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Thoughts on Credit Reports and Credit in General

I want you all to know I am ok. It has been awhile since I have posted anything, but that is only because I have been super busy with other things.

I got to thinking about Credit. When you are in debt, credit is bad. It is the root of your debt. At one time in your life, before debt, credit most likely was good. You were able to get credit when you needed it. Interest rates were low, or at least reasonable. You probably got those great offers in the mail that said, “get this card now for 0% interest for a year!” etc, etc. Credit is your friend when you do not have debt. Oh how quickly it can turn around on you though.

For instance, say you had to be off of work for an extended amount of time for, lets say, Cancer. You have insurance, so most of your doctor’s and hospital bills are paid, but what about that income you are so used to having come in on a regular basis? It may slow down or stop completely while you are off work. You may have some Short Term Disability or another type of insurance that can fill the gap, but guess what, it may take a little bit of time to establish the flow. In the meantime, you can’t pay your bills. You may miss a payment date. Do you think that your creditors care that you are late because you are off work due to a severe illness? Not really. They only care that you make your payments on time. They seem to be waiting, like vultures, for you to miss that payment date, them WHAM, they slap you with a late fee, they, in most cases, use your one time missed payment to raise your interest and, BAM, they promptly notify the credit bureaus that you are late. In no time good credit can turn to debt. Let me tell you that when it does, it may have been a short road to get there, but it is a long, long road to get back.

Yeah, I’m on that road. Will I see you there?

Thanks for stopping, come back often, stay long, leave happy.

Posted in Debt Management, Personal Finance.

3 comments

By freeworks – November 6, 2010

Is This The Real Life? Is This Just Tragedy?

Easy come, easy go. Well, no. If you remember where my saga ended (to catch up, go here), my freakin’ brother-in-law was stressing, and pushing me to tell my husband about all the new debt we had. Now, I had asked (begged) him to allow me to wait a couple of months, till December to be exact. He AGREED! HE AGRREEEED! Well, do you think he stuck to his promise? Here it is October 10, and guess what? Yes, my husband knows. That freakin’ bastard of a brother-in-law did not keep his promise. He thought it was his place, no matter what damage it did, to break his promise and give my husband the heads-up that he needed to “check his finances” and soon. Where is the love? Twenty-Three years in this family and that is the kind of loyalty to me I get from him? Well, that relationship is very much down the tubes, that is a given.

So here I sit, after the third reaming from my husband. Yes, I still live in the house. I ask myself every hour why? We did not have much of a relationship to build on before he knew I lied. And I lied! I really did lie! I am almost compulsive when it comes to him. I can not be honest in any aspect. Not about money, not about needs, not about sex, not about anything! He asks me something and I am just so damn afraid to answer him with the truth! He is extremely intimidating, and besides, any truth I give him, he twists, he denies, he makes me feel like a fool for saying it. Damn him, Damn Him! As you can tell, things are not well in our neck of the woods.

So help me out here. Anyone been in a remotely similar situation? Anyone lied to their spouse and not really known why? Or knew exactly why? Give me your feedback. I wanna know. What am I to do at this point. Strapped with Debt, guilt, anger, just where does one go from here? Its very surreal!

Well, bye for now, visit often, stay long, leave happy! (yeah right!) :)

Posted in Debt Management, Payday Loans, Personal Finance, Relationships.

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By freeworks – October 10, 2010

3 Steps to lead a debt-free life

Are you knee-deep in credit card debt? Are your debt accounts being turned down to collection agencies? Are you getting warning notices from your creditors? If the answer to all these questions is yes, then perhaps you must be looking for some options that can help you get rid of debt. There are many ways to clear debt. You can easily get rid of credit card debt by adopting some easy steps on your own, but it is often advised to take some professional help so that you can pay off your debts systematically and legitimately. Read on to know about the steps you can take to clear your outstanding credit card debts.

1.Enroll yourself in a credit card debt consolidation program

The best way to get rid of credit card debt is to enroll in a credit card consolidation program. In a debt consolidation program, your debt consultant will negotiate with your creditors and attempt to lower the interest rates on your credit card debts. Lower interest rate will reduce the monthly payments and thereby make it easier for you to repay your debts. The biggest benefit of paying off debts through a debt consolidation program is that you have to make a single monthly payment. Instead of writing multiple checks to multiple creditors, you just have to make a single monthly payment to the debt consolidation company. Pay off debts with the help of a debt consolidation program to help you clear debt.

2.Take help of a Debt Management Program (DMP)

Debt Management Program (DMP) is almost similar to a debt consolidation program. Here also, if you sign up with a debt management plan, then you can reap the benefits of lower interest rates, low monthly payments and you can get rid of harassing creditor calls. For using the services of a debt management program, you need to make a monthly payment to the debt management company. All your savings will be accumulated in this debt account and your debt consultant will disburse the money to your creditors when needed.

3.Go for a debt settlement

If you have no option left other than filing bankruptcy, then you may go for a debt settlement. While you go for settling your debts, your debt negotiator will consult your creditor where he may settle your debts to an amount much less than the actual outstanding amount. The cut off amount may range up to 40-60%. Generally debt settlement affects credit score to a certain extent as the creditor reports the credit bureau as “settled”. Therefore think twice before taking recourse to this option.

So, if you are looking for some easy way to clear debt, then take into account the above mentioned steps and pay off your debts in affordable monthly payments.

Posted in Debt Management, Personal Finance.

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By charles – September 29, 2010

Payday Loans, Important Facts

If you are in the market to take a Payday Loan it is best to be sure you have a reputable lender, one that will give you good terms and the best possible rate. Do a little research because they vary greatly.

Some lenders will only allow a 14 day loan while others will give you a monthly term. It is usually based on your pay frequency, but do some checking. Fees may be higher the longer term you have and the sooner you can pay the loan off, the better

There are lenders who will charge you as little as $15.00 per $100 borrowed, and up to as high as $30.00 per $100 borrowed. The difference is huge in what you will pay in fees.

You may find a Payday Loan lender who offers automatic renewal of the loan. This can really cost you a lot of money if you don’t watch out. They will automatically renew your loan every time it is due. They will charge you the finance fee only and not pay down any principal on your loan for five renewals. Then after the fifth, they start taking an additional $50 plus the refinance charge. The extra $50 will apply to paying down your principal. This may seem like a good way to do it, but you will end up paying three times what the original amount of the loan was by allowing this to go on. So be aware of the terms you are getting into.

To find out more about Payday Loan Lenders in an exclusive report that identifies the best lenders, mistakes to avoid, what to do and not to do regarding the Payday Loans, and also some alternative lending sources, go here now. There is a small fee for the report, but it could save you hundreds of dollars.

Thanks for stopping! Come back often, stay long, leave happy!

Posted in Debt Management, Payday Loans, Personal Finance.

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4 comments

By freeworks – September 27, 2010

In The Beginning, There Was Debt.


Way back when my husband and I met, I had no idea he was already in a financial bind.  I was single, had a great job, and super squeaky clean credit.  I pretty much could buy what I wanted. I had a great apartment full of nice furnishings. I owned a Chrysler Laser and a 1974 Corvette, royal blue, 4 speed, convertible. Yes, I was doing quite well.

I was quite taken by my husband at the time. He was impressive, he had a heart to help others, he was extremely handsome. We spent a short while courting. Oh, and by the way, we lived at separate ends of the country.  I had been vacationing when we met. We stayed in touch after I returned home.  I was in the mode to make a big change in my life, so I sold all my non-essential things (which amounted to almost everything) including my beautiful Corvette!  I downsized completely, loaded my car and headed across the country to start on a new adventure.

Well I arrived, we courted, we married. I did know at the time I married him that he lived a different type of existence than I had. He lived cheaply, he ranched for a living, he had debt. He did work very hard in his ranching business, but money does not flow from that. Its a very up and down business depending on the markets and long periods of time go by with no income. I guess I was a little charmed by this simple way of life though, and didn’t realize the long-term effects.

About a month into our marriage, the IRS came calling. My husband owed over $10,000 for back taxes from a botched non-profit business he owned before we married. The business had gone down the drain a year before, but the tax debt remained.

Oh, and then there was his nice, new 1 ton pick-up. Yes, also about a month in the bank came and collected that from us. They took the vehicle, sold it for less then it was worth, then sent us a bill for the difference.

So, how long does it take for one’s credit to be ruined once united in marriage? Well, lets say, a month! It realistically was a little longer than that because the pick-up was only in his name. The IRS debt was cleared up because I borrowed money from my Dad to pay it off, then paid him back over time. But all in all, before I knew it, my great credit was brought down quickly by being tied to my husband in marriage.

For better or for worse I guess they say…:)

That’s it for today, come back often, stay long, leave happy!


Posted in Debt Management, Relationships.

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By freeworks – September 13, 2010

Pay off debts with the debt avalanche method

If you have incurred a huge amount of debt load and you cannot arrange your monthly payments every month, then you can seek help of the debt avalanche method to pay off debt. This method of paying off debts is almost similar to the snowball method but it differs from it with one small and important detail. With the debt avalanche method, you can pay off your debts faster and pay less interest rate to your banks or lending institutions. Read on to know the steps of repaying your debts with the avalanche method.

1.Order your debts from highest interest rate to lowest: You may have been handling multiple credit cards and if it is, you need to order your debts according to the highest interest rate to the lowest. Watch out for promotional rates ending which they may do on the date promised when you enrolled or earlier than that. Also note that if your credit improves, it will not lower your interest rates magically. Order your lists from the highest interest rate to the lowest. This way you can pay off debt faster.

2.Pay the minimum amount to all debts every month: Make a list of all the minimum monthly payments due on all your credit cards. This is the amount that you need to pay towards each debt except for the one that has been listed on top. Also make sure that you make a list of the due date if it is relatively static from month to month. Your payments should always reach the credit card company within the due date.

3.Send all available cash to the debt with the highest interest: If you have got an emergency fund, then take help of it. Withdraw money from your emergency fund and try using that money in paying off the highest debt amount. Try to save money from your monthly income and try paying off debts. All the cash available should be dedicated towards the account with the highest interest rate.

4.Repeat this every month: Once you are able to pay off an entire account, repeat this process every month. Again make a list of the second account with the highest interest rate and start putting in all your efforts to eliminate that debt too.

This avalanche method is mathematically the best method of paying off your personal debt. No other method can get you out of debt and save your money at the same time. Thus follow the above mentioned steps to pay off debt and lead a stress free life.

  • Posted in Debt Management.

    14 comments

    By charles – August 27, 2010

    PayDay Loans, More Startling Facts

    So Hello,

    I believe you remember when I wrote about a nice lady I met on a website forum who had so much in common with me that she had to contact me? (If not, see blog titled “More Payday Loan Crunch Comments” to catch up.) Well we have been fast friends ever since and talk almost daily via text or e-mail. We have supported each other through many a crisis. I wanted to tell you some of the things she had been doing to get rid of her PayDay Loan debt.

    She had nearly $15,000 in payday loan debt at one time. She had been paying out nearly $3,000 a month! A MONTH! to these monsters. Some of her loans, well lets see… she had a $900 loan that she estimated she has paid $3,000 total on and still owed $800. She had a $500 loan that she estimated she paid $1,500 on and still owed $500. And it goes on and on.

    With my loans, I have kept from doing this as I paid them down and paid them off, then re-borrowed. This kept me current on most of them and never overpaying by too much. Hers have just run amuck for months on end.

    What she did: She has been writing letters like crazy, faxing and e-mailing. She has been threatening the lenders, reporting them as illegal lenders in her state. Most recently, she has had some victories. She went to her bank and put a stop payment on several of the debits. She then followed up with faxed letters and emails stating how much she had paid on the loans, quoting state law for Payday lenders, and declaring that the account be considered PAID IN FULL. Guess what, it has worked! They sent her letters in return telling her the account has been closed as paid in full, and in two cases, she has received big refunds of money from the over-payments! YAY for her and for the many consumers who have been burned from these payday lenders!

    This sounds like it was an easy process for her, but let me tell you, she was so scared! We both have read horror stories of people attempting this type of things with Payday Lenders who turn right around and debit your account for the whole amount they believe you still owe. It is truly amazing to have this work so well in her favor. She is not completely out of the woods with lenders, but her situation has improved tremendously!

    If you are interested in learning more about where to find the forum and help that I mentioned, visit this site:

    http://debtors-unite.intuitwebsites.com

    Thanks for stopping by today… visit often, stay long, leave happy! :)

    Posted in Debt Management, Payday Loans, Personal Finance.

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    5 comments

    By freeworks – August 26, 2010

    And the Beat Goes On!

    Hello fellow bloggers and debtors!
    Its been awhile since I posted something new. I plan to get back into the swing of it and continue my story of debt, corruption, and the payday loans! :) I just had the opportunity to take a two week vacation and visit family! Wow was it much needed. I saw people who I haven’t seen in years. Hurray for paid vacation time off work!! I traveled cheap too, being thrifty all the way. But still had one of the best vacations ever!
    Now, on to my debt saga. I left off with my wonderful Brother-in-law who is a Financial Planner (duh) looked over my situation and helped me get out of the Payday loan garbage. And then there is the freakin’ out Brother-in-law who wants me to confess everything to my entire family, refinance, co-sign my house over to him, etc!!! Whew, he is pretty self-righteous and verging on crazy! He totally despises me now and can’t stand, “what I am doing to HIS brother!” and OMGosh! I must be just an awful person. Well, like I don’t think that bad about myself already. I don’t need a lot of help to really feel down on myself. Oh but he has been willing to give it for sure.
    Well, the month has gone by, my finances are looking a little better. The payday loan debt is nearly all gone (what, did I say nearly?) I did, it seems that I could not go without taking just a little more. I ran out of money, again, even after all the payoffs. Those darn Payday Loans just bleed you dry a drop at a time. But on the good side of things, I’ve paid off one loan from Prosper, and there is another one (in my husband’s name) that will be paid off in November along with one more of mine…if I can make it. If I can make it, if I can make it… I will have nearly $1400 in payments gone! That, along with my payday loans mostly gone should make a huge difference for me. But only time will tell…until then, the beat goes on!

    Posted in Debt Management, Payday Loans, Personal Finance, Relationships.

    3 comments

    By freeworks – August 25, 2010

    New Report Tells All About PayDay Loans

    Get this new report to read all about Payday loans. It starts at the beginning explaining the payday loan process in detail. It talks about various ways lenders loan. Who are the best and worst lenders. Why you shouldn’t take a loan. Where to go for help if you are buried in payday loan debt. And much, much more!

    Get it now while it is available: Get report by clicking HERE.

    Posted in Debt Management, Payday Loans.

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    7 comments

    By freeworks – August 8, 2010

    More Payday Loan Crunch Comments

    Previously I have written about the Payday Loan Crunch and explained how you can get into a cycle of debt with them. As in my state, I have gotten a payday loan for the max amount allowed by my state, $1,000, then turned around and gotten another loan for the max $1,000 from another lender. Seriously, I have been carrying up to 18 loans in one month at times! I have owed to these loans right around $13,000. I’m sure you are saying, what? how? Well when you get into a cycle, you need to renew the loans each month. You pay only the interest or fees. So, you are paying out more money and need more money to pay your regular bills. So you get another loan.

    During my desperate attempts to find help for my situation of the horrible Payday Loan cycle that I fell into, I ran across a site, a community, where I found one lost soul after another in THE SAME TRAP!!! Yes, I was not alone, but good thing, or bad? The more I read through the forums on the site, the more my heart went out to all these people because I knew right where they were! I was right there too. One hopeless, desperate situation after another. One spouse trying to keep this a secret from the other. It is a sad reality that these people, and myself, are living in.

    I made a very strong friendship with another lady who found a post of mine and related so strongly to it she contacted me. We have so much in common. Huge payday loan debt, desperately trying to manage our money, our households, with the debt hanging over our heads and the secrecy, and yes, lies. We became fast friends, leaning on each other, talking about our stress, crying on each others shoulders, what a blessing to have found each other. I think it was meant to be. Just to have someone to tell, to know that I was not alone, or that maybe, just maybe, I am not as bad as I feel I am simply because I am not alone.

    If you are out there feeling this way, go to the link on the right, Debtors-Unite, and it will take you to this site. Find help and support I urge you if you are in this situation. You are not alone and there is help out there.

    Posted in Debt Management, Payday Loans, Personal Finance.

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    By freeworks – August 1, 2010