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There are many rewards to leading a lavish life. However, there is a price we have to pay for leading such a life. I realized much later that debts had kept on piling and now there was a huge mound of debt that I was to pay off. This had affected my credit score so drastically that I could not even get credit at favorable terms and conditions. I then became determined to improve my credit score by trying every means possible. It was at that time when a friend suggested that I should go for consumer credit counseling . I also realized that I had 3 outstanding credit card debts and a total amount of $25,000 on 3 cards. To improve my credit record I decided to pay off these cards

I want to share what I did to repair my bad credit record, so that you may draw something out of my experiences if you are in a similar situation.

1. Ordered for my credit report: It was very important for me to improve my credit score that had gone down drastically. So I ordered for my credit reports from all the three major bureaus- Experian, Equifax, TransUnion. I reviewed all three of my credit reports thoroughly to check if there was any inaccurate information.

2. Disputed the inaccuracies: I realized that one of the debts that was charged to my account was not mine. After carefully going through my credit report I also noticed that a debt that I had already paid was still appearing as outstanding in my credit report. I disputed these inaccuracies in my report and was successful in getting them removed from my credit report. This helped me in improving my credit score.

3. Budget formulation: A counselor from the consumer credit counseling agency helped me formulate a budget. This provided me with a clear idea of what my income was and where was I spending it. The budget helped me realize that I was earning enough to live a decent life but it was not enough to indulge in luxuries or to pay off the debts that I presently had. Thus, I adjusted my spending as per the situation.

3. Credit card consolidation: I had to pay off the 3 credit card debts if I was ever to improve my financial situation. As my financial position permitted me to make at least some payments, so I opted for credit card debt consolidation. The total amount of debt after the disputed amount was removed came up to $25,000. The minimum payments that I was making towards my bill were as follows.

Minimum payment on the first card with debt $7,000, at 11% was $770
Minimum payment on the second card with debt $8,000 at 15% was $1200
Minimum payment on the third card with debt $10,000 at 12% was $1200

Thus, my total minimum monthly payment came up to $3170. The debt consolidation company got my interests reduced and after the reduction I had to pay $2000 every month to the company, this included the professional fees as well. I had to pay much lesser than what I was supposed to pay originally and my late fees were also waived off.

I have managed to pay off my debt and also succeeded in improving my credit score by several points. I would advise everyone to check their credit reports and increase their score (if required) before applying for a loan.

Are you finding it difficult to pay all your credit card bills separately every month? Then Debt Consolidation is the solution. These days when people have started holding more than one credit card and also purchasing is usually carried on these cards, there are numbers of bills waiting for payment every month. And that’s not all as if you don’t pay these bills on time, the credit card company will charge you interest and naturally this interest is higher than the interest charged on consolidation loan. Hence, you end up paying more money. Apart from these, if you don’t pay your bills on time or are declared to be a defaulter then you will end up ruining your credit record. All these sound really scary and if you don’t want to pass through all these hassles then Debt Consolidation will be the right solution.

This will help you consolidate all your bills in a single monthly payment. There are many companies that provide consolidation loan at very low rate. This way you can manage your payments and also protect your credit record. You don’t need to remember so many payment dates and hence save lot of time. You have to remember just one payment date and can stick to it forever. But at the same don’t take this decision in a hurry. It’s important to select the right Debt advice or Debt Consolidation scheme so as to save on interest. If the interest on such consolidation loan is higher then you will end up paying more instead of saving. This will definitely save your credit rating also and again you have the liberty of fixing your monthly outgo. Not just that, you can know from the very beginning, the amount that you need to pay and also the duration for which you need to pay. Hence, you can plan all other financial commitments accordingly and manage your money in an efficient manner.

The Debt Advice is available for free on internet and you can just go through that before selecting any such consolidation scheme. Just go through the different search engines and you will get the list of good companies providing this benefit. Don’t forget to go through the terms and conditions before selecting the plan as a slight change in condition can turn out to be a big disaster in future. If you still have any confusion then doesn’t forget to take a professional help.

It is the time of the year again when we all make resolutions to try improve our lives. If you are one of millions who set financial goals, but never seem to reach them; there are a few simple steps you can take to achieve each and every one this year.

Setting Your Starting Point

Before you can get started setting any type of financial goal you should have a clear picture of your current financial standings. Make a spreadsheet of your monthly expenses separating any “extra” income that can immediately go towards specific goals like savings and paying off debt. When you gain a better understanding of how you spend monthly, you may find new resolutions all together! It’s possible to meet your “start saving for college” goal, you just need to dine out less giving you that little extra to meet your marks.

Be Realistic About Your Battles

Now that you have a picture of your financial standings, it is time to make a list of all of the financial goals you want to achieve in the year. When making this list, remember you are working with in a twelve month time span. If “becoming a billionaire” is number two on your list, you need to readjust your goals to be more obtainable. It is important to push yourself, but be sure your goals are both obtainable and realistic. Some great annual goals include paying off your credit cards, saving for a down payment on a house, or start saving for retirement.

If You Fail To Plan, You Plan To Fail

List in hand, your first instinct is to jump right in and accomplish these goals! Not just yet, as it is important to set very specific plans to reach your each of your financial goals. This step is crucial and often overlooked, leaving many to fail in their goal achievement. Use your monthly expenses spreadsheet during your planning. The plan in which to reach your goals is just as important as the goals themselves.

Use All Resources Available

Remember that when it comes to finances there are many areas where most of us are completely in the dark. It is not a bad goal to become more financially savvy in the new year. Each month learn something new about your finances. A couple great places to become more savvy is learning more about your taxes and current investments. If you have credit card debt, look into lowering interest rates or eliminating the cards with the highest interest rates completely. Rewards programs on your current credit cards can be used towards your financial goals, or even to avoiding going further into debt and getting off track. Just because you are trying to reach a few financial goals doesn’t mean you can’t take a holiday this year.

Everything Is Better Together

One of the final steps in reaching your financial goals in the new year is to find a goal buddy. When held accountable, people are much more motivated to accomplish their goals. A spouse is an excellent source for a financial goal buddy and will help you both have a firm grasp on your family’s finances. If you’re single, find a friend or family who is financially savvy and ask them to be your goal buddy. For those who are private and prefer not to include a person they know into their personal financial picture, remember there are many tools online to help you out. There are sites to sign up for monthly accountability newsletters and other user groups you can join to help keep you accountable and moving towards reaching every one of your financial goals this year.

Timothy Ng is a personal finance writer, and has a real passion for encouraging people to compare credit cards to ensure they get the best deal. Check out his comprehensive guide to credit cards where he provides an in-depth overview and analysis, to help you find a better deal.

If you’re a homeowner who’s in the verge of foreclosure proceedings, then you’re probably wondering just how soon or quickly can a bank begin such an endeavor. With that said, here’s how bank foreclosure proceedings go and the amount of time it takes for each procedure to run its course. Legally, a bank could wait ten, thirty, sixty, or ninety days to start the foreclosure process, but the majority of them will wait for ninety days and send you quite a lot of postage mail warnings before they actually go through with the actual foreclosure. Yes, your unpaid loan usually has a ten day grace period, but the bank will at the very least wait out the first ninety days before foreclosing (i.e., they probably won’t begin foreclosure proceedings on the eleventh day after the deadline for your loan payment).

On that note, it’s probably in your best interests to keep in touch with your bank and inform them of your problems in paying on time. If you cannot pay off your loan at the agreed-upon date, then you need to start thinking about how you can avoid missing payments in the future. Re-financing may be in order, or else you can sell before things get even bleaker for you. The most crucial point you need to tackle when you’re at the verge of a foreclosure is knowing exactly how long it’ll take from the first miss payment to your actual eviction. A lot of foreclosure victims are victimized because of their ignorance of this matter, which is a shame because it’s one of the foremost factors that they should worry about in the first place.

Foreclosure Time frame and Scheduling

Without knowing beforehand when the foreclosure has started or if it’s going to get started at all will leave any homeowner frazzled, distressed, and stressed, as though he or she has little control over the circumstances. In this case, knowledge goes a long way, particularly information pertaining to how long you have after the sheriff sale before you’re removed from your home or when the auction will be started in the first place. The ninety-day maximum grace period just tells part of the story – that is, the initial time before the actual foreclosure proceedings commence – so there are of course other things to consider before you have an assuredly firm grasp of the foreclosure time line.

By being aware of how the foreclosure will go about, you should be able to plan out some reasonable measures or countermeasures against this potential financial catastrophe, particularly how to stop the foreclosure with the time you have left. Depending on your state, the foreclosure time frame will differ, so it’s best that you research your own home state’s laws regarding this issue as soon as you can. Find out the schedule for notice postings or mailings, after-the-sale redemption periods, and the scheduling plus confirmation of the sheriff auction. State laws also determine when a sheriff sale is postponed, so feel free to look that up as well.

Property is widely understood to be one of the most secure and financially rewarding areas to invest. The only difficulty is that raising the capital to purchase a property outright is something that most of us won’t be able to achieve during our lifetime. That’s why we turn to money lenders such as banks and credit unions for assistance. With so many different lenders and loan packages out there, it helps to have some expert knowledge at hand, and that’s where a specialist mortgage broker can really help. With their expert knowledge and industry connections, a mortgage broker can secure the right loan to suit your specific needs.

Choosing the right mortgage broker

So, we know that a mortgage broker can help us choose the right home loan, but what about choosing the right mortgage broker? While it’s true that mortgage brokers are traditionally paid by the lender, rather than the borrower, it’s important that your broker is finding the loan to best suit YOUR needs, not just the first offer that’s going to line their pockets. So do some shopping around to make sure you select a broker that’s looking out for your best interests.

Which lender should I go with?

The reason why mortgage brokers are so useful is because they can provide expert opinion and industry connections that most people are not generally privy to. Having access to this information puts the broker in an excellent position to find the loan that will best suit the needs of their clients. However, that’s not to say you shouldn’t be prepared with a little knowledge of your own, and understanding the different kinds of lenders who are available will allow you and your mortgage broker to make the best decision in relation to your financial situation.

Traditional Banks

Borrowing from the bank is one of the more popular ways to secure a mortgage, mainly due to the security a bank can offer. For most people, by the time they become interested in acquiring a home loan, dealing with the bank is already a very familiar process, they have built up a level of trust towards their bank, and they feel safe borrowing from them. Often however, this sense of trust can be misleading, and often banks will not be able to offer the lowest available interest rates. Coupled with a lengthy (and often rigorous) application process, you may wish to look elsewhere.

Credit Unions

A credit union is a cooperative financial institution that is operated by its owners in order to make a profit by providing credit at highly competitive rates. The clear advantage in dealing with an institution like this is the potential to save thousands of dollars during the duration of the loan. What’s less appealing about these lenders is that their contracts will usually include a caveat that allows them to recall your loan in case they face financial crisis themselves. For this reason, borrowing from a credit union is considered far riskier than dealing with the bank.

Bad credit lenders

As the name suggests, bad credit lenders specialize in financing people who suffer from bad credit. Although this may sound like a very generous provision on their part, they do so only for an incredibly high return, meaning interest rates on these types of loans are through the roof. For some people, bad credit lenders are their only option when it comes to securing a loan. However, if at all possible, these lenders should be avoided in favour of something less financially straining.

At the end of the day, the type of lender you and your broker decide to go with needs to be the one that best suits your purposes. If you don’t mind taking a risk, borrowing from a credit union could save you a fortune. On the other hand, the bank is always a good bet when it comes to playing it safe. The best advice we can give is to make sure you discuss everything with your mortgage broker in detail, and remember, a mortgage broker might be paid by the lender, but they work for you.