As of 2009, bankruptcy filings that were new increased by over thirty five percent in just one year. Although it may seem like a dismal sign, a good way to look at it is that all of these people are on their own paths to rebuilding their credit scores and ultimately, financial freedom. We have all seen commercials with “people just like you and me” urging us to go to whatever website and check on our credit score. We know that if the number is high, it’s a good thing. It it’s low, it could mean trouble finding a loan, getting a job, or a new place to stay. But just what is a credit score?
Your credit score is packaged up in one (hopefully!!!) three digit number that is based on a statistical analysis of your very own personal credit file. A credit score’s purpose is to give you a major headache, and for the banks to review your capacity to take on debt and repay a credit obligation. That is why credit card companies and banks will look over your score to figure out how much credit they want to decide and offer you and at what interest rate. Read more...
If the person in debt says that they will pay, the bill collector will keep track of this commitment and will check up later to make sure that the payment was made. If a debtor doesn’t pay, the collector will make a statement about their delinquency for the credit department of whoever they work for. In extreme cases, collectors might call for repossession, hand over the account to an attorney or disconnect service.
Collectors need to be careful to follow the Federal and State laws that are applicable because people’s financial problems can be a sensitive issue. The Federal Trade Commission states that a collector must positively identify the person who owes money before they can announce that the purpose of the call is to collect debt.
The bill collector will then issue a statement, sometimes known as a “mini-Miranda” that lets the customer know that they are in fact a collector.
Collectors also have to follow the state laws that state how they must proceed. A lot of companies use electronic systems now to help bill collectors remember all of the laws and regulations regarding each call. Read more...
With all types of debts, accounts, and interest rates all hitting you at once, your financial situation can very well seem intimidating. But if you follow this program you will find that there is an effective and safe way to manage your money.
This simple calculation requires the interest rates for each debt account only. This is assuming that all debt accounts have the same tax liability, but if not, you can determine your interest rate after taxes for this calculation.
Your first step is to order your debts; highest interest rate to lowest. You’ll be likely to find credit cards at the top of the list. Retail credit cards offered by stores typically have the highest interest rates, so you may find this type of credit card on the top. Be sure that the rates did not fluctuate from the promotional rates that you originally signed up for. Card issuers can change your interest rates at any time. They are supposed to give warning, but you may not receive this warning.
Your home equity loans and your mortgage might be the next debts on the list. It’s imperative that you capture every debt for which you make a monthly payment. Student loans might be the last on the list. Read more...
