Bad Credit Blog

If you have been having financial trouble for some time and wondered if there was any debt relief in your future then it’s time to cheer up, the answer is YES!

If you don’t get a handle on your past due accounts there is no hope for the future. We have been there ourselves, that’s why we built this site, to help others. So let’s look at some options.

First let’s get a handle on your credit card debt . If you are like most Americans you’re credit cards are maxed out! The average person in the USA has 11 credit cards according to the banking industry. Eleven credit cards are way too many; you should have not over two or three. If you are looking for debt relief and are considering getting rid of some cards the first rule is to get rid of the credit cards you have had the shortest time not the old timers. Part of your credit score is computed by how long you have had the credit card, thus a card you have had for 10 years is worth more than one you got yesterday for credit score purposes.

Of course, if the older card company is jerking you around and making you pay 30% interest then it’s better to get rid of the card. Just don’t throw away ALL of your older cards!

The easiest way to start feeling some debt relief is to pay more on the cards that have the highest interest first. Make the minimums on the others if you have to, but get those high interest rate cards paid down. Never just pay the minimum; you will never get out of debt. Keep chipping away at these till you have them paid down. It may take a while, but we know you can do it!

When you have the cards with the highest interest paid by approximately 40 – 50% call them and ask for an interest reduction. Tell them that you want to keep their card but unless they give you a rate reduction you are going to pay it off and cancel the card. They will in all likelihood cut the rate considerably.

Set up a budget and live by it. This is the true answer to debt relief. We have budget forms available on our site both the one-month and twelve-month, and they are FREE. They are easy to work with and will help you to see EXACTLY where your money is going each month (you’ll be surprised!)

What Do I Do If My Debts Are Too Far Behind And My Credit Card Companies Won’t Work With Me?

Let me say first off, try everything before bankruptcy. In 1989 – 90 I owned a business and took out an SBA loan so I could purchase a second one from a “friend” of mind, who I thought wouldn’t lie to me. Well, he misrepresented the facts about the business. He wasn’t making the money he claimed and it drained all our money from both businesses and forced us into bankruptcy and out of business – one of the saddest days of my life.

So when I say don’t declare bankruptcy if you can avoid it, I know what I am talking about. Our credit was ruined for 10 years. Plus the new bankruptcy laws won’t allow you to wipe the slate completely clean on credit card debt. So let’s explore another debt relief option. Credit Counseling. Credit counseling is a way to get some debt relief and get your payments under control. With credit counseling you can pay off your credit cards in about three years. There are upsides and downsides to using a credit counselor though so you’ll want to consider these facts.

What does a credit counselor do? A credit counselor takes all your current credit debt and contacts the creditors to negotiate a “pay-off” amount. Sometimes they say they negotiate a “lower interest rate.” It’s the same principle. It lowers your monthly payments. Why will credit companies do this? For a couple reasons:

First – they are guaranteed a payment from you every month until the principle amount is paid off. And to their thinking, something is better than nothing.

Second – the credit cards are canceled so they know you won’t run up more credit debt with them.

You agree to cancel the cards and get set up on a payment plan. The credit counselor will collect the money each month in one payment and then pay each creditor their piece of it, so you don’t have to keep writing multiple checks.

Upside – Some much needed debt relief! And your payments are finished in three years.

Downside – Your credit score will not go up until you are finished paying off the credit cards.

If you’re not sure a credit counselor is right for your situation you can take our quick survey by clicking here.

Repairing Your Bad Credit

Once you have managed your past due bills, the next thing you will want to do is start to improve your credit score. Here are some steps you can take.

Order a copy of your credit report. Order all three. You can get them from free credit report.com here. At least 79% of the credit reports contain some errors according to the credit agencies themselves.

The LONG way to fixing your credit involves writing to the credit bureaus (one letter, one disputed item) and challenge any item that is wrong or outdated and ask them to remove it. They will contact the creditor and then make the decision as to what to do. Don’t be surprised if nothing happens in your favor.

The SHORT way is to use a credit attorney to get things moving. We recommend Lexington Law because of their track record in this business. As attorneys they know what it takes to clean up your credit report. Can you afford this? Absolutely! They charge a modest monthly fee with a 100% satisfaction guarantee if you are not satisfied! How can you afford not to!

Debt relief is possible, but only if you don’t procrastinate! You can do it, with a little effort and perhaps some help from a credit counseling agency. Good luck to you! Don’t delay!

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 Spiritual articles, short stories, plays, family stories, Bible studies etc. Check it out.

Sounds cliché I know. Save money for the holidays. But did you know that the average American will spend about $791.10 this year on holiday gifts (including food and decorations), according to a recent survey by the National Retail Federation?

What’s more, consumers will also plan to spend on average $99.22 on gifts for themselves!

If spending $890 isn’t in your plans (and don’t forget to add credit card interest to the total), it’s time to get smart before you get trapped. Here are some ways to save money during the upcoming holidays.

1. Try A Non-Traditional Tree To Save Money For Presents
   • Cut your own tree! If you live near a National Forest, contact your local Forestry Office to see if they sell Christmas Tree permits. My son lives in Northern California and his family does this every year. It’s cheaper than buying from a lot and you can make a family day of going out and picking your own Christmas tree!

This is not an endorsement of Christmas Tree farmers who let you cut a tree for yourself. Those places are usually more expensive in which case you’ll actually save money by going to the local WalMart shopping center and picking a pre-cut tree.

1. • Get a well-made artificial tree. All the major retail stores sell them and if you spend some time checking them out you can find some very realistic looking trees.

I bought one last year - an 8-foot tree for about $100.00. That sounds like a lot but if you figure the average real tree costs $40 to $50, this one is paid for in two years and could last a lot longer than that. If you take your time and look around (not just Target and WalMart) you can actually find trees that look so real it’s a little unnerving.

Here’s a tip: DO NOT buy the artificial trees with the built-in lights. The lights only last a season or two and they are too hard to replace so you end up throwing the whole tree out every couple years.

2. Brave The Post-Thanksgiving Crowds!
   • If you’re not faint of heart, you can actually save money by shopping the Friday after Thanksgiving according to Ellie Kay, author of several money-saving books, including The Debt Diet. Kay is a firm believer in bargain hunting and has done so for years. She says, “I often start at 5 a.m. and finish about 9 a.m. just in time for breakfast and a nice cup of coffee.”

Kay suggests that you shop strategically. “Plan your day in advance, and then read through the sales circulars on Thanksgiving so you’re well prepared. Be sure you know the store opening times, which often are as early as 5 a.m., and watch for the fine print regarding popular items such as ‘until stock runs out’ or ‘available to first 100 customers.’” If you have a bargain-minded buddy she also suggests you take them along. My wife had two of those that she loved to shop with. She said these friends could sniff out a bargain a mile away!

Thanksgiving sales are a great way to save money on holiday gifts, plus you get the first choice on some really nice gifts, not the “sloppy seconds” most stores have about a week before Christmas.

3. Use Up Store Credits And Gift Cards
   • I’ll bet you’ve wondered why gift cards are so popular with merchants. It’s not for your convenience but theirs - up to 70% of those are never used! Some of them expire after a certain date, which means the money is theirs to keep and you never actually purchased something. If you still have a gift card the holiday’s are a great time to use it before you forget about it again.

This is a great way to save money AND keep you on a budget! If your card is only good for $50 try to keep at or under this amount so you don’t dip into your own pocket.

4. Don’t Shop For Yourself
   • I know it’s tempting - the old Madison Avenue mentality, “You deserve it, you’ve been working hard.” Remember that National Retail Federation report that the average shopper will spend $99 on themselves. Take yourself off the list and save money. Wait until AFTER the holidays then take the gift cards you’ll probably get and use them on yourself with the after-Christmas sales!
5. Shop Early Online
   • This is a great tip if you know you will have trouble controlling your spending. Avoid the mall and do targeted online shopping. No need to wait till Thanksgiving, this type of shopping you can do all year and put the items away till the proper time.

Lots of online stores offer free or discounted shipping (plus most of the time you don’t have to pay sales tax). I just recently discovered that KBB toys would offer you $20 off or free shipping (whichever is cheaper) on your purchase if you agree to a 90 day billing. Who wouldn’t do that!

6. Keep A Running List Of Things You Want And Shop For Them Throughout The Year As They Come Up For Sale
   • Many times the perfect gift will be on sale after Labor Day for 50% off. You can save money by taking advantage of that and pocketing the difference. The same thing for After-Christmas sales - they are the same online as at the mall plus you avoid the temptation to over-spend.

Look for opportunities to save money and you will find them. Instead of paying full retail you can get them for practically wholesale and save money all year long.

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 Spiritual articles, short stories, plays, family stories, Bible studies etc. Check it out.

I was talking to a friend of mine the other day. I knew he was deep in credit card debt. When I enquired how things were going with his New Years Resolution to get out of debt he hemmed and hawed and finally told me it wasn’t going very well.

They were supposed to sit down and make a Simple One Month Budget but his wife and he just never seem to get around to it. Confidentially I know it’s because he thinks if they budget their money they won’t have the freedom they think they have now to buy things when they want them. But the truth is, by having so much credit card debt they are never really free at all.

They can’t take any big, fun vacations with the kids. They want to own a home, but can never save for a down payment. And getting a new car is not anywhere in the near future because they don’t have any money to spare on a car payment.

So they fill themselves up with TV’s they don’t need, clothes that don’t get worn, etc. etc.

This got my wheels spinning because I have been in credit card debt in the past; maybe you have too and can identify with what I’m about to say. Here are some of the dumbest reasons for NOT getting out of debt.

1. Our credit card debt is all (his or her) fault. Money is the #1 reason for divorce in this country. Instead of taking personal responsibility they play the “blame” game. One of you needs to provide some financial leadership. It’s not always the man’s job (or woman’s). It’s whichever has the best head for money management. The other partner needs to cooperate.

2. Credit cards are the only way that I can get what I need. (Translated: want). What is really needed is a budget. We have provided both a Simple One Month Budget and a 12 Month Budget that are guaranteed to work if you really want to get out of credit card debt. If you are in too deep then try a credit counselor. Credit counselors will structure your debt so that you’re debt free in three years. How great would that be!

3. Spending makes me feel good. I love being spontaneous! I’m not a psychologist but I have read of people that get a high from spending. There’s also a section of people who get the same feeling from shoplifting. If you fit this get professional help. Someone once told me that they feel “free” when they spend. They are lying to themselves, they are not free, but rather a slave. Don’t be foolish!

4. If I get too deep, I’ll get another credit card with 0% and transfer the balance. Well, duh! That’s so unintelligent that I won’t comment!

5. I’m not paying “that” much in interest. Oh, really! If you run an average credit card bill of $6,000 and if that amount remains level for a year and your interest is 21% which is average for this type of person, you are spending approximately $1500 in interest charges alone! AND that’s just for one year of credit card debt. Einstein’s definition of insanity is “doing the same thing over and over expecting different results”. Still think you don’t need help (LINK)

6. I don’t think I can ever afford to retire; besides I love my work. I’m not sure our Creator ever intended us to completely retire as we see it done today. But consider what would happen to you or your family if a disaster should happen. You’ve got to have an emergency fund, otherwise you’re just one paycheck away from being homeless!

7. I’ve had credit cards so long now that I don’t think I can live without them. You can and you must if you ever want to be free. There is nothing wrong with using a credit card occasionally for an emergency. However a night out is not an emergency. If you can’t handle a credit card responsibly, then don’t carry one.

Let me make a confession; When it comes to credit card debt I am no different than you, so I don’t carry my credit cards. I carry a debit card only most of the time and always know exactly how much I have in my checking account so I don’t overdraw. I know all too well the lure of “free money.” But using credit cards obligates you to spend a portion of your pay each month to pay those cards off. Money you could use for a lot of other things!

If you need help with your credit card debt we have it. Our site is dedicated to helping people with bad credit get the help they need. Don’t keep fighting month after month to just keep up with the bills. Take some simple steps right now to start paying them off completely and you’ll find that the real adrenaline rush comes from having extra money in your pocket (and bank account)!

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 Spiritual articles, short stories, plays, family stories, Bible studies etc. Check it out.

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!

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.

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!

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.

By Dewey Kearney

A good friend of mine, Tom, knowing that we had a website for people with bad credit, called and told me that he had made some bad investments and wanted my help. Now, I’m no investment counselor or stockbroker so at first glance I wasn’t sure I was going to be able to help him.

The obvious question was what kind of help was he looking for? He replied that he wasn’t exactly sure but after some probing I found that he was looking for a genie in a bottle. You know, someone who by blinking, twitching their nose or some other unexplained trick could make his problems disappear. I’m afraid that is the stuff of the movies, not real life.

On further digging I found that my friend had used very poor judgment. Someone had told him of a good investment that just “couldn’t miss” and he had fallen for it. This “investment” was in a start up company with a new product that was supposed to double your gas mileage. Who wouldn’t be interested, he said?

The problem was he didn’t have the liquid assets for the investments so he had taken cash advances on his credit cards to fund this. See what I mean when I said he used poor judgment? Once I realized the true problem was overwhelming credit card debt and high interest rates I knew I could help him. Whew! I was sure he was going to ask me for investment advice!

I recommended that he talk to a credit counseling service from our site to get the payments to a manageable size. These people are Pro’s! “What about the negative impact on my credit,” he asked? My response? “Your credit is already damaged since you maxed your credit cards and made several late payment for this so-called “investment.” Get those payments down and start making them ON TIME and your credit score will rebound.”

I explained to him that credit counselors are non-profit organizations whose only interest was in helping the client, not damaging them further. I suggested that he go to our website page and contact a credit counselor ASAP.

If you are in the same boat as my friend Tom, may I suggest the same thing to you? What have you got to lose by working with a professional who can negotiate a fixed payoff of those high interest credit cards you’re struggling to pay off? It won’t happen overnight but it will happen – and the sooner you get started the better!

Still not sure if credit counseling is the right course? Click here for an online questionnaire to see if it’s right for you. No obligation, no filling out an email or phone number first! Free from use to 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!

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.