Debt News
When You Should Choose Bankruptcy Debt Relief
Many people think bankruptcy is the best possible debt relief option available to them. It is because you will not need to pay any amount to the creditors ever for the past dues but at the same time, the court will liquefy your assets in order to pay off the creditors. The process itself takes a long time and not everyone is eligible for the same. This is a legal status of a person who is not in a position to pay anything to the creditor and that is when the court administers bankruptcy. bankruptcy debt relief is the last option left for any debtor, as he will lose all he has made till date.
There are many websites and agencies that provide bankruptcy advice based on your current financial condition and ability to pay the debt. There are different laws regarding bankruptcy in different countries when debt settlement is concerned. In some countries, bankruptcy is limited to individuals while in some other countries it can be applicable on the organization.
4 rules for negotiating the best deals on auto loans
Writing on the Fox Business website, Emily Driscoll offered some useful advice about what you should and shouldn’t say when you’re on a dealer’s lot and looking to change your vehicle. Some of what was suggested was common sense (like not showing you’re too excited when crawling all over the car of your dreams), but a couple of Driscoll’s points about auto loans are well worth repeating here.
Auto loans and interest rates
If you’re a regular reader of this blog, you’ll already know that it’s a very good idea to arm yourself with competitive quotes for auto loans before you set foot on a dealer’s lot. Whether you get these from your bank, a credit union or Rebuild.org (or better yet all three), you are likely to be in a much better negotiating position when the salesperson comes up with the dealership’s own quote.
Driscoll’s point is that you shouldn’t reveal what rates you’ve been quoted elsewhere.
Effects of Inflation on Debt and Buying Power
Inflation is defined as a general increase in prices and fall in the purchasing value of money. With inflation, you’re generally able to buy less and less with the same amount of money. You’ve probably seen inflation happen over your lifetime. If you’re in your 30s or 40s, you were probably able to buy a candy bar and a soda for just $1 when you were a kid. Now, you could probably barely buy a candy bar for a $1, much less a soda. Because of inflation, you’re generally now able to buy less for $1 than you were several years ago.
Inflation and Paying Off Debt
In terms of repaying debt, inflation is typically considered to favor the debtor since you’re paying the creditor back with devalued dollars. In other words, you borrowed $100 last year and got the benefit of that $100. This year, the same goods would have cost $110 and you’re only paying your creditor the original $100 you borrowed. Thus, the c
Card Holder’s Bill of Rights Passes House Vote
Reacting to the massive outcry from credit card holders across the country, The House of Representatives passed The Card Holder’s Bill of Rights which prohibits the types of sudden interest rate hikes and exorbitant fees commonly charged by credit card companies. The bill passed in a landslide bipartisan vote of 357 to 70 attributed to both public outcry and The Obama Administration’s intensive lobbying which was promised during the presidential campaign.
The bill comes at a time when the total amount of credit card debt in the U.S. has increased by 25% over the last ten years with most of that increase coming in the last few years. As of January 2009, the total amount of credit card debt stood at just under one trillion dollars with an average of $10,679 in consumer debt for each household with a credit card. These numbers are expected to grow because, for many struggling consumers, their credit cards have been the only way source of funds in the face of job losses and the tightened credit markets. Als
Underwater homeowner numbers dip
If you are looking for a way to improve your cash flow or your credit, you may be eyeing today’s mortgage rates and considering a home refinance. Unfortunately, even if you have good credit, you also need sufficient home equity to qualify for a new mortgage on your home.
According to CoreLogic, about 10.88 million homes were underwater in the U.S. as of June 30, down from 10.91 million in the first quarter of 2011. Another 2.42 million homeowners had less than five percent equity at the end of the second quarter, which CoreLogic classifies as “near-negative” equity.
Mortgage rates and refinancing
If you have no plans to sell your home in the near future, having low or no equity, while disconcerting, is not necessarily a problem. Presumably you are paying down your mortgage balance through your monthly mortgage payments, which builds equity even if home values don’t rise.
What Your Credit Report Says About Your Debt Relief
Most of the companies you have debt with report your account to at least one of the three major credit bureaus each month. The major three bureaus are Equifax, Experian, and TransUnion. These credit bureaus, or credit reporting agencies, have the task of collecting all your accounts and adding the details to your credit report. Years and years of accounts appear on your credit report, so your credit report could be a good place to go if you want to know about your debts.
What’s On Your Credit Report
Many details are usually listed for each of your accounts. These details generally include: the name of your creditor, a portion of your account number, the current balance, your credit limit or original loan amount, current monthly payment, the account status, and a list of any payments you’ve missed in the last seven years.
When you’re assessing your debt to come up with an attack plan, your credit report is typcially a great place to go because most, if not all, of your accounts and balances will be listed there. Note