Best ways to achieve credit card relief – Know more

For a household it’s not good to share credit card burden. Credit card debt can be repaid or lessened in a number of ways. A few methods will demand more effort and time than the common ones. In comparison, you may come across methods that don’t seem effective as repayment options; these methods tend to be a little riskier.

A borrower needs to study his specific financial situation and whether his chosen debt repayment method is ideal for his situation. Only then he will be able to opt for a successful debt repayment plan. This article throws some light upon the most advertised repayment methods besides the usual ways of lowering one’s credit card debt.bigstock-Debt-Relief-Just-Ahead-Green-22963049-e1368042855375

Once a borrower is able to study his financial situation carefully, he’ll soon be able to identify expenses that he can actually do without. It will surely help him develop a budget so that he may pay off his debt in a systematic way. Although things won’t change overnight, but with time he will be able to save more out of his income. A borrower needs discipline, patience and time to acquire

Under such circumstances you’ll need to follow a different path. You may need to opt for a credit card relief program. Such a program mostly involves indulging in a repayment plan.

A credit card relief program is a repayment plan between a credit card company and the borrower. Depending on your credit card interest and balances, you’ll be offered repayment plans. Then there are other factors like your expenses and incomes that affect your repayment terms.

An effective credit card relief program makes it necessary for you to remember the following points

Guaranteed Debt Relief

There are situations wherein you’ll be able to settle your debt for a lower amount or lower the interest rate through negotiation with the creditor. Credit card companies are usually not willing to negotiate interest rates with their borrowers unless they are payment defaulters. They will only accept a settlement offer if they’re certain that the settlement will yield more returns than what they would get after filing a lawsuit. Entering into a credit card debt relief program helps a borrower as these services involve experts that are experienced in negotiating with creditors and achieving the best deal.

Free Credit Analysis

The credit counselors associated with credit card debt relief programs will offer a credit analysis for free. They will evaluate your expenses and incomes for each month and decide on a monthly payment for you. It is a single amount that you ought to pay them based on your ability. Once you make your monthly payments, they will pay a certain amount to each of your creditors after deducting a small fee as their processing charge. You’ll soon see your balances getting reduced or your interest rates falling after you enroll with these programs.

Seek Your Consumer Rights Advantage

The Fair Debt Collecting Practices Act strictly forbids consumer debt collection through abusive means. Under this act debt information needs to get validated for ensuring its accuracy, showing a disputing option to consumers and to improve the collection methods. Business of debt collection can now be conducted as per the guidelines set by this act.

Stop Collection Calls

A collection agency can’t call you anytime they wish. They have to follow the FDCPA guidelines alongside the FTC norms. The collections agencies can’t call you beyond the business hours and they can call you at work. They can’t share your financial status with any other person. Once you’ve enrolled with a credit card relief program you may always ask them to confront your credit counseling team. You’ll no longer have to handle their calls by yourself.

Get out of debt now, repair your credit and opt out of bankruptcy

Under circumstances when you undergo serious financial crisis, you don’t much time to consider the paths that lie ahead. Whatever you do, you shouldn’t consider filing for bankruptcy since it will hit your credit score and the effect will be shown in your credit report. It will haunt your finances for 10 long years.

It takes a long time for someone to improve his credit. Your credit score can actually be improved only when your credit history is rebuilt. Your credit score is affected by every delinquency that is reported. Your credit history will determine how much time it will take for these negative instances to be removed from your credit report.

Tips on home loans for first time buyers

There are a few challenges associated with buying home for the first time. You may either need to stay on rent or accept the first offer that falls within your budget. Prior to buying a house you’ll need to consider a number of things. It will help you to make the most out of your purchase and simplify the entire buying process. This article will throw some light on what you may expect within your budget and yet can turn your life easier after buying your first home.

Most of your loved ones will agree that they got overwhelmed and excited while buying their home. Arranging for the cash to make their down payment is the first big hurdle that all home buyers need to cross. You may seek guidance from the first time home buyer programs offered by the state and federal govt.

For consumers that don’t have much of a credit history or earn a lower income, it is even more difficult to find a lender. That’s why it is even more important for the first time home buyers to seek financial assistance from private home loan services.

Let’s consider a few types of home loans that the first time home buyers may consider –

First Time Buyer Loans

Lenders that are approved under the FHA (Federal Housing Administration) are known to offer loans that can help the first time home buyers. In comparison with the conventional loans, the down payment and income requirements are lesser for these loans and they offer adjustable or fixed rate of interest besides higher loan-to-value rates. Value of property worth 97% can be borrowed by the first-time home buyers as per the FHA norms. The debt-to-income ratio allowed by the FHA is also a bit higher. This is the ratio of the percentage of your income that you spend towards debt repayments to the rate you’ll achieve under conventional lenders. What you get is a gift to meet your closing costs and your entire down

Down Payment Assistance Loans

First time borrowers may achieve down payment loans from lenders. These borrowers may seek a loan that can assist in meeting the down payment and move up till meeting the entire financing of their first home. The economy is stimulated by these loans and the housing market also gains more customers out of the low income segment.

Graduated Payment Loans

Individuals falling into the low-income segment may opt for the Graduated payment mortgages. It’s a bit different from the conventional loans. These loans are issued to individuals that foresee a growth in terms of earning for the following years. The repayment begins with much lower amounts; such amounts won’t even cove the loan interest initially, but they may be raised each month. A conventional mortgage can help an individual apply for a loan under this program.

This article is aimed at showing you the right way towards living up to challenges. You may try out a number of loan service providers, but you need to be sure that they have been in business for a while. You may try quality loan options like Newcastle Permanent’s home loan for first time buyers and check things out for yourself.

Tips to Pay off Your Home Loan Sooner rather than Later

Having a home loan can bea rather daunting thought for many people, no matter what their income is. Depending on the set-up of your loan, there could be many years ahead of making repayment after repayment. To avoid accumulating interest and becoming stuck with repayments for a lengthy period of time, consider some of the below tips to incorporate into your budget.


When you first bought your house, the loan you signed up for may have been the best option at the time, but is it still the best option now? Interest rates change, house prices fluctuate, and banks adapt their offerings. A great tip that could help get your mortgage down quickly is to speak to a professional such as Heritage Bank about what home loan might suit your circumstances now. Click here to check out their home loan calculator – varying the contributing factors can also help you assess what changes would be ideal to make.

Deposit Spare Cash

Depositing spare cash straight onto your home loan is another great tip to get your mortgage paid off sooner. As tempting as it might be to use that cash elsewhere, think about how much easier your home repayments will become once there’s less to pay and the interest repayments come down. This will be the time to focus on savings again.

Align Your Repayments

Another tip for meeting your repayments is to align them with your income. For example, if you get paid monthly, make the repayments monthly, or if you get paid fortnightly, pay them fortnightly. By incorporating this strategy, you will always find yourself well placed to maximise the amount you are paying, and even make additional payments on occasion.

Have an Offset Account6 Tips for Creating a Better Household Budget

An offset account is something not everyone would think of setting up; however, it is a handy feature to have up your sleeve if you want to pay off your home loan sooner. Because this account is offset daily against your loan balance, your interest payable will be reduced and you can get that loan down quicker.

Don’t Reduce Repayments

It might be tempting to reduce your home loan repayments if you’re not paying the minimum, or even to refinance the loan so the repayment term is extended. This will only bring your home loan to a standstill. Calculate your income and expenses, and stick to what you have already been paying. Reducing will only take you backwards, not forwards.

Nobody wants to be paying off a home loan forever. A home is a huge investment that you may want to be able to pass on to your children one day – and preferably without the debt that comes with it. In order to do this, try utilising some of the above tips and taking a smarter approach to how this investment can work best for you financially.

What are some of your favourite savings tips that could be adapted to help you pay off your home loan quicker? Discuss you answers in the space below.

Many Reasons Behind The Rising Debt Burden

Credit counseling, debt settlement and debt consolidation are a few ways in which you can get out of your debts. Find out more.

DEBT Infographic


Three Top Tips for Using a Pawnbroker

For those in need of a short-term cash injection into their bank account, the old-fashioned pawnbroker can be an ideal solution. All that you really need are some assets behind you, and in our possession-rich society, almost all of us have some of those.

The way that pawnbrokers work is to use this personal property as collateral against the money that they lend to you. This process is quick and easy, requiring no credit checks or complicated negotiations on either part. It also means that you’ll receive the money you need promptly i.e. as soon as an agreement over the value of the item is reached.

If you’re considering a pawnbroker as a viable borrowing solution for you, here are a few top tips to bear in mind…

pawnbroking-005Tip One: Spruce Up Your Items

Often, the items that people choose to hand over to a pawnbroker are ones that they don’t use very often, such as antiquated watches, old jewellery or dusty vintage furniture that they’ve dug out of their garage. Covered in dirt and grease, it’s very hard to assess an item’s true value, both for you and your pawnbroker. Taking the time to clean things up is helpful to you both, but to you in particular. The less money that your pawnbroker can offer you, the greater the profit he’ll stand to make if you default on a payment. He’ll be much more experienced at valuations than you, so at least give yourself the opportunity to assess the item in top condition. This will help to lessen the risk of you having the wool pulled over your eyes when it comes to negotiating a price.

Tip Two: Don’t Be Afraid to Negotiate

If it comes to a sale, the pawnbroker wants to make as much profit on an item as he can, so he’s going to offer you as little as he can get away with when it’s time to talk money. This doesn’t mean that the initial value he offers you is the highest that he’s willing to go, so be prepared to negotiate. A good tip is to work out how much you want beforehand. If you need £100 to cover a bill, then try asking for a little above this when you start discussing amounts. If you can provide the pawnbroker with a ballpark figure to work with, he’s less likely to go in as low as possible, and instead will try to save some time by negotiating a figure that suits you both.

Tip Three: Pick Your Item Up Well Before the Due Date

If you’re bartering with an item that you love, then don’t run the risk of losing it. Make a point of reclaiming your possession at least two days before its due date. Things have a bad habit of going wrong at the last minute, and you don’t want to find that traffic, overrunning at work or transport problems stop you from saving something that you love. If you fail to reclaim it on time, then the pawnbroker will have no chance but to sell the item, and that’s a risk that simply isn’t worth running.

Follow our top tips today to ensure that your pawnbroker experience is a positive one.

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Understanding Loans: Working Out How Much to Borrow

There are many types of loans available to those in need, and they’re available from many different types of lenders, such as banks, building societies, and even private companies like Nemo Personal Finance, remember that a Nemo Loan is secured on your home so always make sure you can afford the repayments. People tend to spend a lot of time looking at, and evaluating these options, and yet they often overlook one of the most basic considerations associated with taking out a loan: how much money they’re going to borrow.

If you find yourself in this position, here are a few things to consider:

Do You Actually Need a Loan?

The first thing to do when considering a loan is to sit down and work out how much cash you actually need at your disposal. Let’s say, as an example, that you need £5,000 to put towards home improvements. Before you look at lenders, is it possible that you could find some, or all, of this sum without borrowing?

Many people are loathe to dip into their savings, but these can provide a source of income, and taking funds out of them can save you money in the long run if the interest you earn on them is less than the amount you would pay on a loan.

You may also find that family and friends are willing to lend you money inteloansrest-free, although many might prefer not to ask.

It is also possible that, if the venture you’re saving towards can wait, you can simply save money over the period of a few months or years, and eventually pay outright without borrowing a penny.

Remember, any money you borrow will have interest attached, so it is always worthwhile to consider other ventures before taking the plunge.

How Much Do You Need to Borrow?

As mentioned above, you should think about how much you need before ever actually considering taking out a loan. This amount will be dependent on what you want to use it for, so make sure that you have a good idea before looking at your options. If you need £10,000 to buy a car immediately, for example, and have no other source of raising capital, then borrowing £5,000 will do little to help you. Make sure that your estimates are accurate before looking at different avenues for securing capital.

Consider, also, how much you have the capacity to repay, and factor in interest when you’re doing so. Failure to meet repayments can have very negative consequences, so if you know that you’ll never be able to pay back the amount you need to borrow, a loan isn’t for you, and you may have to put aside dreams of the object or venture that you were going to use the money for.

Assess the Total Cost of the Loan

Once you know how much you need to borrow, plus how much you can afford to repay, it’s time to look at your options, considering the real cost of the different loans available to you. To do so, you’ll need to factor in the following:


APR is the annual rate of interest that you’ll pay on the money you borrow, and can significantly increase the sum you need to repay.


Many loan companies will charge you a number of different fees for using their service, from setup to admin costs. Don’t forget to add them to the overall equation.

The Term of the Loan

The length of the loan you take out will largely determine the amount you pay in interest. If, for example, you borrow £10,000 over a term of two years, your interest payments are likely to be significantly lower overall than if you borrow the same amount, but make repayments over the course of three years.

These must all be added to the amount you borrow to estimate the total amount you will repay.

Loans can be a useful tool for helping people to secure capital that is not immediately available to them; however, as with most things in life, they do have their downsides. It’s very important to be aware of these, and to fully understand what you’re agreeing to, before borrowing money. If you still feel that loaning is for you, do your research to make sure that you choose the best possible option and don’t leave yourself out of pocket in the long run.


Getting a Business Loan for Your Small Business

Small businesses have been badly affected by the recent recession and are now being slowly shut out of getting a bank loan. They have lost several customers due to this and have also reduced the sales of their products. They have also had to lay off some of their employees due to their lack of ability to pay them.


Before the recession took place, many small businesses could easily get business loans and had an excellent relationship with their banks. The recession however changed all of this when it dried up almost all the lines of credit for small businesses. This left small businesses with the only option of going in for alternative sources of funding. A small business has to go in for an alternative business loan in such cases.

Merchant Cash Advances

When you receive a merchant cash advance, you would need to purchase and sell your future credit card income. You do not need to make regular fixed payments in return for the merchant cash advance. The person giving the merchant cash advance only takes a percentage of the income that comes in the form of credit card sales to the company. Taking a merchant cash advance can however be expensive, even though the rate of interest is not fixed. They can still keep a small business afloat.

Peer to Peer Financing

In case of peer to peer financing, you decide how you would return the money. All you need to do is to enter the details of how much cash you want, how you intend to repay it and how much rate of interest you are ready to pay on the peer to peer financing company’s website. Then, prospective lenders will make a bid on your loan. You however need to have a good credit score in order to avail peer to peer financing.


When you are looking to finance your small business and do not have much of a choice, then you need to find your strength in numbers. You can get crowdfunding from some websites by asking people to pool in small investments to help you finance your small business. Before selecting a crowdfunding platform, make sure that you have gone through their fine print and conditions, so that you are on the safe side. When you take advantage of crowdfunding, you need not worry about giving up an equity stake in your business. Very few crowdfunding sites require that you give up your equity stake in your business in order to get money to finance your small business.

Micro loans

Micro loans are loans that are smaller in value than most loans. These loans are generally issued to small businesses that are based in developing countries. Examples of micro loans are loans given to either basket weavers, street vendors or those that raise poultry. If your industry is a small business too, you can get a micro loan. The interest rate charged on an average against this loan is usually 35 percent. Even if this sounds high, it is definitely lower than the rates of interest charged by the other lenders. Since the processing of micro loans is an intensive process, it requires that such high rates of interest be charged. Micro loans are a great option for businessmen or entrepreneurs, who have no credit histories or who have a low credit score. Since small businesses need equipment for running their business, they can buy it using a micro loan. These loans are typically in the range of $6,000 to $23,000. Today, there are also websites that offer micro loans to small business owners.

Venture Capitalists

Venture capitalists offer loans to small businesses that have reached a phase well beyond the start up phase. Companies that grow fast and that have an exit strategy can make millions of dollars and help their company grow, when they borrow money from a venture capitalist. Most venture capitalists tend to concentrate on financing businesses that are already well off. So, they can even offer you advice on whether or not your business would prosper.

Family and Friends

If you have a family member or friends, who have got some cash to spare, then you have yet another way to finance your small business. While borrowing from a bank would require you to have a high credit score, borrowing from friends and family do not require you to have a high credit score at all. However, you need to be as careful with them as you would be with a bank or a lender. If there is some misunderstanding regarding money or if you have not repaid them on time, then it can lead to a sour relationship. Make sure you prepare a written agreement with a promissory note that you would repay them their money in full. You can get many sample promissory notes on the internet, which you can use to prepare one. Make sure you add the terms and conditions of your repayment, how you plan to repay them, by when and why you need the money in the written agreement. You would also need to frequently communicate with them with regards to the repayment of your loan in order to avoid any misunderstandings and in order to prevent any arguments from taking place. Make sure you repay their money in full at the end of the loan period.

Angel Investors

They can be your angels in disguise, when you want some money to finance your small business and have been denied business loans by your bank. Google and Yahoo are examples of entrepreneurs, who have taken help from angel investors and today, both of them are companies worth billions of dollars each. When the company is in its early stages of growth, angel investors put in some money with the expectation of getting back at least twenty to thirty percent of their investment. When you take a loan from an angel investor, you can enjoy working with people in a friendly atmosphere and this will help you with your business.

5 Financial Sins that Can Lead to a Bad Credit Rating

You might have heard of the phrase ‘credit rating’ before, but you might not know exactly what it means. A credit rating is basically an evaluation of how well placed you are to pay back your loans. This may be used in conjunction with an appraisal of your credit report, which is basically a list of all the times you have applied for credit. When you apply for any kind of loan, both of these come into play, and it may be more difficult for you to be approved for a loan if you have a bad credit rating. To prevent this from happening, make sure you avoid the following. Bad Planning

Bad financial planning and budgeting can eventually lead you down the path to a bad credit rating. If you have a mortgage or any kind of big personal loan, make sure you have a long term plan in place to pay it off and try to have a backup plan as well, just in case you fall into any other financial trouble along the way.

2. Credit Card Overuse

If you rely on your credit card a lot to get you to your next payday, beware! This might seem like the way to go now but, unless you are extremely disciplined with your financials, you may find yourself relying on your credit card more and more. If it gets to the point where you are unable to pay back your monthly statement on time, consider limiting your use of the card to desperate times.

3. Loaning Too Much

Many people make the mistake of attempting to pay off their current debts by loaning money from elsewhere, and this can very predictably lead to a snowball effect. This can earn you a bad credit rating, not only because the interest rates accrued from this method are extremely high, but also because this often means you cannot pay off your loans with the money you generate yourself.

4. MissingPayments

If you have missed payments on anything that is considered credit – including credit cards, personal loans or even something as simple as a phone bill, this can affect your credit rating. There is usually a fair amount of leeway given for late payments, but be aware that too many late or missing payments can drastically effect your credit rating.

5. Spending More than You Earn

This goes hand in hand with poor budgeting and overusing your lines of credit. If the amount of money leaving your accounts is greater than the amount entering, this will eventually lead to a bad credit rating. Budget well and you will not have this problem anymore!

If you already have a bad credit rating, do not fear! You are probably still able to get a loan if you need to, especially for important items like electronics and cars;you might want to look into obtaining a bad credit car loan, for example. There are specialists, such as Dreamloans, who can definitely help you on your way. As with everything finance related, make sure you do all the proper research before you commit to anything.

6 Things to Know Before You Get a Business Loan

Every small business owner faces the same problem: they all need more capital to successfully grow their business. No matter how well things are going with sales, marketing, and customer relations, at some point you will need a loan to move forward with the ultimate goals for your business.

However, getting a loan is no small task. It requires careful planning, organization, and a commitment to showing lenders that you are willing to do what it takes to make your business a success. So, if it’s time to move forward with your plans, here are the six areas you need to consider before you can secure those extra funds.


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  1. Know what lenders want: Lenders are ultimately there to help you, but that doesn’t mean that they are going to give you money on the spot just because you say you need it. Getting a loan is a complicated process that requires forms, bureaucracy, and professionalism. Lenders want to see that you’ve done you homework and that you’ve come prepared. This is the best way to start the process off on the right foot.
  2. Know Your Business: As pointed out in an article about securing loans, it’s important that you “Take a very close look at the amount of money you think you will need. Know exactly how much money you need to raise, as you have to be able to justify every penny to a lender.” A big part of determining the exact amount you need is by knowing your business. Take a hard look at your business plan, future projections, and assets. Having detailed records that easily conveys information in these areas will make it easier for you to determine what you need, and what you can put up as collateral.
  3. Know your your assets: According to a helpful article on collateral from Inc, “Most commonly, collateral is real property (i.e. an owner-occupied home), but it can also be represented by your business’s inventory, cash savings or deposits, and equipment.” It’s true that most businesses will find that a secured loan on property is their best option after reviewing their current assets, but be sure too look at all options. Here you can see secured loans explained.
  4. Know the alternatives: If you don’t have any equipment, cash reserves, or property that will work well as collateral, there are also other options to consider for raising funds. The world of peer-to-peer funding is growing both in terms of users and respect. Fine Extra recently reported new marketplace services that will work to help out small businesses that might not be able to secure a traditional loan due to credit or collateral issues.
  5. Know that negotiations Can help: The most important thing is remaining professional and trying to work with your potential lender, but that doesn’t mean you shouldn’t fight for the value of your business. Requesting an appraisal review and feeling comfortable discussing your ideal terms are some of the best ways to make sure you will get the loan you deserve.
  6. Know that a loan is only the beginning: The point of these tips is to help you look more prepared to take on the responsibility of a business loan, but then it will be time to put that money to good use. Take a loan as a great opportunity, and don’t let it go to waste!

Credit Card Debts: The Present Scenario in the US

Falling prey to unmanageable debts is not a rare occurrence in the US. At present, as per latest reports, the credit card debt figures are all set to assume mammoth proportions by the end of this year. While many of us might just “claim” to be successful with our debts, the reality is quite different— with CardHub, a personal finance website intimating that the credit card balances of the average household are well on their way to jump by more than $7k (than what they are now) as the year draws to its close. These circumstances, once again, calls for a closer look at the efficacy of professional Credit Card Debt relief services in helping you deal with your credit card debts

Credit Card Debt Relief: Once again emerging as a Menace in America

Taking from what has already been mentioned about the credit card balances of the US citizens, here is a glimpse of some relevant figures

  • The combined credit card figures of the US are well poised to cross more than $60 billion dollars than what they were in the previous years
  • The average credit card debt in places like New Jersey and Alaska ranges from $4,593 to $4,653 (as high as that!).

Now, the aforementioned figures have got experts thinking. It is true that the Americans have paid their debts more religiously than earlier. Still the current figures go on to prove that the Americans’ attitude towards debts has hardly changed. Though there is an increased urge to repay debts on time, the overall trend of depending heavily on them has not altered. And, this is worrisome though there is still time before the debts hit unsustainable levels.


Should you consider credit card debt relief services?

There is no dearth of credit card debt relief programs out there. Resorting to one of these programs might turn out to be the only option in such circumstances. Piling debts can be a result of various situations ranging from unwise spending to unavoidable circumstances including medical emergencies, unemployment and others.

However, before signing up for debt relief companies it would be important for you to understand whether at all the particular program is designed to meet your needs or not. An especially notable piece of advice would be to find out how fiscally conscious these programs are making you. Consumers generally tend to have a very short memory whereby they tend forget about previous economic lows just because they are presently experiencing a boom— thus believing it to continue for a considerable length of time— till they are forced to live from paycheck to paycheck again. One of the major responsibilities of your credit card debt relief program would be to help you align your finances keeping the economic difficulties triggered by Recession in view.



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