you as your condition is worse then you can choose “debt settlement” program. It may effect your credit report but it is far effective than to file Bankruptcy.

For further reading about credit card debt, you can visit:

http://en.wikipedia.org/wiki/Credit_card_debt

There are various types of Mortgage Loan available. You are to decide what is the need of taking the loan, and which one is best suited to you. For this reason you must need a fairly idea about all kind of Mortgage loans. Here I will discuss shortly about them and will try to give a fair idea.

Types of Mortgage Loan:

1) Fixed Rate Mortgages

2) Adjustable Rate Mortgages (ARMs)

3) Reverse Mortgages

· What is Fixed Rate Mortgages (FRM) ?

It is that kind of Mortgage where you are to pay a fixed rate of interest. It will offer you security as during the term of your loan the rate will not change. It will also give you peace of mind and will allow you to plan ahead for your future.

It is good for the first time buyers and also for those who need stability on their monthly repayment. You can make your budget according to your plan if you opt for FRM.

· What is Adjustable Rate Mortgages (ARMs) ?

Adjustable Rate Mortgage, also well known as ARM is a Mortgage which is directly related or linked with Economic index. Your interest rate and payment will adjust periodically according to the change of the Index. The lenders use the Index as a guide to measure the changes of interest rate. Every ARM is linked to a specific index.

· What is Reverse Mortgages ?

It is a Mortgage which is used generally by the seniors ( 62 and over in the USA ). It is calculated on the basis of HOME EQUITY i.e. the value of home, minus the amount of any existing Mortgage. It can be given to the owners by the lenders either one payment or monthly cash payments. Repayment of this loan to be continued till the owner is alive.

We all know the problems a person face after filing bankruptcy. There are some questions which are in our mind when we discuss about filing bankruptcy. Let me discuss some of them:

• What about the credit after filing bankruptcy? Would it be possible to get credit after filing it?

The answer is “Yes”. There are some companies that take chances to give credit to persons who filed bankruptcy in the past. The credit limit may not be high and also you may have to pay yearly fees for your credit.

• Will it be possible to take mortgage loan after filing bankruptcy?

Yes, you will get mortgage loan but after one or two years when you are discharged from bankruptcy. But the key factor of getting a loan is to show the bank or lender that the money problem you had is past and you are very much determined not to have it in the future.

• Can the Govt. take the pension to pay off tax debt?

Yes, the Government has the right to take your pension to pay off your tax debt. Not only that they can even take money from your other savings account.