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Archive for January, 2013

Repair Your Credit With These Easy Actions

Written by Toi Williams on Jan 28th, 2013 | Filed under: credit score

Many people have recently suffered a financial setback that has caused some damage to their credit score.  Although it may seem like nothing can be done about the situation, there are some actions that you can take to help repair your credit quicker.  This can minimize the effects of an unfortunate financial decision and help you secure additional credit in the future.

Avoid Further Defaults.

The single best thing that you can do for your credit score is avoid further defaults.  Each time that you miss a payment or default on a credit agreement, your credit score suffers a significant hit.  This can quickly compound the problem and make it much more difficult for you to qualify for additional credit products.  Staying current on all of your payments will keep you from suffering more damage.

Minimize Credit Card Usage

Until you get your finances back under control, you should limit the use of your credit cards so you do not get yourself into more financial trouble.  Limiting the use of your credit cards will help you avoid carrying a balance or having to pay the considerable interest fees and finance charges that most of these lenders require.  Try to pay your credit cards off in full every month.  If you cannot pay the credit cards off completely, try to limit your credit card balance to less than 30% of your total credit limit.

Obtain An Installment Loan

Obtaining an installment loan can help you repair your credit quicker.  Most installment loans are regularly reported to the credit monitoring bureaus, which can be a significant benefit if you are making all of your payments on time.  The most commonly chosen installment loans are auto loans and student loans to pay for college tuition.  Other choose to take out a small personal loan from their local bank or credit union.  When choosing this option for rebuilding credit, make sure that the creditor will report your payments to all three major credit bureaus for inclusion in your credit history.


Why A Short Sale May Not Save Your Finances

Written by Toi Williams on Jan 26th, 2013 | Filed under: loans

Many people seek a short sale when they get in trouble with their mortgages, thinking that a short sale will reflect better on their finances than a foreclosure.  Unfortunately, many credit-reporting agencies treat a short sale and a foreclosure similarly when it comes to your credit.  Even though more effort is expended in securing a short sale, the end result will be pretty much the same.

A short sale is when a lender agrees to take less than the amount that is owed on the mortgage for the home in question.  Short sales are being seen more and more as individuals that have lost their jobs or faced a financial set back attempt to sell their homes as quickly as possible to avoid foreclosure.  Banks have been approving more short sales recently to avoid having to take possession of the property.

The leading credit scoring model, the FICO, treats foreclosures and short sales the same when calculating your credit score.  When a short sale is entered into the calculations, the person’s credit score could see a drop of around 150 points.  The information about the short sale can remain in the person’s credit history for a period of seven years, which can affect their ability to obtain additional credit products during that time.

Even though your credit score will take a significant hit, there are still some benefits to choosing a short sale over a foreclosure.  For the borrower, the short sale can prevent legal action on the part of the lender to recoup the unpaid debt, unlike after a foreclosure where the threat of legal action lingers for years.  For lenders, short sales avoid costly litigation and eviction procedures while often bringing a better price that they would have received with a foreclosure sale.  Because of these benefits, it is still worthwhile to seek a short sale when your options are limited.


Online Tools for Research Paper Citations

Written by admin on Jan 22nd, 2013 | Filed under: Uncategorized

When writing a research paper, it is often necessary to use citations. When a writer provides a citation, they are extending a professional courtesy to the information source. In fact, when writing a research paper for school, most professors will not accept a paper without proper citations. Anyone who writes for school or in the business world must learn how to cite a source. Unfortunately, a lot of people do not properly know how to cite their sources. Luckily there are a lot of tools people can use to learn how to cite their source. One of the best tools young people use to learn about citation is the Internet.

A lot of people do not know the difference between a citation and a reference. Not only that, most writers do not know how to cite a source. Once a writer learns why they should cite their works, they will have a better understanding on how the process of citation works. There are a lot of online resources for anyone wanting to learn how to cite. One such resource on citation is cite.com with this resource; a writer can learn how to cite a source.

A writer or student must learn when to cite and when to reference. A writer would decide based upon how influential the other person’s work was. Most writers will get the hang of it quickly, and know when to cite or reference. A writer will usually cite research and scientific papers while he or she may reference in more creative works.

Anyone writing papers for school or even in the professional world needs to know how to cite their sources. At the very least, a writer who does not cite their sources does an injustice to the person they are citing. Of course, it could be much worse; a student can face serious problems if he or she does not cite a source. Any serious student should check out cite.com today.


Debt Garnishments And Social Security Benefits

Written by Toi Williams on Jan 18th, 2013 | Filed under: collections

Many seniors on the verge of obtaining their social security benefits are worried because they have outstanding debts.  They do not know whether their social security benefits will be garnished by their creditors to pay these debts.  This uncertainty often causes them to make rash decisions that further hurt their finances.  The ability to garnish your social security benefits will ultimately depend on who you owe and the state that you live in, but the financial damage may not be as devastating as you think.  Here are some things that you should know about social security benefits and debt garnishments.

Your social security benefits are safe from garnishment from creditors if you owe certain types of debt.  Credit card debt, unpaid personal loans, and payday loans cannot be garnished from your social security benefits.  Your benefits also cannot be garnished for unpaid medical bills.  This does not mean that these creditors cannot still take action against you in court to recoup the debt.  Wages, property, and other assets can still be taken to pay off the debts you owe.  However, veteran’s benefits, federal employee and civil service retirement benefits, benefits administered by the Railroad Retirement Board Administration, and Supplemental Security Income cannot be garnished by these creditors.

If the money owed is owed to the federal government, the government can garnish a portion of your Social Security Benefits for repayment, typically up to 15%.  The government can garnish your benefits for the repayment of child support and alimony, federal student loans, federal income taxes, nontax debt owed to other federal agencies, defaulted federal home loans, and other specific civil penalties.  The amount garnished will ultimately depend on the amount that you owe.

To protect your Social Security or other government benefits from creditors, they must be direct deposited into your bank account or to a Direct Express Debit MasterCard account.  The protection is lost if you deposit your benefits by check.  The protection can also be voided if you transfer your benefits to another account.


How Can A Credit Counselor Help Me?

Written by Toi Williams on Jan 15th, 2013 | Filed under: debt relief

A credit counselor is a professional that can advise you in the ways that can be used to create a better budget and get out of debt.  They do not offer to settle your debts for pennies on the dollar or negotiate with the creditors that you owe.  The advice that they give can get you back on the right financial track and help you build wealth faster than you would have been able to accomplish on your own.  Here are some ways that a credit counselor can help you.

Credit Counselors Can Help You Make A Plan To Pay Off Debt

Professional credit counselors’ main goal is to help you make a plan to pay off your debt.  Having a large amount of high interest debt can be devastating to your finances and you will never be able to build wealth until the debts have been paid off.  The credit counselor will help you examine your financial situation and create a plan to eliminate your debts as quickly as possible while maintaining an acceptable quality of life.

Credit Counselors Can Help You Make An Effective Budget

Creating a budget that controls your spending and allows you to pay a significant amount towards your debts is the best way to get your finances under control.  Unfortunately, many people do not have a spending budget and do not know how to create one.  Credit counselors can help you decide how to divide your income into portions for an effective budget that controls your spending and maintains your lifestyle without using credit to finance it.

Credit Counselors Can Help You Save More Of Your Income For The Future

Many of the people that seek out the services of a credit counselor are deeply in debt and living paycheck to paycheck.  Often, they do not know how they can break the cycle of debt that they are in and have no savings for the future because they are paying all of their disposable income towards the interest on the debt.  Talking with a credit counselor can help break this cycle of debt and help you dedicate more of your money towards saving for the future, not increasing the profits of credit card companies.


A Plan For Repairing Your Credit Can Improve Your Quality Of Life

Written by Toi Williams on Jan 11th, 2013 | Filed under: credit score

Many individuals do not understand how important a plan for repairing your credit can be to your future happiness.  A plan for repairing your credit has the ability to affect multiple areas of your life and increase the beneficial opportunities available to you in the future, once you have completed the plan and gotten out of debt.  Completing a plan for repairing your credit can help eliminate your debt more quickly and help you get the things that you want in life.

Easier Approval For Credit Products

Completing a plan for repairing your credit will give you a good chance of being approved for additional financial products in the future.  Being able to get approved for credit is important if you ever need to purchase a car or obtain a mortgage to purchase a home.  Individuals that have completed a plan for repairing their credit have often been qualified for personal credit at reasonable rates within a few years of completing the plans and demonstrating financial responsibility.

Approval For Higher Credit Limits

Completing a plan for repairing your credit will also encourage future lenders to approve you for higher credit limits.  This allows the individual to have enough credit available for any unexpected financial issues that may arise in the future.  Having a high credit limit also increases your credit score as your credit utilization rate (debt used vs debt available) is a factor taken into account in your credit score’s calculation.

Qualifying For Lower Interest Rates

Individuals that have completed a plan for repairing your credit will typically qualify for lower interest rates on their financial products than a individual that is carrying a lot of debt or is having trouble making payments on the debt that they currently have.  Individuals that demonstrate discipline and financial responsibility are not considered a credit risk for the company so they can give you a lower interest rate.  They know that there is a good chance that they will receive the amount lent paid back in a timely manner.  Obtaining a lower interest rate on financial products can save you hundreds of dollars in interest payments annually.