Debt management companies - Why you should be careful about them

If you are drowning in debt and desperately searching for a way out, then a debt management program can really work for you. There are many companies in the market that offer different kinds of debt management program. But, choosing a debt management company has never been an easy task. There are many companies which have been sued by the FTC and Attorney Generals because of their fraudulent activities. So, it is very important to make sure that the debt management company you are selecting is a reliable one and their debt management program will not land you in a financial situation worse than before.

This is what happens if you chose a wrong debt management companies

In order to choose a debt management company, which can really offload your debt burden, you should keep in mind the following things:

• Don't forget to check the reliability- To be sure of the company's reliability, check its BBB rating. Find out how many complaints have been listed against the company and how many of them have been resolved. You should also gather information about the company from your local consumer protection agency and the State Attorney General. Also find some feed backs in various forums on their performance. If you find that the debt management company holds several unresolved complaints, don't rely on them for solving your debt problems.


• Don't get carried away by the non-profit status- Don't be misguided by the non-profit status of the debt management companies. There are many non-profit debt management agencies which charge high level of fees for providing debt management services. You should keep in mind that the non-profit agencies are also running their business to make money. The only difference is that, these agencies distribute their earnings in a different way. In many cases, the debt management companies use their non-profit status as a marketing tool.


• Get a written contract- Before enrolling for a debt management plan; make sure that you get a written contract. Carefully read all the terms and conditions before signing the contract and before making any payment. If the debt management company refuses to give you a written contract, just move on.
  
  
• Remember removal of negative listing cannot be guaranteed- If a debt management firm promises you to remove negative items from your credit report, you should better avoid them. This is because, no debt management company has the authority to remove negative listings from anyone's credit history; they can only try to negotiate with the creditors and the credit bureaus. So don't get impressed at their false commitment.


• Make a point that the debt management firm requires complete information- Always remember that a debt management company requires all of your current debt account statements before telling you about the fees and the debt reduction time. If a company gives you a quote without knowing about your debt accounts, interest rates on your loans and your creditors, then you should not consider it as a reliable one.


• Think before you stop making payments- Your debt management company may tell you to stop paying your creditors, once you enroll for the debt management plan. But don't stop making payments unless the debt management firm starts paying on your behalf.

Do not fall into these ad traps.

Always remember that it is worth going an extra mile for judging the trustworthiness of a debt management company, before delegating them the responsibility of debt reduction. Visit various debt consolidation communities and take expert's guidance before taking the important decision.

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Payday Advance Loans

Finance is one of the basic needs of human. We work very hard work in order, to get the required amount. Almost every item that is necessary for leading a healthy life needs to purchase by money, be it the daily meal or a luxurious car. Thus, it can be said conclusively that everyone needs money to manage his or her daily expenses. But sometimes, it may not be possible with our limited income. Moreover, we all know that this is the time of recession. Such situations have become the tale of almost every household due to the economy.

Obviously, now the question arises, what to do in such a situation? The payday advance loans have proved as a good option in such situations. These type of loans are provided to the people until their next payday date comes. This is the loan that is provided to the people for a short period and that may be from fourteen days to three months.


Until some time back, the borrowers were compelled to submit a lot of documents to avail such type of loans. But, now it is very simple and easy. The debt can be approved only by submitting some basic documents. Moreover, a lot of websites on Internet provide the cash advance payday loans, 100% free from faxing. That means, you are not required to submit any document. You can avail the money just by entering some of your details. But please don't give your social security number. The borrowed amount can also be further returned without any such problem. If you find it difficult to return it on time, then you can request for the extension of the period.


Very often people in UK, take these types of amounts if they had to face any immediate expenses in the month. For instance, if one has to face any medical emergency, and he had to spend the money on that, then it becomes very difficult to save the money for other necessary expenses. In that situation, payday loans serves as the most appropriate option. From now, there is no need to get worried if you are facing any such type of financial crunch. A good option of payday loan is in front of you.

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What is a cashout refinance?

What is a cashout refinance?

The cashout refinance is a mortgage refinance which is a greater amount than your present mortgage amount. You can go for a cashout refinance to get the home equity that you have gathered throughout years. Suppose you have a mortgage balance of $ 50,000 and you have home equity of 70,000 dollars. So to get the home equity, you can go for a cashout refinance. You can take out a mortgage loan of 100,000 dollars. Thus your new mortgage loan is greater than your existing mortgage balance.


Why would you for a cash out refinance?

There may be several reasons for doing a cashout refinance but it depends upon your needs and situations.

1. If you want to buy a new property or a car and you want easy cash, you can use your home equity and go for a cashout refinance.

2. You can invest the money that you get after cashout refinance to gain more profit.

3. You can pay off your high interest rate credit card debts through the money that you get after cash out refinance.

4. If you need immediate cash to pay off your medical bills or your child’s college fees then cashout refinance is a good option available for you.

5. You may even lower the interest rate of your existing mortgage through the cashout refinance.

So depending upon your situation, if you need easy cash and you think that cashout refinance is a good choice for you then just do a bit of research on the market and talk to different lenders so that you can get the best rates and terms available in the market. Hope it helps learn about cashout refinance. Feel free to ask any questions and share you suggestions.

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Ways to prevent Identity Theft

Identity Theft has become a natural phenomenon these days and the most painful thing is that, Identity theft is growing day by day. This is a criminal offense but the criminals are becoming more and more sophisticated day by day. Millions of people have become victims of identity theft and this is like a nightmare if it occurs to you. So we should be more careful so that we can prevent identity theft and protect ourselves from identity theft.



Helpful tips to prevent identity theft:

1. Keep all your personal information and documents safe and secret, like your back account number, credit card and ATM card number, your social security number etc.

2. Do not share your important personal information over telephone or internet. Sharing personal information over telephone and internet is highly risky.

3. Do not give your social security number to anyone. You may need to give your social security number when paying tax or at the time of identification, but otherwise there is no need to share the social security number. If anyone asks you to give the social security number then you should why he needs it.

4. Use safe passwords to all your accounts and memorize the passwords. You should also memorize the social security number and password.

5. Check your credit report at least twice a year from all the three credit reporting bureau.

6. If you find any mistake then try to correct it as soon as possible so that you have not to face any inconvenience in future.



7. Check whether all your bills come every month. Other wise the criminals can steal your credit cards documents.

So if we can be a little bit careful then we can easily prevent Identity theft. Hope it helps. Feel free to share your thoughts and suggestions.

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Can bankruptcy stop foreclosure

Can bankruptcy stop foreclosure?
In this financial crisis, foreclosure is a common phenomenon. So how can we stop foreclosure? Can bankruptcy stop foreclosure? Yes, definitely; bankruptcy can stop foreclosure but it should be your last option to choose. There are other options available which can stop foreclosure, like- short sale, loan modification, loan repayment plans, forbearance, deed in lieu of foreclosure etc. If any of these options don’t help you to stop foreclosure then you can choose to file bankruptcy .

How can bankruptcy stop foreclosure?

There are different types of bankruptcy but you can choose to file bankruptcy chapter 7 or chapter-13. You should better hire an experienced bankruptcy attorney who can help you to file the bankruptcy properly. As soon as you file bankruptcy, the creditors cannot harass you and foreclose on your property.

If you file bankruptcy chapter-13 then you will be able to pay off the creditor with an affordable repayment plan made which will be made by the bankruptcy court. It will affect your credit score and you may not be able to get a loan in nest 3 to 5 years but the best thing is that you can avoid foreclosure which can affect your credit score much more than bankruptcy chanter-13.


Bankruptcy chapter 7 is really your last option to choose. It will affect your credit report almost like a foreclosure. Your credit score will be dropped by 250 to 300 points and bankruptcy chapter-7 will be shown on your credit report for 7 to 10 years. All your non exempt properties will be sold to pay off your creditors, but the creditors will not be able harass you or they will not be able to demand the deficiency judgment.

So if you are facing foreclosure then check out all your options available and talk to your lender as soon as possible. If no option suits and your lender is not co-operating with your then filing bankruptcy is the option that you can choose to avoid foreclosure. Hope it helps. Please share your thoughts and feel free to ask if you have any questions in your mind.

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