How Can I Get Advice on Debt?

 Submitted By: Geoffrey Hibbert

Although the avarage family is now in 2010 almost twice as much in debt as they would have been around 5 years ago many people still do not know what their options are or indeed how to find help and get advice with their debts. The one place many look to is the Citizens Advice Bureau this can be for many a big mistake. Whilst Citizens Advice Bureau is a well meaning charity with good people giving their time free, those people are in the main lay people who may not know much more than you yourself regarding debt. their last appointment may have been with somebody with say an immigration problem and their next may be somebody with a rent disbute with their landlord. It is totally beyond reason to expect these people to know everything about everything.
It has been said in recent reports that around 100,000 calls are being made each month to UK debt charities from people seeking advice on debt. These debt help lines can not cope with the traffic they are recieving at present, so service levels have fallen to an all time low.
The charities themselves are presently overwhemed by the number of people seeking advice on debt. The Citizens Advice Bureau and CCCS are simply snowed under. People are having to wait sometimes up to two weeks simply to speak to an advisor. The other major downside of using charitable or free debt management companies is that you are using a service which is funded by the very people you are having your problems with ie the banks and credit card companies and ofcourse because they are funded by donation they are usually understaffed, sometimes under trainded and when you need their attention most it is often difficult to get hold of them.
Debt is a serious and stressful matter and waiting times like this are simply not acceptable. So where else can one go for debt advice. An viable alternative to these well meaning but overworked charities are the paid for debt advice companies.
Whilst the charities are largely funded by the creditors the fee charging companies are free to give totally impartial advice. many of the fee charging companires iffer bot IVA and debt management solutions and can be very worthwhile speaking to. Most if not all of these companies offer free advice at consultation stage and only charge fees once you sign up to their service, so valuable advice is certainly availabkle free of charge.
Once onboard with these companies they will charge a modest monthly fee from your subscription and pay the balance to your creditors. The main advantage to you as a paying customer is that you never have to wait for an appointment to speak to somebody about your account. Because the companies charge fees they are properly funded and are therefore able to employ the correct number of staff to provide you with the service you require and deserve.

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How to Reduce Risk Fast When Buying High Return Rental Income Homes (Fifth in a Series)

Submitted By: George Beardsley

So far in this series you have learned how to identify houses that can be purchased below market price and you are about to buy the first house. Putting your money on the line is where the risk begins. So let’s look at what you have to do now to cut the risk way down.
The four elements at this stage are:
1. Who really owns the house now? It better be the person you name in your contract as the seller.
2. What is the house really worth? Location, amenities, market and rental value, condition?
3. How much money leaves my pocket now and later?
4. Who will be responsible for the house after you buy it? Most folks think it should be them.
For the majority of people these may seem like pretty simple requirements. Most people buy a few houses in a life time. The more houses you buy and especially the more you buy at really cheap prices where you will be able to have double digit profits by renting the houses, the more likely you are to run into someone trying to sell you a house they do not own.
Sometimes this is really innocent. The person trying to sell the house to you did BUY it, but something went wrong then or there are liens or other “strings” attached to the house since then.
In a few cases in my experience, the seller did not own the house, but thought they did. For me this has usually been the case where a husband or wife has left and has no interest in what happens to the house and the spouse that is living in it thinks they own the entire house.
In one case, the seller told me that his lawyer (who was now a sitting judge) had told him that he did not need his wife’s approval to sell the house. Hard to believe that any attorney does not know real estate law, but frequently that is the case. A family law attorney or personal injury attorney will not know all the details that a board certified real property attorney will know.
Fortunately for you, you also do not need to be an expert in real estate law if you follow this one key rule: Never close an agreement to buy real estate at the seller’s kitchen table. Get the contract signed and turn it over to a title agent or attorney who specializes in closing real estate transactions.
They will do a “title search” and find out who really owns the house and who needs to sign the deed transferring the home to you. Good news! This should also be free. Check with the attorney or title agent first, but the examination of title should be free. If the “seller” does not own it, they cannot sell it, and I have never paid a title agent or attorney when we were not able to close the sale.
So how do you know what the house is worth?
First ask the Realtor who put the offer in for you to do a CMA. This stands for competitive market analysis. The Realtor will do it by searching the real estate agent computer of similar houses that have sold within the last three months in the area and comparing your specific house to the average sale prices in the neighborhood.
If you are getting a loan the bank will want an appraisal and want you to pay for it. It’s part of the price of getting a loan from a bank. Better suggesting two articles later.
If you are close (not on the moon or in Two Rivers, Wisc) use one of the most powerful real estate tools ever: Talk to the neighbors. Probably the best power tool ever for home buying is a nosey neighbor.
And let’s face it. Most of us are exactly that. We want to know the problems our neighbors have and we noticed that the plumber’s truck was there far more than anyone should need.
Don’t interrogate the neighbors, just chat. Tell them you are thinking about buying the house and you hope they can help. Ask if they know how much it could rent for. They may say “no.” If they do, you say “I know you are not a rental agent, but if you did know how much houses are renting for?” You will be surprised.
And! Google the address and the name of the seller. That has saved me thousands of dollars. Frequently it has let me know how flexible the seller is willing to be and why. If a few attorneys general are looking for the seller, the price just went down.
Look the rental value up in rentometer.com as well.
Be sure to have a clause in the contract to purchase that your offer is conditioned (or subject to) your total personal satisfaction with the findings of a home inspection.
Do not do the home inspection until you have a contract approved by the seller and you have decided you want to buy. The inspection will cost $300 to $500 (it is negotiable) and the money should not leave your pocket until you are as sure as you can be you want the house to rent out.
If you are in the area, go with the inspection. If you have never bought an investment house before, it will be a great education and will give you a good idea of how much repair and maintenance will be for the next few years. Crank this estimated expense into your offer to buy.
You may want to abandon the offer to buy or renegotiate the price based on the finding of the professional. Your Realtor may have a recommendation on who to hire for the inspection or you can use Angie’s List or the web for home inspectors.
At every step of the way, keep your cash close. Earnest money for the contract, if you are buying from an individual should be $10 to $100. You will probably have to put $1,000 down if it is bank owned, which is a good reason to try to buy from an individual.
In addition to willingness to accept less earnest money, real people are easier to deal with and can usually give you an answer to counter offer or questions much sooner.
They also are more likely to be bright enough to understand any creative features to your offer.
And finally, once you have gone thought all this effort to purchase, do you want to be responsible for the house? I suggest that there is a legal way to own the house that takes a lot of financial responsibility off of your shoulders.
In the next article in the series we will look at that legal loophole to cut your liability for the ownership of the house and in sixth article in the series we will explore some of the “creative” elements you can put into your contract to buy the house.

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VA Streamline Refinance

Submitted By: Josh Swenson

VA IRRRL or Streamline Refinance
Many Veterans are taking advantage of the present low interest rates available to refinance their current VA loan. The Streamline, technically known as the IRRRL (Interest Rate Reduction Refinancing Loan) is a loan designed to take an existing VA loan and allow it to be refinanced to a VA Loan with a lower interest rate. The interest rate on the new loan must be lower than the interest rate on the present loan. The exception to this is where an ARM (Adjustable Rate Mortgage) is being refinanced to a fixed rate mortgage. This is the only scenario where the interest rate is allowed to be higher on the new loan.
Qualifying for an IRRRL (Streamline) is relatively simple. The VA does not require an appraisal or minimum credit score for a streamline. The amount of closing costs charged the borrower are regulated by VA guidelines and can be rolled into the new loan. Generally the veteran is eligible if the payments on the present mortgage are current. However, specific lenders have tightened their requirements during the past couple of years so it is wise to check with a lender to see what is required. When the original VA Loan was incurred the buyer was required to live in the home. With a VA Streamline you do not currently have to be living in the home.
You do not have to do your IRRRL through the Financial Institution currently holding your VA Mortgage. You can choose any Lender to deal with. Of course you will want a lender who is qualified to do VA Loans and will respond to your emails or calls in a timely manner and takes your refinance as seriously as they would if they were working on their own home loan.
As far as Veterans Eligibility goes, the same certificate of eligibility that is on the current VA mortgage is used on the streamline and can be verified online by the Lender handling the loan.
This is not a Cash out Refinance and the borrower is not allowed to take cash as a result of the deal. However, there are two possibilities where the borrower can end up with some extra money in addition to the benefit of a lower interest rate. If there is money left in the escrow reserve account for the current mortgage there will be a refund. The amount of the refund could be possibly be around $1,000, more or less depending on the remaining balance at the time of closing. In addition, as a result of refinancing, one or two monthly mortgage payments may be deferred.
The length of the Streamline mortgage can be 10-30 years. Veterans who are in a position to refinance from a high interest rate to a lower rate often consider doing a 15 year loan so that the home is paid off sooner. Even with a lower interest rate, the monthly payment generally will go up when changing from a 30 year to a 15 year mortgage. If the borrower can afford the increased monthly payment, a 15 year loan is definitely one to consider because of the long term benefits.
Many veterans have taken out a second mortgage on their home and wonder if they can still get a streamline. The answer is yes if the second mortgage holder will sign a subordination agreement.
The application process is quick and easy "streamlined" and can be explained by your Lender. Just make sure you are dealing with a Lender and a Loan Officer who is experienced in assisting Veterans with VA Loans, IRRRLs and Refinances.

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Helping in Debt Management

Submitted By: Jared D. Irving

In today's commercial world we are closely associated with the term called debt management. Debt management means managing or paying off the debt which is still left to be cleared in full. Paying back the long standing credit to the creditor is debt management. We mostly seek loan or credit service when the situation demands for it or in other words we can rightly need that when we have to incur some uncontrollable heavy expenditure. Thus this loan absorbing situation here helps in arising debt management. It’s our prime duty to repay the loan with interest to the creditor. Hence we can say that the debtors or the burrowers always have to be aware to clean credit debt as soon as possible within the specific time period. The customers, while taking the loan, have to undergo a lot of legal formalities. Then only the required amount of loan can be successfully sactioned.The burrower has to keep lot of his avenues wide open so that the revenue is generated quickly to clear the debt first. Generating and saving the income which is earned is the best possible remedy for clearing debts.
The clear debt solution depends heavily on the effort which the debtor makes to earn his income and there by instigating himself in paying off the required amount of credit. Its very necessary for an individual to clear debts within the said time period otherwise there are every possible chances of a hike in the interest rate, so he has to be well aware of it. Many times it is observed that many debtors are completely drowned by heavy debt as they are unable to find any mode of solution to pay off their debts. The stipulated time on hand is slowly but steadily going to be over. To help these people particularly there are lots of legitimate financial organizations available which are willing to lend their services. These organizations pay off the debt with interest to the creditors on the debtor’s behalf within the stipulated time span which gives a some what relief to the customers. Now these financial institutions will take a little commission as interest from these customers for helping them to pay off their debt. The customers are again given a suitable amount of time to pay back the entire money to these institutions. By this, the customers get little more added time and the burden of debt clearing is certainly minimised.This is known to be the consumer debt management.
Credit card debt management also forms a part of debt management. Many people are busy using their credit cards in shopping and marketing. The bank immediately pays off the money to the shops on the customer's behalf; still lot of customers cannot pay back their dues on time .The best possible remedy will be to opt for zero percent interest rate schemes. The customers in this bank rate scheme have to pay only the credit not the interest. Although lot of financial help is available in the financial markets but the most preferred option for credit debt management will still be to seek loan from your nearer and dearer ones. Here as the loan is been taken from the relative itself so the interest rate will mostly be nil or low. If the rate of interest payment is nil or low, then the debtors will certainly be more at ease in debt management.

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Want to be Approved For Your Next Loan? Consider This Simple and Best Way to Improve Your Credit Score

Submitted By: Tim H Lambert

Months before you begin to look for a new car or home, it is necessary to take steps to be approved for your credit loan. The first useful step is by making a list of all of your existing loans and credit cards, including account numbers, company names and monthly payment amounts. This step will assist you in analyzing the information on your credit report. If possible, include also all your closed loans and credit accounts.
Have a check up in your finances before meeting with good mortgage lender for a full credit approval. While you are in the process of being approved, your own credit report will be requested. The credit score typically includes all the data from all three credit bureau - Equifax, Experian, and Trans Union. The credit report shows the three credit scores from each credit bureau. The type of loan as well as its interest rate available for you is affected by your credit score. If you can’t understand what’s in your credit report, ask for the assistance of a mortgage professional and they will present proposals on the best way to improve your score. Once you have seen your credit report, make some correction if there are mistakes because credit bureaus often commit mistakes in the data. Remember that everything is done by compute so it is possible that you have some concerns on your credit report that must be corrected or disputed. Checking of your credit file is free of charge so take advantage of it.
After checking the credit report, you must face the real credit issues. In order for you to successfully address the real issue, you need the advice especially on the time it will take for all the issues will stay on your report as well as re-building your credit merit. It is ideal to talk to a financial advisor or personal counselor to working out of debt and ultimately trying to establish enhanced habits.
Now that you have altered your credit report for your own good, you must now understand how a credit score helps you in borrowing money. Below is the range of credit scores:
-Less than 620-Poor
-620-680 -Average
-680-720 - Good
-720 - 800 - Excellent
-800-850 - not often seen
Having known the range of credit score, try to aim for good to excellent because being in the average category will require you to add more money in order to be approved in the loan that you want
You should know the rules that govern the credit scoring. The factors that affect credit scoring are the following:
* The payment history comprises 35% of your credit score. You must pay all your bills on time to have a good credit score.
* The connection involving your available credits against how much you have is about 30% of your credit score. If you are over 50% drawn against your available credit, this will count against you.
* Your payment history accounts to 15% of the credit score. A loan that is more seasoned can give you higher score.
* If you made inquiries on your credit report accounts to 10% of your credit score so you should make any inquiries to a minimum.
* Lastly, the type of credit you used accounts for 10% of your credit score.

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Simple Tips on How to Improve Your Credit Score After Bankruptcy

Submitted By: Tim H Lambert

Most lenders and creditors will be thinking twice in lending you money or they may be wary to extend you any credits if you have declared bankruptcy. Bankruptcy has a negative effect in your credit rating for it has the ability to lower your credit score. To overcome this situation, you have to work hard in order to increase your credit score back to its higher position.
Declaring bankruptcy has significant negative effects on your credit score. You have to face the consequences like you are prohibited in opening charge accounts or purchasing items on credit, or worse, you may be forced in paying high interest rates. However, there are several actions you can do on how to improve your credit score after bankruptcy. The improvement of your rating will take time, no shortcuts is available. You should put some effort and time to improve your score and it will have a positive result within a year to one a half year.
After the awful bankruptcy, you must create a good history of paying debts and bills. You should make it habit to pay debts and bills on time. You can try automatic payments from your checking account to pay for the bills and debts. These are just simple steps you can do in improving your credit score.
As you continue the effort in paying bills on time, you should obtain a copy of your credit report and it is necessary to check the information especially for all discharged debts if they are correct. If erroneous data are listed, dispute it and change the data to the correct one, as soon as possible.
The most important thing in your bankruptcy experience is that you must prevent another situation that will force you to declare bankruptcy. Remember to make that awful experience as your learning experience and in the future know how to budget and have better financial decisions.
A simple precaution after a bankruptcy, there are certain individuals or companies that will claim that they are able to fix your credit problem quickly and then improve your score. Be aware of that because most of the time, they are fake and give you false promises. Do not pay money to them especially if they ask.
It is better that you take small steps to improve your credit because a small credit line is still a credit and by doing so, you give yourself the chance to illustrate that you can handle it dutifully. Your credit can improve in those simple ways. Remember that getting up with your credit after bankruptcy will take lots of time. Your job status affects your credit because it will be difficult to recover your credit if you change jobs often or self-employed.
Remember that a bankruptcy will be on your credit history for 10 years and a payment history of delinquent and late before your bankruptcy will stay on your credit history, but any debts should be mark as “paid”. It is also difficult to get or to be approved in any type of credit or loan after a bankruptcy; you will experience some creditors or lenders that will purposely aim you with high interest credit.

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Are There Possible Steps to Improve Your Credit Score in 24 hours?

Submitted By: Tim H Lambert

Most people choose to use credit in buying things like a new house, cars, jewelries and many more. They do that because they cannot afford to buy it outright hence they resort to pay the commodity on a monthly basis. However, not all loans are being approved because lenders consider factors before lending money to the borrowers. The most significant factor is your credit score that reflects our credit history. Credit score is a three digit number that is calculated using complex algorithm by the three credit bureaus based primarily on your credit history. Your score can go from poor, to middle, to good up to the magical score of 720 above where any types of credit are allowed without the hassle of verifications. Credit scoring can go for as low as 200 and as high as 850. If you have a poor credit scoring, you may end up being rejected to the loans that you want thus you must take necessary steps to improve your credit score. Unfortunately, most people had a limited time to increase their credit score especially in the case that you really need to be approved for the loan. To improve your credit score in 24 hours need great effort in your part so that you can be eligible for the loan that you want.
Fortunately for you, recent breakthroughs in modern technology make it possible to improve your credit score in one day and it can save you thousands of dollars. You might be surprised that there are clients that raised credit scores in just two hours. There are many proven ways to increase credit score in a week or less. One company offered a system called rapid re-score that is offered only in your mortgage officer. With this technique, leg work is a must in order to alter your information on your credit report by yourself. For example, you must pay off collections or liens in a span of a week. The rapid re-score system provides a second look on your credit score the end of a week therefore improvements, if any, will appear on your second credit score.
The above technique requires assistance from a company, but there are also do-it-yourself credit repair steps that can improve your credit score in 24 hours. It is very necessary to payoff your collections. You must pay all kinds of collections whether it is the smallest collection item or the biggest one. For example, paying a $30 parking ticket can increase your credit score up to 15 - 30 points. Unpaid collection can hurt your score by as much as 20 points. After paying them off, you must obtain a letter from your creditor. These letters are termed payoff letter or deletion letter. After receiving those letters, fax them right away to the credit bureaus if possible, try to talk to them using the phone and coordinate a quick alteration in your credit scores. Also, you should obtain three lines of credit that are unsecured. Hence, if you have extra credit cards that you want to close, close them. You would be amazed that these can increase your score fast by doing these simple and easy steps.

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