Basic Information About Bankruptcy

If you are facing mounting financial troubles, you may be considering bankruptcy. There is a lot of confusion about bankruptcy and the different types of bankruptcy – and what happens during and after bankruptcy proceedings. Knowing exactly what you are getting into when considering bankruptcy is important to determine if it is truly the best or only option available.

What is Bankruptcy For?

According to the Federal Bankruptcy Laws, the goal of bankruptcy is to help a debtor who has gotten himself into insurmountable financial trouble a way to begin again and forgive certain debts (keep in mind some debts will not be removed via the bankruptcy process.) › Continue reading

Thursday, January 21st, 2010 financial Info 1 Comment

Credit counselors (the good and the bad)

If you have bad credit and are considering working with a third party to help you improve your score or get your finances in better shape, you may be considering working with a credit counselor. There are some important things to think about before you choose a counselor and decide if it is really the best option for you.

 What is Credit Counseling?

 Credit counseling is a service that is provided for a fee or sometimes for free for qualified individuals, who have difficulty making payments on their debts, are going through bankruptcy, or have other financial difficulties. Often times, counseling can be provided by a certified counselor who is specially trained to help you manage your finances better, to find strategies for paying off debt, and to help you understand how to avoid bad financial situations in the future.

 What To Look for in a Credit Counseling Agency

 As in every industry, there are good and bad credit counseling service providers. However, some of the ones you want to avoid can be very dangerous, since they would potentially be dealing with some of your most important and financially sensitive information. › Continue reading

Tuesday, January 19th, 2010 Credit No Comments

Dealing with Debt Collectors

First and foremost, if you borrow money you should pay it back. At some point in time most of us will fall into trying times which can make paying bills difficult but everyone deserves to be treated fairly and with dignity.

Ask for verification of the debt. By law, the agency must verify the debt within five days after it initially contacts you. If they don’t, then they can no longer attempt to collect on that debt or report it to the credit report agencies. If they do verify the debt, you can either provide them with evidence that disputes their claim or negotiate to pay the debt. If the debt is being collected by someone other than the original company, you will also want to verify that the company contacting you has the right to collect on it, even if you know you owe the original debt. › Continue reading

Thursday, January 7th, 2010 Debt 1 Comment

Free Credit Report

Credit Reports

A credit report includes information on where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. This information is accessed by creditors, insurers, employers, and other businesses to evaluate your applications for credit, insurance, employment, or renting a home.

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report once every 12 months. To order, visit or call 1-877-322-8228. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through

You should review your credit report from each agency and if you find any mistakes contact the consumer credit reporting agency immediately. The company is then responsible for researching and changing or removing incorrect data. This process may take as long as 45 days. At your request, a corrected report will be sent to those parties that you specify who have received your report within the past six months, or employers who have received it within the last two years. › Continue reading

Tuesday, January 5th, 2010 Credit No Comments

Create a Budget Using The Envelope Method

If you are like most people, the thought of making a budget will send chills down your spine. The idea of calculators, excel spreadsheets, crunching numbers and constantly monitoring you checking account balance is enough to make people forget the whole issue altogether. Well, that is how so many people end up in bad debt situations – they simply avoided what can really be a simple task: budgeting using The Envelope Method.



The Benefits of Budgeting in Cash

Anyone who has opened a credit card and made a purchase they later regretted because they truly could not afford it will benefit from switching to paying for most of their expenses in cash. Even if you do not think you need a change, getting out of the habit of using a credit card is a great idea. Just think, every time you swipe that plastic for your lunch, you are essentially taking out a high interest loan just to buy a Big Mac! That is not the best use of credit. › Continue reading

Thursday, December 31st, 2009 Budgeting No Comments