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Credit Counselling

CREDIT IS CRUCIAL:

According to recent statistics, personal bankruptcy has reached a new high over the last few years as consumer debt continues to climb. Much of the reason has to do with not simply the unrestrained spending habits of most people, but also a lack of understanding of how to manage credit and what repercussions a poor credit might have on employment prospects, home-ownership, etc. Some of the fundamental issues to be aware of as far as consumer credit is concerned are:

  • Setting A Budget -- Consumers need to know how to keep a tab on their expenses by setting up a spending plan, and adhering to it. The good news is that over time, as one gets used to the plan, it can make life happier and easier as you progress toward your financial goals.

  • Utilizing Credit -- Through developing wise budgeting and money management skills, one can better understand how to use credit, so that it would not have any long-term detriment on your financial future.

  • Understanding Your Credit Report -- One must discern how critical a credit report could be in your overall financial system. It is worth realizing what some of the basic elements of a credit report are, what a FICO Score means, how creditors view you, how/where and when to dispute any derogatory issues in your report and how the report could impact your life.
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    HANDLING CREDIT ISSUES:

    Ofcourse as yu already know, your credit record influences quite a lot of things such as your purchasing power and ability secure a job, rent and apartment or buy a home and even purchase insurance. A good credit history helps you secure additional credit. Inaccurate or negative information can stay on your report for seven years while a bankruptcy can stay on your report for 10 years.

    If you have problems with paying your bills on time, contact your creditors immediately to work out something. Try to negotiate a modified payment structure that can reduce your payments to a more reasonable level. Don't allow your account to be turned over to a collection agency.

    Some Problem-Solving Tips:

  • If you need to contest an issue in your credit report, bill or credit denial, contact the appropriate company directly in writing and send the correspondence with "receipt confirmation."

  • If and when you contest an erronous billing on your report, include your name, account number, disputee amount, and the reason for disputing the bill.

  • If in doubt, you can request a written verification of the debt. File your original documents; receipts, slips and bills properly. They will be handy in resolving a dispute. Never send originals of any documents.

  • Always be careful of organizations that promotes instant debt solutions.
    You must be persistent in pursuing your greviances, because resolving credit problems can be painstaking and time consuming. Most services offered by credit repair agencies for a fee can as well be by consumers for themselves at minimal or no cost.

  • If your credit problem is too serious to be resolved on your own, you might then contact a credit counselling agency such as a non-for-profit organization. Do that before things get out of hand. They would try to negotiate on your behalf and mak payment arrangements that are acceptable to you and your creditors based on the information you provide. They can also help set a fnancial plan or budget at little or no cost.
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    KNOWING YOUR RIGHTS:

  • Truth In Lending Act -- Requires creditors to provide you the consumer with accurate and complete credit costs and terms.

  • Equal Credit Opportunity Act -- Prohibits a creditor from discriminating against you as a consumer on the basis of age, sex, or marital status, reliance on income from a public assistance program, and race, color,
    religion, or national origin.

  • Fair Credit Reporting Act -- This act ensures that information contained in your credit report is accurate and that it will be used in a confidential manner. You have a right to dispute any erroneous and inaccurate information, and it must be corrected or deleted. A consumer explanation statement of 100 words or less can also be included in the report. A credit bureau must also delete adverse information that is more than seven years old and information on bankruptcy that is more than ten years old.

  • Fair Debt Collection Practices Act -- A third party debt collector is prohibited from harassing or using abusive language to coerce a consumer into making payments. The creditor is also forbidden to call at unreasonable hours (before 8:00am and after 9:00pm) or making excessive calls. The creditor cannot threaten to notify your employer or friends that you have not paid your bills. Using false pretenses to gain entry to the home with the intent to identify or take something of value. Attempting to collect more than what is owed. Sending the consumer misleading letters that may appear to be from a government agency or a court of law.

  • Fair Credit Billing Act -- Allows consumers to correct errors on their credit cards or charge accounts in a speedy and effective manner.

  • Bankruptcy -- Is a legal process of declaring that you are unable to pay your obligations. Some loans may be excused and assets may be distributed among the creditors. Bankruptcy remains on a credit report for up to ten years and makes securing credit and other loans almost difficult or near impossible during that time. Even after the ten-year period you may never again answer "no" to the question "Have you ever filed bankruptcy?"

  • Chapter 7 -- To file Chapter 7 bankruptcy is where you wash your hands of all debt, and do not pay any of it back. This is different from Chapter 13 bankruptcy, where you make payments. In a Chapter 7 bankruptcy, you wipe away the debt.
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    CONSUMER EDUCATION HANDBOOK:

    The current edition of this resource book is available in your local bookstore,
    library or from the Consumer Information Center, - part of the federal government's General Services Administration - www.GSA.gov. Additionally, consumers can log on to the official websites of the Federal Trade Commission to learn more about credit issues or file a complaint.

    According to the Consumer Education Handbook, today's increasingly competitive marketplace offers consumers a broad and diverse array of products and services. The handbook is published to help select among products and services wisely, to help understand rights as consumers, and to know the standard of quality that should be expected.

    The handbook also contains information about How to be a smart consumer. It contains useful tips for consumers while the Consumer Assistance Directory includes a listing of national consumer organizations, contact information of Better Business Bureau around the country and a state-by-state listing of key consumer-oriented organizations and corporate consumer contacts.
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    MyMarketPlace-Online:

    CREDIT COUNSELLING & BUDGETING:
  • Credit Repair -- Stop Living with Bad Credit! Click Here
  • CreditAndDebt.com -- Start Now
  • Mvelop.com -- Find out how to get control of your personal budget
  • LowerMyBills.com -- Reduce Your Credit Card Payments by 50%.
  • Lexington Law - Clean Up Your Credit Report
  • iDebtAssistance.com -- Get Help Now
  • iCreditReport.com -- See Your Report Now
  • iCreditSearch.com -- We can help you today, Apply Now!
  • FreeCreditSearch.com -- Zero-to-approval in 60 second, Click Here
  • CreditAttorney.com -- Fix Your Credit Now.
  • SpendOnLife.com -- Fast and Easy Debt Relief!


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