Credit Card Application: February 2009

The 7 Secrets to Getting?and Staying?Out of Debt

As vice president of the American Credit Foundation, a nonprofit organization that helps individuals and families manage their debt, Mike Peterson knows firsthand how financial problems can wreak havoc in one''s life. Each day, counselors at the Midvale, Utah-based foundation help desperate clients dig themselves out from under piles of unpaid bills, stern notices from collection agencies and ominous foreclosure threats.

So, exactly what does it take to get-and stay-out of debt?

Here are 7 secrets that will help set you on the right path.

1. Cut Back on Credit Cards

Banks love to send offers for new credit cards to consumers, and mailboxes overflow with low-interest-even no-interest-"unbeatable deals."

This doesn''t mean you should apply for them and risk running up large bills.

"Ideally, one should have no more than two or three credit cards," Peterson says. "I would recommend a Visa or MasterCard, followed by an American Express card. Having two or three different cards will allow you more flexibility when utilizing credit, as some companies do not accept one or the other."

2. Understand the Consequences of Breaking Rule #1

Even if you have excellent credit and zero debt, applying for too many credit cards can damage your credit rating.

"Generally, inquiries for new credit can affect your credit report for up to two years," Peterson says. "Having too many credit cards-whether carrying balances or just high amounts of available credit-can negatively impact your credit score. Banks will look at your credit based on what you currently owe and also what ability you have to immediately incur additional debt."

3. Stop the Spending

To minimize or avoid debt, monitor your monthly expenses-and halt spending when your budget starts to get tight.

"An additional reason to limit the number of credit cards you have is to prevent the possibility of not being able to keep track of all of the expenses you have incurred, which may make it difficult or impossible to pay them off each month," Peterson says.

If you reach that point, he has one simple rule: "No more charging."

"Commit now to discontinue the use of credit cards," he says. "In fact, cut up the cards you have, call the companies, and close the accounts. If you must have a credit card for work, try a debit card. These are widely accepted, and the funds are pulled directly from your checking account."

Don''t apply for another credit card until you can pay off all balances due and be 100% debt-free.

4. Pay More Than You Owe

Once you fully understand the monthly minimums you owe on each debt, add 5% or 10% to your total payment, if possible.

"The addition is not mandatory," Peterson says, "but it will dramatically improve the success of your debt-reduction program."

5. Stay the Course

Continue to pay 5% to 10% more on each debt until all debts are completely paid off. Even if your minimum payment requirements decrease as your debt diminishes, keep making the same payment, Peterson urges.

"And if one credit card is finally paid off, make the same total payment each month," he says. "Just apply the extra funds to one of the other debts."

6. Do the Math

Before you dig in your heels and say, "I just can''t do this," it''s worthwhile to see how Peterson''s advice plays out in real dollars.

"If you owe $2,000 on a credit card with a 21% interest rate, and you make only the minimum payment each month, you will owe on this account for approximately 19 years-and pay a total of $6,725.64 in principal and interest," he says. "The steps I''ve already discussed will help you pay off the debt in a fraction of the time. The emotional commitment to make this plan work may not be all that easy, but using this program-even without the additional 5% or 10%-will allow you to pay off the debt in about 8.5 years, and you will save approximately $2,387 in interest."

7. Turn the Tables-and Start Earning Money

If you pay off your $2,000 debt in 8.5 years (versus 19 years of minimum payments), you will have 10.5 years to place that monthly minimum payment in an interest-bearing bank account, retirement account or other investment.

"Interest is a magical tool," Peterson says. "Creditors use it to their advantage all the time. It can also work in your favor if properly implemented into the right program. If the steps mentioned above are taken, it won''t be long before interest is working for you, instead of against you."

-----

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Turning Bad Debts into Good Debts through Investing Fundamentals

If you''ve ever earned enough money to put some aside, like most people you''ve probably invested it with an eye toward security ? since, perhaps, you can''t imagine yourself ever getting rich.

"Most people dream of becoming rich, but it isn''t their first choice," Rich Dad said. That''s because the effort to make money and uncertainty of becoming rich disturbs them and they seek refuge in the easier goals of security or comfort.

People who make security and comfort their first and second choices are often seeking a single ''hot investment tip'' to make money ? a simple, risk-free way of getting rich quick. Some people do get rich on one lucky investment, but all too frequently the money they amass is later lost. by Rich Dad, Poor Dad by Robert T.Kiyosaki

Robert T. Kiyosaki''s demonstrates through variety of products(games, books and audio products) how ordinary people can enrich themselves with the necessary skills to make money, attain financial freedom and master individual financial opportunities open to us through opening business, investments, Real Estate investments and Various financial instruments..

The E-Game(cashflow) 101 and 202 and cashflow for kids are the essential games from Rich Dad, Poor Dad, which I would rather refer to as investment/financial educational tools, are very valuable. It is the only educational tool that combines investing/money making ideas and also improving ones understanding on cashflow principles (money going "in" and money going "out") at the same time. There are also books on business and real estate investments etc and audio CDs/DVDs on various investments, turning bad debts into good debts, real estate riches and retiring young.

Joseph Akintaju is the editor of http://www.jpservicez-smart-bargain-shopping.com and http://www.1-realestatelistings.com', 134, 'Turning Bad Debts into Good Debts through Investing Fundamentals, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'Turning Bad Debts into Good Debts through Investing Fundamentals plus articles and information on Debt-Relief

Personal Bankruptcy: Last Option To Legally Stop Bill Collectors

Do you have stacks of unpaid bills?

Are you in debt?

Are bill collectors hounding you?

Are you frustrated and annoyed and wish to get them off your back?

If you answer yes, then pay close attention.

Filing for a personal bankruptcy may be the last option for you.

Sometimes, the formal and legal declaration of personal bankruptcy is the best way to go when you''re "snowed under" with bills, and you just can''t see your way clear to survive.

Actually, bankruptcy allows you to make a fresh start. Generally, it takes only a small amount of money, a careful evaluation of your assets and your liabilities. In many cases, a lawyer is not necessary.

If you have very few assets, mountains of debt, and not enough income to meet your obligations, then your best bet is almost always the filing of straight bankruptcy.

What you''ll need is the proper forms "S3010 Bankruptcy forms, for an Individual Not Engaged In Business."

These can be purchased from any full-line office supply store, especially in an area serving attorneys'' offices.

You''ll need to know which district you love in for Federal Court purposes - so look in the white pages of your telephone book under U.S. Government - Courts - and take down the address of the nearest U.S. District Court.

Check it out to be sure that your residence is in this court''s jurisdiction.

You then fill out the forms you purchased, listing all of your creditors - those with priority being listed first - meaning those who have extended credit to you against some sort of security or collateral, followed by those who have extended credit to you on just your signature or reputation.

You must be sure to list all of your creditors because any that you fail to list, will be able to sue you and collect even after the bankruptcy has been adjudicated.

At the same time, be sure to include the names of anyone and everyone you may have co-signed a note or a loan for, as well as anyone who may have co-signed for you.

The laws governing personal bankruptcy vary in all states, but generally, a bankruptcy judgment will not take away the house you live in, basic home furnishings, a car that''s necessary towards your gainful employment, nor the tools of your trade.

Check these things out to be sure against the list of items regarded as the necessities of life by your state.

When you''ve got all the forms filled out, and notarized, you take them to the Clerk of the U.S. District Court in your jurisdiction. You pay the clerk $50, and from there, you''re home free.

The clerk notifies your creditors, and reminds them that being as you''ve filed bankruptcy papers, they cannot bother you about your debts anymore.

However, they are invited to your hearing. Usually they don''t show up, because by that time, you have very few, if any, nonexempt assets left that they are really interested in.

But, whatever assets you do have that are nonexempt, will be sold by the Court to appease your creditors.

Any money realized from these sales is then added to the total amount of money you may have turned over to the court at the time of your filing, and divided equally amongst your creditors according to priorities.

After all of this has taken place, and usually about 3 months after you''ve been adjudged bankrupt, you can start all over again to incur debt, pay bills and establish a new credit rating.

However , you should be especially careful about talking with your old creditors because they may attempt to maneuver you into signing a "reaffirmation" of your old debt.

The thing to do is to be sure that you carefully read anything you affix your signature to, and don''t agree to pay on any debt that has already been discharged through your bankruptcy!

In some bankruptcy filings, it is definitely advantageous to hire an attorney to represent you. This is especially try for people who have assets such as real estate they want to protect, and/or people who has been operating home-based businesses or been accused of fraud.

Remember this, if you decide to process your bankruptcy without a lawyer, then it is your responsibility to fill out all the necessary forms accurately and completely, and every bit as precisely as if you had paid an attorney to do it for you.

Leaving out a creditor''s name or address or forgetting a loan that you co-signed for, will surely bring on litigation against you even after your bankruptcy has been adjudicated.

Be sure you understand all the papers, ask the Court Clerk for advice, and if you run into problems, then take it in to an attorney.

Besides the regular bankruptcy laws, there''s also a little-known and little-used method of getting reorganized with your debt, particularly when you''ve got a steady job and just need more time to straighten your indebtedness out.

This is the wage-earner''s provisions of Chapter XIII of the Federal Bankruptcy laws.

Basically, these provisions allow you to make new arrangements with your creditors and pay off all your debts over a new 3-year period of time.

When you filed for indebtedness relief under the provisions of this law, nothing is recorded permanently on your credit record.

You get to keep all your assets, but you must pay off all your debts. But, so long as the Court grants you relief under these provisions, and you pay your creditors according to the repayment schedule agreed upon by the Court, your creditors cannot bother you.

Even if they have begun a suit against you, once the Court has given you relief, they cannot touch you!

Once you''ve filed under these provisions, your creditors are immediately restricted from even contacting you, and get only what the referee or trustee doles out to them.

Often-times, if a creditor threatens to sue you, the most effective thing you can do is to tell him frankly that if he sues you, you''ll have no other alternative except to file bankruptcy papers.

In many instances, this will cause him to take a second look and to do whatever he can to assist you in paying him the money you owe, but over a longer period of time, and at smaller monthly payments.

The absolute bottom line is that your creditors know only too well that if you do file for bankruptcy, their chances of receiving even half of what you owe is practically nil.

Thus, it''s in their best interest to do everything they can to help you to continue making payments on the amount you owe, regardless of how small those payments may be.

When a creditor does sue you, and gets a judgment against you, he can then get a court order directing the sheriff to seize your personal property and sell it, with all monies realized going to the creditor to satisfy your debt.

When they see this about to happen, many people connive to make themselves "judgment proof." In other words, they hide their assets or move them out-of-state before the sheriff or marshall arrives. This is illegal, but is done as often as not.

Many creditors will attempt to "garnishee" your wages. This is done by getting a court order directing your employer to set aside part of your wages or salary every pay period and turn it over to him.

First, of course, he has to find out where you work; and even then, in most states, there are limits set relative to how much a creditor can garnishee for your wages.

If you have no job, and no visible assets, or you live in a state where your wages cannot be garnisheed, your creditors actually have very few ways of ever collecting from you.

Many techniques used by creditors and collection agencies are illegal. A creditor or agency can write letters to you; call you once a day in quest of a payment; and even knock on your door to ask about a payment.

But he is forbidden by law to harass you or invade your privacy, or use deceptive means to get you to pay your bills.

He cannot use foul and abusive language over the telephone, tell anyone besides you the reason for his phone call, inconvenience you or in any way threaten your job or your reputation in the neighborhood where you live.

Still, the best idea for reorganization and settlement of your debts when you find yourself in an untenable position, is in-person visits and explanations of your situation with your creditors, and a desire to explore other possible ways of mutual satisfaction without involving collection agencies or bankruptcy.

Give it a try - it''s a lot easier than most people realize.

Warmly,

I-key Benney, CEO

I-key, a Millionaire CEO from New York City is the creator of "Mscsrrr: Millionaire Secret Cash System", (foreign currency market) program which has helped thousands of ordinary people from all over the world to attain financial security and shining success during the past 2 yrs.

Mscsrrr Millionaire Secret Cash System helps you to generate $1,500+/Week for life, from home or office, part time or full time. No large investment or hassles. Win $1000-$2000 free "cash"?', 134, 'Personal Bankruptcy: Last Option To Legally Stop Bill Collectors, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'Personal Bankruptcy: Last Option To Legally Stop Bill Collectors plus articles and information on Debt-Relief

Credit And Debt Relief--A One Stop Solution

Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for. The interior was sunny and bright, with a newly remodeled kitchen, spacious bedrooms, and the perfect little study area to set up her new home office. It had a spectacular pool and a lovingly tended flower garden. Best of all-the seller had to move immediately, so the home was a steal and miraculously within her budget! Amy was already making moving preparations when suddenly, a devastating blow paralyzed her plans. Her credit application for a mortgage had been denied. She couldn''t understand how this had happened-just a year ago, her credit had been almost perfect! The last year had been a little tight, and sure she had a few late payments here and there?but she had no idea it was so bad that now she couldn''t even get the home of her dreams.

Ms. Wright found herself in the predicament that hundreds of thousands of Americans are suddenly finding themselves stuck in: more debt than they can handle, a sinking credit score, and all of their financial dreams slipping away. With no chance of getting approved for a loan, more bills than a paycheck can manage, and collection agencies hounding delinquent borrowers with phone calls, it is no wonder that financial problems are a top cause for anxiety, stress-related insomnia, and even divorce. Many American consumers don''t know where to turn when their financial problems get out of hand, and don''t know how to battle such corporate giants as major credit card companies or credit bureaus to start making their credit wrongs right. To make matters worse, all kinds of internet scams, fraudulent credit repair companies, and money-hungry "debt relief" programs have made consumers wary of turning anywhere for help.

Amidst all of these truly leery companies, however, there are a select few that can genuinely assist their customers in climbing out of debt, and directing them towards the financial solutions they desperately need. One such company is Credit MD, a company that has earned its reputation by handling its customers with honesty, sincerity, and expertise. You can immediately distinguish Credit MD from the many illegitimate credit repair companies out there because they never make false promises that hey cannot keep. The credit specialists at Credit MD have been trained to be clear and distinct about exactly what options are available to their clients, and what kind of success they can expect.

Credit MD, a credit specialist will assist customers in selecting an appropriate financial option, even if the customer has no idea where to start. After a thorough consultation, the credit specialist works with the customer to come up with a uniquely tailored financial solution that will help restore the customer''s credit. As an affiliate company with many other lenders and credit services, Credit MD, offers a full array of credit options for customers that are in desperate need of financial relief. Among these options are sub-prime personal and business loans, credit cards, credit repair services, and debt consolidation and settlement plans.

The loans and credit cards Credit MD offers are specifically designed for customers with less than perfect credit. Getting approved through these lenders presents customers with the opportunity to start rebuilding good credit. Many customers can get approvals through Credit MD''s affiliate lenders even if they were denied by other companies on the internet.

A recent study found that more than 3 in 5 consumers have negative information in their credit report, and nearly half of the studied reports contained errors. Many of the errors were serious enough to prevent the individual from qualifying for credit! To further entrap customers suffering from such erroneous credit reporting, dozens of highly dishonest "credit repair" agencies have reared their heads across the country. Dan Walsh was one their victims. "They told me they would make my credit perfect, and take all of the negative items off", he said. Instead, he got charged almost $5,000 with very little change to his report. Many of these credit agencies employ inexperienced associates and charge exorbitant fees to desperate customers. Credit MD has a fully experienced attorney that works on their credit repair cases. All of this is done at an astonishingly low cost, and absolutely free in some cases. There is never an up front cost to the customer, a feature that few, if any other credit repair companies can match. In fact, Credit MD refuses to even take cases unless they genuinely feel that they can significantly help the customer. Now that''s credibility.

For customers sinking in debt, bankruptcy often seems like the only resort. But sometimes a last minute debt consolidation or debt settlement can save the deep impact the damages from a bankruptcy can cause. Credit MD assists customer in exploring these options, as well as several others, such as home improvement loans and home equity lines. Although there are many other companies on the web offering similar services, beware of internet scams and companies that ask for upfront payments or credit card information.

Even if you just want to know what your credit report has to say about you, Credit MD is an excellent financial resource for any customer seeking to explore their financial options or seek debt relief. Credit MD outshines its competition with premier customer service. They don''t have annoying automated telephone systems, or lengthy hold times. It is easy to get in touch with an enthusiastic credit specialist promptly-a huge relief in today''s busy world. With so many online scams, it''s important to know a company that has qualifications and a reputation you can trust. For more information, call Credit MD at 1-877-512-7334 or visit their website at www.creditmd.com

About The Author

Sakina Walsh has several years'' experience in the financial sector. Having worked in banking, investments, mortgages, and sub-prime lending, she is now combining her experience in the credit counseling industry.

sakina@creditmd.com', 134, 'Credit And Debt Relief--A One Stop Solution, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'Credit And Debt Relief--A One Stop Solution plus articles and information on Debt-Relief

The Simple $10 Debt Elimination Solution

Ask a friend what resolutions they made for 2004 and your bound to hear them reply "Pay off my credit cards." Ask them how they planned on reaching that goal and many of them will not have a clear cut answer.

The obvious first step to paying off credit card debt or paying down credit debt load is to cut back or eliminate the use of your credit cards. For some people this first step can often be the most difficult. If you''re used to spending freely with plastic and worrying about the consequences later, it''s difficult to break free from this "buy now, pay later" attitude.

To gain control of their careless credit card spending habits, some people cut up their credit cards therefore making it impossible to use them. Others lock up their credit cards or hide them in a safe place and vow to use them only in an emergency.

The second step to paying down credit debt is to pay more than the minimum balance due. Most credit card companies require a minimum monthly payment of 2.5% of the outstanding balance. For example, if you have an outstanding balance of $1100.00 on a credit card charging an Annual Percentage Rate (APR) of 18.9% your minimum monthly payment would be $27.50. It will take you 66 months or 5.5 years to pay off your balance of $1100.00 making the minimum payments. The credit card company will make $676.94 in interest from your use of their credit card.

Monthly payments are purposely kept low by the credit card companies so that they can earn as much as possible from the interest rate charged to you the consumer. Paying just the minimum payment will keep you tangled in credit''s web for years and years to come.

If you''ve been paying only the minimum due month after month, ask yourself this question, "Do I have an extra $10.00 I could apply to this month''s payment?" I''m sure that most of us could find some way to come up with an extra $10.00 for the month. Try cutting out a few cups of coffee or lunches at your nearby fast food outlets and in no time flat you''ll have saved up the extra money that you need.

Now, it''s time to unveil "The Simple $10.00 Debt Elimination Solution." Take that extra $10.00 and add it to the minimum monthly payment above, therefore making a payment of $37.50. By adding just that $10.00 a month to your minimum payment, you''ll trim 23 months or nearly two years off of that credit debt! On top of that you''ll save $277.00 in interest alone! That''s money you can put toward savings or paying off other debts. Imagine how much you''d be able to save if you applied this same simple strategy to each of your other credit card debts!

Paying down credit debt doesn''t always mean having to make huge monthly payments or sacrifices. It just takes some basic planning and a simple effective strategy to make it work.

About The Author

James H. Dimmitt. James is editor of "TO YOUR CREDIT", a weekly free newsletter to help you manage your personal finances. Subscribe to the newsletter by visiting http://www.yourfreecreditreportnow.com. He is also author of "Identity Theft - How to Avoid Becoming the Next Victim!" available at http://tinyurl.com/bc45; jimdim815@aol.com', 134, 'The Simple $10 Debt Elimination Solution, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'The Simple $10 Debt Elimination Solution plus articles and information on Debt-Relief

Debt Collectors: Men or Mice?

Who are these people anyway? They viciously harass you and call you bad names. They embarrass you beyond belief by leaving detailed messages with your neighbors and at your workplace. In extreme cases, they have been known to stalk you!

Debt collection agencies are hired by your creditors to do their dirty work. If they get you to pay, the debt collector usually gets a percentage of what you owe, plus added fees. Some debt collection agencies buy your debt from the creditor for a low fee and attempt to collect double and sometimes triple what you owe on your original debt by attaching high penalties, interest and other processing fees.

Basically, debt collectors make a living trying to scare and intimidate you into paying your bills. They don''t care that your finances are in limbo because you have recently divorced or that your employer informed you in the eleventh hour that you were being laid-off. All debt collectors care about is that they will get a slice of the pie-if you pay.

Debt collectors convince themselves that you are a deadbeat, sitting on a stack of cash and refusing to pay. By painting a negative mental picture of you in their mind, they feel justified harassing you into paying a delinquent bill. Most debt collectors are just downright mean, nasty, heartless individuals who make a living scaring "the pants off" of people who are simply broke and trying to survive.

One lady reported that after she vehemently tried to explain to an unrelenting debt collector that she was recently divorced, underemployed and didn''t have the money to pay the $12,000 credit card bill her ex-husband left her, the debt collector replied, "Look, fat lady, it''s obvious that you could stand to skip a few meals. Just send me your food bill for one week to wipe out this debt!" The lady was horrified-not so much by his remarks because she was accustomed to the debt collector being rude to her on the phone-but by his comment regarding her size. How did he know she was overweight? Had he been stalking her?

Debt collectors use many tactics to research you, especially if you owe a large debt. Remember, their livelihood depends on how many people they can get to pay overdue bills-the bigger the debt, the bigger their payoff.

Despite what debt collectors believe, most people are not faced with buying a ticket to Tahiti versus paying their credit card bill. People who are broke find themselves faced with real-life problems like putting food on the table versus paying a credit card bill!

Keep in mind that debt collectors are no different than you are. As the saying goes, "they put their pants on one leg at a time." They cannot physically harm you and the mental abuse they throw at you can be easily avoided (visit www.brokemansurvivalguide.com)

A.M. Harris is he author of The Broke Man''s Survival Guide: 50 Clever Strategies to Use When You Are Unemployed, Underpaid or Just Dead Broke and Can''t Pay Your Bills. Visit http://www.brokemansurvivalguide.com for more information.', 134, 'Debt Collectors: Men or Mice?, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'Debt Collectors: Men or Mice? plus articles and information on Debt-Relief

Debt

We all know about debt. If you don''t have too much as an individual you can increase the quality of your life, but with more than you can handle it can make your life a nightmare.

There are two kinds of debt. Usually it is personal and used to buy a depreciating item such as a car or entertainment. Today a car has become a necessity, but it doesn''t mean you have to buy a new one every 2 years or one that is beyond your means. It should be thought of as transportation.

The second kind of debt creates an asset that produces income that will more than pay off the debt. For a business this can be a truck, a new machine, even a new building for office or production. A person may borrow money to continue education so there can be career advancement. Money borrowed for production is very healthy.

A mortgage is a necessity and can be classified as creative debt. You have to live some place so you have a choice of rent or mortgage payments. Most everyone prefers the latter as it creates an asset as well as shelter.

Before taking on any type of debt it is wise to determine the risk. Debt creates risk. For personal noncreative debt you must consider your income that will allow repayment of the obligation especially if it is one that has no value to anyone else such as a vacation or flying lessons. Do not borrow money to go to the racetrack or gamble in the stock market. The first consideration when borrowing is what will happen if I can''t make the payments? Will what I have purchased have any remaining value that can be sold to reduce the balance remaining?

If the balance cannot be repaid you want to do everything possible to avoid bankruptcy as that can haunt you for the rest of your life. Debt consolidation is sometimes a solution. For a business there is a preliminary bankruptcy that allows the court to appoint a special manager to watch over even run the business until it is back on its feet or declared defunct.

The world as we know it swims in a pool of debt. Business today could not survive without some form of borrowing nor could the consumer have all the conveniences that make living a pleasure - washing machines, TVs, air conditioning, garage door openers, can openers, computers just to mention a few most of which are obtained with the help of a credit card.

Keep in mind the 2 kinds of debt - the kind that creates an income producing asset and the kind that does not. You must decide how much of each you can afford.

There is nothing wrong with debt as long as it is used intelligently.

Al Thomas'' book, "If It Doesn''t Go Up, Don''t Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he''s the man that Wall Street does not want you to know.

al@mutualfundstrategy.com; 1-888-345-7870', 134, 'Debt, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'Debt plus articles and information on Debt-Relief');
INSERT INTO pqdb_articles (article_id, article_title, article_text, article_cat, article_meta_key, article_meta_desc) VALUES (11752, 'What is Bankruptcy?', 'Personal bankruptcy is a legal way to give people with overwhelming debt a fresh financial start. However, it is important to realize that certain forms of debt, such as student loans, are not forgiven through the bankruptcy process. Bankruptcy can have a devastating impact to your credit report and credit score. Bankruptcy will often remain on your credit report for as long as 10 years. During this time it can be next to impossible to obtain loans or any type of credit. If you are able to find a lender that is willing to do business with you, you will pay the highest possible interest rates allowed by law.

Quite often, lawyers are quick to suggest bankruptcy but, they don''t always explain how damaging bankruptcy can be. Why would a lawyer do this? The answer is simple; If you don''t file for bankruptcy, they don''t get paid. The best thing that you can do is obtain independent information if you are considering bankruptcy. This way you become informed in an unbiased manner.

There are two forms of bankruptcy:

Chapter 13 involves reorganizing your debt in such a way that you a can keep the property you might otherwise lose, For example, a car or home. Chapter 13 will allow you 3-5 years to pay-off the items you have as opposed to losing them entirely.

Chapter 7 is the most straightforward form of bankruptcy. It involves liquidating all of your assets. However, this can depend upon the laws for the state in which you live. Traditionally, a court appointed representative will sell your personal property or it will simply be returned to the creditors that you owe money to. Federal law only allows consumers to file for Chapter 7 bankruptcy every six years.

Alan Barnes
IAPDA Certified Debt Arbitrator
President and CEO of Debt Regret
http://www.debtregret.com', 134, 'What is Bankruptcy?, Debt-Relief, Debt-Relief articles, Debt-Relief information, about Debt-Relief, what is Debt-Relief, Debt Relief Information', 'What is Bankruptcy? plus articles and information on Debt-Relief

5 Steps You Can Take to Get Paid!

There are always some companies that have past due invoices and can''t seem to get them paid. They might be quietly waiting to get paid not wanting to contact the client for fear of appearing "desperate". Sometimes a big part of the problem is no response, it is bad enough when you are not getting paid, but when orders keep coming in and you are not getting any acknowledgement to your collection efforts, you just can''t keep processing orders.

There are steps you can take to get paid on those past due invoices and keep new invoices current.

Step #1 Gather together all the past due invoices, and stamp them PAST DUE.

Step #2 If you have an email address or phone number with a contact name for your client, email them or call them and give them the information on the past due invoices and let them know their account is on hold.

Step #3 Mail the invoices to your client with return receipt requested or send them in a flat rate Priority Mail envelope with delivery confirmation.

Step #4 Send a letter with these invoices stating the age, invoice numbers, their PO#, your account #, total amount due, and any other pertinent information.

Step #5 Tell them their account is on hold and you will not be shipping any more products or providing any services to them until these invoices are paid. You can include a self addressed envelope and state that you have enclosed an envelope for them to send their check. Give them a date, to have this paid to you.

Once they have received the package, email or call them. Ask them what they are doing with the invoices. Ask them questions such as:

Do they have to be approved by someone else?

If they have to be approved, who has to approve them and when will they give them to that person? Get that person''s direct number if possible. Find out if that person signs the checks.

Are there any discrepancies with the invoices?

When will the check be cut? When can you call back for the check number?

Once all the past due balances are cleared up, you need to think about future invoices. Do you want to extend credit again or do you want to have pre-payment or payment at the time of the order. Whatever you decide put it in writing. If you can both sign the agreement, that is even better. Remember, having a credit policy in place tells people you mean business.

Michelle Dunn has over 17 years experience in Credit and Debt collection. She is the founder and president of Never Dunn Publishing, LLC, is a writer, publisher, consultant and the Editorial Advisor for Eli Financial Debt Collection Compliance Alert Newsletter.

Michelle started M.A.D. Collection Agency in January 1998 and ran it successfully until she sold it in December 2004. She owns and runs Credit & Collections.com an online community for credit and business professionals. http://www.credit-and-collections.com

Michelle has been featured in Ladies Home Journal, PC World, Home Business Magazine, Home Business Journal, Entrepreneur, The Internet Web Source, Professional Collector, and in Home Based Business for Dummies, Shameless Marketing for Brazen Hussies, From the Home-Front The Simple guide to starting and Running a Home based business, she was a featured guest on (NPR) National Public Radio and has been in many newspapers nationwide. She has many published articles and 3 published books to add to her list of accomplishments.', 127, '5 Steps You Can Take to Get Paid!, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', '5 Steps You Can Take to Get Paid! plus articles and information on Credit

Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report

Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).

The reasons for bad credit can be as follows, high balances, bankruptcies, late payments, and many others. The most significant thing you can do to raise your score is to change your financial habits. Chances are that if you have a bad credit score, you did something to make it that way. Here are some of the best ways to quickly raise your credit score:

1. The most obvious: pay off your debt! This doesn''t include a home mortgage, but revolving balances such as credit card debt, a car loan, etc.

2. Make every payment on time. This is the most important factor in your credit score rating. If you have had late payments in the past, it will take some time to see real results from your on-time payments, but keep it up, sooner or later the credit bureau will notice the change in your payment habits. Develop the mentality that no late payment is acceptable!

3. If possible, pay over your minimum amount. This is especially important with credit card balances, and will reflect a slight boost in your score.

4. If you have paid off all your debt, and your credit score seems to be at a stand still, you might want to make small purchases each month with your credit card and pay them off immediately. Often times the credit bureaus like to see at least some kind of activity. Otherwise, they have no way to gauge how you are doing financially.

5. Be patient! Sometimes repairing credit can be a long and arduous process. Especially if you have had a bankruptcy. It can often take the better part of a year or more to see any significant raises in your score.

Clearing a derogatory mark on your credit report:

This is probably the most difficult in regards to credit repair. If you have requested a copy of your credit report, and notice a problem (an example would be a late payment mark), that shouldn''t be there, you need to take action to get the derogatory mark cleared as soon as possible. It is extremely important to get your credit score cleared before you attempt to get prequalified for mortgage.

Here are the steps you should take:

First of all, if you are in contact with a loan officer, you may want to describe the problem you are having to them. They can be very helpful when it comes to credit repair, and should know exactly what to do if you have a bad mark on your credit that is a mistake. In some cases, they may even call the creditor for you to address the situation.

Second, you should call your creditor and each credit bureau to find out which course of action you should take. In most cases, writing a letter will do. Here is an example letter:

Date 00/00/00

Dear Big Credit Bureau,

This letter is a complaint that you are reporting inaccurate and/or incomplete credit information on my credit report. I am displeased that you have included the below information in my credit profile that includes the following errors. Credit reporting laws ensure that bureaus report 100% accurate credit information.

The following information concerning my credit report needs to be re-investigated. I respectfully request to be provided proof of this alleged item on my credit report. If this cannot be provided, the item must be deleted from my report as soon as possible:

CREDITOR AGENCY, acct. 123-34567-ABC

The listed item is inaccurate and/or incomplete, and is a serious error in reporting. Please delete this information, and supply a corrected credit profile to all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes. Also, please provide the name, address, and telephone number of each credit grantor or other subscriber.

Under federal law, you have 30 days to complete your re- investigation. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation.

Sincerely,
your signature

Your Name
SSN# 123-45-6789

Unfortunately, you will need to write 3 separate letters to each of the 3 major credit bureaus. Here are the contact addresses for each:

Trans Union
P.O. Box 1000
Chester, PA 19022
1-800-888-4213

Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
1-800-997-2493

Experian
P.O. Box 2104
Allen, TX 75013-2104
1-888-397-3742

Justin is the President of the Christian Real Estate Network - http://www.HisMove.com', 127, 'Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report plus articles and information on Credit

Trying to Land a Job? Poor Credit Scores May Hurt Your Chances

Many employers are now looking at an applicant''s credit report for hiring purposes. During an interview process a potential employer may request your written consent to access your credit report. A credit report is essentially your credit history created by CRAs (also known as credit bureaus). Debtors that grant (or deny) you credit make regular reports about your account status to CRAs. This information is then aggregated on a credit report and calculated into your "credit score".

Besides your credit history a credit report also contains a substantial amount of sensitive personal information. This includes your date of birth, social security number, telephone numbers (including unlisted numbers), current and previous addresses, employment, credit payment status and even legal information. The federal Fair Credit Reporting Act (FCRA) has made regulations too keep this information private. There are state and federal laws on who can obtain this information and how they can use it. However as mentioned earlier, any potential employer can access this information upon your written consent and take it in account during your hiring process.

What can you do? Depending on where you live you can may be entitled to receive a free copy credit report. Your may also find about who has viewed your credit report and other related information. For information we recommend visiting www.privacyrights.org

In some cases your credit report may contain inaccurate information which can very detrimental to your credit score. In this case it may be a good idea to get some help disputing and repairing a damaged credit report. One reputable company, Onyx Credit Repair has the resources and expertise to assist you in this situation. Visit their website at http://www.onyxcreditrepair.com.

It seems that having a strong credit score will continue to become increasingly important in this day and age. It is unfortunate that your credit report can be exploited for hiring and/or marketing purposes. It is legal for credit bureaus to generate selling lists of consumers who are more susceptible "pre-approved" credit card and insurance offers. You can however prevent credit bureaus from taking advantage this information. Visit www.privacyrights.org or contact Onyx Credit Repair (http://www.onyxcreditrepair.com) professionals for more information.

Onyx Credit Repair has been assisting clients with effectively repairing their credit scores for over 17 years. We offer credit repair consultants who assist our clients throughout the duration of their credit repair. For more information about our company please visit http://www.onyxcreditrepair.com/company.html', 127, 'Trying to Land a Job? Poor Credit Scores May Hurt Your Chances, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Trying to Land a Job? Poor Credit Scores May Hurt Your Chances plus articles and information on Credit

Which Credit Card?

Bewildered by the sheer variety of debit cards and credit cards? Here is a breakdown of some of the main types of debit and credit cards available:

Debit card

You can use a debit card to buy goods and services. A debit card is very much like a cheque, unlike a credit card, you pay for goods straight away and the money comes out of your account quickly. The amount you spend using a debit card is immediately deducted from your current account.

A debit card allows you to make purchases whereby the money is taken straight from your current account, the benefit of a debit card is that your finances are kept up to date immediately, without having to wait for a monthly bill as is the case with a credit card.

Your banking institution issues you with a debit card. Debit cards offer less protection than credit cards in the event of a billing dispute. In addition, if your debit card is stolen, it is possible that your debit card account could be emptied. Most debit cards have a Switch/Delta/Solo/Electron symbol on them. If you become overdrawn you will pay interest on the amount due.

Cash card

This lets you take out money from a cash machine (ATM). To use it, you''ll need a Personal Identification Number (or PIN) which your bank sends you. Each time you use your card at a cash machine, you''ll need to key in this number.

Credit card

A credit card lets you buy goods and services up to a set limit before you pay for them. A credit card represents a loan agreement where you are offered credit, providing you pay off a minimum amount each month. You can charge purchases up to the amount of your credit limit and pay for them later.

If you clear your balance in full each month, you don''t pay any interest on the money you have spent. But, if you don''t, you''ll normally have to pay at least 3-5% of the balance, and interest will be charged on the outstanding balance. Some cards charge you an annual fee.

A credit card allows you to live now and pay later. When you successfully apply for a credit card, you will be advised of your credit limit. Ensure you stay within it, as exceeding it could result in either your card taken away from you or being charged interest on the extra credit you incur.

Charge Card

This is very similar to a credit card, although the monthly balance must be paid in full. An example of a type of charge card would be an "American Express" card.

Cheque guarantee card

If you''re paying for goods or services with a cheque, you''ll probably be asked for a cheque guarantee card. This means the bank will normally pay your cheque up to the amount guaranteed.

Store Card

A restricted form of credit, store cards act as credit cards in those shops that the card is accepted. Purchases are made using the card, and then a consolidated bill is sent at the month''s end, which is then settled in a manner similar to a credit card.

Deciding which plastic card to use can be confusing but it can help you to reach a decision if you know what you want to use the card for.

If you just need it as a substitute for carrying cash, rather than use a credit card, you may as well use a debit card, which takes the money from your bank account directly.

If you like to pay your balance off each month, a charge card might suit you.

If you want to pay off your debt in instalments, choose a credit card.

You may freely reprint this article provided the author''s biography remains intact:

About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.', 127, 'Which Credit Card?, Credit, Credit articles, Credit information, about Credit, what is Credit, Credit Information', 'Which Credit Card? plus articles and information on Credit

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5 Steps You Can Take to Get Paid!

Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report

Trying to Land a Job? Poor Credit Scores May Hurt Your Chances

Which Credit Card?