Inbudget Credit and Finance Advice Control your debt and credit through proper budgeting

Can you imagine a scenario where a homeowner pays to lock in a great rate, rates go up and the loan gets dumped when the underwriter thinks the lender can get a better rate out of you?  Read on.

As a borrower and homeowner, we’ve always appreciated Countrywide Home Loans. They seemed to have integrity and a great business ethic.  Has that changed?

You see, we locked in a good rate (4.6% fixed 25 year)  the Friday before the 2009 presidential inauguration. Because of our high credit score, the loan officer  offered an unstated income loan.  We declined the unstated income option and opted to verify income to save a few hundred dollars.  After all, our income is well over the DTI ratio for the very small PITI.

Should we have trusted Countrywide?

Rates have only gone up since that day, and we figured, at worst,  Countrywide might really pour on the verification requirements to see if they could lose the loan.

But it could also be daunting for Countrywide to reject the loan.

• Our FICO Score  (790) came out higher than we estimated (760) .
• Our verified income was two to three times higher than required for DTI. In one year it was verified  higher than the loan principle!
• We have no other debt. Period.
• The home appraised FAR higher than initially estimated (by Countrywide or by us)

Wow.  How do you throw out a loan when the diligence is that clean?  We’re really interested to see if Countrywide will have integrity, or if they will find some bizarre reason to reject the loan.

We’ll keep you posted!

Posted under Credit Counseling

Debt Settlement is the quickest and least expensive form of debt relief outside of bankruptcy. However, a common misconception is when individuals confuse debt settlement with debt consolidation.  Some say you are robbing Peter to pay Paul with this method. But, this is still a minor price to pay for being given a substantial debt settlement and not having to file for bankruptcy.

Upon enrolling in a debt settlement program, your credit score will probably get worse before it gets better. A debt settlement company will negotiate with your creditors to lower the balances you owe. credit cards). By offering an automated payment system is one example of making the debt settlement process more convenient to enrollees.

You heard right, now potential lenders know that you are having trouble managing your finances. That one thing is making set payments on a specific date. Reduce what you owe so the payments you make will payoff your debt faster. A good debt settlement company minimizes the amount of work the client actually has to do. Enrollees in a debt settlement program are taught the number one thing that would have prevented them from being in their current credit situation.

Most debt settlement companies offer credit repair once you have finished the debt settlement program. The credit repair is often the last stage of the debt settlement program. Debt consolidation works by the individual taking out one loan to pay off numerous other loans (i.e. The reason being is that bankruptcy can stay on your credit report for up to ten years.

Like bankruptcy, most consumer credit counseling services appear on your credit reports. Bankruptcy should be your last resort when deciding what road to take on your journey to being debt free. In other words, you simply pay your bill on time. Most debt settlement programs last between 2-5 years or less.

These are two distinctly different types of businesses. Creditors are often in favor of this settlement, because it would cost them more time and money to take you to court. It is important to know the benefits of choosing a debt settlement program versus other known options for credit problems (i.e. bankruptcy, debt consolidation, consumer credit counseling services, etc). Client compliance is the main reason why some debt settlement programs fail.

Remember, debt settlement?s primary goal is to help you reduce debt by lessening what you owe, not creating new debts. Not to mention, having a low credit score can result in having a high interest rate loan. The amount of time may vary based on the client?s ability to make more than their minimum monthly payment. Once enrolled in a debt settlement program, you are then responsible for making one affordable monthly payment towards the balances of your reduced debts.

This is typically achieved by the creditor agreeing to remove the interest and late fees accumulated on your account. Overall, debt settlement is an honorable option for those individuals tired of fighting the losing battle against late fees and interest.

When creditors realize that you are working with a consumer credit counseling service, the creditor typically will notate such information on your credit reports. Working with a consumer credit counseling service can be viewed as a red flag to lenders. A debt settlement program works off a very simple philosophy.

Posted under Credit Counseling

Struggling to make your payments?  Is it the luck of the draw of who is getting paid next? Be honest with yourself and your spouse.  Promise each other that you will remain calm and rational then sit down and list EVERY bill that is owed, note the status and the amount past due.  1.  2.  Remember that committing to making changes in your spending habits is a great step toward improving your financial health and finding relief from the debt.  Budgeting, spending control, and not procrastinating are all ingredients to the success you deserve.  Start today. Companies lose millions of dollars a year to bad debt write offs.  If they have any business sense, they will do whatever it takes to help you settle the balances.4.  Depending on your circumstances, each type of program can provide a level of relief in dealing with the debt.  Debt repayment programs are professionals in negotiation, often reaching an agreement with your creditors regarding the amount you owe, interest, and repayment terms.  These programs have the potential of reducing your debt at a greater rate than other counseling programs, but you must weigh the damaging effects that it will have on your credit.  I advise that you make every effort to manage your debt and repayment on your own.  There are many resources available to educate yourself on the best ways to tackle the concerns.  There is nothing wrong with seeking help when you need it.  I would rather see the money spent on fees be applied toward your debt. Finding yourself in a situation when your payments exceed your income can be both frightening and frustrating.  It is important to know the differences between these programs and the long term impact that it can have on your credit.  Stress created by calls from collections departments, arguments with your spouse over what bills should be paid first,  and your families basic needs not being met, can destroy a family.  There are some basic rules to follow to begin to relieve some of the stress comes with financial problems.  We will cover these briefly and offer insight regarding the difference between credit counseling and debt repayment programs. Get through the toughest day of your life.  Once the debt is categorized and you fully understand where each account is in the repayment process, now it is time to make the calls.  Contact each creditor, be honest with your situation and arrange an acceptable payment plan if possible. Categorize the debt by order of importance.  List your debt that affects your basic needs first.  Housing, transportation, and utilities would be my primary concerns.  Follow those with anything that is at risk of repossession or being sent to collections.  Then anything left can follow.  3. Assess your situation once all calls have been made.  Are you still in a position where you cannot meet all of your obligations?  Hopefully not but if you are, read on.There is a huge difference between credit counseling programs and debt repayment programs.  Fees vary and the impact on your credit differs greatly.  Both are run by “for profit” and non-profit organizations.  Don’t fool yourself though, they both incur expenses to do business and a majority of the cost is covered by fees associated with their services.  Some companies receive percentage “Kick-backs” on balances that they “help” you settle.Credit counseling are programs designed to assess your debt situation much in the way you did earlier.  After assessing your bills and income, they will provide insights on the best avenues for repayment and may even set up a schedule of payments for you.  You are not contracted with these organizations and because of that, you are completely responsible for the repayment of your debt and managing the creditors calls.  On a positive note, unlike most debt repayment programs, working with a credit counselor does not impact your credit score or credit report.  Their goal is to work through you to help you re-shape your budget in order to eliminate debt, provide relief from the stress being caused and hopefully help you develop good spending happens so that you no longer are at risk for developing bad debt.  I can not stress enough the importance of ensuring the organization you are considering is reputable and offers clear explanation of how they will protect your personal information.Debt repayment programs are a completely different avenue for debt relief.  The services offered range from credit management advice to a complete take over of your debt management.  You will likely be required to sign a contract with the organization, allowing them to negotiate on your behalf over interest, balances, and payment schedules.  In return, the company may assess fees that are charged monthly, generally included in your payment and possibly in addition, percentage fees for the negotiations.  Fees vary and I caution that you fully understand all fees that can be assessed.  I pride myself in being unbiased with the information that I bring to you, but a debt repayment program would be one of the last avenues that I would advise if you are seeking debt relief.  Creditors can and will report to the credit bureaus that you have entered into a debt repayment program.  This information gives the perception that you are no longer able or willing to meet your obligations and can stay on your report for up to 7 years.  The only longer standing hit to your credit with public information is a bankruptcy which will haunt you for up to 10 years.

Posted under Credit Counseling

 3. Companies lose millions of dollars a year to bad debt write offs.  If they have any business sense, they will do whatever it takes to help you settle the balances.4. Be honest with yourself and your spouse.  Promise each other that you will remain calm and rational then sit down and list EVERY bill that is owed, note the status and the amount past due.  1.  2. Finding yourself in a situation when your payments exceed your income can be both frightening and frustrating.  It is important to know the differences between these programs and the long term impact that it can have on your credit.  Stress created by calls from collections departments, arguments with your spouse over what bills should be paid first,  and your families basic needs not being met, can destroy a family.  There are some basic rules to follow to begin to relieve some of the stress comes with financial problems.  We will cover these briefly and offer insight regarding the difference between credit counseling and debt repayment programs.  Depending on your circumstances, each type of program can provide a level of relief in dealing with the debt.  Debt repayment programs are professionals in negotiation, often reaching an agreement with your creditors regarding the amount you owe, interest, and repayment terms.  These programs have the potential of reducing your debt at a greater rate than other counseling programs, but you must weigh the damaging effects that it will have on your credit.  I advise that you make every effort to manage your debt and repayment on your own.  There are many resources available to educate yourself on the best ways to tackle the concerns.  There is nothing wrong with seeking help when you need it.  I would rather see the money spent on fees be applied toward your debt. Assess your situation once all calls have been made.  Are you still in a position where you cannot meet all of your obligations?  Hopefully not but if you are, read on.There is a huge difference between credit counseling programs and debt repayment programs.  Fees vary and the impact on your credit differs greatly.  Both are run by “for profit” and non-profit organizations.  Don’t fool yourself though, they both incur expenses to do business and a majority of the cost is covered by fees associated with their services.  Some companies receive percentage “Kick-backs” on balances that they “help” you settle.Credit counseling are programs designed to assess your debt situation much in the way you did earlier.  After assessing your bills and income, they will provide insights on the best avenues for repayment and may even set up a schedule of payments for you.  You are not contracted with these organizations and because of that, you are completely responsible for the repayment of your debt and managing the creditors calls.  On a positive note, unlike most debt repayment programs, working with a credit counselor does not impact your credit score or credit report.  Their goal is to work through you to help you re-shape your budget in order to eliminate debt, provide relief from the stress being caused and hopefully help you develop good spending happens so that you no longer are at risk for developing bad debt.  I can not stress enough the importance of ensuring the organization you are considering is reputable and offers clear explanation of how they will protect your personal information.Debt repayment programs are a completely different avenue for debt relief.  The services offered range from credit management advice to a complete take over of your debt management.  You will likely be required to sign a contract with the organization, allowing them to negotiate on your behalf over interest, balances, and payment schedules.  In return, the company may assess fees that are charged monthly, generally included in your payment and possibly in addition, percentage fees for the negotiations.  Fees vary and I caution that you fully understand all fees that can be assessed.  I pride myself in being unbiased with the information that I bring to you, but a debt repayment program would be one of the last avenues that I would advise if you are seeking debt relief.  Creditors can and will report to the credit bureaus that you have entered into a debt repayment program.  This information gives the perception that you are no longer able or willing to meet your obligations and can stay on your report for up to 7 years.  The only longer standing hit to your credit with public information is a bankruptcy which will haunt you for up to 10 years. Categorize the debt by order of importance.  List your debt that affects your basic needs first.  Housing, transportation, and utilities would be my primary concerns.  Follow those with anything that is at risk of repossession or being sent to collections.  Then anything left can follow.  Remember that committing to making changes in your spending habits is a great step toward improving your financial health and finding relief from the debt.  Budgeting, spending control, and not procrastinating are all ingredients to the success you deserve.  Start today. Struggling to make your payments?  Is it the luck of the draw of who is getting paid next? Get through the toughest day of your life.  Once the debt is categorized and you fully understand where each account is in the repayment process, now it is time to make the calls.  Contact each creditor, be honest with your situation and arrange an acceptable payment plan if possible.

Posted under Credit Counseling

If you have excessive credit card debt, we urge you to contact a debt consultant and learn about available programs before you make any decisions. They can also show you how to substantially reduce your debt and increase your income.
There are many different options available for this type of help. These consultations can be very helpful for some consumers who find themselves in debt trouble. This service is usually not free.

It is important to get good advice when seeking help. Global Financial Help and other online finance sites can give you free advise on reputable services. Credit counseling is a process offered to consumers to avoid incurring debts that cannot be repaid. For many consumers, simply having a third party to talk to about their financial issues is a great help, but do keep in mind that there is a difference between credit repair programs and credit counseling.

Here’s The Key

These consultations can be part of the solution, and in some instances, paying for a debt management plan can make sense. Remember good advice can save you a lot of trouble and heartache but bad counseling can make your situation worse than when you started. I would recommend that anyone who is looking to improve their financial situation consider credit counseling.

I have seen a lot of people’s financial situation greatly improve thanks to the help and advice of a good credit counselor. This can be a lifesaver, as long as the counselor you choose is reputable. Become an informed consumer. You want to be sure to research the company you are thinking about getting advice from before you start. They are able to show you ways to improve your credit score. Counseling is a specialized form of personal finance assistance. This entails a relatively painless process of evaluation and consultation. Bad credit counseling can cause you unwanted stress and trouble you don’t need. What these companies will do actually destroys your credit. Unfortunately, desperation is a pretty lucrative business.

This is not always the answer. A good credit counselor can improve you financial situation. Credit counseling can be helpful in the right situation if it is provided by a reputable company and meets proper specifications. This assistance can be a great step towards regaining fiscal health, if steps are taken to avoid being victimized by todays opportunists. Some agencies charge fees that can range from 5-10% of a consumer’s debt.

Google is a great place to start to get the history of a company and what they have done in the past. It is comprehensive, educational, and goal-oriented. This process often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. You will normally be able to reduce your debt payments by around 50% by allowing the credit counselor to represent you. There are many companies available to help you and there is information about all of them online.

Posted under Credit Counseling

After experiencing significant credit problems, families must learn to budget and stay within the means of their income.  This blog should help direct you to free resources that really work, and don’t soak you for your time and money.

Posted under Credit Counseling

You might estimate your pets, your kids’ toys and your personal headaches are your own darn liability. But insurers watch these elements — and they could cost you.

Posted under Credit Counseling

It’s increasingly apparant that getting  real property isn’t a art, but an essential practice for financial independance.  That doesn’t mean research can’t angle up and reliable indicators show that an apartment at a discount cost may be a worthwhile shelter until you can stabilize and invest.

Posted under Credit Counseling