Finance, Loan, Debt and Credit.

March 31, 2012

6 Tips for Informed Debt Consolidation

Filed under: Debt — Tags: , , , , — admin @ 12:48 pm

The debt consolidation industry has grown in leaps and bounds over the past couple of decades. If you are in over your head with excessive debt and are considering bankruptcy, it is advisable to look into debt consolidation as an alternative. Debt consolidation involves the pooling of all of the smaller, individual debts you owe into one larger ‘consolidation loan,’ allowing you to make only one – hopefully affordable – payment and to eventually pay them all off.

While debt consolidation can seem like a debt relief dream come true to someone stressed with money issues, there are some caveats. Debt relief is almost always a better alternative than bankruptcy, however there are potential pitfalls you need to be aware of. As with any pursuit, an informed consumer is one who will win out in the end. Let that be you!

Here are some tips to consider as you navigate the debt consolidation information available to you:

No matter how challenging your situation, the best things you can do are to take responsibility and look to – create – a better future by changing things for the better. You have more control than you may believe, and when you seize it and begin to use it, you’ll feel better and better. Good luck!

This article is written by SM Arthurs, author and creator of a network of sites and blogs dedicated to helping you achieve your grandest dreams. You’ll find a wealth of resources at, and the IncreasingVelocity blog, Follw Your Path.

Being Sued By A Credit Card Company – Dealing With Being Sued And How To Avoid It

Filed under: Credit — Tags: , , , , , , , , , , — admin @ 12:47 am

Being sued by a credit card company can be a distressing experience, often with long lasting consequences.  Just being threatened with legal action can be a cause of great anxiety, even if you are not sure whether the credit card company actually intends to carry out the threat or not.  It is safe to say that most companies who are owed many may well threaten to take you to court, even if they have no intention of doing so.  It is just another weapon in the financial recovery arsenal.

If you are at the stage where you are being sued for debt, the first thing you must do is take legal advice.  If you have a summons to attend court, you must attend, as the case will go ahead whether you are there are not, and the case against you will be upheld if you are not there.  Do not worry about being sent to prison, that cannot happen if this is the first time you have been sued for a debt.

If the case goes against you the worst that is likely to happen is that you will be ordered to pay back the money you owe at a rate set by the court.  They will examine your finances and make a decision about what they believe is an affordable rate at which to pay it back.  Once this has happened and there is a court order against you, it is very important to stick to the terms of the order.  If you do not, there are more serious legal consequences that the credit card company can then try to use against you.

If you have not got as far as actually receiving a summons, it is not too late to take steps to address your debts and prevent legal action.  The worst thing you can do is ignore the situation, because then the credit card company might assume you can afford to pay up but are just choosing not to.  You need to let the credit card companies know that you take the situation seriously, that you are in genuine hardship, but also that you are doing something to address the problem.

The best ways to tackle debt and prevent being sued by a credit card company are to set up a debt payment plan.  This way you get your creditors on board because they can see that you will be making regular payments and they know when the debt will be paid off.  The most usual approach is to use a debt management plan to consolidate all your debts into a single payment.  For this type of plan your debts need to be to more than one company, and they are ideal for credit card debts, personal loans and other unsecured debts.

You need to have a steady income to be able to afford the monthly payments on a debt management plan, but if your situation is really serious, you might need to consider debt settlement instead.  You still have to make a regular monthly payment towards your debts, but it tends to be less, because the debt settlement process depends on getting a large percentage of your debts written off by the credit card company.  You make regular payments into a separate pot instead of paying anything direct to your creditors, then as the debt settlement company reach agreements to settle a debt, you use the money to pay it off.  It is not unusual to get up to 60% of your credit card debts written off.

If you do want to look into debt management or debt settlement, you must find a good company to advise you and set up this arrangement for you.  We have all heard horror stories about debt companies that take money from people and leave them worse off, but this is entirely avoidable if you just take some precautions about finding an ethical company to work with.

You can safeguard yourself by following recommendations for only those companies that are known to be very well established.  If you stick to companies that have been around a while and which have lots of satisfied, debt free customers, you will be OK.  As a final safeguard it is a good idea to apply to about three companies so that you can then make a judgement about which is best for you.

Read reviews and recommendations for the best debt management companies in the UK and US, as well as the best organisations for debt settlement online. K D Garrow has worked as a senior manager with significant financial responsibility for the last twenty years. His website offers free, unbiased advice on a range of debt related issues, including how to find the best IVA UK company.

March 30, 2012

Second Mortgage Industry in Australia

Filed under: Mortgage — Tags: , , , , , — admin @ 12:47 pm

These are tough times if you need a loan but don’t have sufficient or unencumbered property to offer as a collateral to the Bank or other financial institution. Cash is King and if you need more liquidity fast but your first mortgage lender will not advance any more or cannot act quickly, you might be in unforeseen trouble. A Second mortgage might be the best possible option at this difficult time.

Like many other countries of the world, the mortgage market in Australia has tightened considerably and extensions or increases to existing facilities that might have been offered 12 months ago are simply not available today. Many people in Australia, especially those in small business have been able to overcome short-term financial hazards or “cash crisis” and improve their position through a short-term second mortgage.

Second Mortgage

You may or may not have heard about second mortgages. In simple terms, a second mortgage is made against the same property, which is offered as a collateral in the first mortgage but usually to a different lender. Hence, it is considered subordinate to the first mortgage and ranks behind the first mortgage in terms of security.

The interest rate of second mortgage is higher than the first mortgage. This is because, in case of default, the first mortgage is paid out first then the second mortgage is satisfied from the remaining equity.

Usability of Second Mortgage

In a nutshell, a second mortgage is most beneficial when the borrower needs finance for a specific purpose for a short period of time and they can see how the second mortgage finance can be repaid in the short term. It is a good source of finance for opportunistic investments, or to satisfy an urgent unexpected expense. It is often used as a short-term cure for a business cash crunch or even to take advantage of a business opportunity that presents itself where the business operator can see that he or she can make money, IF they have some money NOW!

Other reasons for a short-term second mortgage might include the need of improvement of existing homes prior to sale, or bridging finance for the purchase of a new property prior to the sale of an existing property.

Overview of mortgage market in Australia

The Australian mortgage market witnessed a tremendous boom during 2003 and 2004. However, earlier this year the market observed a sharp decline in its rate of growth with 12% growth being recorded in contrast to 22 % in 2004.

An analysis conducted by InfoChoice and The Sheet estimates that the Australian mortgage market presently stands at $922 billion. It has been observed that this estimate is around three times greater than the report of Reserve of Australia. It is noteworthy that this study is also 12% bigger than the all-banks estimate in the mortgage industry of Australian Prudential Regulation Authority.

As a rule all big banks play a major role in the market, but usually only provide loans against first mortgage security and do not operate in the second mortgage space. Finance and mortgage brokers originate an increasing share of this Australian mortgage market and these brokers can usually source either first or second mortgages from a wide range of lenders.

Rise of Second Mortgage in Australia

As traditional lenders become more reluctant to lend to existing customers due to tighter credit requirement and liquidity limitations continue in the banking system, more and more borrowers with a need for a short term remedy are turning to a second mortgage lenders to solve their temporary or short term liquidity problem to take advantage of opportunities or to solve their short terms problems.

To be eligible for a second mortgage, you must have surplus equity in your current property. This means that you must owe less with your current mortgage than the value of the property. The second mortgage lender will need to be comfortable that there is a good commercial reason for the loan and that there is an “exit strategy” for the loan. This means that the second mortgage lender can see how the loan is coming to be repaid through some event or process that will satisfy the advance and the charges for the loan.

Nandini Sen is a content writer and she is writing for Nova Star Finance. Presently she is researching on second mortgage Australia and debt consolidation Australia.

March 29, 2012

Credit Card Debt Consolidation Serves 3 Purposes That Will Benefit You

Filed under: Debt — Tags: , , , , , , , , , — admin @ 12:46 pm

If you find that you have difficulties to pay your monthly credit card payments, then your debt issue is getting serious. Unless you react to handle it, the issue may become worst one day when your monthly payment has reached at the level beyond your financial affordability. You may want to consider consolidate your debt with a consolidation loan. Let’s explore how it works to help you.Credit card debt consolidation is a process to combine all your credit card balances into one and pay it off with a consolidation loan. It works to serve 3 purposes that benefit those who choose to consolidate their credit card balances:

1. How debt consolidation helps to manage your debt more effectively?If you have to pay the credit card balances which have different payment due date, then you need to remember paying them on time. Any late payment causes financial charges to be added to your balances, and the worst part is the late payment may causes damages to credit score. If you consolidate all your credit card balances into one and get a consolidation loan to pay it off, then you just have to focus on paying on loan repayment every month. This reduces the risk of being charge extra due to the late payment. By going through credit card debt consolidation, you will manage your debt more effectively.2. How it helps to save in total debt payment?By selecting a consolidation loan with lower interest rate, you will pay less in total debt payment as you pay less in interest. It will work even better if you manage to find a consolidation loan with the lowest interest rate possible but maintaining your monthly payment that has larger amount that the required loan’s monthly payment, you are able to save much in interest while clearing your debt faster.3. How it helps to lower monthly debt payment?In order to lower your credit card monthly payment. You have two options to consider when searching for a consolidation loan: work on the interest rate to lower it and pro-long your payment to distribute your debt into more monthly payments so that you pay less in each month. The first option should be prioritized as by getting lower interest rate, you pay less in total debt payment while enabling you to clear it faster. The second option involve selecting consolidation loan with longer term should only comes in your decision if the monthly credit card payment still put you at a financial difficulty even after you get the best consolidation loan with the lowest interest you are qualified for.SummaryCredit card debt consolidation is a solution that helps your debt problem in 3 ways: effectively manage your debt by combining multiple debts into one; save in total payment; and lower the monthly payment to meet your financial affordability.

Cornie Herring is the Author from Find more information & tips on credit card debt consolidation help which will help you to identify a debt relief option that best fit your financial situation.

Debt Consolidation Loans: Resolve All Your Debt Anguish

Filed under: Loan — Tags: , , , , , , , — admin @ 12:46 am


Are you buckling under the pressure of installments and pending loans? You can surely win over the situation if you proceed carefully. Debt consolidation sounds good and it works even better. You can get rid of your multiple debts. These debts get converted into a single debt with single monthly repayment. It brings a lot of simplicity and manageability to your finances. In order to assist people so that they can get out of the financial crisis, many banks and financial institutions offer these loans.

Debt consolidation loans are offered to the debtors in two ways. If you don’t wish to pledge collateral as well as want to obtain this loan, then the best way for you is to opt for unsecured debt consolidation loan. If you are ready to pledge collateral so that you can get low interest rates for these loans, then you can choose secured debt consolidation loan.

This loan is generally referred to as a safe loan when compared with your existing unsecured personal loans and credit card dues. Therefore you will have advantage by replacing your other loans of high rates of interest with a debt consolidation loan with lower interest rates.

This loan provides you a lot of advantages like -A single loan facilitates single monthly installment payment and you don’t have to deal with multiple lenders. These loans can be easily managed. The interest rate is comparatively less and the loan is also secured. As the interest rates are low in this loan your monthly installments will be also small. Debt consolidation loan gets you tax benefits for the interest you pay on the loan.

Selecting right debt consolidation loan can solve all your debt woes. For all your current financial problems you can find easy solutions with such loan and if the borrower follows proper thought with action in the future, he will avoid becoming a debtor again.

After having hisself gone through the ordeal of loan borrowing, Daren Jone understands the need for good quality loan advice. To find debt management , debt consolidation UK, secured debt consolidation loans UK visit

March 28, 2012

Credit Card Debt Consolidation

Filed under: Debt — Tags: , , , , , , , — admin @ 12:48 pm

Be it shopping online, movie tickets, or air tickets, a credit card is the best way to buy them. But, plastic money is also the fastest way to debt. Experts say that if you do not have control over your spending habits, then a credit card can get you into debt real fast. You will not notice how the debt piles on until it reaches a situation where you can no longer manage it. Once the debt pile reaches its maximum and you start defaulting on payments, then the entire cycle of threatening calls from collection agencies, payment reminders etc start.

About Debt Consolidation Loan

Online debt consolidation loans are specially designed to decrease the burden and help you to erase your debt that you have got through credit card debt. In debt consolidation, you have a loan amount from the lender and make use to pay back all pending debts. You then make a one easy monthly payment to the Debt Consolidation Company from whom you have taken loan from. There are many other advantages of a credit card debt consolidation loan.

There exists lower interest rate on consolidation loans as compare to credit card debts itself. Means you need to pay lesser amount each month then you’re current paying, reducing you to make many payments as earlier you used to pay individual. Here you would be paying one single payment every month while saving lots of time and hassles to you. Nor you need to be in tension about late payment as all you need is to do a single monthly installment. In case you think that you might fail to pay installment then you just need to call your credit consultant and say it instead of making many individual call. Your Credit Consultant is capable to make arrangement than several creditors.

Tips of Debt Consolidation

If you are still uncertain whether to consolidate or not, then the best thing to do would be to calculate all the interest rates that you have from all cards and tally it with the new interest rate on the loan. If the rate on the loan is much lower then you know your answer. On the other hand, if you have a card which has a rate that is much lower than the rate that you are getting on the loan, then you need not include that card in the consolidation loan.

Reduce Your Debt and Live Debt Free

Constant worry is something that will come naturally if you have debts. By using the credit card debt consolidation loans, you will be reducing a lot of stress for yourself. The stress of paying all the loans on time and not meeting the creditors’ demands will all be gone with consolidation. Give a thought to the time that you will save yourself with credit card consolidation loans. Most people do not realize that a bad debt problem is fairly easy to deal with if you plan it well. It’s the planning that is missing in most of the situations. So plan your finances well and use Credit Card Debt Consolidation loans effectively.

Credit Card Debt Consolidation: Credit cards can lead to bad spending habits and unwanted debts. Credit Card Debt Consolidator is the best way to end your debt woes and move back to stability.

Can A Credit Card Company Sue You For Debt – Action To Avoid Being Sued For Debt

Filed under: Credit — Tags: , , , , , , , , , — admin @ 12:48 am

Credit cards are an essential part of the way we all live today, but the very convenience of them can make it all too easy to overstretch ourselves.  Being able to just make a minimum payment each month is very tempting, but in the long term it can lead to very substantial debts that become difficult or impossible to pay back.  This is the point at which the card companies who were so eager to help us spend money now turn rather serious and start threatening to take us to court.

This is not a pleasant experience for anyone, particularly if you do not understand the legal situation and are not sure if they really can do what they threaten to.  Sometimes your dealings will be with the card company themselves, and other times you may be approached by a debt collection agency.  Not all collection agencies have a reputation for honesty and integrity, so it is understandable that we may wonder if they are telling us the whole truth when they threaten to sue.

The fact is that a credit card company can sue you for debt if they choose to, and it does not really matter whether you are being approached by the card company or a collection agency.  The agency will either be acting on behalf of the card company, or may even have bought the debt themselves.  In the latter case you will now owe the money to the collection agency and the principles around being sued are exactly the same.

The consequences of being sued successfully are that a court order will be made against you, and you will be ordered to make payments at a rate that the court decides is fair, considering your financial circumstances.  You do not need to worry that you might be sent to prison as a result of this action, but it will have a lasting impact on your credit rating and is certainly best avoided.  Also, the consequences do get a lot more serious if you then default on the payments ordered by the court.

Whether the card companies will sue you or not depends on many factors, but if you appear to just ignore the situation, you are making it far more likely that they will.  Even if you are already being threatened with legal action, it is not too late to avoid this by using one of the options available to you to deal with your debts.

Credit card debt is what is called an unsecured debt, as it is not tied to any asset (unlike your mortgage for example).  If you have a substantial amount of unsecured debt there are two main options open to you that will lead to you being debt free again, so these are at least worth considering.  They are for any kind of unsecured debts, so could also include any personal loans, bank overdrafts, etc.

The first option is a debt management plan, which involves a specialist company negotiating new repayment terms with your creditors.  This leads to a single affordable payment that you make each month to the debt management company.  It instantly reduces what you pay, simplifies your payments and stops the card companies hassling you.  To set up a plan you need to have an income and some money spare each month to meet the payments.  Such plans are widely available in both the US and UK.

If your situation is more serious and you would struggle to make the payments on a debt management plan, then your best option may be debt settlement.  This involves using expert negotiators to work out deals with all your creditors to settle your debts for substantially reduced amounts, in exchange for quick repayment.  In the UK there is a scheme called an IVA, which fulfils the same function as debt settlement, dealing with serious debts and writing off part of them.

So if a credit card company is threatening to sue you for debt, the best thing you can do is look into debt management, settlement or an IVA, depending on your situation and where you live.  This will send a clear message to the card companies that you are trying to tackle the situation.  When it comes to finding a good company to work with, you need to be cautious as there are a huge number to choose from, and they are unfortunately not all effective or ethical.

The best ones are experienced experts who will do all they can to get you out of debt, whereas the worst ones are really just out to take money from you.  You should therefore always look for well established companies that can demonstrate a record of success in dealing with people in debt.  The safest starting point is to follow recommendations for known reputable companies and to always approach at least two, so that you can consider what each one offers and choose which you prefer.

Read reviews and recommendations for reputable online debt settlement companies and UK IVA providers. K D Garrow has worked as a senior manager with significant financial responsibility for the last twenty years. His website offers free, unbiased advice on a range of debt related issues, including recommendations for the best debt management companies in the UK and US.

March 27, 2012

E-filing Your Tax Returns Online

Filed under: Tax — Tags: , , , — admin @ 12:46 pm

It’s finally that time of the year where everyone will be required to file for Federal tax and/or State tax. For some people, this could be a worrying or pressurizing time. Maybe the forms have not arrived in the mail on time. Or maybe some important numbers are still missing. To prevent undue stress during tax filing time, here are some quick tips. Keeping proper records. Don’t wait until tax filing time to start hunting for numbers. Always make it a habit to keep proper records of all your finances. If you are busy running several businesses, have a full time accountant or accounts assistant organize all the records for you. When you keep proper records, you can pull out any number you want, and this should help you with your tax filing. Professional tax assistance. If you are not familiar with Federal or State taxes, it’s always good to seek professional advice. Don’t assume anything. If you make mistakes, you will need to go through the hassle of correcting those mistakes. Sometimes, there may even be penalties imposed (e.g. revoking of rebates due to negligent mistakes). Therefore, always seek the advice of professional tax consultants if there is anything that you are unsure about. e-Filing your Tax Returns Online. e-Filing is going to make life much easier for you. A few years ago, many people are still apprehensive about e-Filing because of security issues. They are not sure if it’s safe transmitting sensitive data over the public network. Hence, not many are willing to try out online filing. However, the Internet has evolved to a different level now. Everyday, we see even the most non-tech savvy people making purchases with their credit cards online. Security levels have most certainly been improved, and people are more comfortable revealing their private information on the World Wide Web. There are many benefits when you file your tax returns online. Firstly, you don’t have to worry about forms arriving late or getting lost in the mail. You only need to create an account, and you can start your e-Filing immediately. Unlike manual filing, e-Filing helps to check your filing details while you file. That reduces the chances of making mistakes in your tax filing. Also, you can also find out if you qualify for certain rebates when you e-File. Everything is computed by the e-Filing system. Halfway through the e-Filing, you may discover that you require some important numbers, and your accountant is off for the weekend. You can save your e-Filing details, retrieve the data from your accountant when the week starts, and continue to e-File from where you left off. e-Filing is a simple process, and it’s definitely much more convenient when compared to manual filing. There is no paper involved, and everything is filed electronically. Less mistakes means less worries. Now you can sleep better knowing that your tax filing has been taken care of!

More information on how to file tax return and State Tax Returns

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