How do you fend off foreclosure?

One of the things that is happening to more people than we would like is foreclosure, and in the United States right now, foreclosure is an ever present possibility. Trying to keep foreclosure from happening, after the dominoes have begun to fall, is not exactly easy, but like any disease, the sooner it is caught, the better the chance you will make it through. Depending where you are in the foreclosure process, it may not be that easy to get out of this unfortunate situation.

If you are early on in the default process, you can get back from bankruptcy because you have not missed more than one or two mortgage payments and lenders have not had to work hard to get everything back on track.Of course, this begins to disappear the farther you get into the process. As the debt increases, so to do the legal costs of the bank. At this point, ignoring the problem will fix nothing.

The first moment you think you are going to miss a mortgage payment, you need to contact the bank and let them know. By contacting them, you are alerting them to the fact that you may be late on the payment this month, and that will actually get you a lot of lead way as a result.

Now, it should be noted that this alone is not going to fix your mortgage problems and if you continue to forget to pay your mortgage, no matter how many times you call the bank is going to come for their loan.

What else can you do to prevent your house from going into foreclosure, helping you keep your home.

1. Loan Modification: If you can change at least one term of your mortgage, you can bring the loan current. This is done by capitalizing the interest that is owed, extending over a fixed period on the loan. You can also lower the interest rate to reduce how much you pay each month.

2. Repayment Plans: When you give a written agreement to the borrower, you can shoe them you will have the loan up to date in a certain amount of time. Usually this will not be over a year and a half, and it is used for borrowers who have suffered layoffs, illnesses or more.

3. Forbearance Agreement: In this agreement, the lender reduces or suspends payments for a certain amount of time. Usually, this will be no more than three months. This is used to help people when they are in short-term unemployment situations, illnesses or other events that disturb their regular payments.

4. Preforclosure sales: These are a bit more drastic but they are good for owners with home equity still on their homes because whatever is left after the home is paid off, goes to them.

These are just a few of the things that can be done to prevent foreclosure from happening to you. They may not work, and they are Band-Aid solutions, but they should buy you enough time to help you out in the long run.

If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

How many years should you have your mortgage for?

When the housing market is hot, it is not uncommon to see potential home owners thinking about getting a 50-year mortgage to lower the cost of mortgage payments. Like any new style of doing something, there are those who swear by it and those who do not. However, when looking at mortgages, how long is too long? Generally, 25 years is the standard rate for a mortgage as it gives relatively low interest rates, while at the same time not cementing the homeowners into a long mortgage that they may not be able to get out of.

Looking at the 50-year mortgage, it is easy to see the appeal of having a lower mortgage payment. Looking at a $300,000 fixed rate mortgage of six percent interest, the monthly payments for the mortgage will be $500, before interest. This wonderfully low payment comes at a price, and it is committing to half a century of mortgage payments, twice as long as most people. If bought in the right time, you could end up paying much less than what your property is worth. However, getting a mortgage when the market is low does not often entail 50-year mortgages. Typically, this will be done when the market is high and mortgage prices are inflated. As a result, for 50-years you can be paying too much for your house, even as it dips in value due to extraneous circumstances.

Many potential homeowners will go with a 30- or 40-year mortgage instead of a 50 year mortgages. However, while they are shorter and have the benefits of low mortgage payments, they entail long mortgages for houses that may dip in value.

As a potential buyer, you never want to force yourself into a commitment that could last longer than you. Getting a 50 year mortgage may seem like a good idea because of the low mortgage payments, but you may think differently in 10, 20 or 30 years. You will be paying your mortgage twice as long as everyone else. If you are 30 years old when you get this mortgage, you are going to be paying it until you are 80 years old! That is 15 years longer than you will most likely be working, which puts a big strain on your finances when you are living off of your pension or retirement savings.

Getting a long mortgage, longer than 25 years, can seem appealing but there is a lot more to consider than just low mortgage payments. If you are planning on getting a house worth more than you can afford over 25 years, it may be a better idea to get something in your price range.

Never try to get a mortgage longer than 30 years, you may end up paying much more than you ever expected to. It is best to go around 20 years, giving yourself ample time to pay it off, without getting too deep into the length of the mortgage.

If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com for more information.

How do you avoid identity theft?

Identity theft is a very serious problem across the planet. It is the fastest growing type of crime in North America and it is affecting thousands of people every day. It is also one of the most preventable types of crimes because so much can be done to keep you from being a victim. You can prevent car jacking by locking your doors, but that is all you can do. With identity theft, there are literally dozens of ways to keep yourself from losing your identity to a thief.

The problem may be that people do not understand how widespread the problem is or how much it has affected economies across the planet. Here are some statistics to show you just how bad identity theft is and how much it can hurt your credit and the economy.

In 2006, identity fraud cost the United States $15.6 billion In 2006, the average fraud per person was $1,882. In 2003, only 15 percent of victims found out that they were hit with identity theft because of the proactive actions taken by a business. The average time it takes for a victim to resolve the problems created by identity theft is 330 hours. Nearly three-quarters (73 percent) of identity thieves use the information they obtain to get a credit card in the victim’s name. The emotional impact of identity theft has been found to be similar to violet crime.

A significant example of how bad identity theft can get for a person comes from a Ms. Brown who told a U.S. Senate Committee Hearing that one person impersonated her and did the following:

Bought $50,000 in goods and services
Completely destroyed her credit rating.
Engaged in drug trafficking in Ms. Brown’s name.
Had a warrant put out for her arrest in Ms. Brown’s name
Created a prison record in Ms. Brown’s name
Was booked into prison under Ms. Brown’s name.

Elsewhere in the world, there is significant damage caused by identity theft. In Australia, identity theft costs about AUS$4 billion per year. In the United Kingdom, identity theft costs the economy of the UK 1.2 billion Pounds each year.

Identity theft is a serious problem that more people need to be aware of. It can not only cost you your credit rating, it can ruin your life. Like Ms. Brown who was nearly arrested because someone was committing crime in her name, you could find that losing your identity is not as simple as a lower credit rating. You have to take time to explain to companies you did not buy from them. You have to have your credit errors repaired and that can take months, and you have to ensure that the identity thief is caught so that they don’t keep using your credit. It is much easier to be proactive and not allow yourself to become a victim of identity theft. It is easier than you think to stop identity theft in its tracks.

If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

Credit scores broken down.

Only a few people actually know their credit score, which is unfortunate, and it seems even less know what their credit score means. Many simply say “I have good credit”, or “My credit is decent” but do they know what the actual score means? When they say they have a credit score of 651, is that different from saying a credit score of 551 or 751? If people knew more about their credit scores, it is likely they would be more careful with their credit as a result. Since many people don’t know what those numbers mean, we will break down credit scores going from bad to good.

If you have a credit score that is 300 to 400 then your credit is abysmal. There is no other way to put it. You have destroyed your credit either through poor credit management, foreclosure or bankruptcy. You have a long road to climb to get your credit back to where it should be and you are not getting any type of loan, credit card or mortgage any time soon.

If you have a credit score that is 401 to 500, then your credit is very poor. You are not going to be getting credit and if by some chance you did, you will have a very high interest rate. Generally you will have this type of credit score if you have been late many times with bills, are using up most of the credit that you have, or have suffered defaults on loans or bankruptcy. While not as bad as 300, you still have a lot of work to do to fix your credit.

If you have a credit score that is 501 to 600, then your credit is fair. You can get some loans but you will have higher interest rates because of your slightly poor status with your credit. If you had perfect credit and suffered a bankruptcy, then your credit score will be in this range. Generally it is not too hard to start improving your credit from here with keeping your bills current, not using too much credit and ensuring no defaults on loans.

If you have credit score that is 601 to 700, then you have good credit. This is where the majority of people are with their credit. You can get pretty much any loan you need and the interest rates will be favorable. You still have some work to do with your credit score but you can easily get there with paying your bills on time. You want to be at least in this range with your credit score.

If you have a credit score that is 701 to 850, then you have excellent credit. You can get any loan you want and you will have very favorable terms and low interest rates. You just need to keep your credit clean at this point and you will be enjoying good credit for the rest of your life.

By knowing where your credit lies in terms of credit scores, you can then begin improving it or maintaining it.

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How much debt should you have on your credit card?

Understanding everything that makes up your credit score can be a lot to take in. You have to figure out a variety of items, including how many bills you have been late on, how often you have tried to get credit, how many credit cards you have, how much you owe compared with how much you make and more. One thing that you can work on that will help your credit score is paying down your credit cards.

Most people think that you have to completely pay off your credit card, but the truth is that you only need to pay it down a little bit. So, how much should you pay down your credit card? Should you pay 90 percent off? Maybe 20 percent? What is the best amount?

Your credit cards have a lot to do with your credit score. If you fall behind on payments for your credit cards, then you will find your credit score drops, as well as your interest rate increases. If you owe too much on your credit card, your credit score will drop. If you have too many credit cards, or too few, your credit score will drop. They are great things to have when you have to purchase items, but they can be a pain too when they get out of hand.

So, to go back to the previous question of how much you should have on your credit card, generally if you can keep it to 30 percent and under, you will be in good shape. For example, if you find that your credit card has an credit limit of $1,000 and you owe $800 on it, then you have used 80 percent of your credit limit. That hurts your credit. However, if you have only spent $250 on it, then you have only used 25 percent of your credit limit.

To lower how much you owe on your credit card, there are two methods by which you can go by. The first is to actually start paying your credit card off. By saving money and cutting costs, as well as limiting how much you use your credit card, you can lower how much is on your credit report.However, there is a second way that you can lower the percentage you owe on your credit card without paying anything off. All you have to do, and make sure you have a good credit score, is to increase your credit limit. For example, if you owe $800 on a $1,000 credit limit card, you owe 80 percent. However, if you raise your credit limit to $10,000, then you will only have eight percent owing on your credit card.

Paying off your credit card is very important. All you have to do is to make sure that you do not owe too much on your credit card. Owing too much can hurt your credit score, and that can cause you to have higher interest rates. So try and increase your credit limit, pay off your credit card and limit how much you use your credit card.

If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

Five tips to eliminate debt.

Debt is not something you want to have. It makes doing anything very difficult. Want to go on a vacation? Then you may have to pay off the credit card first. Want to move somewhere else, you may have to deal with the equity on your home and owing on it if you bought it for more than you are selling it for.

So, how do you keep debt from becoming a problem in your life? How do you stop this ugly monster from rearing its ugly head in your life?
Here are five things you can do to eliminate debt and keep your life free and easy with finances.

1. Budget: You should try and budget as much as you can. Budget everything you spend money on and make sure you include all the money you make. You should try and cut costs with your budget as well. Look at the money you are bringing in and sending out and make the right decision. A budget is one of the most important things you can have at your disposal.

2. Pay off current debts. You should save money with your budget and then use that money to pay off your debts. The less you pay on debts, the more money you will have. You may think of paying off debts as money you will never see, but for every dollar you don’t pay in payments and interest, that is another dollar you now have at your disposal for other things.

3. Don’t use so much credit. Debt comes from credit and the more you use credit, then the more interest you pay and the more debt you have. So, instead of buying something you may not need on credit, just wait and buy it with cash. Do you need that new car, or that bigger house? If you really don’t then save your money and don’t bring that extra debt into your life.

4. Build savings. With all your spare money, begin building a savings. A savings is a great way to keep away from debt. Even if you don’t have any money on your credit card, but have no savings, you are in danger of debt. What happens if you have to pay $1,000 in car repairs? If you don’t have the money you have to use credit. That is now $1,000 you have in debt. However, if you have the money in savings, you can use that as your cushion and pay off the bill without using any credit.

5. Get insurance. Insurance is the best friend you have to keep debt from becoming a problem in your life in many ways. With insurance, if something happens you did not plan for, like an accident, injury, death or disability, you don’t have to worry about not being able to pay the bill or make the money you used to. Insurance is your safety net away from debt, so you should use it whenever you can.

Use these five tips and you can keep debt from becoming a major problem in your life.

If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

How do you cut back on expenses to pay debt?

Debt is something nearly everyone has to deal with from time to time. Often, debt can become so great that the only way out seems to be bankruptcy. For anyone, this is a very tough situation to be in. So, how can you keep yourself from falling into a debt spiral? There are several ways you can do this, but one of the best is to start cutting back on your expenses.

Cutting back on expenses is not always easy. It can be difficult to cut back on expenses you have become used to having. You may not want to cut back because it may seem to hard to get by without those expenses. It can be hard to go without some expenses, but it can be much harder to go without credit as you get older in life and to go through bankruptcy.

The first thing you need to do is make a list of all your expenses. Include everything in that list so that you can look and see all the expenses that you have. Then, make another list, based on the first list, of all the expenses that can be removed from your life. Do you really need cable television? Do you really need to have a latte each day? You can cut out these expenses and save hundreds if not thousands of dollars every single year by doing so. Make sure they are things you can cut out. You can’t cut out electricity so don’t try and remove those expenses.

Now, make a list of the expenses that you can’t get rid of but that you can cut back on. These will be easy expenses to find because they are expenses like electricity, water, gas, heat, food and more. You can’t get rid of these expenses but you can cut back on them. Look for ways to save money by using coupons for food, not using the heat as much, turning off lights, limiting water use and more.

Once you have made these lists, you will find that each month that goes by, it becomes easier and easier for you to keep those expenses out. Before long, you will enjoy cooking at home over going out to eat. You will enjoy reading or spending time with the family rather than watching television, and you will feel good about cutting back on energy use because it saves you money and helps the environment as well.

Cutting back on expenses is one of the most proactive things you can do to help yourself with debt. You can get rid of debt before it gets out of hand because you will be saving money. Saving money means less debt and more money that can be paid to your existing debt. It is a win-win situation and it is a situation that you should take advantage of if you want to save money and save yourself from getting into debt. Don’t let your expenses drag you down.

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Do you understand your credit card interest rates?

It is very important that as a credit card holder, you understand credit card interest rates. Credit card interest rates are not as simple as simply charging interest on your credit card purchases as in four percent on whatever you owe. It is a bit more complicated than that and the inability of many people to understand this is what leads them to getting deeper into debt. Credit card interest can add up quickly and create a vast amount of debt before you know what has happened.

Typical interest rates can vary immensely and often it depends on what the credit card loan is secured against. If the credit card is secured against a home, the interest can be as low as six percent. An average credit card interest rate is about 12 percent. That being said, depending on your credit history and the risk associated with giving you a credit card, you can have an interest rate as high as 36 percent, which means that you owe 1/3 of everything you buy on your credit card each month. If you spend $300 on your credit card, you pay $100 in interest that month. That is a lot of interest.

Credit card interest rates are usually expressed in terms of annual percentage rate, which is compounded daily or monthly. While it has the word ‘annual’ in it, it is not an interest rate that is paid over a stable balance during the course of a year. The interest is compounded over the course of a month to get a more accurate representation of money owed on interest. If you make a $100 purchase on your credit card and pay it off a week later, before the billing period is completed, you would not pay interest on that purchase if it was not for the APR. However, if it is charging APR so that it is a daily representation, the credit card company can collect interest on that purchase, even though you paid it off.
APR interest rates can be relatively low, but sometimes it can get as high as 29.99 percent for daily compounding and 34.48 percent for monthly compounding over 12 billing periods and 365 days.

Thankfully, there are laws in place to prevent you from paying excessive interest on your credit cards even if you have good credit. Usury laws limit the amount of interest that can be charged and keep the interest rates strictly regulated so that there is a system in place for the agreement of interest rates, the calculation of interest rates and the discloser of interest rates. The United States has relatively strict laws for usury, but some countries, especially in the Middle East, have laws against charging any interest.

Interest rates exist to provide money to credit card companies so they can loan you money. They want to make a profit and interest rates are how they do it. However, they can be a thorn in your side so if you want to keep yourself from falling behind on interest rates, understand them and you can protect yourself when you make your credit card purchases.

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Eliminate debt by having insurance.

The only thing that is certain about the future is its uncertainty. To quote another adage, we need to hope for the best but plan for the worst. Surprisingly, many people do not listen to this and end up falling deep into debt because of a lack of insurance.

Insurance is a safety net against debt, but strangely a lot of people do not look at it that way. They see insurance as something that you get in case of accident, without really understanding the point of it. If you are in a car accident, especially if it is your fault, you could end up paying thousands in repairs and possibly hundreds of thousands in a lawsuit. If you are injured and can no longer work, medical bills alone will bankrupt you and result in you falling deeply into debt. If you die, your family may go into debt in an attempt to pay off the debts you incurred in your life and if you get sick, medical bills can mount and increase your overall debt load as well.

If you have $20,000 saved up to protect yourself from debt, then good on you for doing that. However, if you have $20,000 saved up and no insurance of any kind, then you are just inviting disaster to your carefully saved money. One of the most common quotes from people without insurance is “It will never happen to me” Well the truth is that it can happen to anyone, anytime.

Christopher Reeve was most famous for playing Superman. He was in peak athletic shape, the prime of his life and then one day while riding a horse he fell and broke his neck, causing him to be paralyzed from the neck down for the rest of his life. If it can happen to Superman, it can happen to you. Insurance can’t stop you from getting hurt, it can’t stop you from dying but it can stop you from falling into deep debt because of an accident.

If you are young, then life and disability insurance are very cheap because there is a much smaller risk of death or injury in those who are young versus those who are near retirement. As well, if you are young there is a good chance you will pay more for your auto insurance because you have less experience, but you will pay less as the years go by without incident on your record.

No matter the cost and no matter your age, you need to get insurance. You need medical insurance, disability insurance, life insurance and auto insurance. On top of that, you should look at home insurance because the loss of your home can put you into debt as well.

If you want to keep out of debt and eliminate that worry from your mind, then get insurance and let the insurance handle the debt when it springs up and shoulder the worry so you do not have to.

If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

Teaching debt solutions from a young age.

These days, it seems that people are getting into debt at a younger and younger age. Studies show that by the age of 20, many people already have a large amount of debt under their belts. That debt only seems to grow with age, especially when they begin to get student loans, mortgages and car loans. Is there a way to stop this? Is there a way to make it so that young people are not saddled with debt from a young age?

By teaching ways to manage and avoid debt at a young age, it is possible to keep young people from falling into a debt spiral before they can even drink in bars legally. Here are some tips to get you and your kids on the right track with debt.

First, have your kids start living by a budget. This will be very easy because at an early age, especially before the age of 15, there are very few expenses for young people. On top of that, there is little income for them as well. The point is not that you need to have a lot of information in the budget, but that you are teaching the kids to use the budget. Teaching the kids to use a budget at a very early age will keep them from letting their expenses get out of control. That way, you will be able to not only help them manage their money, but you will teach them one of the most important things you can learn to keep away from debt.

The next most important thing you can teach them is how credit works. The problem with many young people and credit is that when they get it, they go a bit out of control with it. As a result, they can find their credit card is out of control before they have a chance to bring it under control. Sometimes, a first credit is the beginning of an unstoppable debt spiral. With very young children, give them a pretend credit card that they can use around the house. You can also incorporate a credit card (fake one) with the allowance so that they begin to understand paying back the credit card. It may be a game early on, but it can help out by giving your kids the skills they need to understand how credit works for them, and against them as well.

Lastly, teach kids about saving money. By having them put away a certain amount of money each time they get their allowance, they can see their savings grow. This is a very good idea if you want to teach them the value of a dollar.

Saving money, having a budget and learning about credit at a young age is something that kids need to learn before things get out of control in young adult years. Sometimes new money or credit can be overwhelming in the temptation to spend, but you can prevent that from happening with some good credit and financial tips.

If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

Is the recession good for your credit?

Many people are wondering if the recession is something that is actually good for them or not. While many people have lost their jobs, there are also many people who have learned to cut back on their consumption, to put their credit cards away and to think before they get themselves into debt. So, can the recession be good for your credit and your debt?

Naturally if you go through foreclosure or bankruptcy, it is not good for your credit score but it can be good for you because it teaches you that you don’t need to live with credit, that you can get by without it. It is a fresh start that allows you to begin building your credit back up and clearing away the debt that you were saddled with before.

In a recession, you are going to be saving your money and by saving your money you save on accumulating debt. Instead of walking into a store with a credit card like you may have done in years past, you are walking into a store with your credit card thinking about the payments you will have to make, about how much this is going to cost you in the long run and whether or not you really want to buy that item that you may not even really need.

During recession, you should take a look at your finances and your expenses and determine where exactly you can begin to cut back. For example, if you find that you eat out a lot, and that it is costing you $200 a month, then maybe you should cut back on eating out and instead choose to make your own dinners at home which can be much healthier and much cheaper as well. These are the kinds of decisions that you are going to have to make during the recession if you want to save money, eliminate debt and improve credit.

You should not think of the recession as a hard time for all because it can be a wake up call instead of a death bell. You are learning that you can save money, not spend money on things you don’t need and even lower your debt by practicing the following rules:

1. Think before you spend.

2. Don’t use your credit card.

3. Cut back on expenses to save money and eliminate debt.

By doing these things, you will greatly alter your life. If you were close to being overrun with debt before the recession hit, then this is the perfect time to get everything in order and to take a hard look at your spending habits. By cutting back in a recession, you will find it much easier to take those same ideas and philosophies into boom times. Then, when another recession hits you will be ready for it and you won’t have very much debt because you learned from the previous recession. Recessions can be good, all you have to do is look for the silver lining in the dark cloud.

If you or any one that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

Learn how to save money to starve off debt.

The best defense against debt and finding yourself falling deeper and deeper in your finances is saving money. Saving money is by far the best tool you have at your disposal to achieve financial freedom in your life. Sadly, in the past 50 years the amount of money people have saved has steadily fallen to the point where it is today, where people aren’t saving money anymore, but spending more than they actually have.

The first step towards saving money in your life is to begin making a budget. A budget is what you will use as a guidepost for how much money you can spend. If you make $40,000 a year and you want to save $1,000 per month so that you can build your savings to $12,000 in a year, then you need to budget for it. You need to cut down on your expenses so that you don’t spend into your $1,000. This may not be easy at first, you may find that it can be hard to stick to the budget but it is very important that you do. Before you make the budget, you will have to begin to look at your expenses in detail to find out how much you are spending each month. This will take you a month but it will help ensure that your budget is completely accurate. It will also show you how little costs can add up over time without you realizing it. For example, buying a five dollar latte seven days a week. However, when you add up five dollars by 30 days you find out that you are spending $150 per month on lattes. That amounts to $1,800 per year spent in lattes that you drink for 30 minutes! That is a lot of money and that is $1,800 that you could put in your savings!

You should also look at cutting back on your bills. The less bills that you have, the more money you will have in the bank. Do you need to have cable? Instead of running the air conditioning why not open a window? Instead of turning up the heat, why not just put on a sweater? There are many ways that you can save money on your bills and that helps you save money in the long run. As well, by saving costs on energy bills, you also lower the amount of carbon dioxide that you release into the atmosphere and that helps the environment.

If you want to get rid of your debt and keep it from happening again, then you need to start saving money. Saving money will help you because you can use the saved money to pay off the debt. Once you have used that money to pay off your debts, you can then use it to build a savings. If you can save $12,000 per year, then by ten years of saving money, you will have saved $120,000. Within twenty years that is $240,000. By forty years you will have $480,000. That is a lot of extra money saved and that is a lot of debt eliminated in your life.

If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

Finances are one of the leading causes of stress for both individuals and families. When most think about the stress caused by finances, they will usually think about someone having a difficult time making enough to cover bills and being unable to provide themselves or their family with what they think they should have. While this is true, and becoming more common with the economy going the way it is, financial stress can be caused by things outside of work and the worry the job is not paying enough. For those who are fairly stable with their income and manage to live within their means, there are certain purchases that can increase stress because of the impact it can have on the financial situation at home.

As the years pass and one is able to build their credit, they begin considering purchases or investments they would like to make; investments and purchases that are no different than what the last generation wants. Firstly, many would like to establish their status in the community they live in, which is often done through money and what they own. Secondly, and this will sometimes have nothing to do with the first, there are people who would like to purchase a vehicle to make their lives easier, to make their job possible and to hopefully save on repair costs in the future; there is, of course, also the investment in a house that most hope to do because it can offer stability and freedom to them and their family. There is nothing wrong with wanting to make life a little easier and comfortable, but it is becoming more difficult to obtain these things because of job insecurity, expensive necessities, such as food and shelter, and so on. Frustration in knowing that some of these are unattainable right now can cause enough stress, but those who have been able to invest but are unable to keep up with the costs because of being laid off, for example, can feel even more stress as their credit becomes damaged and they are realizing they may lose what they worked so hard to get.

It is true that financial stress begins when spending goes out of control and when the bills start to mount. Questions, such as how one is going to afford things, begin to arise. Depending on how bad the situation becomes, relationships can become strained and those with the financial burden can fall into depression and/or anxiety. Speaking with a counselor before the situation becomes too bad would be a good idea for anyone looking to alleviate stress before it goes too far. Many are turning to online websites for some answers or advice, because not only is it easy to access, especially as many sites will offer some free help. Many will prefer to consult an online counselor because it is confidential and they can communicate with them from the privacy of their home. Online help for financial stress offers a great opportunity for anyone looking for some help to relieve some of their stress. All one has to do is ask for help; the first step in getting the help one needs.

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What should you know about secured credit cards?

If you have had a troubled credit history, then there is the chance that you will be denied the usual credit cards when you apply for them. Typically, if you have a credit score of 600 and above, you can get a credit card without a problem. If you have a credit score of 500 to 599, then you may be able to get a credit card, but you are going to pay a high interest rate. If you have a credit score of 499 and under, then you are typically going to be refused for a credit card, and this may present a problem. First of all, if you are trying to rebuild your credit, then you need a credit card because a diversified amount of credit helps your credit score. If you can’t get the credit card, then your credit score suffers. As well, we live in a credit age, where many things are available through the use of a credit card, particularly online. To order anything online, nine times out of ten you need a credit card. If you don’t have a credit card, you can find yourself severely limited.

So, what options are there for you if you have bad credit but need a credit card? There are not many, but the best option you have at your disposal is a secured credit card.

A secured credit card is a credit card that you have secured with a deposit amount that you place on the credit card. If you want a certain credit limit, then you need to deposit between 50 and 200 percent of that money onto the credit card. For example, if you want $1,000 on your credit card, then you need to deposit between $500 and $1,000. However, there are some companies that will allow you to deposit $100 onto a secured credit card to have a $1,000 credit limit.

Even though you made a deposit, you are still expected to pay monthly payments. The money does not come off the deposit, but off the credit card. However, if you find that you are about to default on what you have spent on the credit card, you can use the deposit to pay it off, but you will most likely lose the credit card at that point.

The main advantage of having a secured credit card is that if you have bad or no credit history, your history on the secured credit card is reported to the credit bureau. Therefore, if you make regular payments and show yourself to have good payment habits on the secured credit card, you will improve your credit score as a result.

Once you close out the credit card after you are done using it, as much as years down the road, you will get the deposit back on it.If you have a poor credit history and want to improve on it, then your best option is a secured credit card. It costs you money at first, but it can greatly improve your credit history and score.

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How do you keep your credit score up if you fall behind on your mortgage?

Thousands of people across the United States are suffering through one of the worst housing markets in history. Those thousands of people are trying to pay back their mortgages but are falling behind because of rising interest rates, credit problems and a failing job market. If you are going through this, then you are not alone. You are one of thousands who are seeing the home of their dreams slipping away, but don’t worry, there may still be time for you to save your home and get back on your feet and keep your credit from being destroyed by a neutron bomb called foreclosure.

Foreclosure stays on your credit report for as much as a decade and it can lower your credit report by as much as 200 points in one fell swoop. So, how do you save yourself if you fall behind on your mortgage?

If you are only behind by one payment, then you should be okay as long as you have a good payment history with the bank. However, if you fall behind by three mortgage payments, then foreclosure becomes a reality for you. If this happens to you, the first thing you should do is call the bank or the lender that you have your mortgage through. You want to talk to your lender or bank immediately because it shows good communication. If you explain that you will be paid up by a certain date, most banks will be fine with it and choose to skip the foreclosure process. The reason is that for a bank, if you have a $400,000 house, then that is $400,000 that they paid out for you. If you foreclose on the property, they will probably get $100,000 to $250,000 on the sale of the home and that means a $150,000 to $300,000 loss. It is much easier to help you get through your payments, then go through the hassle of foreclosure. Plus, for many banks, too many foreclosures can cause them to go under, as we have seen in 2008-2009.

Next, you should begin budgeting yourself so that you do not fall behind any further on your mortgage. You should talk to friends or your family about getting a loan to help you pay back your mortgage. Owing friends or family is better than owing the bank.Lastly, and especially if you lost your job, you can talk to the bank about refinancing your mortgage on a better interest rate and mortgage payment amount. This is a drastic solution that you should only use if you are three months or more behind on your mortgage. This does not always work though, and you could end up paying more on your mortgage depending on how much the house is worth at the time.

Being behind on your mortgage is not the end of the world, but going through foreclosure is the end of your credit world for the next ten years. So use these tips to keep it from happening.

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What is the average FICO score?

Credit scores are a big part of our lives. Credit scores are what dictate what we can buy, what kind of homes we can get and what kind of cars we can buy. If we have good credit, it is easy to get these things, but if we have bad credit, we may find that it is harder than we imagined to get a home, car or credit card. With a poor credit score, interest rates can be very high. A high interest rate can lead to a difficulty making payments.

The sub-prime mortgage crisis was essentially created by lenders giving mortgages to people who did not have the credit for it. Their poor credit score meant the interest rates were very high, although the interest rates were low to begin with. Then the people could not afford both the mortgage payment and the interest payment that could reach 20 percent. They fell farther and farther behind, and that led them to be foreclosed on. The people that this happened to had poor credit generally, usually below 600.

However, if you have an average credit score, where do you sit between 300 and 850?For FICO, it sits at around 650. If your score is in that range, you will be able to get a loan or credit card without much trouble. You will deal with higher than normal interest rates though when compared with someone who has a credit score of 780. If your score is above 650, you will have little trouble with getting a loan, and the interest rates will be much lower than those who are below you credit-wise.

If you have a lower-than-average credit score, you will need to work to improve your FICO credit score through various means, including paying your bills, lowering your debt-to-income ratio, paying off your debt and more.If you think your credit score is decent, you will probably go to see if you can get a loan. However, if you do this on a regular basis, creditors will see that you have asked for credit from a variety of sources and they label you as a compulsive borrower, which could hurt you in terms of getting a loan.It is important to remember that just because you have average credit, it does not mean you should be happy with it. You should try and do everything you can to improve your credit by paying your bills on time and ensuring you do not owe too much on debts. Average may be good for everyone else, but is it good enough for you?

Your credit is decent, but it could be better.This is why it is important that you know your credit score. By knowing your credit score, you can find out how much you will be paying for an interest rate, and what your ability to pay back a loan will be like. Thankfully, you get one free credit report each year, so be sure to use that credit report so you can find out your credit score and see if you are average.

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What should you do if your identity is stolen?

When identity theft strikes you, even if you have tried to be safe, then you need to start thinking about how you are going to fix the problems created by identity theft.

The most important thing you can do is to act quickly. Identity theft damage moves quickly, so you need to stop the damage as quickly as you can to keep it from becoming even worse.

First, you should put a fraud alert on your credit report and get a copy of your credit report sent to you. A fraud alert will let creditors and others know that you have been the victim of identity theft. It will keep anyone from opening accounts in your name. To put the fraud alert on your credit report, you need to contact either TransUnion, Experian, or Equifax. The good news is that you only have to contact one of these companies because that company is required by law to contact the other two credit reporting agencies.

There are two types of fraud alerts that you can put on your credit report. They are an initial alert and an extended alert. An initial alert stays on your credit report for at least 90 days. This is what you should put on your account if you are worried you have been a victim of identity theft.
An extended alert is on your credit report for at least seven years. In case you have been the victim of an identity thief, then you will put this on your credit report. The reason is that it will show companies and creditors why your credit may be damaged. You are also entitled to two free credit reports within a year of putting an extended credit report on your account. In addition to that, credit reporting companies will take your name off of pre-approved credit offers for five years.

When you want to remove the alerts, you will need to contact the credit reporting agency that put the alert on for you. You will need to provide them with proof of your identity, your social security number, your address and further information that verifies your identity.

After this, you need to call and speak with the fraud department for the company that has been affected by the identity theft. Send them documents that support the claim that you have been affected by identity theft. You should also keep records of every communication you have with the company.
Also, make sure you put a PIN on all your accounts to prevent them from being used or accessed by an identity thief.

Once you have done this, file a complaint with the Federal Trade Commission. If you are sharing your complaint with the FTC, you will be helping law enforcement departments across the country track down identity thieves, thereby helping others who may have fallen in your position.

You can file a complaint online at www.ftc.gov/idtheft
By phone at 1-877-IDTHEFT (438-4338); TTY: 1-866-653- 4261
By mail:
Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580.

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Do you understand foreclosures?

For anyone who goes through a foreclosure process, it can be a very difficult situation for them, as well as their family and friends. It is sad to say but foreclosure is becoming very common thanks to the poor economy and sub-prime mortgage crisis. You may be worried about yourself and your family with your home. There is nothing wrong with that, but with an understanding of how it works, you will find that you may be able to manage foreclosure and the effect that it can have on a person’s life.

Foreclosure occurs when the owner of a property can no longer make their payments on the loan. At this point, the property can be both seized and sold because of the non-payment. The owner of the property does not get any money from this, and the sale of the property is used to pay off what is owed on the mortgage, with the bank taking the rest.To get to this point, you will have had to go through three to six months of missed payments on your property owner to get a Notice of Default. This notice states you are facing a foreclosure process, and that you are entering the reinstatement period that goes until five days until the home is auctioned off.If the default is not paid up within three months of the notice, the sale date of the foreclosure house begins. A Notice of Sale will be placed on the house and in the newspaper for three weeks to alert others who may wish to either collect on a debt or buy the foreclosure property (which is becoming very common). At this point, the homeowners would have left the house, and if they have not then the sheriff’s office will show up and evict them. This is not a good situation to be in, and far too many people these days are going through it.

However, now that you know what happens in a foreclosure, what is there to know about how it can personally affect you? Well, the truth of the matter is that a foreclosure is going to leave repercussions on your identity for many years to come. A foreclosure is very similar to claiming bankruptcy, except the foreclosure will only stay on the credit report for seven years, rather than the 10 of bankruptcy. As well, your FICO score will most likely plummet many points, possibly as much as 100 to 200 points. Essentially, having a foreclosure on your property will destroy your credit and literally prevent you from getting another house again for seven years.

Getting foreclosure is not something you want yourself, or anyone you know, to go through. It can severely alter the life of an individual and has spelled the end of many relationships because of the stress. Sometimes it is through no fault of the individual that they cannot pay their mortgage. Perhaps it was layoffs or costs to take care of a family member, but the result is always the same.If you can, try and work something out with your bank to prevent foreclosure from happening to you. If you cannot, then you can always repair your credit after you have gotten back on your feet.

If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com

How do you avoid identity theft?

The fastest growing crime, and possibly the defining crime of the 21st century, is identity theft. Identity theft is a problem that is not going to go away, and it is important that you know how to protect yourself from becoming a victim of this terrible crime. By not being a victim, you can keep yourself from having your credit completely destroyed by greedy individuals who use our digital society to their full advantage.

First thing first, you should under no circumstances fall for phishing. Phishing is the process by which a con artist will send you an e-mail or call you, and state that there is a problem with your account and you need to enter in your password and username to fix it. Once you enter this information in on the website, which comes from a link in the e-mail, you will find that you have just given your information to a con artist. They can then use that information to log into your bank account, credit account and other accounts to steal your money and your identity.
When you are throwing your financial records away, do not just put them in the trash. Some identity thieves will actually dumpster dive and take your papers so that they can use them for their identity theft purposes. When you throw your items away, make sure you shred them by using a crisscrossing shredder. This type of shredder cuts both vertically and horizontally so that it is very hard to piece back together.

Identity thieves will also steal your mail out of your mailbox, and even call your billing companies and change the mailing address from your address to their address. That way, they can begin using your information to get credit cards, loans and to destroy your credit without you even realizing it.Therefore, instead of having your bills mailed to you, you should sign up for online billing so the mail comes to your e-mail address. That way, you will be able to see your bills, save paper, and keep yourself from becoming a victim of identity theft. Practicing online banking and having your bank statement sent to your e-mail address is a very good idea as well. Bank statements are one of the gold mines for identity thieves, so don’t just leave it sitting in your mail box.

Further to that, you should never carry your social security number with you when you go out. Unless you are going to use your social security number for something, you should have it at home in a safe, or in a safe deposit box at the bank. The same applies to your credit cards and other identification items. Unless you are going to need them, leave them in a safe at home so that if you are robbed, you will not lose your important items. In addition, have photocopies, front and back, of all your identification cards and everything in your wallet in case it is stolen.

If you or anyone that you know would care for more information please do not hesitate to contact http://www.creditrepairbydrjen.com

Do inquiries hurt your credit?

This is a very common question with credit, and many people do not realize that inquiries can hurt your credit. It is a sad irony that the more you inquire about getting the credit, the worse your credit gets. Simply put, if you go to a variety of lenders to get credit, that shows up on your credit report. Since inquiries make up 10 percent of your credit report, that lowers your credit score and hurts your chances of getting credit in the future.Those that do not know inquiries hurt your credit will continue to try and get credit, without realizing that their credit is slowly getting worse with each inquiry. Eventually, they will have seriously damaged their credit because they did not research their credit score first.Here is an example of how inquiries can damage your credit. If someone goes to get a credit card, they need to apply for that credit.

However, since the person did not order their credit report, they do not know that they have poor credit. Therefore, when they apply for the credit, they are refused. With that refusal, their credit goes down as a result. Thinking that it was the lender that refused them and not the credit reporting agency, they go and try to get a credit card elsewhere. Only to have the same result. They repeat this process before finally realizing that they may not be able to get a credit card. Sadly, the damage is already done. If the inquiry drops their credit score by 15 points each time, then by the time they have applied for credit five times, they have lost 75 points on their credit score. That is enough to send someone from excellent credit of 700, to fair credit at 625.

How could all this be avoided? Simply put, it could be avoided by not applying for credit without first checking one’s credit report. The credit report is very important in the fight to maintain your credit. The credit report you see is the same credit report that your lender will see. Therefore, if you see your credit report and see a low score, then don’t try and get credit. Concentrate on fixing your credit, rather than hurting it by inquiring too much. It is important to remember as well, that you do not hurt your credit when you look at your credit report, only when you apply for credit. The reason is that you look like a compulsive borrower, which is what many credit card companies do not want to lend money to.

If you have a credit score of 650 and over, then you will have no problem getting credit and should not be refused under any circumstances. If you have a credit score of 600 to 650, you should be fine for getting credit still and won’t have to be worried. However, with a credit score of 599 and lower, you may have difficulties, so it might be better to just try and repair your credit, rather than try and get more credit.

If you or anyone that you know would need more information on this post, feel free to visit http://www.creditrepairbydrjen.com

Five easy tips to fix your credit

Repairing your credit is something we all have to do from time to time. It may seem like a difficult task to do, but the truth is that it can be quite easy when you follow these five easy tips to repairing your credit and getting back on track for a future with easy credit options.
1.

Pay all your bills on time. A full 35 percent of your credit score is made up of your payment history, meaning it matters more than anything else. Hence, it is incredibly important that you pay back your bills on time and do not let them get late, or go to collections. One late bill can send your credit score spiraling down. This is why it is so important that if you are repairing your credit, to pay your bills. Even if it means minimum payments, you should pay your bills as soon as you can without letting them be late.

2.

Pay off your high interest credit cards and transfer balances to your low interest credit cards. Interest can sink you when you are trying to pay your credit cards, so transfer your high interest balances to low interest cards to save money. As well, if you have more than three credit cards, close out the high interest cards to get yourself down to two or three credit cards, no more.

3.

Get a copy of your credit report. Understanding your credit report is key to fixing your credit. It will show you what to fix and what to not worry about. On top of that, it will help you see if you have any problems with errors on your credit report, something that affects 75 percent of all credit reports. Repairing a credit report error can drastically fix your credit, so make sure you get your credit report.

4.

Don’t spend. The less you spend on credit, the less you have to pay back and the easier it will be to start cutting down on your debt. You should try and limit all your expenses and do up a budget so you can monitor yourself and see exactly how much you need to allocate each month to pay off your debts in a year or so.

5.

Talk to someone about your debt. A debt consolidation company will take all your debts and put them into one loan that is easier for you to pay back. A debt counseling company will help you learn more about your credit and how to fix it. You won’t be so stressed because you will have these companies on your side, helping you fix your credit. Just beware of debt consolidation and debt counseling companies that are not legit and only want your money. Do your homework.

These five tips can help you repair your credit and get yourself out of a debt spiral. Use these tips and before you know it, your credit will be back up above 650, and you will be living a much easier life again.

If you or someone that you know would like more information on this post, feel free to visit http://www.creditrepairbydrjen.com

What should you know about the three credit reporting bureaus?

Your credit report is the most important tool you have in fixing your credit, fighting identity theft and staying one step ahead of serious debt problems. However, did you know that you can get your credit report from three different credit reporting bureaus? It is important to know this because your credit can vary at each bureau by as much as 50 points. That is a big difference because 50 points on your credit report can mean the difference between a low interest rate and a high interest rate.

The first credit reporting agency is TransUnion. Founded in 1968, it began reporting on credit for consumers in 1969, building itself up by acquiring city credit bureaus. Today, it operates with 250 offices in the United States and 24 offices in other countries, while having its headquarters based in Chicago.

The second credit reporting agency is the oldest and largest of the three. It is Equifax and it was founded in 1899. Growing quickly, the company had offices throughout North America by 1920, and was the holder of millions of credit reports on American citizens by the 1960s. The company offers several services including CreditLock, which prevents and limits inquiries into your credit report. You can set the preferences for access to your report, making it much easier to protect your credit with this credit reporting agency.

The third credit reporting agency is the youngest and the smallest. It is Experian and it was founded in Nottingham in 1980. Over the years, it acquired credit reporting businesses until the 2000s, when it became one of the big three credit reporting agencies in the world with TransUnion and Equifax.

So, why do you need to know about these three companies? Well, when you get your one free credit report that is provided to you each year thanks to the Fair Credit Reporting Act, you should make sure that you are getting a report that will show you what your credit score is with all three companies. That way, you can make sure that when you go to get credit, you are having them check the credit report of the agency that gives you the highest credit rating. It is also important to check your credit report with all three agencies because one agency may have an error while the others do not. If you have a credit error for an unpaid bill on your TransUnion credit report, but you only check your Experian credit report, you may never realize there is a problem. Then when you attempt to get credit and are refused because they looked at your TransUnion report, you will have no idea why. Hence the reason why you should look at all three credit reports from all three credit reporting agencies so that you can compare them and make sure they match completely.

Staying on top of your credit is very important, and looking at your credit score from all credit bureaus is just as important. Mistakes happen and not everything is the same with credit, so get all the information you can from TransUnion, Experian and Equifax.

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Should you pay your bills with your creditcards?

Credit cards can come in very handy at times. When you are having trouble with your bills, the temptation to pay the bills with your credit cards can become overwhelming. This is especially true when you have companies threatening to cut off your television, heat, water or electricity. However, paying off your bills with credit cards is a path that you don’t want to go down. The reason is that it can lead you to going deeper into debt than you had wanted to.

Here is an example:

If you owe $200 on your telephone bill and the company has stated they will cut you off if you don’t pay, then you may want to use your credit card. So, you pay off the bill with the credit card, thereby putting a $200 charge onto your credit card. Everything may seem good now, but it is not.The reason is that you have forgotten about the interest, and the interest is always a killer. If you have a 15 percent interest rate on your credit card, then after one month you are going to owe $230 on your credit card. Since you were not able to pay the original $200 on your phone bill, there is the chance you may not be able to pay the $230 on your credit card. As a result, a second month’s interest charge means you now owe $264.50. By using your credit card and missing one month’s payment, you now owe an extra $64.50. Miss another payment and you owe nearly half of what you originally borrowed.

You should never borrow money off of your credit card to pay a bill, and more importantly, you should never try and get a cash advance off of your credit card so that you can pay off your bills. Cash advances come with incredibly high interest and fees. You can often pay 25 to 30 percent interest, plus fees associated with using the cash advance.

A much better option that is available to you, other than paying for your bills with credit cards and cash advances, is to use the minimum payment system. Minimum payments are what you are required to pay to keep your bill from showing up as past due on your credit report. When you make the effort to pay with minimum payments, you are paying off that little bit, but you are still owing a lot of money. Therefore, it is important to use minimum payments, but you should not rely on them. If you only pay minimum payments on your credit cards, you are only paying off the interest. If you keep using your credit card while paying minimum payments, then you are simply causing yourself to fall farther and farther behind.

If you find you cannot afford to pay your bills, it may be time to scale back. By scaling back on your bills, you can save money and not have to worry so much about being late on your payments. You won’t have to use your credit card to pay bills and you won’t have to worry about collection action. This is by far the best option for you and your bills.

If you or anyone else you know would need more information on this post, feel free to visit http://www.creditrepairbydrjen.com

Why should you avoid payday loans and cash advances?

Credit can be a dicey situation when you don’t know how to manage it properly. There are so many fees, interest payments, and more. It can become overwhelming and sometimes you will worry that you will fall behind. Two things you should do to keep from falling greatly behind with your credit and debt, is to take out a pay day loan or use cash advances.

Cash advances are when you take money out of your credit card at the debit machine. This gives you cold hard cash from your credit card and it can seem very appealing to do. However, the truth is that it is one of the worst ways to use money on your credit card. Cash advances have interest rates of as much as 25 percent to 40 percent. That means if you take our $200 in a cash advance, you end up paying between $50 and $80 extra in interest as a result. You should avoid cash advances at all costs. Paying that much interest will only set you back. On top of the interest rates, you can pay as much as $10 to $20 in fees for using the cash advance. Try and use online banking transfers instead of cash advances. Under no circumstances should you use cash advances on your credit card.

Pay day loans seem tempting. If you don’t have the money to pay your bill, you just write a post dated check to a pay day loan company and they give you the money you need at that time. After two weeks, the company cashes the post dated check and everything is square. Sadly, it is not that easy. Pay day loan companies will often take large amounts of interest on your loan. This interest can be as much as 40 percent per two weeks. On a $200 loan, you end up paying $280. There are also other fees attached to it. If by chance you end up bouncing the check because you still don’t have the money, then you have to pay an NSF charge. On top of that charge, there are charges with the pay day loan company, and your interest rate will increase as well. If it takes you an extra two weeks to pay back that $200, you could still owe more than that in fees and interest payments. This is why pay day loans are one of the worst things you can do. It is also why they are illegal in 12 states and severely regulated in 37 states.

Cash advances and pay day loans seem very tempting to use, but they are like a trap door to debt. The interest payments alone can leave you with your head just above water as you continue to take out loans to pay back other loans. Before you know it, your entire house of cards has fallen and you are struggling more than ever with debt. At this point, your only option may be bankruptcy.

If you or anyone else that you know would need more information on this topic, feel free to visit http://www.creditrepairbydrjen.com

What are debt collectors forbidden to do?

One of the worst things about being in debt and having a low credit score is the fact that you have to deal with debt collectors. The sad part of this is that many people do not realize just what debt collectors can and cannot do. By knowing what they can do, and are legally allowed to do under the Fair Credit Reporting Act, will help you stay a step ahead of them and not to fall into their traps.

First, debt collectors cannot threaten you to do something that they are not allowed to do. They cannot threaten violence or any crime of any type. They cannot threaten to take your property or your wages without a court order either. Second, debt collectors cannot swear at you, lie about who they are, lie about why they are calling you or contact you so often that it can be deemed harassment. They cannot call you at work either if you have asked them not to contact you at work. As well, it is illegal for a debt collector to call you before 8 a.m., or after 9 p.m.Third, in no way are debt collectors allowed to tell anyone else about your debt. They can only do so if they have a court order against you. This means that debt collectors cannot tell your employer about the debt, but they can call your employer to ask where to find you. Debt collectors cannot contact family members, except for your spouse if you are married, or your parent or guardian if you are under the age of 18.Fourth, a debt collector cannot trick you in order to collect on the debt. This means that they cannot lie about the legal status of the debt, and they cannot claim that they work for a federal or state government agency. They cannot use any paperwork that may make it look like they work for a government agency either.

Lastly, debt collectors cannot add a fee to the amount of the debt unless it is a special case. Also, if you have a lawyer, then the debt collector can only contact the lawyer if you have sent a statement asking them to contact the lawyer on your account.Debt collectors will try anything and everything to get you to pay back your loan or debts. However, sometimes they go a bit too far and begin to cross the line. When they do this, you need to be ready to act because by acting and not falling for their tricks, you can actually help your situation and even have the debt erased due to a threat of a lawsuit on your part. Knowledge is power and knowledge about your rights with debt collectors is very, very powerful, so know your rights. This is why it is important to keep records of when you receive calls from debt collectors, what they say to you and more. Anything that can be used to help your case will help you in the long run and get the debt collectors off of your back.

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What do you know about your free credit report?

One of the most important tools that you have at your disposal to protect your credit, and repair it, is your credit report. Your credit report is very important because it lists everything about your credit, what needs to be repaired, what needs to be fixed and what your credit score is. How do you expect to repair your credit score if you don’t even know what your score is? Knowing your score will tell you how much you have to repair your credit score by, and where to start. If you have a credit score of 750, then you will know that you probably don’t have to do too much credit repair. However, if your credit score is 500, you know you have your work cut out for you.On top of that, by seeing your credit report, you will be able to see if there is any problems on it, as in credit errors.

Credit errors affect roughly 75 percent of all credit reports. Credit experts state that one of the easiest ways to repair your credit report is to fix the errors that are not your fault. One credit error that is repaired can raise your credit score by as much as 50 points. When you are talking about interest rates and your ability to get credit, 50 points means a lot.You can get your credit report from the three major credit reporting agencies, with TransUnion being the best and most respected of the bunch. A credit report would typically cost you about $40 to obtain, but thanks to the Fair Credit Reporting Act, you have a trick up your sleeve. It is your own free credit report that you are entitled to every single year.

With the Fair Credit Reporting Act, you get a free credit report that you can use to repair your credit and find credit errors. The free credit report can come from any of the credit reporting agencies, and you can go to them directly if you wish. However, there are many websites that offer you the ability to get your free credit report through them. MyFreeCreditReport.com is one such site, but there are many more. However, you should be careful what websites you go to because some websites will be fronts for identity theft schemes. You put in your personal information, and they use it to steal your identity. Try and use well-known websites, or use the website of TransUnion to get the free credit report that you are entitled to under the Fair Credit Reporting Act.Your free credit report is the most important tool at your disposal for repairing your credit report. While you do get a free credit report each year, you should not limit yourself to only one credit report. Every six months is a good timeline to get your credit report. You will get one for free, and pay for one, but it will keep you knowing what your credit is like and it will keep you from becoming a victim of identity theft.

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