It’s a very important decision when choosing a credit counseling company to handle your unsecured debts. After all you can’t do anything in this country with out good credit. It’s also important for you to know your credit score is how lenders determine what your interest rates will be. Therefore, the credit counseling agency that you choose to work with can have a major impact on your credit score. Below are very good questions and suggestions that you should follow to make sure you have chosen the right agency.
• Check out the agency with the Better Business Bureau, Attorney General’s Office and, your Local Consumer Protection Agency
• Make sure the agency is accredited by an independent agency such as ISO-BSI 9001-2000
• Ask if the agency’s counselors are certified by the Center For Financial Certifications
• Ask how often the agency disburses payments ( you want to make sure they disburse daily) Not monthly! If they disburse monthly you are at a high risk of being late each month
• Make sure the agency is Licensed and Insured
• The agency should provide you with free on going education on how to manage your debts and become debt free
• The agency should provide you with a FREE debt consultation
This may seem like a lot of work but trust me its well worth your time. You don’t want to get yourself into a worse situation. The idea is to get out of debt not fall further into debt. Remember, YOUR CREDIT IS YOUR LIFE!
Monday, August 9, 2010
Wednesday, July 28, 2010
TIPS ON HOW TO REBUILD YOUR CREDIT
Rebuilding credit
Here are a few tips on how to get back in the good graces of the credit agencies. Remember that no matter what your financial situation, it’s important that all bills be paid in a timely fashion.
• If you did file bankruptcy, make sure that the reaffirmed pre-bankruptcy debts are paid in a timely fashion. Although a bankruptcy filing will stay on one’s credit report ten years (chapter 7) and (seven years for chapter 13), new credit history has greater weight than old history.
• Open a checking or savings account, as this will show creditors that you can handle money responsibly.
• Apply for a gasoline card, as this is relatively easy to obtain. Always make sure the charges are paid off monthly as to show a record of responsible bill paying and so that the monthly interest fees don’t add up.
• Apply for a secured credit card. This type of credit card is secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit, and keep a balance of between 100% and 200% of the total amount of credit desired.
It’s important that you know its ok to use that newly acquired credit card. Minimal use can prove to be beneficial for small purchases that can easily be paid off in full. Not only does this show responsibility, bills paid in full and one time will look real good on the credit report. And by all means make sure you live within your means!!!
Here are a few tips on how to get back in the good graces of the credit agencies. Remember that no matter what your financial situation, it’s important that all bills be paid in a timely fashion.
• If you did file bankruptcy, make sure that the reaffirmed pre-bankruptcy debts are paid in a timely fashion. Although a bankruptcy filing will stay on one’s credit report ten years (chapter 7) and (seven years for chapter 13), new credit history has greater weight than old history.
• Open a checking or savings account, as this will show creditors that you can handle money responsibly.
• Apply for a gasoline card, as this is relatively easy to obtain. Always make sure the charges are paid off monthly as to show a record of responsible bill paying and so that the monthly interest fees don’t add up.
• Apply for a secured credit card. This type of credit card is secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit, and keep a balance of between 100% and 200% of the total amount of credit desired.
It’s important that you know its ok to use that newly acquired credit card. Minimal use can prove to be beneficial for small purchases that can easily be paid off in full. Not only does this show responsibility, bills paid in full and one time will look real good on the credit report. And by all means make sure you live within your means!!!
Wednesday, July 14, 2010
Automated Debt Collection Lawsuits Engulf Courts
Article from the New York Times:As millions of Americans have fallen behind on paying their bills, debt collection law firms have been clogging courtrooms with lawsuits seeking repayment.
Few have been as prolific as Cohen & Slamowitz, a Woodbury, N.Y., firm that has specialized in debt collection for nearly two decades. The firm has been filing roughly 80,000 lawsuits a year.
With just 14 lawyers on staff, that works out to more than 5,700 cases per lawyer.
How is that possible?
The answer to that question is at the heart of a growing debate over the increasing use of the nation’s legal system to collect on bad debts.
Like many other firms, Cohen & Slamowitz relies on computer software to help prepare its cases. While many of the cases represent legitimate claims, critics say the lawsuits are too often based on inaccurate or incomplete information about the debtor or the amount owed.
Already, some state legislators and judges have tried to crack down on collection lawsuits, and on Monday, the Federal Trade Commission weighed in, saying the system for resolving disputes over consumer debts was broken and in need of “significant reforms.”
The commission, which says debt collection is its top consumer complaint, proposed that states require collectors to include more information about debts in their lawsuits, including a breakdown of the current balance by principal, interest and fees, and the relevant terms of the original credit contract, if not the contract itself.
The agency also urged states to adopt measures to make it more likely that consumers would show up in court to defend themselves; currently, most do not, resulting in default judgments.
“We are pushing very hard to make certain that debt collectors have sufficient substantiation, particularly when a consumer challenges the debt,” said David Vladeck, director of the commission’s Bureau of Consumer Protection.
The commission, which has limited authority to write debt collection rules, urged states to take action because most collection cases are filed in state courts.
The litigation boom has been propelled by fundamental changes in the way debts are collected, particularly for credit cards. In recent years, credit card companies have increasingly sold off debt they have considered uncollectible to debt buyers, usually for 5 cents or less on the dollar.
The debt buyers, in turn, may try to collect the debt themselves using traditional practices like sending letters or making phone calls to a consumer to try to arrange a payment plan. Increasingly, they are choosing to sue instead.
Collection law firms are able to handle such large volumes of cases because computer software automates much of their work. Typically, a debt buyer sends a law firm an electronic database that contains various data about consumers, including name, home address, the outstanding balance, the date of default and whether interest is still accruing on the account.
Once the data is obtained by a law firm, software like Collection-Master from a company called Commercial Legal Software can “take a file and run it through the entire legal system automatically,” including sending out collection letters, summonses and lawsuits, said Nicholas D. Arcaro, vice president for sales and marketing at the company.
No group has definitive statistics on debt collection lawsuits, but federal regulators, collection lawyers and judges say the numbers have increased and are straining the court system.
Most consumers fail to show up in court, and those who do rarely have a lawyer. A court judgment gives debt buyers the ability to collect on the debt through actions like wage or property garnishment.
“What they are hoping to recover is the full dollar on some of it,” said Robert J. Hobbs, deputy director of the National Consumer Law Center, an advocacy group. “On most of it, they are hoping to recover 40 or 50 cents on the dollar. And they are hoping to do it with as little work as they can.”
Critics say the business model for some debt buyers and law firms relies on such huge volumes of legal actions that mistakes and abuses are inevitable, in part because the lawsuits are often based on little more than a defendant’s name, address and alleged balance.
“It’s the factory approach to practicing law,” said Richard Rubin, a New Mexico lawyer who represents consumers against debt collectors.
Lawsuits are sometimes filed against the wrong people, critics say. Other times, they say, the amount owed is incorrect or includes questionable fees and interest that has been added to the balance.
In addition, it is not always clear if the debt buyer filing suit legally owns the debt, since debt portfolios are often sold several times.
Some collection lawyers complain that new requirements being imposed are holding them to higher standards than even the original creditors.
“In actuality, it’s impossible to comply with,” said Pedro Zabala, a North Carolina lawyer, speaking of a law passed last fall that requires more documentation to file suit.
Fred N. Blitt, the president of the National Association of Retail Collection Attorneys, which represents more than 700 law firms, said the increase in collection cases was an inevitable result of the huge number of people who are not paying their bills. Given the volume of cases, Mr. Blitt maintained that mistakes were few.
“The reality is, if people owe the money, they should pay it,” he said.
Cohen & Slamowitz declined to be interviewed for this article. In a 2009 deposition for a case accusing Cohen & Slamowitz of pursuing a debt that had already been paid, a partner at the firm, David A. Cohen, said the firm had 14 lawyers, though it also hired numerous outside lawyers to appear in court on a per diem basis. It also employed 30 to 40 legal secretaries and paralegals and about 60 people trying to collect debts, he said.
The firm filed 59,708 cases in 2005, 83,665 in 2006, 87,877 in 2007 and 80,873 in 2008, records from the lawsuit show.
As the case load has increased, some state legislators and judges have started to demand more information on the debt.
In addition to the new law in North Carolina, which requires third-party debt collectors to provide more proof of the debt, like an itemization of charges and fees, some local judges are challenging lawyers who are not prepared to back up their claims.
At a civil court hearing in Brooklyn in March, Judge Noach Dear demanded documents from Cohen & Slamowitz supporting its claim that Herman Johnson of Brooklyn owed $3,797.27 in credit card debt. Mr. Johnson disputed the claim.
“What proof did you have that this is the true gentleman that you were trying to pursue?” the judge asked David Robinson, a lawyer for Cohen & Slamowitz, according to a transcript.
“Just his Social, his date of birth, and his address and the account,” Mr. Robinson said.
“That’s all you have?” the judge said. “So if you have somebody’s Social number, date of birth and address, you could sue them without any other information?”
Mr. Johnson’s case was dismissed, and Judge Dear last month issued an order requiring, among other things, that Cohen & Slamowitz provide further proof of a debt if a defendant challenged the firm’s claim.
In an interview, Judge Dear said he did not think the order would necessarily result in a large drop-off in lawsuits. But, he said, given Cohen & Slamowitz’s size, he hoped it would persuade other law firms to follow suit.
“I think personally it will weed out the cases that are no good, and then we’ll get the defendants that truly do owe a debt,” he said.
Few have been as prolific as Cohen & Slamowitz, a Woodbury, N.Y., firm that has specialized in debt collection for nearly two decades. The firm has been filing roughly 80,000 lawsuits a year.
With just 14 lawyers on staff, that works out to more than 5,700 cases per lawyer.
How is that possible?
The answer to that question is at the heart of a growing debate over the increasing use of the nation’s legal system to collect on bad debts.
Like many other firms, Cohen & Slamowitz relies on computer software to help prepare its cases. While many of the cases represent legitimate claims, critics say the lawsuits are too often based on inaccurate or incomplete information about the debtor or the amount owed.
Already, some state legislators and judges have tried to crack down on collection lawsuits, and on Monday, the Federal Trade Commission weighed in, saying the system for resolving disputes over consumer debts was broken and in need of “significant reforms.”
The commission, which says debt collection is its top consumer complaint, proposed that states require collectors to include more information about debts in their lawsuits, including a breakdown of the current balance by principal, interest and fees, and the relevant terms of the original credit contract, if not the contract itself.
The agency also urged states to adopt measures to make it more likely that consumers would show up in court to defend themselves; currently, most do not, resulting in default judgments.
“We are pushing very hard to make certain that debt collectors have sufficient substantiation, particularly when a consumer challenges the debt,” said David Vladeck, director of the commission’s Bureau of Consumer Protection.
The commission, which has limited authority to write debt collection rules, urged states to take action because most collection cases are filed in state courts.
The litigation boom has been propelled by fundamental changes in the way debts are collected, particularly for credit cards. In recent years, credit card companies have increasingly sold off debt they have considered uncollectible to debt buyers, usually for 5 cents or less on the dollar.
The debt buyers, in turn, may try to collect the debt themselves using traditional practices like sending letters or making phone calls to a consumer to try to arrange a payment plan. Increasingly, they are choosing to sue instead.
Collection law firms are able to handle such large volumes of cases because computer software automates much of their work. Typically, a debt buyer sends a law firm an electronic database that contains various data about consumers, including name, home address, the outstanding balance, the date of default and whether interest is still accruing on the account.
Once the data is obtained by a law firm, software like Collection-Master from a company called Commercial Legal Software can “take a file and run it through the entire legal system automatically,” including sending out collection letters, summonses and lawsuits, said Nicholas D. Arcaro, vice president for sales and marketing at the company.
No group has definitive statistics on debt collection lawsuits, but federal regulators, collection lawyers and judges say the numbers have increased and are straining the court system.
Most consumers fail to show up in court, and those who do rarely have a lawyer. A court judgment gives debt buyers the ability to collect on the debt through actions like wage or property garnishment.
“What they are hoping to recover is the full dollar on some of it,” said Robert J. Hobbs, deputy director of the National Consumer Law Center, an advocacy group. “On most of it, they are hoping to recover 40 or 50 cents on the dollar. And they are hoping to do it with as little work as they can.”
Critics say the business model for some debt buyers and law firms relies on such huge volumes of legal actions that mistakes and abuses are inevitable, in part because the lawsuits are often based on little more than a defendant’s name, address and alleged balance.
“It’s the factory approach to practicing law,” said Richard Rubin, a New Mexico lawyer who represents consumers against debt collectors.
Lawsuits are sometimes filed against the wrong people, critics say. Other times, they say, the amount owed is incorrect or includes questionable fees and interest that has been added to the balance.
In addition, it is not always clear if the debt buyer filing suit legally owns the debt, since debt portfolios are often sold several times.
Some collection lawyers complain that new requirements being imposed are holding them to higher standards than even the original creditors.
“In actuality, it’s impossible to comply with,” said Pedro Zabala, a North Carolina lawyer, speaking of a law passed last fall that requires more documentation to file suit.
Fred N. Blitt, the president of the National Association of Retail Collection Attorneys, which represents more than 700 law firms, said the increase in collection cases was an inevitable result of the huge number of people who are not paying their bills. Given the volume of cases, Mr. Blitt maintained that mistakes were few.
“The reality is, if people owe the money, they should pay it,” he said.
Cohen & Slamowitz declined to be interviewed for this article. In a 2009 deposition for a case accusing Cohen & Slamowitz of pursuing a debt that had already been paid, a partner at the firm, David A. Cohen, said the firm had 14 lawyers, though it also hired numerous outside lawyers to appear in court on a per diem basis. It also employed 30 to 40 legal secretaries and paralegals and about 60 people trying to collect debts, he said.
The firm filed 59,708 cases in 2005, 83,665 in 2006, 87,877 in 2007 and 80,873 in 2008, records from the lawsuit show.
As the case load has increased, some state legislators and judges have started to demand more information on the debt.
In addition to the new law in North Carolina, which requires third-party debt collectors to provide more proof of the debt, like an itemization of charges and fees, some local judges are challenging lawyers who are not prepared to back up their claims.
At a civil court hearing in Brooklyn in March, Judge Noach Dear demanded documents from Cohen & Slamowitz supporting its claim that Herman Johnson of Brooklyn owed $3,797.27 in credit card debt. Mr. Johnson disputed the claim.
“What proof did you have that this is the true gentleman that you were trying to pursue?” the judge asked David Robinson, a lawyer for Cohen & Slamowitz, according to a transcript.
“Just his Social, his date of birth, and his address and the account,” Mr. Robinson said.
“That’s all you have?” the judge said. “So if you have somebody’s Social number, date of birth and address, you could sue them without any other information?”
Mr. Johnson’s case was dismissed, and Judge Dear last month issued an order requiring, among other things, that Cohen & Slamowitz provide further proof of a debt if a defendant challenged the firm’s claim.
In an interview, Judge Dear said he did not think the order would necessarily result in a large drop-off in lawsuits. But, he said, given Cohen & Slamowitz’s size, he hoped it would persuade other law firms to follow suit.
“I think personally it will weed out the cases that are no good, and then we’ll get the defendants that truly do owe a debt,” he said.
Tuesday, July 13, 2010
Americans Credit Scores sink to New lows
According to FICO,The credit scores of millions more Americans are sinking to new lows.
Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders.http://www.nwcdr.com/financial_warning_signs.htm It’s unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.
Because consumers relied so heavily on debt to fuel their spending in recent years, their restricted access to credit is one reason for the slow economic recovery.
“I don’t get paid for loan applications, I get paid for closings,” said Ritch Workman, a Melbourne, Fla., mortgage broker. “I have plenty of business, but I’m struggling to stay open.”
FICO’s latest analysis is based on consumer credit reports as of April. Its findings represent an increase of about 2.4 million people in the lowest credit score categories in the past two years. Before the Great Recession, scores on FICO’s 300-to-850 scale weren’t as volatile, said Andrew Jennings, chief research officer for FICO in Minneapolis. Historically, just 15 percent of the 170 million consumers with active credit accounts, or 25.5 million people, fell below 599, according to data posted on Myfico.com.
More are likely to join their ranks. It can take several months before payment missteps actually drive down a credit score. The Labor Department says about 26 million people are out of work or underemployed, and millions more face foreclosure, which alone can chop 150 points off an individual’s score. Once the damage is done, it could be years before this group can restore their scores, even if they had strong credit histories in the past.
On the positive side, the number of consumers who have a top score of 800 or above has increased in recent years. At least in part, this reflects that more individuals have cut spending and paid down debt in response to the recession. Their ranks now stand at 17.9 percent, which is notably above the historical average of 13 percent, though down from 18.7 percent in April 2008 before the market meltdown.
There’s also been a notable shift in the important range of people with moderate credit, those with scores between 650 and 699. The new data shows that this group comprised 11.9 percent of scores. This is down only marginally from 12 percent in 2008, but reflects a drop of roughly 5.3 million people from its historical average of 15 percent.
This group is significant because it may feel the effects of lenders’ tighter credit standards the most, said FICO’s Jennings. Consumers on the lowest end of the scale are less likely to try to borrow. However, people with mid-range scores that had been eligible for credit before the meltdown are looking to buy homes or cars but finding it hard to qualify for affordable loans.
Workman has seen this firsthand.
A customer with a score of 679 recently walked away from buying a house because he could not get the best interest rate on a $100,000 mortgage. Had his score been 680, the rate he was offered would have been a half-percent lower. The difference was only about $31 per month, but over a 30-year mortgage would have added up to more than $11,000.
“There was nothing derogatory on his credit report,” Workman said of the customer. He had, however, recently gotten an auto loan, which likely lowered his score.
Studies have shown FICO scores are generally reliable predictions of consumer payment behavior, but Workman’s experience points to one drawback of credit scoring: the automated underwriting programs lenders use can’t always differentiate between two people with the same score. Another consumer might have a 679 score because of several late payments, which could indicate he or she is a bigger repayment risk. But a computer program that depends just on score won’t consider those details.
On a broader scale, some of the spike in foreclosures came about because homeowners were financially irresponsible, while others lost their jobs and could no longer pay their mortgages. Yet both reasons for foreclosures have the same impact on a borrower’s FICO score.
In the past too much credit was handed out based on scores alone, without considering how much debt consumers could pay back, said Edmund Tribue, a senior vice president in the credit risk practice at MasterCard Advisors. Now the ability to repay the debt is a critical part of the lending decision.
Workman still thinks credit scores alone play too big a role. “The pendulum has swung too far,” he said. “We absolutely swung way too far in the liberal lending, but did we have to swing so far back the other way?”
Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders.http://www.nwcdr.com/financial_warning_signs.htm It’s unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.
Because consumers relied so heavily on debt to fuel their spending in recent years, their restricted access to credit is one reason for the slow economic recovery.
“I don’t get paid for loan applications, I get paid for closings,” said Ritch Workman, a Melbourne, Fla., mortgage broker. “I have plenty of business, but I’m struggling to stay open.”
FICO’s latest analysis is based on consumer credit reports as of April. Its findings represent an increase of about 2.4 million people in the lowest credit score categories in the past two years. Before the Great Recession, scores on FICO’s 300-to-850 scale weren’t as volatile, said Andrew Jennings, chief research officer for FICO in Minneapolis. Historically, just 15 percent of the 170 million consumers with active credit accounts, or 25.5 million people, fell below 599, according to data posted on Myfico.com.
More are likely to join their ranks. It can take several months before payment missteps actually drive down a credit score. The Labor Department says about 26 million people are out of work or underemployed, and millions more face foreclosure, which alone can chop 150 points off an individual’s score. Once the damage is done, it could be years before this group can restore their scores, even if they had strong credit histories in the past.
On the positive side, the number of consumers who have a top score of 800 or above has increased in recent years. At least in part, this reflects that more individuals have cut spending and paid down debt in response to the recession. Their ranks now stand at 17.9 percent, which is notably above the historical average of 13 percent, though down from 18.7 percent in April 2008 before the market meltdown.
There’s also been a notable shift in the important range of people with moderate credit, those with scores between 650 and 699. The new data shows that this group comprised 11.9 percent of scores. This is down only marginally from 12 percent in 2008, but reflects a drop of roughly 5.3 million people from its historical average of 15 percent.
This group is significant because it may feel the effects of lenders’ tighter credit standards the most, said FICO’s Jennings. Consumers on the lowest end of the scale are less likely to try to borrow. However, people with mid-range scores that had been eligible for credit before the meltdown are looking to buy homes or cars but finding it hard to qualify for affordable loans.
Workman has seen this firsthand.
A customer with a score of 679 recently walked away from buying a house because he could not get the best interest rate on a $100,000 mortgage. Had his score been 680, the rate he was offered would have been a half-percent lower. The difference was only about $31 per month, but over a 30-year mortgage would have added up to more than $11,000.
“There was nothing derogatory on his credit report,” Workman said of the customer. He had, however, recently gotten an auto loan, which likely lowered his score.
Studies have shown FICO scores are generally reliable predictions of consumer payment behavior, but Workman’s experience points to one drawback of credit scoring: the automated underwriting programs lenders use can’t always differentiate between two people with the same score. Another consumer might have a 679 score because of several late payments, which could indicate he or she is a bigger repayment risk. But a computer program that depends just on score won’t consider those details.
On a broader scale, some of the spike in foreclosures came about because homeowners were financially irresponsible, while others lost their jobs and could no longer pay their mortgages. Yet both reasons for foreclosures have the same impact on a borrower’s FICO score.
In the past too much credit was handed out based on scores alone, without considering how much debt consumers could pay back, said Edmund Tribue, a senior vice president in the credit risk practice at MasterCard Advisors. Now the ability to repay the debt is a critical part of the lending decision.
Workman still thinks credit scores alone play too big a role. “The pendulum has swung too far,” he said. “We absolutely swung way too far in the liberal lending, but did we have to swing so far back the other way?”
Monday, June 28, 2010
CONSUMER SPENDING , INCOMES RISE IN THE MONTH OF MAY
WASHINGTON,--U.S. consumer spending rose slightly more than expected in May even as savings touched their highest level in eight months, a government report showed on Monday.
The Commerce Department said spending edged up 0.25% after being flat in April. Analysts polled by Reuters had expected consumer spending to rise 0.1%.
Consumer spending is being closely watched to gauge the strength of the economic recovery after the government lowered estimates for the first quarter, holding back gross domestic product growth during that period.
A government report on Friday showed consumer spending, which normally accounts for 70% U.S. economic activity, rose at a 3% pace in the January-March quarter -- slower than the 3.5% the government had estimated last month.
Spending adjusted for inflation increased 0.3% last month after being flat in April. Real spending on services increased 0.3%, while spending on goods rose 0.2%, reversing the prior month's 0.1% decline, the Commerce Department said.
Personal income increased 0.4% after gaining 0.5% in April. Markets had expected income to rise 0.5% last month.
Real disposable income climbed 0.5% following a 0.6% increase the prior month.
The saving rate rose to 4.0% from 3.8% in April. Savings increased to an annual rate of $454.3 billion, the highest level since September. The report also showed the personal consumption expenditures price index, excluding food and energy, rising 1.3% in the 12 months to May.
The index, a key inflation measure monitored by the Federal Reserve, increased 1.2% in April.
The Commerce Department said spending edged up 0.25% after being flat in April. Analysts polled by Reuters had expected consumer spending to rise 0.1%.
Consumer spending is being closely watched to gauge the strength of the economic recovery after the government lowered estimates for the first quarter, holding back gross domestic product growth during that period.
A government report on Friday showed consumer spending, which normally accounts for 70% U.S. economic activity, rose at a 3% pace in the January-March quarter -- slower than the 3.5% the government had estimated last month.
Spending adjusted for inflation increased 0.3% last month after being flat in April. Real spending on services increased 0.3%, while spending on goods rose 0.2%, reversing the prior month's 0.1% decline, the Commerce Department said.
Personal income increased 0.4% after gaining 0.5% in April. Markets had expected income to rise 0.5% last month.
Real disposable income climbed 0.5% following a 0.6% increase the prior month.
The saving rate rose to 4.0% from 3.8% in April. Savings increased to an annual rate of $454.3 billion, the highest level since September. The report also showed the personal consumption expenditures price index, excluding food and energy, rising 1.3% in the 12 months to May.
The index, a key inflation measure monitored by the Federal Reserve, increased 1.2% in April.
Thursday, June 24, 2010
DEBT IS EVERYWHERE AND COUNTING
http://www.nwcdr.com/what_is_debt_consolidation.htm Our nation’s debt is staggering – over $13 trillion and counting – but the level of consumer debt is just as concerning, and is rising each day due to foreclosures, job loss and unexpected expenses. In fact, each American citizen’s share of the national debt is over $42,000 – and that’s on top of the personal debt they’ve already accrued. http://www.nwcdr.com/what_is_debt_consolidation.htm
States also have their own debt. According to data collected in the 2008 census, Massachusetts, Alaska and Rhode Island topped the list of most debt-ridden states, based on debt per capita. The three states with the least amount of debt are Tennessee, Georgia and Texas – but today’s numbers reflect that California is the most debt-ridden state, with more than $29 trillion in debt.
Totaling your personal debt – through credit cards, mortgages and other loans – can seem overwhelming. However, there are many ways for getting out of the red, and into the black.
Whether it’s credit counseling, debt settlement or bankruptcy, there are alternatives to living a life filled with calls from collectors. Seek help from a debt relief professional, and do what you can to take control of your finances. It may take a while – months, even years – but the accomplishment of living a debt-free life, or at least one where finances are controlled and budgets are adhered to, is well worth the effort.
States also have their own debt. According to data collected in the 2008 census, Massachusetts, Alaska and Rhode Island topped the list of most debt-ridden states, based on debt per capita. The three states with the least amount of debt are Tennessee, Georgia and Texas – but today’s numbers reflect that California is the most debt-ridden state, with more than $29 trillion in debt.
Totaling your personal debt – through credit cards, mortgages and other loans – can seem overwhelming. However, there are many ways for getting out of the red, and into the black.
Whether it’s credit counseling, debt settlement or bankruptcy, there are alternatives to living a life filled with calls from collectors. Seek help from a debt relief professional, and do what you can to take control of your finances. It may take a while – months, even years – but the accomplishment of living a debt-free life, or at least one where finances are controlled and budgets are adhered to, is well worth the effort.
Tuesday, June 22, 2010
Money Management
Money management address the concepts of cash flow (a.k.a., budgeting), personal net worth and financial goal setting. Adults should be able to create a budget, analyze their net worth, and set short-term and long term financial goals.
Its all about managing cash flow. Generally speaking there are six components to a budget: Income, Taxes, fixed expenses, Varibale Exspenses, Periodic expenses and discretionary Expenses. Each part of the budget is essential to piecing together your entire financial picture. Leave one part out and there’s a gaping hole.
Budgeting includes three basic steps:
1. Listing income and expenses;
2. Evaluating where changes need to be made in the event the budget dosen’t balance.
3. Following through to maintain the budget.
There will be more info regarding this topic in the next few days.
Its all about managing cash flow. Generally speaking there are six components to a budget: Income, Taxes, fixed expenses, Varibale Exspenses, Periodic expenses and discretionary Expenses. Each part of the budget is essential to piecing together your entire financial picture. Leave one part out and there’s a gaping hole.
Budgeting includes three basic steps:
1. Listing income and expenses;
2. Evaluating where changes need to be made in the event the budget dosen’t balance.
3. Following through to maintain the budget.
There will be more info regarding this topic in the next few days.
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