Archive for June, 2012

Secured Debt Elimination

Originally posted 2010-12-15 00:08:42. Republished by Blog Post Promoter

Secured debt consolidation is another name for loan consolidation. The thing is that most people have several types of debts that accumulate in time and get a lot of effort to manage particularly in terms of paperwork. Instead of working with all the creditors at the same time, why not get a single monthly bill for all. Here are some ideas to help you with secured debt elimination.

How can this get you out of debt? Well, the answer to this question is complex and tricky. The whole purpose of getting a secured debt elimination is to reduce the monthly interest rates, which is only possible by a renegotiation of the contract terms. Before taking this step, you should find out about the fees and the credit contract conditions. With secured debt elimination you should first handle credit card debt, as it has the highest interest rate of all.

Try to prevent credit card debt as much as you can: there is no tip better than this. It is a huge mistake to spend your budget in advance when you do not have an emergency. Millions of Americans make the mistake of investing in unnecessary things. Only use the credit card when you have an emergency such as some medical bills that need to get paid for which the health insurance provides insufficient coverage or when some other accident requires immediate cash.

With some Secured Debt Elimination program you should be able to manage budget in a lot more profitable way, but sticking to the one condition we’ve mentioned before: that of reasonable expenses. Moderation in consume would not have put people in financial difficulty in the first place. Moreover, you need to know what expenses are worth using the house as a collateral because such a decision has major implications for the future. Do not get a home equity loan until you are sure that there is no other solution available for you!

Another thing that should be on your mind when trying to achieve secured debt elimination is the comparison of rates and prices. Sometimes lenders with a higher interest rates are more profitable because they do not charges balloon fees for instance. Therefore, the best solution here is to shop around for the best alternative. You certainly need to make an informed decision!

Originally posted 2011-12-22 04:39:20. Republished by Blog Post Promoter

There are times when a loan might suffice for paying off your debts, but there also are times when they won?t do well for that. It is all up to you, really; how you plan to spend your loans, what you plan to do with them. I would only suggest that you ensure that your life is better for it, and nothing less.

I would not advice that you take a loan to pay off your credit cards. As far as I am concerned, that is one loan to cover another, and you get to remain in the same rat race. If you will take a loan, be sure it breaks you away from the race, not dig you deeper into it. When taking out a loan, you might be required to list your assets, and also provide the reason why you need to get that loan. You must convince the lender to bet on you. When they do is when you get paid; not a certain.

What your loan will be used for should be determined well before you even apply for it. It would be irresponsible for it to be in any other way, unless what you are looking to do it actually bury yourself deeper in debt. I?m certain you can understand that.

Loaners need borrowers to remain in business. The fact that the United States sports so many loaners tells us that a lot of Americans also are borrowers. It makes me think that the industry is not going anywhere anytime soon.

Thinking about it will not get you anywhere; only decisive action can take move you forward. Taking a loan is a decisive process, and if you are still thinking about it at this time, you should stop already because you obviously don’t need it. If you did, you?d have the money in your account already.

If you need free money fast or want to become debt free today then you have come to the right place for that information. Feel free to check out our blog for the most up to date information on debt management and borrowing the money the right way.

What Debts are Suitable for Debt Settlement?

Originally posted 2010-02-24 14:37:39. Republished by Blog Post Promoter

Not all debts are suitable for enrollment in a debt settlement program. Before considering enrolling in such a program it is critical to be aware of this information.

Several types of debts are simply not suitable for settlement. Government-related debts such as traffic tickets, fines, child support, student loans, IRS debt (taxes), and alimony cannot be settled. There are professionals that can help with some of these cases but they usually involve lawyers who specialize in those cases.

There are a few types of debts where creditors simply do not settle at all. The most common instance of these is called payday loans. They simply will not reduce the principal owed by one cent. Other types of debts in this category vary by creditor and by individual situation. Once a debt is found to be completely unsettle able it should be removed from the service.

Other debts cannot be settled because they are secured by some collateral. Mortgages, secured loans, and car loans are examples of secured debts which cannot be settled. If the security is taken away or surrendered such as in repossession or other form of revocation then the remaining balance is known as a deficiency balance and that, now unsecured, debt is able to be settled.

For some debts it is the status of the debt and not the type of debt that determines eligibility for a debt settlement service. Newly opened credit cards (opened in past 6 months) or cards with recent large purchases or balance transfers should, in general, not be placed into this type of program. This is the case as a creditor could easily claim that fraud is being perpetrated and rapid legal action would likely follow.

The most important criteria for enrolling a debt into a debt settlement program has nothing to do with the debts themselves but rather with the client. A good client must have real hardship before he/she enrolls any debts into such a service. Debt settlement is an alternative to bankruptcy. Even the most eligible debt enrolled by an ineligible client could easily cause problems for the client.

Before enrolling in a debt program it is important to do an assessment of your debts as well as your financial situation. Be aware of which of your debts are secured, which are government-related, and which have some likelihood of being settled. Most importantly one should insure their hardship is sufficient enough to realize the real benefits of a debt settlement program.

Crusader Consumer Services is a debt and credit help business. We are members of the Better Business Bureau. We offer free quotations and free consultations. Visit us on the web at http://www.crusaderservices.com/

Article Source: ArticleSpan

Investing in Distressed Debt

Originally posted 2010-03-15 23:59:52. Republished by Blog Post Promoter

Many sophisticated investors are now investing in distressed debt, including distressed real estate mortgages.

For example, John Paulson, who runs the $36 billion hedge fund firm Paulson & Co, is looking to buy distressed mortgages and distressed debt, despite being bearish on the overall economy, Bloomberg reported. Paulson wrote in a 2009 outlook to investors that he is interested in investing in debt restructurings, bankruptcies, strategic mergers and financial recoveries. Paulson’s opinion is entitled to great weight as he made billions betting the subprime market would crash and was one of the few to get it right.

Economic Outlook Favors Distressed Debt

Distressed investments are good values during bad business times and bad periods in the credit cycle where there is a bad economy, a bear market in stocks and increasing defaults. As we can easily see, distressed assets are now in favor. Conventional knowledge rightly suggests that in a period of economic contraction, debt, rather than equity, is a good investment strategy.

Risks of Distressed Debt

Distressed debt requires considerable expertise. Such debt is subject to serious legal issues, including possible bankruptcy proceedings, that require experience and expertise to successfully navigate.

Traps for the Unwary in Buying Distressed Mortgages

There are also several traps for the unwary in buying distressed mortgages. First, the buyer of a distressed mortgage may want to bring a foreclosure proceeding to take over the house. This inevitably will cost time and money. Depending on the local courts, and the willingness of the homeowner to contest the foreclosure, such proceedings can take as much as a year. During this time, there may be no income on the mortgage while taxes and insurance costs have to be paid. Legal issues, such as the inability to find the mortgage note in mortgages that have been sold into pools, may stall foreclosures. Some mortgage pools were improperly assembled and documented, making foreclosure difficult.

Further, during the foreclosure proceedings, a disgruntled homeowner may actually damage the home to spite the lender. In our market, we have reports of even homeowners of very expensive homes vandalizing homes by doing such things as painting "Screw First National Bank" on the walls and punching holes in them. At the least, the homeowner’s efforts at maintenance and repair will be minimal or nonexistent. The worst-case scenario is when the home is vacant, leaving it open to decay and vandalism. It is enough to give the distressed debt owner nightmares.

Adding to the nightmare is the fact that in many communities, the zoning and building code game is designed to help the local established contractors keep market share. In some communities, if the property is deemed to have a need of 40% or more of repair, the property needs to be rebuilt up to current building code standards, in effect allowing you no more than a physical shell that would require almost new construction. Thus, the lender or distressed debt owner has to act as though the property consists of only a piece of land.

Further, in certain communities with impact fees, the lender would have to pay an impact fee. Many older properties had not paid a fee and the local communities are looking for revenue. They may demand an impact fee be paid before allowing this "substantial rehab" to occur.

Also, many communities have six-month grandfather clauses that provide that if they can show that a non-conforming use has ceased to operate for six months, the community can deny a certificate of occupancy and demand the property be rebuilt up to current standards.

Bulk REO

We see many people chasing bulk REO properties where a bank is selling a pool of single-family homes they have foreclosed on. We believe that banks will tend to sell the worst properties they own in these pools, especially those that may have EPA problems, zoning problems, repair problems, impact fee problems or other problems. The buyer has a limited time to review these properties and may not be aware of the problems he is buying. While real estate is a business where knowledge of the local market is essential, some bulk REO pools contain properties that are spread out over dozens of states, making local market knowledge impossible and management of the property a daunting task.

Better than Distressed Debt

We believe that there is a better strategy than buying distressed real estate debt. We believe that the more you look at the real estate market, the more you start to realize that buying distressed homes can offer better returns with less risk.

Such a strategy of buying distressed homes consists of advertising for distressed real estate sellers, negotiating deep discounts, and reselling these homes to buyers with less than perfect credit using lease options that allow lease-option buyers to lease the home while they are repairing their credit to qualify for a mortgage.

We can buy single-family homes at deep discounts that are comparable to the discounts offered by buying distressed mortgages. These large discounts are possible for a number of reasons. In this real estate market, home sellers face a huge imbalance in supply and demand. Home sellers listing their homes could wait as much as a year to sell, during which time the outlook for prices is a decline. Further, with the decline in the availability of mortgage credit, few buyers can get mortgages. In our market, banks are overloaded with residential real estate loans and do not want to make any more. Further, the seller has to compete with real estate that is being dumped on the market in foreclosures proceedings and in sales of real estate owned by the mortgage lenders.

When a distressed seller enters this market, the distressed seller needs cash and he needs it fast. He finds that there are few if any buyers. To more his home fast, he needs to sell at a very low price. Thus, it is possible to buy homes at prices that are equivalent to the prices that are paid for distressed debt on similar properties.

The difference between buying the distressed debt and buying the distressed property is that the distressed property buyer has total ownership and control of the property while the distressed debt buyer is at the mercy of the property owner in a bad real estate market. The distressed homebuyer has all the equity and can improve the property easily and immediately re-sell or lease it.

Summary

In sum, in terms of return on investment, obtaining an asset that has to be foreclosed at 30% of its face value and praying that the asset is salvageable and serviceable at the end of the perfection/foreclosure cycle may not be cheap enough if the cost of bringing it back up to habitable status is 70% of the value. We believe that the more you study the matter, the more buying distressed homes offers better returns with less risk.

John Lux is a principal in the Florida Strategic Opportunity Fund, LLC. http://www.Florida-Opportunity.com

Article Source: ArticleSpan

Have An Understanding Of Debt Management

Originally posted 2012-03-02 00:30:21. Republished by Blog Post Promoter

A sure way to fufil your lifelong ambition is to master the process of debt management by reducing your debt to the barest minimum. If you want to progress in life and thus achieve your dreams, then you should get out of debt as soon as possible.

Some people however, are not scared of incurring huge debts due to the fact that they have effective mechanisms in place that can help them pay back such debts. Is it possible for you to also do this? People who discover that their huge debt burden is affecting their progress in life should therefore endeavor to pay off their debts. No doubts about it, you ought to master debt management.

If you want to reduce your debts, below are some methods you can adopt: Don’t waste too much money on frivolous expenditures. Once again, you only begin to dream of reducing debt when you can scale down your expenditures.

You can only have more money to repay a debt if your spendings on commodities is very low. This discipline is a time honored one and will serve you very well in your business as well as personal life.

Also, when you commit 10% of your earnings as savings regularly, then no debt will be too big for you to reduce. When money is put away as savings it does nothing but grow, and this can later be put to use for debt servicing or floating a business venture that would eventually start repaying your debts.

“Pay thyself first” is the acronym given to the concept. The book titled “The Richest Man In Babylon” states unequivocally that no matter the extent of your debt, if you save very well, you can reduce the debt considerably.

This way, you can seriously repay the debt gradually as well as invest the extra on increasing your source of funds. If you adopt these two simple methods for managing and reducing debt, you will be surprised by the positive results you will get.
Click to learn about Debt Settlement Strategy

Repairing Your Credit Is Only A Few Steps Away

Originally posted 2012-02-20 23:27:49. Republished by Blog Post Promoter

Many people do not realize that your credit score determines a great deal more in your life than whether or not you qualify for a loan or not. Your insurance rates, employment opportunities and several other things in your life is going to be effected by a bad credit score. Learn ways to increase your score by reading further.

The better your credit score is the better rates you are going to get from your insurance company. Pay your bills on time each month and your credit score will raise. how to get out of credit card debt. Reduce the amount of money that you owe on your credit accounts and it will go up even more and your premiums will go down.

Make multiple payments on the credit cards you use the most. If you use your card throughout the week for everyday expenses and pay it off every Friday, you’ll cut the amount of credit you’re using at any one time. Check with your card issuer to learn how they handle multiple monthly payments.

Get your credit report as often as possible for free from the big credit bureaus. Keep checking it to ensure that your ratings are going up and your credit repair strategies are working. Also make sure that no one has stolen your identity and is ruining the hard work you’ve been doing.

To build up a good credit score, keep your oldest credit card active. Having a payment history that goes back a few years will definitely improve your score. Work with this institution to establish a good interest rate. Apply for new cards if you need to, but make sure you keep using your oldest card.

Examine your credit report and make sure it is correct. Credit reporting agencies are notorious for their inaccurate data collection. There may be errors if there are a lot of legitimate derogatory marks on your credit. If you find errors, use the FCRA challenge process to get them removed from your report.



If you spot an error on your credit report, you should contact each credit bureau to correct the error. Contacting one bureau does not guarantee that the correction will be made at the other bureaus. how to eliminate credit card debt fast. To make sure that each bureau knows about the error, write a letter to each one describing the problem.

Credit repair can be a crucial subject for anyone who has suffered financial setbacks in life. It is essential to learn the ins and outs of the credit repair process, in order to avoid potential pitfalls. By using the tips and advice contained in this article, you will have a solid foundation for getting the credit outcomes that you desire.

Stop Collection Calls

Originally posted 2009-10-28 09:17:09. Republished by Blog Post Promoter

In the current down economy, many people are in debt, and searching for a way to stop collection calls that may be occurring on a daily basis. If this is happening to you, don’t feel like you are alone, and don’t buy into the guilt trip that many people put themselves through once they realize they are in over their heads with debt. That guilt trip is one of the┬ámany tactics that debt collectors will use against you, in the process of trying to squeeze every last dollar they can from you – if you let them.

If you are like countless other people, and you have credit card or other debts in collection, chances are that happened completely by accident, and not by any intention of your own. Many debt collectors like to make implications that consumers they are trying to collect from are somehow “dishonest”, and that they just borrowed unsecured debt with no intention of paying it back. You and I, and most everyday people, know the truth is very different.

Lost jobs, declining real estate values, rising costs of food and healthcare, are just a few of the reasons that so many people find themselves struggling to stay on top of their budgets. Most of the things I just mentioned are far out of any single individual’s power to control. But if you’ve ever had to deal with debt collector phone calls, you know that they love to try to use shame to push your buttons and wring some kind of payment from you, whether you are in a position to pay or not.

The fact is, between the two parties involved – you, the consumer struggling to make ends meet, and the debt collectors calling you each and every day – the ones likely more deserving of suspicion and shame are the debt collectors. They buy old debt that has been charged off (which means the original creditor has received at the very least a tax write-off for the lost revenue) and they buy it for pennies on the dollar. This gives them the legal right to “collect” on the debt. However, it does not give them the legal right to hassle and insult you. Those behaviors are strictly outlawed by the FDCPA, or Fair Debt Collections Practices Act.

The FDCPA is the federal law that protects consumers from abusive debt collectors; it is by knowing and using it effectively that you can stop collection calls. In it is a provision for how a debt collector can legally communicate with you regarding a debt. The bottom line is, if you request they cease and desist communication by phone, and conduct all communication in writing, the debt collectors must stop calling – and if they do not, you can actually sue them for financial damages.

The fact is, if you have a debt outstanding, you should make an effort to pay it back. However, not everybody is in a position to pay all their debts off at one time, or in some cases, at all, depending on their particular situation. If a debt does get charged off, that means the original creditor has essentially washed their hands of your debt. So, to be fair and honest, yes you still owe a debt – but all the rules change once that debt is charged off. Who, when, and how much you owe are all now a matter of perspective, in many ways, they are negotiable – literally and legally.

When it comes to debt collectors calling and constant harassing, the best thing you can do for yourself is to know your rights under the law, and choose to look at the situation very objectively as a business negotiation. Protect yourself, stop the calls, cut your losses, and move on. There’s plenty of time to improve your credit and financial situation, and life is too short to waste being made to feel guilty by abusive debt collector thugs.

Are you sick and tired of getting collection calls on a daily basis? Are you being harassed, pushed, or even threatened to make payments to debt collectors on old, charged off debts? The fact is, you do not have to put up with being fed guilt and fear, on top of experiencing the financial hardships that put you behind on your payments in the first place.

Debt collector thugs will try and question your integrity and decency, while threatening to take everything you have in an effort to influence you to pay the full balance on an old debt. You are protected by the FDCPA, and you have every right to negotiate lower payoff balances. Most likely, these debt collectors do not even have the legal right to take you to court, even though they often threaten to do so.


Originally posted 2010-02-11 13:01:11. Republished by Blog Post Promoter

This Is How Junk Debt Purchasing Works

Let’s say for example, that at any given time, that 1,250 people default on Capital One Visa cards, and in-house collections have only resulted in the partial recovery of money from perhaps 250 people.

Keeping the math simple, that would mean that the credit card company has 1000 debts that will be very difficult, and very expensive to collect.

Now let’s assume that the average balance on each card is $5,000.00

If we now multiply $5,000 by 1000 we find that Capital One or whoever the lender happened to be, is now looking at five million dollars of unpaid debt, and my figures are very conservative.

A Working Example

On June 20th 2009 , a website offered to sell a batch of Chapter 7 bankruptcy accounts, that had a face value of $200 million.

The sale was on behalf of Collect America, which is one of the nation’s largest debt buyers and collectors, and you will now appreciate that my earlier example of five million dollars, was very low-ball indeed.

So What Choices Does The Credit Card Company Have?

a)It can hire a large number of debt collectors.

b) It can then pay a host of lawyers to fight almost every case.

c) It can sell the debt.

Well "a" and "b" don’t look too bad at first glance, until you consider that many of the people that are located, taken to court, and ordered to pay, won’t have the money to do so, because if they’d had it, then they wouldn’t have defaulted in the first place.

In Reality Every Major Lender Chooses "c".

And It’s Now Time For The Auction!

What happens next is that the debts are bundled into a portfolio, and the highest bidder will get them.

The bidding will start very low however, and will often begin with as little as five or six cents on the dollar, because the junk companies know very little about the contents of a portfolio until after they buy it.

They’re bidding on a cat in a sack, or a pig in a poke!

What Do The Junk Firms Know When They Bid?

a) They know how many accounts there are.

b) The average balance.

c) The average charge off date.

d) How many working phone numbers exist.

The Bidding Is Over

The bidding goes from 5 cents on the dollar to 8 cents on the dollar and Junk Firm X is the lucky or unlucky winner, and it now owns the portfolio.

It’s important to note that Junk Firm X will never be listed as the original creditor, and is therefore subject to the Fair Debt Collection Practices Act.

What Happens If The First Junk Firm Can’t Collect?

From that point on, the whole debt collection thing often becomes really nasty, and we’re talking about verbal threats, and using loopholes in the law.

The original lender might have seemed uncaring and tough, but it would never threaten somebody in intensive care with legal proceedings.

The first junk buyer was probably even less caring, and he might have been underhanded and tricky, but the next one will most likely make him look like a saint.

How Does The Second Junker Buy Try To Collect?

As the law stands right now, creditors are not strictly required to report to the credit reporting bureaus, details of debts that are no longer applicable because of debt settlement or bankruptcy procedures.

So the second junk buyer, who most likely bought your debt for even less cents on the dollar, will use this loophole in the law, and will quite frequently threaten to report an already settled debt to the credit agencies.

Just imagine, that you’re in the middle of buying a house or a car, and this junk buyer threatens to have your credit rating lowered.

You’ve already settled the debt once, but you have no choice but to settle it a second time, so that you can finalize the purchase of your house or car.

Hopefully you now have a much better understanding of why debts are bought and sold, and if you’re being harassed by a debt collection agency, or are worried that you might be soon, then take the time to read an article or two about debt collection techniques, and also learn about the statute of limitation on debt collection in different states.

The author of this article was a film producer, and award winning film sound editor for many years. He has a passion and a flare for economics, and one of his websites -> http://pay-off-debts.org features the famous Get Free In Three system which has helped a huge number of people get out from under suffocating debts.

Article Source: ArticleSpan

Originally posted 2011-12-08 01:30:01. Republished by Blog Post Promoter

You may not have planned to get in debt, but you did anyway. Sometimes, these things happen to us in spite of our best intentions. Now is no time to bemoan the situation; now is when to fix it. Try debt consolidation with a credit firm that has a decent reputation. They should be able to help you.

Even if you think you have it all covered, another bad credit situation could just jump out of the woodwork. That is why when you do debt consolidation, you should be as thorough as possible. Be sure you have every angle covered. Be wary of debt consolidator companies that pose as non profit organizations and charge exorbitant upfront fees. Steer clear of any debt consolidation company that demands excess money with either a cashier’s check or money order. Remember that there are debt consolidator scams out there, so you should beware.

You need to see what debt consolidation can do for you so that you’ll know it is the best way to deal with that bad credit history you have on your name that seems as though it will not be going away anytime soon. This way of borrowing can put your mind more at rest in no time at all, and your finances out of the red sooner than you know it. You should try it sometime.

If you are a homeowner about to lose your home to foreclosure, you should try debt consolidation. It’s a second mortgage on your home, yes, but it is better than the previous option because it gives your blessed breathing space that you cannot do without at this time. I know you don’t want to spend a lot of time thinking about it when you can be taking advantage of it right away. More and more people are using their homes as collateral to collect debt consolidation loans. Your home is an asset that can rise in net worth on the real estate market and can therefore be used in debt consolidation to get cash for paying off your credit card debt.

Try reading up on debt consolidation, will you? What do you have to lose? The knowledge of it after all will empower you to make the best of your dwindling financial situation. Rather than just hurry into another debt that could eventually do you in, you could try a loan that gives you the opening you need to get out with – debt consolidation; totally worth it.

For more advice on debt consolidation financial products and how a debt reduction calculator can help you get out of debt, click on link below:

Debt elimination Center





Originally posted 2010-12-29 01:35:51. Republished by Blog Post Promoter

Gathering free information on debt elimination is easy assuming you understand exactly where to search. However, it ought to be mentioned that most info that is offered on the world wide web are given no financial anticipation. But these details might merely be portrayed simply so to tickle your enthusiasm in order to buy a publication or DVD that guarantees absolute liberty from debt.

Whether or not these are real or whether they’re fake is one thing that you will have to ascertain at your own discretion. However it could be mentioned that a majority of of this debt elimination information which is provided are actually ideas which are born out of common sense. One more issue that needs to be made is while debt is widely regarded by most to be just debt, there are lots of types of debt that calls on for various solutions to solve the problem taking place.

This is a thing that needs to be taken into consideration when searching for free information on debt elimination. Considering debt as a common topic, there are several tips that may be noted down in order to start that journey towards financial independence. Think about these essential tips to be free information on debt elimination as well.

One of the most essential points that need to be pointed out and which one may also find when searching for free information on debt elimination is reducing your expenditure. This may seem to be lie common sense however it is surely an important issue that requires mentioning. Most websites or books that do offer free information on debt elimination do offer a step by step guide on how exactly to reduce debt.

Another significant step all victims of debt may take is to reduce their credit cards and instead have a debit card. This factor alone could end up being your biggest savior, since the absence of a credit card would mean you dont have access to a seemingly bottomless pit of cash. A debit card will surely help you keep an eye on your expenses and thereby control your spending.

If you are interested to get more information about free information on debt elimination. Please visit debt elimination web site.

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