All about Business Guides for Success
Credit Card Consolidation Versus Debt Payment Business
If you find yourself loaded down by credit card debt that you would love to get rid of then you may have been considering your options. Should you get a loan for credit card consolidation or should you use a debt payment business? Read for credit card consolidation versus debt payment business information.
Credit Card Consolidation
When you use credit card consolidation, you can get a loan to consolidate all of the debt on your numerous credit cards which will allow you to make lower monthly payments that are much less than what a credit card company would make you pay. This allows you to save money month after month.
Another reason that this could be a good option for you is credit card debt consolidation payment means that you won’t be harassed by your creditors as long as you continue to make your monthly payments. Just keep in mind that you will have to cancel all of your credit cards that are included in your repayment plan. You will need to pay fees and interests just like any other loan.
Debt payment business
Also known as credit counseling is another option, especially if you are not in a position to get a loan to consolidate your debt. One big reason that a loan may not work for you is because you do not own something that could be used as collateral like a house. Unlike credit cards, banks will not make a loan without knowing that they can get their money back somehow.
A debt payment business is best used when you have had to stop making payments to your credit cards, because they will work with the credit card companies to get some of your fees and interest reduced. If the creditors think that the only way to get their money back is to work with the debt payment business then they will be more willing to make a deal. If you have not reached this point then they will ask you to not pay your credit card debt for a period of time. You should know that this will seriously damage your credit rating. Credit ratings can be restored over time, so if your credit is already bad or you simply don’t have any other choice than don’t worry about it. There are companies that can help you restore that as well, later when you are free and clear.
The debt payment business will ask you to send one payment to them and then they will pay your credit cards individually. Be aware that these companies often take your first payment for their fee, and sometimes charge you additional fees at the end. Also beware that some of these credit counselors are really not out to help anyone but themselves. There are a few that have been known to not make your payments on time even though you paid them on time. When this happens the only one it hurts is you.
The next step that you will probably need to take is to get a professional to look over your situation and give you advice on deciding your credit card consolidation versus debt payment business debate.
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about 1 year ago
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about 1 year ago
You said the accounts were in good standing. There is nothing wrong with carrying some debts, and many people claim that creditors seek a certain amount of debt to the amount of credit available to you. Part of it comes down to interest rates. If your credit card is a very low interest or maybe even 0% APR then with a larger down payment you would need to borrow less money from a bank for your home. Since the mortgage payment would have higher interest than the credit card, it would be more beneficial to lower your credit card payments not, and place a larger down payment on your home.
about 1 year ago
The best place to go for this answer is to your attorney's office. If you do not have an attorney, use the lawyer referral service at http://www.texasbar.com, the State Bar of Texas website.
For a complete set of Texas statutes, go to http://www.statutes.legis.state.tx.us .
about 1 year ago
I am a debt collectot…the money is good. I love the job, its a lot of fun to be honest. Not too much pressure and the targets we get are easily achieveable…
about 1 year ago
lol this guy looks like a date rapist
about 1 year ago
The first thing you need to do is FIX your fico. Do not try to consolidate that is just an accident waiting to happen. Here is how a fico works. There are 5 key areas for your fico score:
1: record of paying your bills on time 35%
2: Total balance on your credit cards 30%
and other loans compared to your
total credit limit.
3: Length of credit history. 15%
4: New accounts and recent 10%
applications for credit.
5. Mix of credit cards and loans 10%
Your track record in making your payments on time is 35% of your fico score. you do not need a load of money to to make payment. Just make the minimum required on time. If you mail your payments make sure you mail them 5 days before the due date. If you pay online make sure it is at least 2 days before your payment is due. Do not write past due checks <—- this will not work.
Protect your credit history, because 15% of your score is based on how long your history is. The longer your history the higher your data points will be. The big down fall with everyone today is they think that canceling credit cards is helping them gain credit. When in fact it is hurting their credit. Canceling a card is wipeing out some important credit history. If you have to cancel and credit cards make sure that you cancel the newest ones first and save the long history. And waiting like 2 months before canceling another one, so the bureau willnot hit youall at once.
Manage your debt to credit ratio. Lets say you have a card with a 6,00 dollar limit. If you spend 3,000 dollars you now havea 50% ratio. The lower your ratio is the higher your fico will get. If your ratio is high ask your card company to raise the limit so you bring down your credit ratio. example lets say the company raise your ration to 12,000 dollars now your ratio is at 25% which isnow a lot better. Try to keep you credit ratio at 20% or less if possible, this has 30% riding on your fico score.
The other 20% opf your crdit is divided between new crdit apps and a mix of your credit cards and loans. This is what your debt to income is. Lets face it banks would love to squeeze a quarter out of every dollar we make. Doesn't everyone? You are a business person so you know. You need to establish a small debt to income ratio. Try to have smaller and less bills. This will help when applying for any loan. STAY AWAY IF ALL POSSIBLE FROM BANKRUPTSY.
I hope this helps. This is the first you need to do to save not only your business but yourself. You can check your credit for free once a year.
if you go to http://www.annualcreditcheck.com you can review what your credit is.
Try to buy this book called the young fabulous and the broke it will help you step by step to get back on track.
Good luck pal.
about 1 year ago
all debt collectors are pussys and can GO TO HELL
about 1 year ago
Oh she will be liable regardless of who charged on these cards
she is liable and never is debt written off just because of death.
When my sister passed away, the next month of course her payments weren't made, and her husband received a call and (these were not joint accounts) they gave him 30 days to pay off the debt in full.
She only charged on them a year prior when she found out her husband was having an affair, she then found out she had cancer and not long to live so we lived it up knowing he would be responsible for the entire amount. We enjoyed our last days together and she told me enjoy watching him pay off the bills,
Now he is totally broken
about 1 year ago
Debt collectors fail because they implement extortion & intimidation tactics when trying to collect a debt.
Most are intolerant, rather than patience, rude instead of nice, too pushy instead of being diplomat & persuasive.
But most of all; Lack of common sense.
about 1 year ago
I was just hired at a collection agency about one week ago, I do not have much exp. in collections, but I would like for you to give me some pointers on how to be a good debt collector. I heard that the money is great once you get the hang out it.
about 1 year ago
They will claim that business debt is not covered under the FDCPA because it only covers consumer debt.
about 1 year ago
A tough job! Memphis will likely be OK – real people in TN – with good backgrounds.
Future is an unknown – no ONE can see it; but yet it waits. Good or Bad? I’m hoping for the best!
Thanks for the comment
Peace
about 1 year ago
Gold is falling now, but the IMF appear to have their eyes on it for supporting the new currency.
What do you know of Carbon Taxation and the new world currency.
about 1 year ago
No.
If the profits were used to pay off any debt.
This is a wash on your Schedule C.
and
The taxes you've paid previous can be deducted and
expenses in selling the business also.
Talk to your accountant and or advisor.
(if it's not us on Yahoo Answers)
Have Fun and good Luck.
about 1 year ago
You’re embarrassing and clearly owe serious dough.
about 1 year ago
If you are paying yourself within the business, you can do whatever with the money as you so please. You would still be liable to pay off the business debt, though.