Credit Consolidation- Top 4 Ways To Achieve Your Financial Goals

Credit consolidation is a strategy being used more and more by Americans as we struggle to get our economy back on the right track. Business is booming at such a rate for consolidating debt that there is just a plethora amount of companies opening up every month, or though it would seem. Our goal here is to simply explain 4 of the most common methods people are using to achieve their goals.

The first topic when discussing credit consolidation always centers around refinancing or HELOC ( home equity line of credit). Sad to say that it was just a short time ago that this strategy was probably the most popular and easiest way to do this, not anymore. With loans so easy to come by, and with the value of homes soaring to new heights, this was an incredible option. Talk about crashing and burning, wow. It seems as though we did a complete 360 in record time. With home values decreasing and loan requirements becoming more stringent, this option is not as viable as it once was. Okay wait for it folks, here it comes, the old catch 22 that you just knew was on the way because there is a certain risk with this that most people are very uncomfortable with even if they do have the credentials to qualify. Here lies the problem my friends, that being whenever you move unsecured debt to secured debt there is a risk, meaning besides your credit rating taking a hit, this could put your home ownership in jeopardy if you fail to meet your obligations for any reason what-so-ever. I hope I didn’t scare anybody off with all that, but it is something everyone must be made aware of when considering this as something that you want to do.

I’d be willing to bet that when I mention the second way of credit consolidation we want to talk about most of you already know of or heard it before, it is a debt settlement program. I think the popularity with these credit consolidation services keeps on increasing because of the ease to find and enroll into them as compared to some of the other ways being offered.  Immediately following enrollment, there are certain benefits and privileges that will be awaiting for the consumer. Lets take a quick look at what you can expect without going into great lengths here. You can expect your debt to be reduced, which of course leads to lower payments every month, and the cancellation of those pesky late fees and interest charges that have been piling up. Now that has to get your blood pumping with excitement. I know you are all waiting for me to drop the bomb, you know, when I tell everyone the bad side of this. Okay here it comes since you asked for it. Your credit rating will be impacted by this negatively until you have stayed the course and completed your program. Just a fast quick plus note here. It surely beats the heck out of the alternative, bankruptcy. The good news is once you finish up with all your obligations, you will see that your credit worthiness will be restored rather quickly.

Another way people are using credit consolidation to help with their finances is through a DMP or debt management plan. The many benefits with this will include, but not limited to, lower interest rates, those annoying phone calls will cease, late fees as well as over draft fees will stop, and payments will be combined to form a single  monthly payment. Credit consolidation services such as this will also protect your credit worthiness while you are working hard with putting your finances back to where they need to be. Generally speaking, it only takes the average person maybe 4-5 years to get rid of their debt once enrolled into this program. 

Now it’s time to talk about a way of credit consolidation that many people just don’t like for many reasons. Personal loans is what we will be bringing up next. This is the least favorite just because of it’s nature. Since it is an unsecured loan it will be more difficult to obtain one, and the amount you get will probably be for much less then if you tried another method. The risk with this will be solely on the lender since you will not be putting up your home as collateral. This will result with the consumer paying higher interest rates. It’s not to difficult to understand why I put this method last and why it’s probably dead last as far as which ways are the most consumer friendly. I guess not putting your home in jeopardy is a plus though. There it is everyone, 4 ways credit consolidation services and methods are being used everyday in this country to help people regain control of their finances once again.

More about → Credit Consolidation- Top 4 Ways To Achieve Your Financial Goals

How Should You Choose Best Debt Consolidation?

Consolidation of debt means taking out one loan to pay off many other loans. Consolidating debt is often done to secure fixed interest or a lower rate of interest for the convenience of having only one loan. Consolidation of debt can be done in many ways. However, one single aim that controls debt consolidation is to replace part or all of your debt with one debt as a single payment is easily manageable. In many cases, debt consolidation involves getting a loan against any of your asset, such as your house, to serve as collateral. This can also reduce your interest rates substantially.

Top Reasons to Look For Debt Consolidation Loans:

Loan for debt consolidation are the best solution if you are bogged down with unmanageable debts. Here are some top reasons why you should go for consolidation of debt.

• To get out of debt faster.
• To reduce the total amount that you owe.
• To avoid long term consequences such as bankruptcy.
• To help you rebuild your credit.
• To help you overcome the stress of rising debts.
• Single monthly payment.
• Professionals to guide you safely and smoothly through your debt consolidation.
• To help you manage other expenses and debts.
• It offers the perfect security.

How to Choose the Right Debt Consolidation Company?

Overwhelming debts can turn out to be quite stressful and hence you should look for consolidating debt. This will help you secure an affordable monthly payment, which in turn will give you a chance to improve your credit score. However, debt consolidation can prove to be a good solution only if you find the right service provider. Here are some tips to help you choose the right debt consolidation company

• Seek recommendations from family, friends or from the internet.
• Choose a debt consolidation company that is legitimate and a not for profit company.
• Check the track record of the company you choose, with a business bureau to determine their reputation.
• See if any complaints are registered against the company.
• Make sure that the debt consolidation company holds a valid license to operate in your state.
• Talk to the company representatives before you actually sign up for loans for debt consolidation.
• Ask lot of questions and make sure that they provide services that will meet your requirements.

Tips To Evaluate Debt Consolidation services:

• Hire the services of a licensed credit counsellor.
• Your debt consolidator should provide a free quote.
• Compare your debit consolidation loans against your old loans.
• They should be able to either reduce your penalty fees or cancel it.

Find out how fast they can deliver their services.

More about → How Should You Choose Best Debt Consolidation?

OFT Clampdown On Debt Management Twitters

According to some reports in the media recently, the OFT could be about to stop debt management companies from using social media sites such as Twitter and Facebook to advertise their services. Firms that use pay-per-click advertising on Google could also be targeted as the OFT continues its clampdown on the debt advice industry.
The OFT has implied that companies that use social media sites to advertise services such as IVA’s, Bankruptcy or a Debt management Plan, may be acting ‘inappropriately’ and that this form of promotion could be viewed as ‘unfair business practice’. The proposals have not yet been confirmed and a consultation is currently taking place.
The main argument behind the OFT’s stance is highlighted in its consultation paper, where it questions whether the limited information that can be transmitted through sites such as twitter can provide a balanced picture for clients. Often, the content on these sites are written by the MD’s and SEO’s of debt solution companies, highlighting all the great things about their companies without ever giving much regard for the ‘free’ or ‘alternative’ debt solutions that are available.
As part of ‘best advice’ guidelines, the OFT have previously stated that commercial debt help companies, as part of their advertising, should always make their clients aware of the free and charity debt advice that is available. This is rarely talked about on Facebook and Twitter.
Most often, the only information that can be found will be written in the garbled ramblings of an enthusiastic director, passionate to get content onto the internet containing as many popular keywords as he can cram into his message in order to boost his company’s website SEO. In many cases, the information to be found on social media sites can be biased, inaccurate and even misleading. Who knows where many of them get the time to post so many blogs and messages – often at a rate of one every half hour or even more frequent, and usually from devices such as Blackberry’s and I-Phones. It could actually be viewed as a little bit sad and desperate.
The question that the OFT raises in regards to pay-per-click advertising is in regards to the limited number of characters available to advertisers, and whether a fair message can be conveyed to potential customers in such a short amount of space. Normally, a debt help firm will be expected to provide certain warnings to potential customers, such as the adverse effect that a debt solution can have on a person’s credit rating and the fact that a debt solution such as a debt management plan can extend the term of a person’s indebtedness.
There have been some murmurings from those in the debt advice sector who use social media to flog their wares that any ban on this form of advertising would be ‘draconian’ and disable commercial debt management firms from operating on a level playing field with others in the industry. The OFT has responded to these concerns by stressing that use of social media is fine as long as the information is accurate, clear and truthful.

More about → OFT Clampdown On Debt Management Twitters

What You Need To Know About Debt Settlement

Let's face it, the financial recession has forced many Americans into positions that they don't necessarily deserve to be in. With financial hardships setting in, many consumers have to make decisions of which bill they are going to pay with this paycheck this week and which bills they won't be paying. Living through financial hardship has lead many consumers into the thought of using a debt settlement program. But, is this the right option?

Well, depending on the severity of your financial hardship this may or may not be the best option for you. It is up to people to decide what will be best. However, I will go over the debt settlement process and some other options that consumers may have.

The first step in a debt settlement process is contacting a professional. There are thousands of debt settlement companies nationwide. However, it is important to do your research before contacting anyone. Look for good companies with great reputations to help you! Once people have found a company they are willing to work with they will need to call that company.
The representative of the debt settlement company will need to know your total amount of debt and will create a payment plan that Americans can afford. Once the payment plan is created and the Americans agree the process starts. The debt settlement company sends a letter to the charge card companies letting them know that they will be working with the debts and they are working on obtaining a settlement.
This process will last several months and in some cases can last several years. During which time, people will be paying the debt settlement company but the debt settlement company will not be paying the banks until they have one complete lump sum! This lack of payment can have a detrimental affect on consumer credit scores.

Once the debt settlement company has saved enough of your payments to offer the bank a settlement, they will offer pennies on the dollar and start the negotiations process. Because the banks haven't received a penny for months or years, they are apt to take a lower amount than what is owed because they think if they don't they will get nothing. At this point a settlement will be negotiated and paid.

Although at this point, the people have no credit card debt left, they also have no ability to obtain a loan. The debt settlement process would have affected the consumer FICO scores so much, they would have to pay cash for everything.

Another option Americans have is calling the banks and letting them know that they are facing a financial hardship. Believe it or not, many of these banks are willing to assist consumers with fixed interest reductions to as low as 0%! All it really takes is a simple phone call to the charge card issuers in most cases to get a decent level of relief!

More about → What You Need To Know About Debt Settlement

A Professional Debt Recovery Letter Can Save You!

Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Attempts to recover these bad debts are both time-consuming and expensive. Bad debts harm any goodwill between you and your customers which may have been built up over many years, leaving that "never again" feeling.
A professional debt recovery letter can save you from all of that.
Debt recovery services provide a simple, cost efficient means of minimising the risk of reduced cash flow to your business. Often, the mere fact that you have employed a reputable debt recovery service to act on your behalf, may well be sufficient to encourage a defaulter to settle his account without the need for any further action. Remember, such customers are also less likely to default on payments in the future.
Debt recovery can be a long and complicated process. However, often all it takes is sending a debt recovery letter to persuade your customer to settle his account. Indeed statistics show that written demands result in a satisfactory outcome in over 60% of cases. With such a success rate, the "demand" letter is clearly a most effective way to recover outstanding debts thus precluding the need for further, more expensive action.
However, professionaldebt recovery services offer much more than just a simple debt collection service. As well as sending out debt recovery letters and then recovering overdue accounts on your behalf, they will offer advice at all stages during your relationship with your customers, that may well reduce the risks to you caused by bad cash flow. Adopting their expert advice can create significant savings for your business both financially and in improved staff morale with the reduction of pressure on your account manager, whose stress level will benefit from the increased cash flow.
When you are approached by a potential new customer seeking credit, your debt recovery service will be able to determine the credit history of this customer and therefore decided their creditworthiness in respect of your business.
From the information provided by the debt recovery service, you will be able to see if the customer has a history of late payments, bankruptcy or insolvency proceedings or indeed has any default judgements marked against them.
This service will also establish beyond doubt the correct legal identity of your potential customer, something businesses often overlook and which can severely hamper the debt recovery process.
A professional debt recovery service will review your existing credit management practices and in effect, ensure that they are "fit for purpose". They can, for example: –

• ensure that your printed Terms and Conditions of Trade are adequate and legal
• a strict control is placed on the limit of credit allowed to anyone customer
• pre-determined agreed days of credit are strictly adhered to
• penalties for late payment of account are clearly defined

Chasing the bad debts does not make you money and it certainly does not improve your cash flow! Let a debt recovery service take over this burden for you. Not only does a debt recovery service provide a most cost effective way of retrieving what you are owed, thus improving your cash flow but perhaps, more important, a debt recovery service may well reduce the risk of default in the first place.

More about → A Professional Debt Recovery Letter Can Save You!

Credit Report Repair Company: Overview, Process And Useful Tips

Do you have bad credit history? Are you looking out for help for credit report repair? If your answer to all above asked questions is yes then you should definitely consult a reputed credit repair company that can help you in having a good credit history. Credit repair companies are nothing but service provider offering different credit repair services ensuring instant credit repair.
Bad credit history can have drastic effect on applicant's reliability and creditability. People with bad credit history and credit ranking often seek to take assistance of credit repair services simply to improve their economic standing in the financial market. Each credit repair agency follows different types of processes and modifications for credit repairing to help their clients in improving economic standing.
The process of credit repair begins with analyzation of customer documents. For same purpose, the company may ask his client to hand over the power of attorney so that the credit repair company can become the official legal representative of customer. Analysis of the credit ratings is second important step in the credit repair process under which the company carefully analyzes different loans and debts taken by client. The last step in the process is the rectification of the current credit rating through counseling, amount for each debt and establishing the priority.
Presently, there are many authentic and reputed credit report repair firms like Lexington Law, Veracity Credit Consultancy, Credit Repair 1st, Apex Credit Services, My Credit Group, Best Legal Credit Repair, etc. Many people with bad credit history are benefited by credit repair services offered through these credit agencies. 
Discussed below are some important factors that you should keep in the mind while hiring credit repair services from company:

• Avoid hiring firms that are asking to pay money before rendering their services.
• Beware of companies offering free services.
• Avoid those service providers who are restricting you to contact from the credit reporting agencies.
• Never trust a company that claims for eliminating accurate negative information.

Always beware from unauthorized credit repair companies because of the fact that fraud service providers can further looted you. Therefore, it is quite important to check the authenticity, reputation and track record of credit report repair service provider.

More about → Credit Report Repair Company: Overview, Process And Useful Tips

How Merchant Loans Differ From Personal Loans

Small businesses are the literal backbone of the American economy. Even though there are lots of factors that affect Wall Street such as oil prices and foreign markets, small businesses depend on Main Street instead of Wall Street to make their money. When it comes time to grow your small business, whether you’re looking for funds to expand facilities, add or upgrade equipment or to buy extra inventory for seasonal sales, getting a short term loan can make the impossible possible.

However, there are different types of loans you can get from personal loans to merchant loans to full-fledged bank loans. Knowing the difference between these types of loans can make a real difference to your bottom line.

First, taking out personal loans instead of merchant loans for a business situation can be a real problem. First, a personal loan is based off of your personal finances instead of the finances of the business. Another drawback is the fact that you are personally liable to pay off the loan instead of the business being responsible. This means if the loan fails to get repaid for whatever reason, the bank can go after whatever collateral that’s been placed against the loan. This could be your private cars, your personal bank accounts or even your home. That can spell disaster for your family.

Bank loans usually aren’t well suited for a short term loan situation while others are. That’s because bank loans are generally for far more money than you need and have a payoff based on years instead of weeks or months. Even though you may qualify for a bank loan, closing one can take longer than your window of opportunity which means that having a loan you can’t use is as useless as not being able to get a loan at all. Regardless of whether you take out the bank loan as a personal loan or as a business loan, they’re usually geared as more of a long term investment in your business instead of a short term tool to be used for leverage.

A merchant loan on the other hand is designed specifically for just such a purpose. Merchant loans are the responsibility of the business to pay back, especially if you’ve incorporated. This prevents personal property or credit from being affected by a loan to the business entity. Also, merchant loans are for short term situations such as increasing inventory for seasonal business and other short term needs. The best part about third party merchant loans is the fact that the payback can come off of credit card receipts instead of having to be paid back at a specific time and in a specific way. This adds a level of flexibility you can’t get with any other kind of loan.

Protect your personal assets and give your business the flexibility it needs by using merchant loans for short term needs. Not only will you have the funds you need when you need them but flexible payback means you’ve got them for as long, or as short, as you need them as well.

More about → How Merchant Loans Differ From Personal Loans