January 28, 2011
Courtesy of Preferred Financial Services
Has the economy over the past two years prevented you from purchasing big ticket items? Or have you purposely stayed on the sidelines because you were not sure about your employment situation and didn’t want to risk investing a lot of money in any one item? Well, recent data suggests that now may be a good time to jump back into buying mode when it comes to new cars.
As the economy has rebounded and mass layoffs are not an everyday occurrence anymore for most areas of the country, consumers are starting to realize that it may be time to replace many of their outdated items, including autos. As such, new auto sales hit a 2 and a half year high last quarter as Americans started to open their wallets again. More good news has come from Edmunds.com which reported today that auto loan rates hit a 9 year low of 4.16% in December. There are a couple of reasons for this but they all point to the fact that 2011 may be a good time to get that new car you have been looking for since before the recession hit.
One, the consumers that have survived the recent turmoil in relatively good shape have for the most part very good credit scores. This allows them to qualify for better rates than the average consumers and also explains why demand for higher priced vehicles outpaced the demand for lower model vehicles. Secondly, many automakers reintroduced 0% interest loans for new car purchases in the 4th quarter. This was a major reason why auto sales continued to post record numbers even while the unemployment rate remained high.
Please click HERE to read the rest of the article.
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Uncategorized | Tagged: auto sales, automakers, buy car, consumer debt, debt negotiation, debt settlement, Edmonds.com, interest loans, lower model, new car, recession, unemployment, vehicles | 
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Posted by dealingwithdebtblog
January 25, 2011
Courtesy of Preferred Financial Services
Are you getting fed up with new fees being charged by your bank? Is the customer service not what it used to be? Well, before you switch banks make sure you are ready for the process which can be extremely time intensive and frustrating. Remember, you are the customer, so if you are fed up, don’t feel bad, do the research, pick a new bank, and make the move. But whatever you do, don’t rush the process as small things can fall through the cracks and cause huge headaches down the line.
The following is a list of the basic steps that should be followed during your move….
- Do not close your old account as soon as your open your new account!
- Make sure you know of all the direct deposit and auto drafts that are currently active with your old account.
- Keep the old account funded for at least three months in case you forgot about certain drafts or deposits that could cause you to be charged fees and penalties.
- Create links between the two accounts so you can easily transfer funds between the accounts when necessary for the first three months.
- Once the new account is created, sign up for direct deposits and auto withdrawals from this new account.
- Once you know that activity at your old account has ended (most likely within the 3 month window), transfer the rest of your money to the new account.
- The last step should always be to close the old account!!
Readers, have you had experience with opening a new account? Did you close your old one or do you continue to have two? Was it a pain free or a painful experience?
Click HERE to see the original article.
Leave a Comment » | 1, Commentary, Tools and tips | Tagged: bank, bank fees, close account, debt settlement, direct deposit, link accounts, switch bank, transfer funds | Permalink
Posted by dealingwithdebtblog
September 14, 2010
The State University of New York system announced recently its plan to protect students from predatory credit offers. College students are often an easy target for deceptive credit practices, which is evidenced by the staggering debt many students carry by the time they graduate.
Coupled with a difficult economy and job market, and many graduates are facing serious financial trouble just as they’re entering “the real world.” In addition to more closely guarding students personal information, the school system will also offer financial literacy programs to educate students on student loans, credit cards, and other commonly used financial products.
Unfortunately, these reforms will not protect the vast majority of American consumers—and they must be vigilant about protecting their personal credit. When consumers are dealing with serious amounts of debt, and are unable to meet their financial obligations, they are left with really just a few options: Credit counseling, debt settlement and bankruptcy.
It’s important to research each option, its long-term impact on your credit score, and most importantly, to ensure that you’ll be working with a trustworthy partner to resolve your debt.
Leave a Comment » | Uncategorized | Tagged: bankruptcy, college students, credit card debt, credit cards, debt settlement, SUNY, usoba | Permalink
Posted by dealingwithdebtblog
September 7, 2010
One of our favorite personal finance blogs, Get Rich Slowly, offers these great, no-nonsense tips for getting out of debt:
- Stop acquiring new debt.
- Establish an emergency fund.
- Implement a debt snowball.
You can read the details about each step here, but we’d like to focus on the last: implementing a debt snowball.
For most consumers, the ‘debt snowball’ is a very effective, if lengthy, process for paying down debt. Unfortunately some consumers are dealing with an insurmountable amount of debt, and debt settlement may be their best option.
Typically considered the last resort before bankruptcy, debt settlement is a very serious tool for debt reduction, and consumers should thoroughly research the process, and any provider they’re considering, before embarking on a debt settlement program. Finding an accredited debt settlement company is a great first step to ensure that you’ll be working through the process with a trusted partner.
1 Comment | Uncategorized | Tagged: bankruptcy, debt settlement, get rich slowly, how to get out of debt, united states organizations for bankruptcy alternatives, usoba | Permalink
Posted by dealingwithdebtblog
September 1, 2010
There are many options for dealing with debt – credit counseling, debt settlement, bankruptcy and more. While many debate the use of each tactic, it’s almost a universal belief that bankruptcy should be the consumer’s last resort when trying to resolve significant financial burden. Consumers have a variety of reasons for attempting to avoid bankruptcy, including a personal aversion to filing, a commitment to repaying what is owed, concern over the long-term damage to their credit score, and more.
While bankruptcy may be the only feasible option for some, consumers should consider the following when making this important financial decision:
- Credit Score: Bankruptcy has the most severe impact on your credit score when compared to other debt relief options. Many think that once a bankruptcy is filed, things will go “back to normal” in short order. The truth is, bankruptcy’s impact on your credit score can keep you from doing many things – like buying a home or vehicle, obtaining certain types of employment and more.
- Timing: It takes time to file bankruptcy, and then more than seven years for the mark to be removed from your credit history. Filing for bankruptcy truly is a commitment – you’ll endure the consequences (both positive and negative) for many years to come.
- Cost: When filing bankruptcy, you must pay attorney and court fees, which add up quickly. When already struggling to make ends meet, the idea of adding in an additional expense can be just too much to bear.
Still not sure if bankruptcy is the right option for you? Check out this article on the different types of debt relief to help make your decision. If you have questions, contact the experts in each industry – credit counseling, debt settlement or bankruptcy—a trusted industry accreditation organization can provide advice specific to your financial situation.
Leave a Comment » | Uncategorized | Tagged: avoiding bankruptcy, bankruptcy, credit score, debt, debt settlement, united states organizations for bankruptcy alternatives, usoba | Permalink
Posted by dealingwithdebtblog
August 9, 2010
The Texas Review of Law & Politics published three articles examining the effects of the FTC’s recent ruling that prohibits debt relief companies from collecting advance fees.
The articles, published in the Spring 2010 issue, highlight the significant impact the FTC ruling will have on the debt settlement industry, consumers currently being serviced by debt settlement companies and all debt-burdened consumers.
A brief description of each published article:
- “Tax-exempt Credit Counseling Organizations and the Future of Debt Settlement Services,” is authored by Ronald D. Kerridge, a partner with K&L Gates LLP, and Robert E. Davis, also a partner with K&L Gates LLP who served as Deputy Assistant Attorney General/Tax/Department of Justice. This paper examines whether consumer credit counseling services, currently set up as not-for-profit entities, can legally make the transition to providing debt settlement services in the event that current providers of such services are largely eliminated; the paper concludes that such providers will encounter extremely significant legal and regulatory challenges in attempting to meet these consumer needs.
- “The Bear Hug that is Crushing Debt-Burdened Americans: Why Overzealous Regulation of the Debt-Settlement Industry Ultimately Harms the Consumers It Means to Protect,” is authored by Derek S. Witte, tenure-track Associate Professor, Thomas M. Cooley Law School. This paper asserts that DSCs need to be able to recover at least a portion of their costs of rendering services, as they render them. Even if a contingency model were workable, prohibiting DSCs from collecting payment as services are rendered will require consumers who complete the program to subsidize those who don’t complete, but nonetheless obtain value, making it difficult if not impossible for legitimate DSCs to compete with those who are not legitimate, resulting in misaligned incentives for DSCs, and ultimately harming consumers.
- “Hid(ing) Elephants in Mouseholes: The FTC’s Unwarranted Attempt to Regulate the Debt-Relief Services Industry Using Rulemaking Authority Purportedly Granted by the Telemarketing and Consumer Fraud and Abuse Prevention Act,” by Michael Thurman and Michael Mallow, both partners at Loeb & Loeb LLP in Los Angeles. The authors of this article assert that the FTC has engaged in a significant expansion of legislative authority in order to try to regulate the debt settlement industry and that such activism is unwarranted, illegal and risky.
About Texas Review of Law & Politics
The Texas Review of Law & Politics publishes thoughtful and intellectually rigorous conservative articles that can serve as blueprints for constructive legal reform. For more information, please visit www.trolp.org.
Leave a Comment » | Commentary | Tagged: credit, credit cards, credit score, debt, debt settlement, Federal Trade Commission, FICO, FTC | Permalink
Posted by dealingwithdebtblog
August 5, 2010
Hello there, DealingWithDebtBlog.com followers and readers! We hope you’ve found our content both valuable and insightful, and that you’ve been able to apply it to your lives to achieve financial freedom.
We’ve spent the last few months providing you with commentary on articles about the industry, tips on getting rid of your debt and tools to help you choose the right debt reduction plan for your unique situation. Now, we’d like to hear back from you!
In the comments section, drop us a line about what you’d like to see more of on our blog in the future – we’ll be sure to reply back to your comments, so be sure and check back often!
We appreciate your feedback and look forward to providing you with even more valuable content – thanks again for stopping by!
2 Comments | Commentary | Tagged: credit, credit cards, credit score, debt, debt settlement, FICO | Permalink
Posted by dealingwithdebtblog
August 2, 2010
Your credit score is very important. If you’re trying to buy a house or car, rent an apartment or apply for a credit card, lenders will look at your credit score to determine eligibility, interest rates and all other finance terms. The better your score, the better your terms.
In the United States, FICO credit scores range from 300-850, with 723 being the median FICO score of Americans. FICO scores below 600 are considered high risk borrowers, 620 being the dividing line between good and bad, 640 or above being “pretty good,” 650 as average general credit-use behavior, and above 690 or 720 being excellent.
So what can you do to raise your credit score? Paying your bills on time, keeping account balances low and applying for credit only when necessary are great starting points. For additional help, here are six tips from MSN Money:
- Pay down your credit cards. Paying off your installment loans (mortgage, auto, student, etc.) can help your scores, but typically not as dramatically as paying down — or paying off — revolving accounts such as credit cards.
- Use your cards lightly. Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month.
- Check your limits. Your scores might be artificially depressed if your lender is showing a lower limit than you’ve actually got. Most credit-card issuers will quickly update this information if you ask.
- Dust off an old card. The older your credit history, the better. But if you stop using your oldest cards, the issuers may stop updating those accounts at the credit bureaus.
- Get some goodwill. If you’ve been a good customer, a lender might agree to simply erase that one late payment from your credit history. You usually have to make the request in writing, and your chances for a “goodwill adjustment” improve the better your record with the company (and the better your credit in general).
- Blitz significant errors. Your credit scores are calculated based on the information in your credit reports, so certain errors there can really cost you. But not everything that’s reported in your files matters to your scores.
4 Comments | Tools and tips | Tagged: credit, credit cards, credit score, debt, debt settlement, FICO | Permalink
Posted by dealingwithdebtblog
Thinking about Switching Banks?
January 25, 2011Courtesy of Preferred Financial Services
Are you getting fed up with new fees being charged by your bank? Is the customer service not what it used to be? Well, before you switch banks make sure you are ready for the process which can be extremely time intensive and frustrating. Remember, you are the customer, so if you are fed up, don’t feel bad, do the research, pick a new bank, and make the move. But whatever you do, don’t rush the process as small things can fall through the cracks and cause huge headaches down the line.
The following is a list of the basic steps that should be followed during your move….
Readers, have you had experience with opening a new account? Did you close your old one or do you continue to have two? Was it a pain free or a painful experience?
Click HERE to see the original article.