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Online Debt Consolidation and Debt Management Services Debt Management Agreements: The Pitfalls
Credit counseling is not a very well-regulated industry today. In the past, credit counseling was operated more like a social service rather than as a business designed to make a profit.
The industry was known by the general term CCCS (Consumer Credit Counseling Service) and operated under the general guidelines of the NFCC (National Foundation for Credit Counseling).
The lay of the credit counseling landscape has changed. As more and more consumers find themselves deeper and deeper in unsecured debt (think credit cards), more and more for profit credit counseling services have sprung up. Some of these services are very good and very fair, but be aware that not all of them are.
Some credit counseling services are good, others are bad, and then there are those that are just evil.
1. The debt management service that you choose should be a member of the BBB (Better Business Bureau). You can check with the BBB to see if the company has a good record and if there have been any complaints filed by others. Membership in the NFCC (National Foundation for Credit Counseling) or AICCA (Association of Independent Consumer Credit Counseling Agencies) is also acceptable.
2. If the debt management service promises you that it will take 20 minutes or less to solve all the financial problems, you need to run as fast as you can. They are referring to THEIR financial problems and not yours. It takes time and effort by a debt management service to help with your financial problems and get you the best deals possible.
3. Be certain that the debt management company can help with all of your unsecured debt and don't just deal with a few companies. Half a fix is often worse than no fix at all.
See Also:
Debt Management Solutions
| Debt Management-Getting the Picture Debt Management and Interest Rates
It is sometimes just amazing, but people have no idea what interest rate they are paying on loans -- even on their mortgages. Interest rates matter.
Interest on credit card debt is the highest. Credit card interest rates are higher than bank interest rates that you may have for your car loan or the installment loan for furniture or appliances.
Another very amazing thing is that the majority of people do not understand what simple interest is and the difference between simple interest and compound interest. Every high school in America should teach this and the course should be a graduation requirement. Not understanding interest rates costs Americans hundreds of billions of dollars every year.
I do not have the space here to teach a course about interest rates. Remember this: simple interest is less than compound interest. The compounding frequency determines how much higher. Interest that is compounded monthly will be less than interest that is compounded weekly or daily.
Your credit score determines what interest rate you will be offered, and it will also determine just how much interest rate negotiating power that you have. The people with the highest credit scores will always be able to get lower interest rates than people with lower credit scores.
No credit history is viewed in the same way by lenders as a poor credit history, in that the interest rates that are offered will be virtually the same. Build a good credit history and you will get a lower interest rate.
First-time borrowers may have to pay higher interest rates, but it is to their advantage to make their payments on time and in full. If payments can be made prior to the due date, that will raise the credit score. Paying a loan off early will also raise a credit score. |
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| Debt Management Wiggle Room Debt Management When Starting a Business
Starting a new business is a heady time. There are all of those dreams and plans just sitting there waiting to be realized. You KNOW your plan will work and you have the utmost confidence in yourself and your abilities to make your plan work. Ambition, energy, and enthusiasm are not the problems -- but money might be.
Within your business model, you need to have a debt management plan in place before you begin. Starting a business...any business...takes money, and don't let anybody ever tell you any different. Think about it. Your expenses for living are going to keep on adding up every day and every month even if your income isnt keeping up with the demand.
And that isn't all. When you make your business plan, you need a financial plan to go with it. You are going to have living expenses, but you will also have business expenses. Getting any business off the ground takes a financial investment of some kind.
Maybe you are thinking about starting a business from your own home and you believe that since you won't have to be paying for renting a building, paying extra utility bills, etc., you won't have any business expenses. You couldn't be more wrong.
You are going to have to buy various software, and you are going to have to subscribe to specific services. If you are working at home for
yourself, you are going to be responsible for paying self-employment tax every quarter. You will likely have to advertise your new business. The world probably isn't waiting with bated breath for you to come on the business scene. Everything that you bring in is not going to be profit.
A business plan needs to include a financial and debt management plan. Don't leap before you look. |
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Debt Management Correcting the Course, Free Programs for Debt Management
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