Finance & Loans

Trying To Avoid a Collection Agency? Get Out of Debt!

If a collection agency – or several – is after you, then it may be time to really get a handle on your debt, because situations like this can quickly escalate, and you need to make sure that you have control of the situation before it gets out of hand.  A debt collection agency isn’t out to get you, contrary to popular belief, but you do need to know how to manage your debts efficiently, otherwise it can really start to seem like they are actually out to make your life horrible.  There are a few ways to understand debt, and the best way to start understanding it, is to learn more about your specific debt.  What types of loans do you have, or what types of debt have you incurred?  Some people are drowning in credit card debt, or other types of store card debts, while there are those that seem more prone to having home loan or car loan debts that are too much for them – and their income – to handle alone.  If you find yourself in one of these two situations, the first thing you need to think about is putting down the credit cards and picking up the budget plan, because you are going from Prada to basics right now.  Once you stop spending – not all spending, just excessive spending – then you can begin saving and start paying things off that you need to pay off.   So kiss the commercial debt collection agency goodbye!

Who Doesn’t Accept Credit Cards These Days?

You would not believe that everyone doesn’t accept credit cards these days. There are so many different merchant services providers out there but some people do not have a merchant credit card terminal. However, technology has advanced a lot of the years and plastic is becoming the new green so a lot of people accept cards. Think about it taxis are even accepting them these days. They have also come up with a way for cell phones to be able to accept credit cards. Many people get their checks deposited straight to credit card or their bank accounts. This eliminates the hassle of having to go to the bank to cash checks or to withdraw money. You no longer have to stand in long lines at the bank or atms. You can simply swipe your card whenever you need to by something.

Many people do not even carry cash on them anymore. Instead they have strictly credit cards because they feel as though this is a safe alternative. This is because if someone tries to steal their wallet or something of that nature  all they have to do is call their card in as stolen and it will not be able to be used anywhere by anyone until they take the block off.

Credit cards are a good alternative when it comes to staying safe as well as shopping and paying bills. They make it so your bills do not have to be late and also so you can get items faster.

The difference between good debt and bad debt

When you talk of debt the first thing that comes to mind is a credit card bill waiting to be paid or a mortgage, you never associate debt as being something good for you. But there are instances when debt can actually be good for you. This can be explained by categorizing debt as good debt and bad debt.

Bad debt

This is where you purchase consumables you cannot actually afford to purchase on credit. Credit card debt is the most common form of bad debt. You pay for an item over a period of time and the item does not appreciate in value with failure to pay affecting your credit score.

Good debt

This is where debt can be considered as an investment. If the money borrowed is invested on something that will appreciate in value over time the debt has been used for a purpose to increase your financial situation. For example a loan you invest in a business which will double the investment in a few years’ time.

As you can see if utilized properly a debt can earn money for you whereas if used improperly it can cause you many problems.

Posted By: Financial Resources 101

Why Accept Credit Cards For Business?

Anyone who is running a legit business knows that they should accept credit cards for business because it will bring thing a ton of customers. If you do not accept credit cards your business will not go far. However, this does not mean that you cannot accept other methods as well. But, it has been proven that people who accept credit cards acquire more customers than those who do not accept them.

Online merchant account services have been put into place so they can help you get started with accepting these types of payments.  Think about it many merchants accept alternative forms of payments even though most merchants have stopped accepting checks. But, still the more options that you have available for the customers to pay with the more people you will attract due to the fact that everyone has their own preferred payment methods that they like to use.

When customers decide which merchant they would like to shop with you may be rather surprised to know that a lot of their decisions are based on what payment methods they accept. If you do not allow credit card purchases to be made – and a variety of credit card options – you will find that you may have tons of visitors but not so many purchases.

Overall, when you are in the business of selling products and services it is important that you are flexible to meet your client’s needs. If you are not – especially with payment methods – you will find yourself not where you want to be with your business.

Is debt consolidation right for me?

If you’ve got several unsecured debts to several creditors, and you’d like the chance to make them easier to manage and/or lower your monthly expenditure, you may find a debt consolidation loan useful.

You can use a debt consolidation loan to repay all your existing unsecured debts – leaving you with just one debt to repay… to just one creditor.

You may wish to arrange to repay your loan over a longer period of time – which will reduce the amount you are spending each month (and hopefully lower your payments to a level you know you can comfortably afford).

Of course, a debt consolidation loan will only be right for you if you can afford to repay it (just like any other loan).
Let’s take a quick look at the benefits and drawbacks of a debt consolidation loan, so you can figure out whether one may be right for you.

Benefits

1. If you arrange to repay your loan over a longer timeframe, you’ll pay less on a month-by-month basis.
2. Consolidating your debts could help you avoid damaging your credit rating. This is because you’ll only have one payment to make each month, so your finances should be easier to manage and you’ll find it easier to make sure you leave enough money aside each month to cover your payment.
3. You could lower the interest rate you’re paying – if you’re consolidating debts with high interest rates, and your debt consolidation loan’s rate is lower than these.

Drawbacks

1. The amount of debt you are carrying won’t actually be reduced by a debt consolidation loan – you’ll owe just as much as you did before, although it should be a little easier to manage.
2. If you arrange to repay yur loan over a longer timeframe, you could pay more in interest (in the long run) than if you’d repaid your debts in a shorter timeframe. This is, of course, unless the interest rate on your consolidation loan is significantly lower.
3. Making smaller repayments each month will mean you could be in debt for a longer period of time.

Posted By: Mlava

The bad side of debt consolidation

Worsening economic conditions have seen the rapid rise in consumer debt and this has become one of the biggest problems faced by the people in the country. If you are one of the millions in this situation, you will be considering your options and debt consolidation will be one of them. Here are some reasons why debt consolidation fails to solve your problems.

Debt consolidation involves bundling all your debts into one debt which usually charges lesser interest rates requiring smaller payments over longer period of time.

Without realizing it consolidation can actually be more costly than the original loan repayment. It includes many hidden fees such as monthly fees, early repayment penalties and such which makes it more expensive in the long run.

Most people use the loan to repay credit card debt which again opens the opportunity for over spending. This results in the person sinking deeper in debt rather than come out of it.

If you are considering debt consolidation make sure to do a thorough background check on the debt consolidation company and if it has a registered address in Maryland or Florida beware of it as these states do not regulate debt consolidation companies, which will give you no recourse if needed.

Posted By: Mlava

Auto Loans and Credit Cards For People With Bad Credit

People come into times of financial trouble every now and then, but most of the time, it seems impossible to bounce back. What most people don’t understand is that there are companies out there, dedicated to serving people who need immediate financial consultation. Talk to people about instant approval credit cards. Sound risky? Well that depends on how you well you manage money. Everyone needs a credit card at some point in their life and you never know when an emergency will occur. These are easy to obtain and they will assist you in times of trouble.

What if you’re looking to consolidate your debt or remodel your home? Even with bad credit, you can find the cash you need to ease your debt and to make a plan of action in a way that ensures identity protection. There are different types of credit for people with all kinds of credit cards. If you’re a student and you have no credit, it’s easy to find one that doesn’t have an astronomical interest rate. If you used to have good credit and ran into problems, like unexpected medical bills, you can still improve your credit score with a “bad credit” credit card.

Car loans are one the most painful payments to make monthy, especially if you don’t exactly have decent credit. These payments don’t have to be as grueling though anymore. There are auto loans for bad credit owners available, featured with low interest rates.

How to rebuild credit after bankruptcy

Anyone who has filed for bankruptcy would be in a hurry to rebuild his credit rating considering the difficulties one faces under the circumstances. With proper management of finances you will be able to re- establish your credit rating. Here are some points to help you in the process.

Assess your current financial position

What is your present credit status? List out all the debts you have and get credit reports from all three national credit bureaus and review the reports to check for any inaccuracies.

Create a debt reduction plan

Once you have worked out your credit status, plan out how you are going to pay off the loans. Work out which loans need to be paid off first and how you are going to fund repayment and the time it would take to repay.

Pay the bills on time

It is vital that you pay your mortgage and utility bills on time. You could arrange for an automatic debit arrangement with the bank for this purpose.

Re-asses the need for credit cards

Credit card debt can build up without you being aware of it. Consider getting rid of them altogether to have control over your finances and build up your credit score.

The Big Four of Finance– Deloitte, Accenture, KPMG, Ernst&Young

There are four tremendous companies that compliment and compete with each other in the marketing, but specifically financial markets.   Every day of the year everyone has to deal with the hassle of keeping their finances in order.  While some take care of their own finances, some hire a company to advise them and to take care of it for them.  There are a bunch of companies that can do it but these are four companies are that truly stand out from the rest.

Deloitte was originally created in 1845 and Deloitte specializes in auditing, tax, consulting and advisory services.  Accenture on the other hand is focused in management consulting, providing technology services and outsourcing.  It is a strong international company and serves clients in over 120 countries.  KPMG provides services in auditing and tax and are another strong international company.  Ernest & Young is yet another company that offers audit and tax services along with advising on those subjects. 

Each one of these four companies provides great competition for each other and provides their clients with great services and options.  When the need to get advice on tax services or accounting is necessary any of these four companies would be an excellent option.  This works for individuals with their own personal finances when they need advice and with businesses when they need advice when it comes down to accounting or taxes.  These four firms are great companies that have developed great reputations based upon the exceptional work they do for their clients.

Positives of Credit Reports and Scores

With the current state of the economy it is crucial to stay on top of one’s credit rating and debt.  You can use credit reports and scores to keep an eye on one’s number.  While it is simple to keep an eye on your debt by staying on top of one’s credit card debt and loans, specifically car and student loans a lot of people don’t and run into trouble.  Staying on top of these is crucial because if not careful it is easy to dig oneself into a deep hole.  For example, transferring credit card balances from card to card is not a successful way to manage your debt.  While short term not paying interest is helpful your credit does take a hit. 

Even with bad credit payday loans are an option.  While it is not recommended that this become habitual, to make a payment in a great hurry this is an option to consider.  One problem that people run into is encountered and started in college.  Student credit cards offers are constantly being sent out to college students to entice them into applying and opening an account.  The problem that the students run into is that they are not always educated well in financial matters.  By signing up and running up a large bill or loan from the credit card company they are effectively placing themselves in financial trouble early.  When they are unable to make the payments their credit rating takes a hit before they have even graduated and joined the work force.

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