When Does Using a Debt Settlement Program Make Financial Sense?

Ask yourself the following questions to find out whether a debt settlement program for you makes financial sense or not.

Are you in a position to repay your debts on time? If not, then are you earning sufficient amounts to repay the debts on time? There is a huge difference between earning sufficient amounts and not repaying debts and not repaying debts at all.

In case of the former, it is probably a financial mismanagement that is forcing you to skip credit card debt repayment. A credit counseling session is a smart move as it will give you a clear idea of where you stand and the mistakes that you are making. However, if you have lost your job or if you are working with a wage cut, you obviously will not have sufficient funds to repay the debts. Continue reading When Does Using a Debt Settlement Program Make Financial Sense?

June 21st, 2010 | Tags: , | Category: Debt Management | 7 comments

Bankruptcy and Its Effects on Your Credit Score

The financial world is definitely experiencing ups and downs. Hence, there are inevitable financial circumstances that many people are faced with which is resulting more and more in personal bankruptcy.

Personal bankruptcy refers to the debt management tool which is generally considered the last resort because of its long-term and far-reaching affect on your personal finances. In fact, when you arrive at the decision that you are bankrupt, this record stays in your credit score for as long as seven years. However, since you already have a compromised credit report and rating (otherwise you wouldn’t be declaring bankruptcy), it is imminent that you will experience a great number of future financial consequences.

There are, however, other components you need to know about personal bankruptcy that are equally salient and gives major effects on your finances and credit standings. These are the two kinds of personal bankruptcy that most often affects credit report. Continue reading Bankruptcy and Its Effects on Your Credit Score

June 11th, 2010 | Tags: , , , , | Category: Bankruptcy, Credit Report | 3 comments

Consumers Beware: Applying for Credit Can Torpedo a Credit Score

One of the most common and detrimental errors that consumers make in regard to their credit score may also be the most innocent mistake of all.

Without even realizing that they are doing anything wrong, millions of Americans each year inadvertently sink their credit scores by a significant amount just by applying for credit cards and loans.

While filling out credit card or loan applications may seem harmless enough, it involves having a bank, lender, or merchant “run your credit” or check your credit report to ensure that you are worthy of having credit extended to you. But just by doing so, those who check your credit may also be influencing your all-importantcredit score in an adverse way that could result in your being denied credit in the future.

Many unsuspecting people, for example, apply for department store charge cards each and every time a clerk offers those along with an attractive discount at the point of purchase.

Walk into any busy shopping mall during a major holiday weekend, for instance, and the chances are pretty high that someone will ask you to sign up for a retail credit card during a special store promotion. If you agree to fill out the application they’ll give you a free gift – like an umbrella, a toaster, or a tee-shirt. Or they may offer you a 10 or 20 percent discount on your first purchase. Continue reading Consumers Beware: Applying for Credit Can Torpedo a Credit Score

May 21st, 2010 | Tags: , , , , | Category: Credit Report | Leave a comment
 
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