Paying Up

Tis the season to be jolly then comes the new year and the struggle with those debts.  The good part of the new year for some people is the tax refund.  However, the tax refund will not be there for six months.  In the mean time, can you meet those payment?

Well this should not be an issue, after all you got a lot in return.  Debt never goes away regardless of what you do because we all have to live in this world.  The most important issue is how you handle your debt.  Have you over-extended your self?  Did you use cash or credit?  

If you use cash, you have to replenish your stash.  If you use credit, you have to worry about paying the money back with interest.  What remains to be seen is how much of the cut in interest will be passed down to the consumers.  The banks interest rate is less than one percent therefore banks can drop there lending rates a lot to get your business (fifteen or more points).  

Will this happen - probably not?  Consumers are in control of the economy now.  Will the desire to spend money continue or will the consumer say give me better service?  We are now entering into year 2009.  Will this be a good year for you?  You may need to make a budget and stick to it for a while.  Times are about to change and you need to be aware of your habits. Remember, you have a lot of fixed debt (rent, car note, insurance, etc).  

Bob Bee reccommends looking at your varible debts (groceries, electricity, clothing, gas, etc.) and cut back on those expenses. Avoid getting into any new unnecessary debt.  You will find a lot of good deals in the coming year so donot be hasty to rush into every tempting deal you find.  Compare each deal with what your budget can stand. Survive the time and survive your debt next year.     

~The Debt Survivor~

Happy Holiday to all and to all a Happy New Year:

Lenders all over America are encouraging people to use credit cards.  There is several sides to this marketing ploy. I will try to stay on the topic Companies popping up all over the place promising to clear bad credit from your credit history for good.

Our country has gone poly-corrupt it may be possible to work a deal to remove credit information..  Only desperate individuals really fall in this trap.  Only time can remove incorrect or bad history from your credit reports. There is no secret to removing bad information. You can do it yourself.

First, all three major Credit Bureaus are authorities of and for the Federal Government.  The bureaus must follow their rules.  Consumers credit get bad when other companies report unpaid debt to the bureaus.  This information is required by LAW to remain on your record for at lease seven years.

This information changes daily. Think about this.  Only you know if the information in your credit history is correct. The company reporting this information has to be reached before the report is made to the credit bureau or afterwards.  Then someone would have to pay them to write the credit bureau to report that the information is incorrect.  You are the only one who can dispute the information in your credit history.

Then, the Federal Law requires the credit bureau to investigate your dispute within 30 business days.  Once the investigation is made the bureau must confirm or deny the information.  There are many more regulations the bureau must follow this is the main consumer  protection law.  Visit  the  FTC   http://www.ftc.gov and get the facts. If credit counseling is what you need visit the national consumer law information site: http://www.consumerlaw.org/issues/credit_counseling/index.shtml and use your time and money wisely.

Don’t get in over your head.  You can use the money you pay the credit repair company and pay your own debt.  You can also direct deposit money to let the bank pay your bills for you. Don’t get caught up in a sting or give away money you can use to pay your debt.  Nothing is free.  Trust me.

~Bob Bee~ 
 

Do you plan to consolidate your bills? Is that what is best for you?  How do you know?  Debt consolidation sounds great.  You should always give this method much thought.  Some loans are secured and others are non secured.

This means you should not consilidate the two types of loans.  Under our system of relief some loans can not be dismissed. The law will wipe out the non secured loans when you filed for bankruptcy.  Bankruptcy is our process of relief.  Lenders don’t like the word bankruptcy but businesses use bankruptcy when their debt overwhelms them.  This method  is also for the everyday consumer. 

Once upon a time I thought bankruptcy was a bad word.  Aggressive lenders do anything  to collect their money.  Some people are too proud to file bankruptcy.  There is the CHAPTER 13 & CHAPTER 7.
Neither is favorable to the lender. CHAPTER 13 GIVES YOU MORE TIMES TO PAY OFF YOUR DEBT.  CHAPTER 7, CLEARS ARE DISMISS MOST IF NOT ALL OF YOUR UNSECURE LOANS.

Bankruptcy should be your last resource. Because lenders fround on bankrupcy.  However if you pay your bills on time for two years, some lender is willing to take the chance.  Your Interest rate may prove to be higher than normal.  Don’t be to hasty but survive debt.

~ The Debt Survivor ~