Archive for October, 2007

Subprime Mess Impacts Credit Card Issuers

Posted on: October 31st, 2007 by Kenneth Long 1 Comment

Credit card issuers have been more than happy to take advantage of the subprime mortgage debacle. They know that distressed homeowners will often run up credit card balances rather than fall behind on a mortgage payment. As many of the adjustable rate mortgages reset their fees, many homeowners tried to keep up by charging living expenses on credit cards.

Up to now, some credit card issuers have profited handsomely from the increased credit card use. The question is, how long can credit cards absorb the further eroding of consumer finances? There are signs that the credit card industry is set for a big hit. (more…)

Opt Out to Increase Credit Score?

Posted on: October 30th, 2007 by Kenneth Long No Comments

Tired of getting those pre-approved card offers? You may have found that you can opt out of these offers by calling 888-5-OPT-OUT. This works across all 3 main credit bureaus.

Some mortgage brokers say that this has another unintended affect. They claim that it can give you a couple of extra points on your credit score–points that could get you into a lower interest mortgage. (more…)

More Bad News for Debt Settlement

Posted on: October 29th, 2007 by Kenneth Long 4 Comments

This month, numerous debt settlement operations received restraining orders from the Federal Trade Commission. They cited The Debt Settlement Company, The Debt Elimination Center, Money Helps, Edge Solutions, and Pay Help, Inc. All of these companies marketed debt relief through the Debt Meltdown Program. These were operated by Miriam and Robert Lovinger.

This is not the first time the federal government has worked to shut down debt settlement companies that misrepresent the value of the services that they can provide. What is remarkable is that these failed programs are no different than most other debt settlement companies! (more…)

Disadvantages of a Reverse Mortgage

Posted on: October 28th, 2007 by Kenneth Long 1 Comment

Home Equity Conversion Mortgages (HECM), also called reverse mortgages, are one of the hottest products available to the increasing number of baby boomers entering retirement. In order to assess whether a reverse mortgage is right for you, you should understand the costs and benefits associated with a reverse mortgage.

First, consider the benefits of a reverse mortgage. If you are house rich and money poor, you may feel the pressure of upkeep on your home while paying ordinary living expenses. You have a good net worth, but you cannot tap into it. (more…)

What is the Fair Debt Collection Practices Act?

Posted on: October 26th, 2007 by Kenneth Long No Comments

If you have ever fallen behind on your credit cards, you have probably received a few courtesy phone calls as a reminder to make your minimum payment. If you have found yourself a month or more behind, then you may have realized that it is time to seek credit counseling.

Once all of your credit card accounts are turned over to debt collectors, you have likely realized that the collection calls are less pleasant. Some debt collectors are downright rude. Would you believe that almost all debt collectors routinely violate federal law? (more…)

Maxed Out: Six New Challenges

Posted on: October 25th, 2007 by Kenneth Long No Comments

Maybe you thought that your financial shortfall would be temporary. Perhaps it was. What many people find is that being maxed out presents a new list of challenges.

We evaluated the situations of hundreds of clients to list the most common challenges being faced once a family finds themselves maxed out. These are the results of our review. (more…)

Debt Settlement Nightmare

Posted on: October 24th, 2007 by Kenneth Long No Comments

If you have experienced calls from debt collectors, you know how frustrating and embarrassing these calls can be. They come morning, afternoon and evening seven days a week. Not even Sunday is a day of rest for debt collectors.

Many debt collectors routinely will reveal information about your debt to employers, neighbors, relatives and family members. Their purpose is to embarrass you to the point that you will do anything to pay that debt off. (more…)

Four Reasons to Request Late Fee Forgiveness

Posted on: October 23rd, 2007 by Kenneth Long No Comments

Late fees on credit cards have increased steadily throughout the past ten years. Most credit card issuers have begun raising their late fees to as high as $39. If you have been late on your first credit card payment, then there are ways to get around it.

Did you know that most major credit card issuers will forgive a late payment? Here are four reasons why you should contact your credit card issuer when you make a late payment. (more…)

How to Eliminate Debt

Posted on: October 22nd, 2007 by Kenneth Long No Comments

One of the common questions that many of our readers ask is “how do I eliminate debt?” There are many ways to do this, but it all starts with your decision to follow through with a plan. You have to decide that eliminating debt is important enough to temporarily give up a few liberties.

The biggest step is to stop charging purchases on your credit cards. This may be a difficult transition, especially if you rely on credit cards to meet your monthly expenses. This is very important because it will quickly let you know if you can eliminate debt on your own or if you need to get help. (more…)

Why Your Credit Score is Not Real

Posted on: October 19th, 2007 by Kenneth Long 2 Comments

You may have pulled your credit report and paid extra to see your credit score. Perhaps you were happy with it; maybe you expected it to be higher.

What few people realize is that the credit bureaus do not supply you with an actual credit score. It does not match the score supplied to lenders who make the actual lending decisions based on that score. This disclosure is buried in the fine print provided by the credit bureaus. (more…)

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