Bad Credit Blog

Do you have debt that is bogging you down and keeping you from reaching your financial goals? Using credit and debt can be a powerful tool that allows you to buy a home, a vehicle, send children to college, and even provide leverage for other purchases. But when you accumulate too much debt , it can pose a serious problem that affects other areas of your finances.

Here are some key warning signs that could mean that you’re in too much debt. While nobody wants to admit they are in debt, you can overcome it. The sooner you recognize there is a problem and begin to make changes, the better off you’re going to be. Don’t delay and put your other financial goals in jeopardy. Find out today whether or not you’re in over your head. Here are a series of statements to compare to your situation. If any of these apply to you, it is time to stop and take action to remedy the problem.

10 Warning Signs Of Too Much Debt

1. You don’t have any savings.
2. You only make the minimum payment on your credit cards each month.
3. You continue to make more purchases on your credit cards while trying to pay it off.
4. You have at least one credit card that is near, at, or over the credit limit.
5. You are occasionally late in making payments on bills, credit cards, or other expenses.
6. You don’t even know how much total debt you actually have.
7. You use cash advances from your credit cards to pay other bills.
8. You bounce checks or overdraw your bank accounts.
9. You’ve been denied credit.
10. You lie to friends or family about your spending and debt. Take Action Now

Sometimes we know deep down inside that we have a debt problem, but it is easier to deny the problem than to address it. It can be painful and require hard work, but the sooner you realize that you are in over your head, you can begin to make positive changes. Delaying changes to your habits will only prolong the problem and make it worse. If you don’t think you can tackle the problem alone, there are people out there willing to help.

Source: www.About.com

By Jeremy Vohwinkle

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

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By Leslie Kearney

10+ years ago credit counseling was something I had never heard of. Not that they didn’t exist, it’s just that until you need something you tend to not go looking for it.

I had been out of steady work for 6 months and temping for low pay, barely keeping my head above water. Needless to say credit card bills were not as important as rent and electricity and I fell behind and that’s when the interest rates began going up, and up, and up . . . well, you get the picture!

After finally landing a full time job I knew I needed to start getting my finances in order so I started researching.

Credit counselors are typically non-profit companies. They are direct liaisons between you and the credit card company. All those calls you get about your late payments become a thing of the past when a they step in!

They contacted all my credit card companies and negotiated a set interest rate (way below where it was). Then they faxed me the pre-filled-in forms and all I had to do was sign!

So, now instead of making 6 payments I made one each month to the counseling agency. For a $25 a month fee (way less than the cumulated interest I was saving!) I sent them my money and they distributed it electronically to each and every credit card company.

In 3 years my credit cards were completely paid off and I was debt free. My credit score went up significantly and on my next new car purchase I was able to get 0% interest through GM financing!

Signing up with a credit counseling agency was the smartest thing I ever did. I was drowning each month, unable to make the minimums. Late fees were racking up and no matter how much I paid them the balance always seemed to go higher instead of lower! Working with them took the stress off me and allowed me to budget in the payment each month. Just like all my other bills the payment went out and was taken care of with no stress or hassle.

If you are considering using one, and you have more than $5,000 to $10,000 in credit card debt, you won’t regret it. It never hurts to do your research and talk to one. In three years you can either still be struggling to make the minimums or debt free. It’s your choice!

If you’re not sure then click here and take a simple assessment. Take the first steps toward financial freedom and see if credit counseling is right for you!

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

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By Dewey Kearney

Many people are afraid to sign up for credit counseling for fear that it will negatively affect their credit score. But the truth is that if you contact one to help you set up a budget or make a financial plan this doesn’t affect your credit score at all. Most agencies don’t report to the credit bureaus when you sign up for a debt-management program, either.

So what exactly is a credit counselor? Credit counselors are nonprofit agencies that act as a mediator between the individuals and their debtors.

When the FICO score was introduced in 1989 it was administered through the credit agencies and attention was paid to the use of credit counseling. Contacting a credit counselor would drop your score one or two points. That rule was changed in 1998 in response to consumers concerns.Most of the counseling companies don’t report to the credit agencies that you have signed up to receive help. The creditor may report if the debt is being repaid through a reduced payment program. This should be a minor concern if you are in debt and in need of counseling to help manage things.

I went through a personal bankruptcy in 1989 and I said to the attorney who was handling things that I was concerned about my credit rating. His response was, “Son, it’s already in the toilet. Let’s clear things up so you have some breathing room.” And he was right.

Contacting a credit counselor is the same thing. If your creditor reports that the debt was “not paid as agreed” that could temporarily lower your score. However the effect will be small in the overall scheme of things because it will help you get out of debt!

Trust us! A ding on your credit stating it was “not paid as agreed” vs. “charge-off” (never paid at all) is much better! The most important thing – is that you don’t miss any of the payments to the credit counseling agency.

Even if you are making reduced payments the creditors (like car loan lenders) will usually look at whether the payments are made on-time and how the balance compares to the credit limit.

Not sure if credit counseling is the way to go? Click here to take our online assessment. It never hurts to research it and find out. Your debt situation won’t get any better if you don’t take action, so start today!

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

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By Amber Stubbs, CardRatings.com Reporter

Lurking among many other credit related myths is the belief that paying off credit cards may cause your credit score to decline. I continue to hear this and other related credit scoring myths from consumers that I interact with on a daily basis. In reality, when you pay off credit cards you decrease your overall utilization - your total balances vs. your total available credit - which improves your score.

In fact, utilization accounts for approximately 30% of your credit score. It is best that you keep your overall utilization below 10%. For example, if your total available credit on all credit cards is $25,000, then you want to keep your collective balance at less than $2,500. And, the lower your utilization is the better your credit score. So, the idea that paying off balances will negatively affect your score is simply not true!

However, the above scenario should not be confused with closing credit card accounts, which could have an adverse affect on your score for two important reasons. First, as discussed above, you have to consider how it will affect your utilization. Typically, closing an account will cause your utilization to increase and, as a result, your credit score to decrease. So, it is important to do the math before making a final decision. (Keep in mind how it could affect your utilization in the future as well!)

Additionally, you have to consider the age of the account. If it is one of your older credit cards, then it could also adversely affect the length of your credit history which makes up 15% of your FICO Score . Most of the time it is better to just “sock drawer” the card if you do not plan to use it anymore. That way having an account in good standing and the available credit is continuing to help your credit score.

Just be sure to remember to use the card about once per year for a small purchase, then pay in full when you get your statement. Doing so will help the account stay active and reporting as such to the three major credit bureaus . Reporting your on-time payments (preferably to all three major credit bureaus) is an effective way to boost your credit score. On a related note, it’s also a good idea to check with your creditor to find out which bureaus they are reporting to.

REF: www.cardratings.com

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

If you know someone struggling to quit smoking we found a great site that offers genuine  help. You can Quit!!

Here is a great site for some wonderful Christian articles, short stories, plays, family stories, Bible studies etc. Check it out.