Credit Counseling Agencies – How a Credit Counseling Agency Can Lower Your Monthly Payments
When you’re trying to pay down your debt sometimes going to the right high caliber outside agency will actually lower your debt and lower your monthly payments. Nowadays many people go to a credit counseling service for this help. A credit counseling agency can help you if you have a large amount of outstanding debts.But you must do a thorough check on any agency you are considering because unfortunately a lot of unscrupulous agencies have sprung up whose sole business purpose is to take advantage of people in need. There are a number of ways to find legitimate credit counseling agencies.The first thing would be to go on the Internet to the National Foundation For Credit. Pick one of their member agencies. They’re certified by the NFCC and they’re non-profit. Being a non-profit credit counseling agency does not necessarily guarantee that they are legitimate, but it’s a good place to begin. When you get in touch with a credit counseling agency they’ll make an appointment for you to bring in lists of your income (if any), assets, and expenses along with any letters you have from all the people you owe money to.The goal of a legitimate agency is to negotiate lower interest rates as well as lower you monthly payments. The goal of a bogus agency is to separate you from your money. Legitimate credit counseling agencies might be able to negotiate lump sum payoffs that are less than the total that you owe. Keep in mind that if you go this route it will be noted on your credit report – and that will lower your credit score.However, at this point in time your credit is probably challenged anyway. So doing this can make life easier for you and ultimately put you back on the road to a better credit rating.How It WorksYou’ll pay the credit counseling agency a small monthly setup fee and perhaps an additional fee for each account that you owe money to. In return they will contact your creditors and negotiate lower monthly payments. For example, if you’re paying off five bills and they charge $5 each, that comes to $25 per day. You would give a check to the agency and they will pay these creditors.The Advantages of Using A Credit Counseling AgencyYour major advantage is that they can often negotiate lower interest rates and lower fees than you’d be able to on your own. That doesn’t mean that you should blindly accept their advice. Look carefully at the plan they are proposing. See if it makes sense. If their plan doesn’t look like it will save you money or help you to pay off your debt sooner don’t feel pressured to do it.Also, because there are so many bogus credit counseling agencies, most people do considerably more research into a company’s background before they sign an agreement with the one they want to represent them.
Ten Critical Questions You Must Ask When Searching For A Legitimate Network Marketing Business
So you’ve decided to start a home based business, but you are not sure if the network marketing company you want to join is right for you. Everything you have heard about them is “TOPS”. But you’re getting all of your information from the company’s independent associates and the up-line. Every time you get on a conference call, the information they provide sounds great. The presenter say everyone is making tons of money, going on trips all the time, driving expensive cars, and living in mansions. Who wouldn’t want to be part of all that success? They talk about the company, the product, and the opportunity. And then, it’s decision time. All of the excitement gets your adrenalin pumping and you’re ready to jump in. But you decide to be cautious, and do a little research on your own. After you arrive home, and its just you and the mirror, you have second thoughts. “Can I really do this business?”, you ask yourself. “What happens if I can’t get anyone to join?” “Is this one of the legitimate home based business opportunities? Or is this another MLM company that feeds off of people like me?” All of sudden, you are not confident as as you were on the opportunity call. Don’t feel bad because you’re not alone.Tens of thousands of North Americans decide to start a home based business every year. And many of them opt for a network marketing opportunity. But the facts remain the same, whether it is a traditional business venture, or an MLM opportunity, most new home based businesses aren’t successful. Why? Its a combination of poor or no research, bad business planning, and unrealistic income expectations.When a person enters the network marketing arena, it usually goes something like this. A friend invites them to an opportunity meeting or to listen in on a opportunity call. When they do so, They usually get caught up in all the hype, and before they can say “What am I getting myself into?”, they have brought into a business, and joined a company they really know nothing about. It happens all to frequently; from hotel conference rooms to private homes, to conference calls, thousands of people join business opportunities every week.Most of these new business owners never get their business off the ground. And if they do, most never turn a profit. Why? The main reason is that most people aren’t ready to start their own business. They weren’t looking to start a new business in the first place; usually someone else convinced them to do so.But there are some people who are ready, and are looking to get started with a business opportunity. And you may be one of them. If so, you probably already have the passion and the drive to make it happen.You probably have the investment money to get it started. And you probably have the money to sustain yourself and your family while you build your business. You are ready. You have researched a number of MLM and network marketing companies that peak your business interest. And now its time to put them to the test. Here are ten questions you must ask before going into business with a MLM or network marketing company:1. Is the company solid? Financially, and Ethically.A. How long have they been in business and what is their financial situation? There are hundreds, if not thousands of new business opportunities that have popped up in the last ten years. It is a good rule of thumb that if a business has been around for 5 years, they should be making a profit.B. Are there a lot of complaints with the BBB, or your State Attorney General’s office? If a company has more than a few complaints, that should trigger a yellow (caution) flag.2. Is there a real need in the marketplace for their service or products?A. What percentage of people need the product or service? If your product or service is only needed by a small percentage of people, then you will have a difficult time marketing it.B. What percentage of people want the product or service? If everyone wants it, or could use it, but very few know its available, then you might have a gold mine. Still, you will have to get the word out; and that’s where the company will be counting on you. There must be a balance between ‘needs’ and ‘wants’, or supply and demand, for a product to be successful in the marketplace.3. Does their product or service support itself without offering the business opportunity?A. In other words, is the product affordable or is it overpriced? Many companies offer inflated prices on their products or services, making it difficult to sell. Often times this leads the associates selling the business opportunity, instead of offering the products. Beware of companies that offer extremely low commissions when you make a sale on the product side, but give huge bonuses when you recruit someone into the business.B. Is the product or service exclusive to network marketing or can you get it anywhere? If a potential customer can get your product just about anywhere, it will be that much harder for you to make a profit and you will need to be able to convince your potential customer that what you have is better than the rest.4. Do they have a real internet presence?A. Can your prospects purchase the product from you online? This is a must in 21st century network marketing. Building a client base will still require human interaction, but when your customer is ready f to make another purchase, this is the easiest, and safest, way to provide them with immediate access to your product(s).B. Is the company new to the internet? Do they have a proven track record? This is important to your success when it comes time to make the sale, or recruit an associate. A good company will always have an IT department with web developers that keep the content current.5. Can you recruit online?A. Can you manage your down-line online? It is vital to your business to be able to track your sales to the penny. Many companies only provide BPV, or product volume, etc. But you want to have daily access to gauge your sales volume in dollars and cents. This also pertains to your down-line. You should have the potential to send broadcast messages and thing of this sort. It will be a very important for communication with your organization.6. After the initial investment, how much money can you expect to invest before you see a check? One of the advantages in going into business with a MLM or network marketing company is supposed to be the low initial investment. Combined with the potential for quick income, these to items are essential in building a successful business. Its called ROI (Return on Investment). The faster you receive it, the greater potential you have of growing you business. The bottom line is if you don’t see yourself drawing a commission within 90 days of starting you business, then another caution flag should go up.7. How fast and how often do they pay commissions?A. Are checks distributed once a month, once a week, or once a day? Many years ago, MLM companies only cut checks at the end of the month. Today, that’s hardly acceptable. Today, money moves a lot quicker then it use to. And it has to in network marketing. Getting your commissions to you as quickly as possible is vital so that you will have money to sustain your business.B. Are checks direct deposited? Point blank; this is a must.8. Is there a real potential for override income?A. If you are at least one level above your recruit, are you entitled to override income? Some companies expect you and your organization to produce a certain amount of volume, or meet certain monthly quotas, before you can receive override income from your downline. Generally, a good rule is to find a company that offers over-rides; if you recruit someone and they are at least one level below you, you should be entitled to overrides from them and their organization.9. Is there potential for real residual income?A. If your customer continues to buy the product or service, do you get monthly commissions? Residual income means you get paid, as long as the customer you introduced to the company, continues to purchase the service or products. This is a no-brainer and real way to build wealth in network marketing.10. Is there real training?A. When you join a MLM company, more than likely, they will encourage you to make your list by going after your warm market. Your warm market is your relatives, friends, neighbors, and co-workers. They will encourage you to have a home meeting, bring your guests to the weekly hotel meeting, or invite them on a conference call. That is all good for generating a quick return on your investment while you are learning the business. But what happens if and when the list drys up? What happens if the person who recruited you drops out of the business? Are your up-line folks accessible? Are there company sponsored training and events?B. Is there training that teaches you how to really tap into 21st century internet marketing? Today the internet is the engine that drives network marketing. Billions of dollars are earned in network marketing utilizing the world wide web. When you decide on your business, make sure that your recruiter has a plan that will position you so that you will be noticed on-line. Make sure that it includes training that will teach you how to target your market and drive traffic to your website. This is the single most important lesson that you will have to learn to ensure you are successful with your new business.So here you have it. The ten questions that must be asked to determine if the company your are interested in offers a legitimate home based business opportunity. You want a company that will assist you in laying the foundation for real success. If that company provides good, concrete answers to these questions, then it’s a good bet that going into business with them will be beneficial. Researching to find the right company and network marketing business to join could very well be the most rewarding time you will invest in your future.
Tips for Choosing a Non Conforming Lender
If you needed to borrow money many years ago, you would go to the local bank where you had an account. You would fill out the loan application and hope that it would be approved. If it was declined because of your credit history, you did not have many other options.
The amount of lenders that you can turn to if you want to borrow money has grown. You are still at risk for being turned down if your credit history is not as good as the lenders want.
While the application process has not changed much other than having more places to try, the options you have if you are denied has improved. There are now many ways that you can get the credit you need despite having bad credit.
Dealing with Non Conforming Lenders
Non Conforming Lenders often specialize in dealing with people who have bad credit. They offer the loans that people need, but they do take some steps to minimize the risk of lending money to people who have not been wise with their credit in the past. There are some things that you should do if you are considering using a non conforming lender for bad credit to make the process easier.
Be prepared. The best thing that you can do is to learn how to check my credit score before you apply for credit. You are entitled to view your credit report once a year at no charge from the three credit reporting agencies. You can also find services that will allow you to view your credit more often. Familiarize yourself with how the credit report works and what the information on the credit report means.
Correct any mistakes. Thee credit reporting agencies are not perfect. Mistakes are actually common on credit reports. If you see any inaccurate information on your credit report, dispute it and have it removed. Your bad credit will not look so bad if you do this.
Take steps to improve your score. There are some things you can do to improve you credit score quickly. Paying down debt and closing extra accounts may help you raise your score and it can happen faster than you may think.
What to expect when working with Non Conforming Lenders
When you work with non conforming lenders for bad credit you need to know the rules that they will be following. They are going to charge you a higher interest rate for your loan. That is normal and is something that you need to expect. They may also require a risk fee to be paid and generally higher application fees.
Beware of scams with private lenders
Scam artists love to take advantage of people with bad credit. They figure that these people are more desperate and are easier to take advantage of. Before you work with private mortgage lenders take some time to check them out. It is also a good idea to look at forms of credit protection that may keep you from becoming a victim of fraud. There will be some people that say this is common sense, but if you are desperate to borrow money, you may not be as careful as you should.
If a private lender does not disclose all of the terms and fees of a loan without asking and if they are evasive about any questions that you have, turn to another lender. There are plenty of non conforming lenders out there. You will be able to find one that you can trust.
20 Effective Debt Consolidation Loans Tips with Bad Credit
With the advent of COVID many Australians have been struggling with debt. Debt comes in many forms, there are previous loan installments, bills, payments and obligations that have piled up and end up becoming debt. One of the best ways to get out of the vicious cycle of debt can be by taking a debt consolidation loan. If you‘re considering a debt consolidation loan as a path forward, here are our expert tips for debt consolidation, done right.
Debt management tips – Prior to searching for a debt consolidation loan
1.Begin by creating a list of your debts
The first step of debt management before searching for a debt consolidation credit product is to know how much you owe, how much you’re paying on your credit and the total that will be repaid at the end of the term.
Reduce your outgoings by switching providers for insurance, utilities and service providers
A further step for redressing the balance of your debt management prior to debt consolidation is to reduce your outgoings is to review your insurance, utilities and service providers.
Reduce the amount you owe through selling assets
If you own valuable assets that you don’t need, it may make sense to sell them to reduce the amount of new credit you require to repay your existing debt.
Create an income and expenditure sheet
The next step for creating a thorough debt management plan is to understand how much you can reasonably afford to repay each month after you’ve reduced your debt through selling assets and cutting out unnecessary expenses.
Find out whether you can reclaim your bank charges
If you’re facing genuine financial hardship you may be eligible for a refund of your bank fees. You should start by writing a letter or email to your bank, being sure to keep a copy yourself. If your request is refused, you may want to make a complaint to the Financial Ombudsman.
Access your credit history to check your credit score
The health of your credit score will directly affect what credit products are available to you for debt consolidation. So as a final debt management step, you should download a credit report before applying for so much as a single debt consolidation loan.
Research the market and look for low-interest debt consolidation products
Always use a comparison website to research potential debt consolidation loans. This will provide you with a full view of the market, although your credit record may restrict your options if you require a debt consolidation loan with bad credit. Repaying a singular loan will also make your debt management far simpler.
It’s important that you understand that numerous credit applications can put a dent in your credit history. Ultimately this may stop you from obtaining a debt consolidation loan at all.
If you’re a homeowner, consider whether an equity release loan could be a possible debt consolidation solution
Equity release debt consolidation loans offer some of the most competitive interest rates available. If your home has increased in value significantly since you purchased it, an equity release loan may be a viable debt management solution, although you should still research other debt consolidation loans to compare interest rates.
Carefully consider whether replacing unsecured lending with secured lending would put you at risk
A further consideration to the debt management tip above is whether you will be responsible with your debt management in the future. If you’re facing serious financial troubles, it may not be a wise move to secure a large amount of debt consolidation against your home.
If part of your debts includes a car loan, tread carefully
If your vehicle is on hire purchase don’t immediately think that consolidating this debt is the best solution. If you’ve owned your vehicle (and kept up with its repayments) for more than half of its term, you may be able to simply hand the vehicle back to the finance company. This can free you from any negative equity, and you may be able to use a cheaper alternative (such as leasing).
Contact your creditors and ask whether they can offer you a lower interest rate
Before deciding that debt consolidation is right for your needs, you should talk with those you owe money to, to see whether they could switch your product onto a lower interest rate. Just bear in mind that if they do run a credit application, this will register on your credit report. As this can affect your ability to get more credit, this tip won’t be suitable if you have a large number of creditors.
Speak with your bank about debt consolidation if you owe money over numerous products
If you hold numerous products with one provider – for example, a credit card, loan and overdrafts with your bank – you should speak with that provider about what your options are. In the case we’ve just mentioned, a personal loan will almost always offer a better interest rate than those offered by your bank account and credit card.
Always understand how much any extra fees and charges will amount to before taking out a debt consolidation loan
Along with your list of debts, you’ll also need to understand how much you’re paying month by month in interest and any extra fees (such as bank charges for going overdrawn, or charges for missed repayments).
Consider whether it may make sense to improve your credit score prior to applying for debt consolidation
If you find that you have a poor credit score, you may want to take a few months before applying for debt consolidation to focus on improving it. The tools we’ve mentioned above will all provide helpful suggestions for working on your credit score.
Before agreeing to debt consolidation, research alternative debt solutions
Debt consolidation may not be right for your circumstances, particularly if you have poor credit and are unable to apply for a new loan.
Until you’ve secured a debt consolidation loan, make sure you meet your repayment obligations
If you default on your credit products you greatly reduce the chance of being approved for any loan.
Always seek professional credit expert advice before signing for new credit
Nothing can replace the value of expert credit advice, so this tip is simple – always ensure you speak with a trusted advisor before signing on the dotted line for debt consolidation.
Decide on a plan for changing your spending habits in the future
Here’s a tough, but important, question to answer: are you spending more than your earning? If this applies to you, you’ll need to cut your outgoings if your debt management plan is going to work long after your debt consolidation.
So gain a good understanding of how much you’re spending on non-essentials and aim to cut them out or reduce them.
Remove or reduce your overdrafts after your debt consolidation
Overdrafts are an easy way to fall back into the trap of debt. If you’re including your overdrafts in your debt consolidation, make sure you either remove them completely, or reduce them to a reasonable level.
Cut up your credit cards
If you feel unable to control your use of your credit cards after your debt consolidation, cut them up or consider closing them altogether.
Speak to the National Debt Helpline
If you can not find a Solution in the above tips you can call the National Debt Helpline on 1800 007 007. Their professional financial counsellors provide free and confidential advice. The helpline is open from 9:30 am to 4:30 pm, Monday to Friday.
You can also visit the National Debt Helpline website. It has step-by-step guides explaining how to fix common debt problems.