Debt Consolidation

What is Debt Consolidation?

Because of the fast paced development of people’s spending habits, there are more people now who greatly depend on their credit cards to pay for necessities. Because plastic money is conveniently represented by one easy to carry card, it’s easy to get carried away with incessant purchasing. We fail to remember that the more we rely on our credit cards, the more expensive things get. If you’re currently in a situation where you’re overwhelmed by your growing credit card debt, then debt consolidation may just be the thing to help you manage your outstanding monthly bills.

To have a clearer understanding of how debt consolidation can work for you, it’s important that you first know the difference between secured and unsecured loans. Secured loans require you to place forward a tangible asset like a house or a vehicle that can be used as collateral in a loan, while an unsecured loan does not require for any collateral to be involved. Depending on your current list of assets you can choose between the two types of loans, although there are more advantages connected to a secured loan like lower interest rates and longer repayment periods.

Debt consolidation will basically fuse together all your credit card bills into one large amount loan so that you’ll only be bothered by one monthly payment each month. This also means that you’ll only have one interest rate to worry about. It’s also an effective way for you to avoid bankruptcy because it gives you enough time to get back on your feet before you deal with the new loan. Unfortunately since the new loan consolidates all your previous loans into one, expect that you’ll be paying a one-time substantial amount each month. It’s important that you make sure you are financially capable of paying the monthly due or else your lender may suggest that you sign an unsecured loan agreement before they lend you the money.

But if you have a number of different credit cards that you’re constantly dealing with, debt consolidation can easily eliminate the chance of you paying more from the combined interest rates of all your credit cards. You need to carefully weigh all your pros and cons depending on your financial situation.

Before you commit to any debt consolidation loans, do not hesitate to consult trusted financial experts first on whether this is the best option for you to be able to manage your credit card debt. Debt consolidating schemes only work under specific conditions and situations.

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Can credit bureaus report late payments after a sheriff sale?

I had a foreclosure back in 1/07. My credit report shows the foreclosure; however, is reporting late payment after the sheriff sale. It shows the final date of 11/07. Is there anything I can do?

Tags: credit report, foreclosure

Credit Report?

I am looking at my husband’s credit report and there are a few accounts in the negative section, but most of them are closed. Do these closed accounts still affect his credit, or does he still need to pay them off to get them completely off his report? Are they only their for history purposes?

Tags: credit report

How do I dispute a negative statement on my credit report?

I’m in the U.S. Army. Shortly after filing my indiana states taxes for 2005 I deployed to Afghanistan. I apparently owed the state revenue service around . I am pretty sure I acknowledged this before I deployed but I guess it slipped my mind.

Apparently the revenue service tried to get a hold of me (which they obviously weren’t able to) regarding the situation. Eventually, a sheriff was sent to the address listed on my Indiana state driver’s license and the state revenue service reported a no payment tax lien on my credit report.

All in all, the state got their crummy 40 bucks but I have the negative hit on my credit report.

I was turned down for a car loan because of it. Am I able to dispute this? If this had been under normal circumstances I would have been on top of things and this thing would have gotten paid before anything bad happed.

Tags: afghanistan, car loan, circumstances, credit report, indiana state, payment tax, state driver, state revenue, tax lien, u s army

How often does Household Bank report to credit bureaus?

I recently got a Household Bank credit card in order to help build up my credit score. I have only used the card for small purchases and have paid off the balances for 2 months (the amount of time I’ve had the card) but no payments have shown up on my credit report as of yet. I was under the impression that Household Bank reported to the credit bureaus every month. Does anyone know when the payments might show up?

Tags: amount of time, bank credit card, credit bureaus, credit report, credit score, household bank credit card