| |
| |
|
|
Credit Information |
|
Bankruptcy vs. Credit Counseling: What Should I Do?
Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you. Credit counseling is a program designed to help those who are in a state of debt and cannot find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan that is tailored to your specific needs and goals. Credit counseling agencies often provide services for free and will help to educate you about how to avoid financial problems in the future by offering debt management classes or seminars. They do not erase your debt. Instead they work with you to budget money so that you can pay off the debt often times by debt consolidation. Collection will continue while using a credit counselor, however, in most cases companies who are owed money will try and work with you to help you payoff your loans. Credit counseling services often help you to reestablish credit after the loans are paid. Bankruptcy is very different. It will completely clear your debt in most cases and you will no longer be hassled by collection agencies and their attorneys. There are two kinds of bankruptcy; the one that is right for you will depend on your situation. When filing Chapter 13 bankruptcy you are able to keep property that is mortgaged such as your house or car and are expected to repay debts in three to five years. Under Chapter 7 bankruptcy, you must give up all property and assets that you own. There are exceptions in some states for items such as work tools and household furnishings. Bankruptcy will certainly clear your debts and stop foreclosures and wage garnishments, however, you will be unable to establish credit for up to ten years. Filing bankruptcy can also be very expensive compared to credit counseling. Take time and research credit counseling very carefully before deciding on bankruptcy as it can save your credit in the long run. Most people feel much better about themselves when they can pay off their debt and become educated about how to stay out of debt rather than filing bankruptcy. Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and credit counseling information that you can research in your pajamas on his website.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
What is Credit Counselling? Ever wondered what is Credit Counselling? There are occasions when you might encounter a financial situation that is beyond your scope which is when a session with a credit counsellor could be beneficial.If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counselling organisation. Update Your Computer System With Bad Credit Computer Financing The moment I placed myself in front of the computer screen a whole new world beckoned me to join it. And years of strolling have proved incompetent to get me acquainted with the full panorama of computers. Ten Steps To Building A Good Credit History Are you thinking of buying a house? Do you want to buy a new car to replace that old wreck? Trying to get insurance on you home, auto, or life? In each of these situations, what's on your credit report will determine if you can get a loan or insurance and what rates you'll have to pay.If you're trying to build or repair your credit history, you have a daunting but not impossible task in front of you. Cash Back vs. Rewards Credit Cards Ah, the sweet rewards of using credit!Not only do you get immediate gratification with the buy now-pay later plastic, but now, many credit cards offer rewards and incentives for using their card to make purchases. You can get cash back, or gift cards, or 'reward points' that you can spend on merchandise or services from various merchants. What You Need to Know About Credit Reports You hear people talk about credit reports all the time but do you know what they are really all about? Well, if you have ever been turned down when applying for a credit card or a loan it is high time you learned all about your credit report and how you can get it working for you instead of against you.Let's start off by explaining what your credit report actually is. Fair Credit Reporting Act: What You Should Know About It? The Federal Fair Credit Reporting Act (FCRA) is designated to promote accuracy, fairness, and privacy of information in the files of every "consumer reporting agency" (CRA) or Credit Bureau. Learn what the law says and repair your credit today!Most CRA are credit bureaus that gather and sell information about you, such as if you pay your bills on time or have filed bankruptcy. Grants, Loans, Free Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth You got creditors calling you everyday. You could lose the car or house. Credit Card Traps: How To Spot Them On The Spot! They arrive in your mail - a conspicuous looking mail piece from some "official looking" bank claiming that you have been Pre-Approved for a Mastercard or VISA credit card.Of course, you don't have to have any credit. What is Credit Repair and How Can It Help You? There are millions of consumer credit reports on file from mainly three major reporting bureaus which include Trans Union, Experian, and Equifax. These credit gathering agencies store huge amounts of data about every person that takes out a loan, credit card, or any other line of credit. What is the Check 21 Act? Check 21 is the common name for the Check Clearing for the 21st Century Act. It's new legislation that was recently passed by congress and made a law when signed by the President of the United States (remember "I'm just a bill" from Saturday morning cartoons). Credit Card Rates - Negotiating Rates with Your Credit Card Company Ok, let's face it, everybody hates high credit card rates, and they drain hard earned money out of your wallet. As a valued consumer, it is apparent that you learn how to negotiate to get the absolute best rate that you possibly can. My Credit Card Application Was Rejected! Now What?!? No doubt, you've probably gotten literally hundreds of credit card applications in the mail and online, and each and every one of them has said that you've been "Pre-Approved".Of course it's natural that this would lead us to believe that the application process is simply a formality. Dont Trade Your Future for Todays DooDads "Easy Low Down Monthly Payment," "Buy Now Pay Later," "You Deserve the Car Today and We Can Finance It for You," & "Spend Today, 0% APR until Next Year!" We see those statements above every where today, on TV commercials, car dealership, banks and magazines. Those statements have put a lot of people into a financial disaster, because the statements make a lot of people believe that acquiring bad debts is an ok thing to do. What is a Credit Card? A credit card allows you to buy things even though you might not have the money to pay for it right away. The company that gave you the card lets you spend up to an agreed sum and then makes additional money available to you as you pay off what you've spent. All You Wanted to Know of Bad Credit Martin Henderson is in a fix these days. Because of his failure to repay a loan he had taken a few years back, he has been adjudged as a bad credit case. Sound Advice For First Time Credit Card Users If you are just entering the world of credit cards, there is important information you will need to know in order to manage your credit and your finances effectively. Establishing good habits and a good credit history now is the foundation for a solid financial future. SuperCharged Secret 2, Credit Card Utopia INTEREST BEWARE, THERE'S SAFETY IN NUMBERS!Note: The following is part 2 of a 5 part series, Over the course of these 5 articles, I am going to introduce you to several methods for maximizing the use and benefits of the best Credit Cards and offers on the market today. This information, when used in conjunction with one another, is unlike anything you've ever seen before. 5 Things Your Credit Card Company Keeps Quiet About Credit Cards can bankrupt you if you let them run away from you. The various Credit Cards companies are in it for profit so they will not generally alert you to things you can do to save yourself money. Free Credit Report - A Website Typo Could Be Costly In 2003, Congress passed the Fair and Accurate Credit Transactions act (FACT), which made it possible for consumers to obtain a copy of their credit report for free. In fact, the legislation makes it possible for consumers to obtain one free report from each of the three main credit bureaus - Experian, Trans Union, and Equifax, per year. Identity Theft - How Can You Prevent It Happening to You? The nightmare of identity theft strikes an estimated 750,000 people every year. How can you keep from being one of them? While there is no guarantee that you won't become a victim, there are some steps you can take to decrease the risk and protect yourself.
|
|||||||||||||||||||
