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
Tuesday, April 21, 2009
Monday, April 6, 2009
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
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
Thursday, April 2, 2009
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.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Monday, March 30, 2009
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.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Wednesday, March 25, 2009
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.
If you or anyone that you know would care for information on this post, feel free to visit http://www.creditrepairbydrjen.com
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.
If you or anyone that you know would care for information on this post, feel free to visit http://www.creditrepairbydrjen.com
Monday, March 16, 2009
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.
If you or anyone that you know would care to learn more about this post, feel free to visit http://www.creditrepairbydrjen.com
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.
If you or anyone that you know would care to learn more about this post, feel free to visit http://www.creditrepairbydrjen.com
Wednesday, March 11, 2009
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.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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