How Living Within Your Means Can Make Life More Enjoyable

With the recent downturn in the economy, many people are realizing that they cannot afford to sustain the lifestyle that they have grown accustomed to living. Fortunately, this does not mean life cannot be enjoyable. There are a number of easy ways to live within your means without hurting your quality of life. With a little planning and knowledge you can live on budget without feeling the financial strain.

The following are a number of ways to live within your means while making life more enjoyable:

1. In order to live within your means, you have to be able to bring in more money than you are spending. Create a monthly budget that includes how much you spend on essential items such as home and vehicle insurance, utilities, food, cable, phone, mortgage payments, gas, etc. Then, calculate how much you earn monthly. Subtract your monthly income from necessary expenses to determine how much extra money you have to work with.

2. List extra expenses such as entertainment, recreation, and products you shop for in the home and on yourself such as clothing, personal care products, etc. Calculate how much you spend monthly on these items. You will then need to come up with ways to control your spending habits. This can include cutting down on the number of times you dine out each month, shopping for discounts at large department stores, second hand stores, surplus stores, etc. When shopping, look for deals, coupons, and sales. Never pay full price for an item. As well, you can often find great deals when shopping online.

3. Credit card debt is a major source of financial hardship. If you have several credit cards with high outstanding debt, you should at least pay the monthly minimum for each card, and then start to pay off the card with the highest interest rate. Owning fewer credit cards will make it easier to manage and remember. Always pay your bills on time to avoid having to pay any interest at all. To help wean yourself off of credit cards, start carrying cash with you at all times and pay using cash. Seeing the physical money literally change hands will help you consider needs vs. wants on a more regular basis.

4. If you are having trouble keeping up with debt payments, then maybe you should consider consolidating your debt in order to manage it better. Instead of making multiple monthly payments to several creditors, you can consolidate your debt and only need to make a single monthly payment. In addition to helping you get organized, this can also alleviate stress that is often associated with debt.

5. Clean up your credit score. Request a copy of your credit report from one of the following two major credit bureaus: Equifax, or TransUnion. Check it over for any inaccuracies. Look to see what debt is affecting your credit rating and work with a creditor to establish a repayment plan. Don’t ignore your creditors as they will send your debt to a collection agency.

At first, implementing a plan to live within your means can seem very unpleasant. You may miss a few of the luxuries you had grown accustomed to. However, once you get used to the plan, you will find life more enjoyable as you will not longer have the worry of how you are going to pay all of your bills. You may even realize that you are much happier living on a budget.

Adriana Noton is a freelance writer who specializes in providing great financial information for Canadians. When searching online for debt counselling or credit counselling, one of the many resources available is Consolidated Credit; offering a variety of debt counselling services and financial planning tools to help Canadians get their debts under control.

FICO Debunked

Credit scores and credit bureaus and FICO look like a three-headed monster living under your bed. Pull back the covers and see if you even care what your FICO score is this month.

So why does the average consumer worry so much about his credit rating? Brainwashing.

Simple. We have been taught to buy first, and worry about how to pay later.

5 reasons why your FICO score is a false idol:

1. FICO Does Not Cover Your Expenses.

Credit is worthless if your bills are covered by your income each month. If your income falls short, you have bigger problems than a low FICO score.

2. Out of Your Control.

No matter how many credit repair books you read, it is hard to raise your score except by paying your bills on time. And even then, which bills you pay can have more to do with your score than how much you pay.

For example, your wife pays the landline phone, and you pay for the cell phones. Her score goes up, yours does not. You might write the checks for everything, but if the right bills (mortgage, electric, phone, gas) are in your wife’s name, she gets the FICO boost.

3. Inaccurate and Incomplete.

Credit scores are dry mathematical formulas. No real human contact. Mistakes can live forever. Most human activities can only lower your score.

Income is not really a factor in the credit score algorithm. Get a raise at work and FICO does not know or care. Pay all your expenses in cash and become a credit ghost. Mistakes stay on your report forever. Even debt discharged in bankruptcy somehow lingers.

4. Mounting Debt.

All a high credit score can do is tempt you into taking on too much debt. For the person who lives debt-free within their means, a FICO score is worthless.

If you have a high credit scores, banks will flood your mailbox with offers to give you more credit.

Easy and credit should never come together in a sentence. How many products have you bought that you did not need just because financing was available.

5. Can’t Take Credit Score With You.

When your eulogy is read at your funeral, trust me, your FICO score will not be mentioned.

Wealth matters. Your credit score does not.

Eat, drink, and be merry, just not on someone else’s dime.

Live fully on the income you make. Upgrade your toys when you have the cash, not the credit.

Don’t lose a moment of your life to worry about a mathematical score your cannot control.

Discover more alternative financial strategies at Burn Down the Freaking Mission.

Credit Reports – Check Yours Before It’s Too Late

A credit report is a consolidated account of your past borrowings and repayments. Each time you borrow, pay or delay, it will be reflected in your credit report. Money lenders use it to assess how likely you are to pay back any money lent to you.

Credit reports work through issuing a credit score. They will calculate your borrowing and repayment against the how long it took you to repay and come up with a score which ranges from 300 to 850.

The higher it is, the more financially stable you are considered to be. It means that you are good for a loan, a credit card or a mortgage. If your score is low, it means that your application for borrowing has a high chance of being rejected.

If your credit score is over 700, you are considered to be in excellent credit health. If credit score is below 600, then you need to improve your credit health by paying your debts off.

So, why exactly is it important to be have a good credit score?

- Once you have a good credit score, it means easier access to more finances. This could be a store card, bank loan or a car. Today, it’s almost impossible to get a mortgage with a bad credit score.

- If your credit score is above average, you’re considered to be a reliable person who pays back what you borrow. This encourages lenders to give you better deals. You may find yourself getting longer repayment periods or healthy discounts.

- When applying for a job, employers may run a credit check on you. Applicants with high credit scores are looked on favorably, as they are considered to more honest and reliable.

- An important benefit of a credit report is that it’s an identity theft tracker. If anyone steals your identity, and is using up your finances, it will appear on your credit report. A thorough credit report will even flag unusual items for your attention.

Get my free credit report here http://www.myfreecreditreportgov.com/

Will a Judgment Affect Me Adversely?

Debt which is sent to collections will adversely affect your credit score. However, if your creditor seeks and is awarded a judgment, your credit score will be affected even more drastically.

If you are served with a Notice to Appear in court with regard to an unpaid debt, your creditor is through trying to work with you to collect the debt. After receipt of the Notice, you will have 30 days to object to the filing. If you can prove that the debt is invalid, you can have the case dismissed.

Some creditors may threaten to file a law suit but are not serious. However, going to court will be the kiss of death for your credit score and, therefore, should be avoided at all costs.

A credit report which lists an “unpaid” judgment will continue to show that unpaid judgment for 10-12 years. A renewal of this listing may occur if, at the end of this period, the judgment remains unpaid. Your credit report will list a paid judgment for up to 7 years from the date paid.

Assuming you owe the debt, the debt is still within the statute of limitations (check your state’s statute of limitations laws), and you would prefer to negotiate the outcome instead of going to court, you should make an attempt to contact your creditor. Prior to doing this, you should check your state’s statute of limitations laws because, if the debt is beyond the law, making an offer to pay could begin the clock ticking again and eliminate any statute of limitations claim you may have had.

If you are ordered by the court to pay a debt and an official court order is issued, the impact on your credit score will be devastating. However, if you decide to contact your creditor and arrange for payment, you may be able to avoid this traumatic black mark.

Offering to negotiate a settlement is the best solution for all parties. Typically, creditors do not want to go to court and will accept a portion of the amount owed just to bring the matter to a close. If you do not have a lump sum to offer as payment, you can always attempt to negotiate a payment plan. If your creditor is not “in the mood” to consider any offers, you might think about calling the lawyer handling the case for your creditor.

If a judgment is dismissed, it will be reported on your credit report as “legally void.” This is considerably less harmful than a “paid” judgment. Paid judgments remain for seven years on your credit report from the time paid.

In addition to a settlement, you should attempt to negotiate a deletion of the negative information in its entirety from your credit report. If you are able to accomplish this, it is imperative that you obtain the agreement in writing and obtain both parties’ signatures. It is good to remember that negotiating opportunites all but vanish once the court becomes involved.

It would be smart to consider seeking out the advice of a seasoned consumer credit attorney. The typical consumer credit attorney has handled hundreds, if not thousands, of these types of cases and can benefit you with his experience and knowledge.

How I Stopped Midland Credit. I Erased a $14,072 Midland Credit Debt and Fixed my Bad Credit. www.MidlandCreditDebt.com

Is There a Credit Card Which Requires No Credit Check?

The popularity of “No Credit Check Credit Cards” is increasing in the United States. More and more people are defaulting on their credit cards and home and car loans because of the difficult economic times in which we find ourselves. Therefore, consumers are turning to these no credit check credit cards as lenders become more stringent with their approval requirements.

Average or even above-average credit scores don’t even guarantee you a credit card anymore – as many people are finding out. It follows then that people who have below-average credit scores will find it incredibly difficult to be approved for a credit card of almost any type.

As the name indicates, “no credit check credit cards” are approved without the benefit of reviewing a credit report prior to approving the application. This means that, in many cases, people with a poor credit history will be approved. However, there are still some requirements associated with these cards. The person applying must be at least 18 years old, a United States resident, be gainfully employed, have a social security number, and be able to provide proof of identity, current employment, and current address.

One huge advantage of these no credit check credit cards is that they normally are reported to the three major credit reporting agencies – Equifax, Experian and TransUnion. This means that, if maintained properly, these cards can help those consumers who have below-average credit scores to rebuild their credit. By using these no credit check credit cards, the consumer should, in time, be able to qualify for better financial products.

Companies that issue no credit check credit cards include banks and other financial institutions; however, they are more commonly found online. You will need to complete the application online and will normally receive an approval or denial within moments. If approved, the cardholder will receive their no credit check credit card in the mail within a few days.

Shopping around for the best no credit check credit card is important. You should be looking for the card which provides the lowest annual percentage rate (APR) as well as the fewest, and lowest, additional fees and charges.

Once you have decided which no credit check credit card to apply for, you should do what you can to make sure the company is legitimate and that its web site is secure. Be sure to do this prior to providing your personal data online. Obtaining other people’s opinions of the company by doing a quick internet search is a good idea.

Properly maintaining your no credit check credit card will yield great benefits. By doing so, you will begin to repair your credit score. Additionally, you should make every attempt to remain diligent in paying your monthly bills on time and staying below your credit limit. This will pay off in the future and you will be rewarded by becoming eligible for more desirable credit products.

See Actual Lexington Law Customer Results at www.lexingtonlawreviews.com.

The Effects of a Low Credit Score on Purchasing a Home

Purchasing a Home vs. a Low Credit Score

Have you ever considered what a lender thinks when he or she reviews a credit report in relation to approving or denying a mortgage application? Well, the most common answers would be: What is their credit score? How is their credit history? What is their income? What is their debt to income ratio? Will they be providing a substantial down payment?

When attempting to purchase a home, a large down payment may minimize the negative outcome of a poor credit history. This large down payment, however, will not guarantee a good interest rate or lower fees. In addition, the minimum score required to purchase a home has increased over the past 12-18 months.

There is no way around having a low credit score. Even with a large down payment you will still need a good credit score to make home ownership a reality. Your goal should be a 758 average credit score to qualify for the lowest interest rates, according to CNN.com.

How to Obtain the Minimum Credit Score for a Mortgage

It is helpful and easy to request a copy of your credit report and read it over for negative entries. Mistakes and errors are often found on credit reports and this information can be disputed.

A dispute letter to the relevant credit bureaus would be a good start. Alternatively, to resolve the negative entry, you will need to contact the creditor directly.

Often, an expertly worded dispute letter will resolve the inconsistency. Although, it has been shown that investigation methods are often sloppy and error prone.

While investigating your claim, credit bureaus must spend time and man hours to resolve the dispute. Taking their time or ignoring the dispute is more to the liking of many credit bureaus. They hope you will throw in the towel and give up!

Will it Take Long to Boost My Credit Score?

Many people want to know how long it will be before they can see a difference in their credit score. In most cases, a fair estimate would be 6-12 months.

This is a long time but it certainly beats 7-10 years for the negative information to be dropped. It is beneficial to wait 6-12 months to raise a low score, especially when purchasing a home.

Discover how I raised my credit score from 582 to 745 in four months with the help of Lexington Law. Learn the truth about quickly and effectively deleting bad credit at www.creditforcouples.com.

Judgment or Lien: How Can I Keep My House and Property?

If you are worried that you may lose some of your assets due to a judgment or lien your creditor is filing or has threatened to file, you should be. You can definitely lose assets if a judgment is awarded to your creditor. Your creditor must go to court with the debt matter if the debt has gone a certain number of months without being paid. It is unfortunate that it will likely cost you in one way or another if the matter goes to court. The result reached in court will be unique, just as every person’s individual situation is unique.

Normally, you will have 30 days to respond once you receive judgment papers. The judgment papers will notify you that you are to appear in court to defend the debt matter. It is smart to spend these 30 days attempting to come to a settlement with the creditor.

If a judgment is obtained against you and depending upon the laws of your state, the creditor will be able to use specific legal remedies to obtain payment. Wage garnishment, property seizure, and possibly a lien against your property or home are some options which may be available to the creditor. You will not be able to sell your home or borrow against it until the debt is fully paid if a lien is placed against your home.

It is important to note that a court-ordered judgment will cause your credit score to take a significant southward plunge. Also, a judgment may be reported for up to ten years on your credit report. A bankruptcy is the worst mark you can have on your credit report. A judgment follows closely on a bankruptcy’s heels. Considering the difficult times we are living in, an exceptional credit score is more important and necessary than ever before.

The bottom line is that your creditor just wants to be paid. Because of this, often creditors are willing to accept significantly reduced offers just to settle the debt. It may also be possible to arrange for a payment plan so the creditor does not have to follow through with a legal action. However, to do so, you will need to communicate with the creditor and negotiate the details.

If you ignore your creditor’s request to negotiate a settlement or a payment plan, you may very well wind up in court, allowing the court the opportunity to rule against you. Judgments should be avoided at all costs!

A seasoned credit attorney can help you with this process. Negotiating with the creditor may be less stressful if you have a credit attorney who can guide the process along. Ignoring your debt issues is counter-productive. It is best to meet them head-on!

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Should I Declare Bankruptcy?

Declaring bankruptcy is a serious matter and should be approached thoughtfully and carefully. It is imperative that you research and understand all aspects of the bankruptcy process, including possible outcomes. This article provides a very brief outline of bankruptcy and its pros and cons.

If you are having trouble making ends meet, you might be considering bankruptcy as an option to getting out of the financial tailspin in which you find yourself. This option may be for you; however, prior to jumping head first into this process, you should perform some research to make sure you really understand what bankruptcy is and how it will affect you.

When you file a legal proceeding to have your debt discharged (Chapter 7) or to reorganize your finances (Chapter 13), you have filed a bankruptcy proceeding. A bankruptcy filing is normally done voluntarily and because the debtor is having trouble paying his creditors.

The primary reason people consider bankruptcy is so they can begin anew. The completion of the bankruptcy will mean that the debtor can take a step back from the financial chaos that was consuming his life and start over. Thankfully, this means there will be no more threatening letters and phone calls. And, hopefully, the bankruptcy will leave the debtor in a position whereby he will be able to live within his means.

We need to clear up some common and erroneous ideas related to bankruptcy. Some people believe that filing bankruptcy will cause you to lose your job. This should not be the case. Additionally, some people, probably the same people, believe that you will lose your social security benefits if you file bankruptcy. Again, this should not be the case. Lastly, there are those who believe that your credit report will be so damaged that it will never be the same again. It is true that your credit score will take an instantaneous hit by filing bankruptcy, however, with time and diligence, it can be repaired.

The major issue with declaring bankruptcy is that your credit score will be dramatically affected and will instantly plummet hundreds of points. Because of this, you will likely be denied for all credit products for several years, possibly up to ten years.

You may lose some of your assets, depending on the chapter of bankruptcy that you file. It should be noted though that some assets are exempt. When you meet with your bankruptcy attorney, you should discuss the different types of bankruptcy and the possible consequences.

Another thing to consider is the cost involved. When you file a case in the Bankruptcy court, you will be required to pay a filing fee. In addition to this, there are attorney’s fees which can run $2,000 or more. Therefore, if your total debt is only a few thousand dollars, it would behoove you to consider working with your creditors to arrange a payment plan rather than considering bankruptcy.

Professional counsel from an experienced bankruptcy attorney should be sought if your are thinking about bankruptcy. A seasoned bankruptcy expert can guide you through the process and give you an idea of the expected outcome.

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What Will Happen If I Have a Charge-Off On My Credit Report?

Many people want to know if it is possible to remove a charge-off from their credit report. The answer is, it may be difficult, but it can be done.

A typical charge-off scenario is where a borrower will miss several months of payments. These can be payments missed altogether or late payments. At this point, the creditor will try to reach you through phone calls or letters trying to get you to bring your account current. Once the creditor is convinced that it will not be able to collect from you, the creditor will often write-off the debt.

Negotiating a payment plan with the creditor is the best thing to do at this point in order to prevent the account from being sent to collections. It is best to contact your creditor and begin a dialogue with it as creditors are typically willing to make arrangements if you are experiencing a difficult time. It is never wise to ignore the attempts of your creditor to contact you.

The debt you owe, and which your creditor now perceives as uncollectible, may be sold to a collection agency. You may have heard of collection agencies and the way they do business. Their tactics often include harassing phone calls and threats to file a law suit.

Your credit report can carry a charge-off entry for seven years. Your chances of obtaining additional credit will suffer and your credit score will be greatly damaged. These are not things you want to happen! In light of this, it is best to try to have charge-offs removed.

It will be necessary to obtain a copy of your credit report to start the charge-off removal process. Review your credit report for any inaccurate or false information once you receive it. Inaccurate or false entries can be removed from your credit report by writing the credit reporting bureau and explaining your claim. Be sure to provide the credit reporting agency with copies of any documentation which confirms your claim. The credit reporting agency must verify your claim within 30 days or else it must remove the credit item in its entirety.

If you contact the collection agency, it may be willing to come to an agreement with you. As you enter your negotiation with it, keep in mind that collection agencies purchase debt for cents on the dollar so the collection agency may well be willing to agree to a reduced total amount due. You can either offer a lump sum payment in exchange for this reduced amount or you can attempt to arrange a payment plan for the full amount. Above all, be sure that you obtain in writing an agreement which states the charge-off will be removed from your credit report or, at the very least, that the charge-off be reduced to a “paid” status.

To summarize, if you find yourself falling behind in your payments, contact your creditor and try to work out an arrangement to avoid a charge-off. If the charge-off account ends up with a collection agency, attempt to negotiate with the collection agency to pay the debt and remove the charge-off entry from your credit report.

Free 19 Page Collection Agency Deletion Guide at www.MidlandCreditDebt.com. Stop Midland Credit in its Tracks. Fast, Easy, and Free.

Credit Card Collection Agencies and Negotiating Settlements

Collection agencies devoted to credit card collections have in recent times become busier and busier. This is because more and more people are having trouble keeping up with their bills.

One missed payment can result in an additional penalty which might just be what hurls you over your credit limit. Know what happens if you exceed your credit limit? That’s right. You get an over-limit fee assessed against your credit card. At this point you might be $100 over your credit limit and you still owe the initial monthly payment as well.

Before things get worse, it is best to contact your credit card provider and explain your situation. Most credit card providers are willing to work with you. It is best to put a stop to things at this point instead of letting things get out-of-hand, resulting in the credit card provider selling your debt to a credit card collection agency.

Debt sold to a credit card collection agency will normally be purchased at a fraction of what you actually owe, typically cents on the dollar. As credit card collection agencies make their bread and butter from collecting as much as possible from those who owe debt which they have subsequently purchased, they may at times be harassing and even threaten legal action.

It makes more sense for the credit card collection agency to work with you than to file a costly and time-consuming law suit. If you can acquire the funds, try making an offer to the credit card collection agency to reduce the amount of the original debt and pay the negotiated amount in full. You will want to make sure that the agreement is in writing. Also, be sure to keep copies of all documentation to and from the credit card collection company, and to mail all correspondence by certified mail, return receipt requested.

Typically, it is a good idea to begin the negotiation somewhere around 25% of the original balance. Though this sounds low, remember that the collection company probably purchased your entire debt at only about 10% of the original amount. It is likely that the collection company will decline this offer and will issue a counteroffer, which you then should counter as well. This will continue until you either come to an agreement or the negotiations discontinue.

As time goes by, the credit card collection agency may well pay less attention to the debt and stop calling you. It may decide to accept a smaller amount than it was initially willing to accept or, alternately, it may decide to sell the debt to yet another collection agency, for yet again a reduced amount, and the process will begin all over again.

It is good to remember that at any point in this process, beginning with the credit card provider itself, a legal action could be filed against you. Additionally, your credit score is continually and quickly decreasing. A court judgment will anihilate your credit score even more.

Free 19 Page Collection Agency Deletion Guide at www.MidlandCreditDebt.com. Stop Midland Credit in its Tracks. Fast, Easy, and Free.

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