A better alternative to doing nothing about debt is one that benefits both you and your creditors. Negotiating a debt settlement plan with your creditors can help you dig yourself out of the hole you’re in. How a debt settlement works is simple. You inform the creditor that you want to pay the debt, telling them exactly how much you can afford. The creditor accepts or rejects your payment plans and you begin making payment. If you have debt of more than $5, 000 you may think it would take years to pay off the debt. Actually, the amount of your debt probably includes late and over-the-limit fees, and other charges. Creditors will often work with you and may reduce or completely eliminate these charges. This can significantly lower your balance. If your account is associated with a high interest rate, it is possible that the creditor may also lower this amount for you.

You have choices when you consider a debt settlement. There are companies in just about every major city that offer debt settlement services. These companies do all the legwork for you. You sit back and save your money and when instructed to, begin making payments towards your debt. While you are saving your money the debt settlement company negotiates the plans for you. Independent companies that perform debt settlement services don’t do so for their good health. They will generally charge you an initiation fee. Depending on the company, your monthly settlement payment may include a fee as well. Be prepared to do some research if you choose to work with one of these companies. There have been reports of scams.

A more secure and less expensive method for debt settlement is to go through a consumer credit counseling agency. Of these, Consumer Credit Counseling Service (CCCS) is the most well known. This is a non-profit agency whose main focus is to help people get out of debt. CCCS offers a Debt Management Program (DPM) that works similar to a debt settlement. Depending on the office in your area, you may or may not have to pay a fee. If you do it is typically very insignificant. An advantage of using CCCS is that they will help educate you about financial matters.

An even cheaper way to initiate a debt settlement is to contact your creditors yourself. Many people are unaware that they can negotiate with their creditors. You don’t have to seek professional assistance. There are a few ideas you want to keep in mind if you decide to proceed on your own. Make sure that the payment you agree to is what you can actually afford. Once you and the creditor agree on a debt settlement plan, it is a good idea to get the terms in writing. Many creditors will generate a letter detailing the agreement, but if they don’t', simply type of the terms and send it to them certified mail, requesting their signature.

Sound good so far? Before you start envisioning yourself debt free, it’s a good idea to consider the pros and cons of debt settlement. On the positive side, you don’t have to worry about the annoying calls from creditors. Since you agree to a specific plan of action for your account they have no reason to call you. Another good point for debt settlement is that the terms are based on what you are able to pay. You design a budget and determine what you can afford. This also relieves some stress since you’re not stretching to pay your bills.

There are some disadvantages to debt settlement. Although you establish a payment plan with creditors, there is the possibility that they will report your account as "Not Paid As Agreed," which is viewed as negative information on your credit report. This information can remain on your credit report as long as seven years. While you are making payments in the plan you should not use your credit cards or obtain additional credit. In addition, depending on your debt you may be in the plan for up to two years.

James Duggan is an author,internet marketer and membership consultant for Financial Freedom Society Inc. http://www.ffsi-rq.com For more information on debt consolidation,personal finance,debt and credit card help visit: http://www.fix-a-debt.com

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Here is a list of myths or untrue statements that I have come across when researching bankruptcy that I wanted to share with you, the consumer.

All Debts are Erased When you File for Chapter 7 Bankruptcy Protection.

This is simply untrue. Don’t believe anyone who says this to you. You will find out quickly that there are certain debts that can’t be erased. These debts include and child support or alimony, student loans, or any fraudulent debt. Although some legal settlements may be removed it’s not guaranteed.

Filing for Bankruptcy Protection Will Improve Your Credit Rating.

No it will not. This is used in several unscrupulous bankruptcy attorneys’ advertisements. Be wary of anyone telling you this. The fact is bankruptcy is by far the worst and most damaging mark you credit report can receive. Other negative factors may stay on your credit report for 7 years; bankruptcy can be there for up to 10 years.

Bankruptcy is an Easy and Pain Free Process.

Some bankruptcy attorneys use this in their advertising as well. This is a statement that is false as it is not an easy choice for most consumers. Bankruptcy is one of the harder choices a consumer will make and the aftermath that may develop after a bankruptcy can create long lasting personal problems. Relationship problems, trouble getting a job that requires a clean credit history, or even dealing with the personal stigma attached to bankruptcy can make it difficult for a long time. If someone tells you this is an easy choice they are not looking to help you but rather to profit from your hardships.

While bankruptcy may be unavoidable for some individuals due to hardships that they may be experiencing, bankruptcy is not for everyone. Bankruptcy attorneys should try to find other solutions for you before recommending their own help. Review your options before making your decision, as this may have a long term impact and not provide the quick fix some look for when choosing bankruptcy protection.

Article written by Richard Munster

Rick Munster is the Media Planner for Debt Reduction Service, http://www.debtreductionservices.com When he’s not busy media planning he can be found writing, hiking or finding a nice lake to drop a line into.

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Employment is a lagging indicator. The Unemployment Rate is currently 5.0%, which is considered to be the natural rate of unemployment, where there is an optimal balance of labor and leisure. A lower unemployment rate would indicate strain in the labor market, which would drive up wages. So, there is some concern for slowing profit growth and rising inflation, e.g. a wage-price spiral, although there have been signs of disinflation recently. Nonetheless, U.S. monetary policy is still accommodative, and the Federal Reserve will need to remain vigilant to preempt inflation.

Consequently, the stock market may have reached a short-term top last week, and may consolidate for a month or two. July-August-September is the seasonally weak period for the stock market. The chart below shows SPX rallied about 110 points over a 3 1/2 month period. The two big down days Thu and Fri were on lighter volume, which may indicate a trading range next week. SPX hit a high at about 1,246 last week, and 1,253 is a multi-year Fibonacci resistance level that may not hold for at least several months.

SPX closed at about 1,226 1/2 Fri. Short-term resistance is at the 20 day MA, currently about 1,231 1/2, last week’s pre-Friday low at about 1,235, and the 10 day MA, currently just over 1,236. If SPX rises into that area early next week, that may be an opportunity to buy Sep puts. If SPX rises higher, e.g. to test the recent high or multi-year Fibonacci level, that may be an opportunity to buy Aug puts (SPX options expire in two weeks).

SPX is currently in a support zone, i.e. the congestion area over the past few weeks when it held the 10 day MA, and the long Price-by-Volume bar at around 1,225 (on left side of chart). Other short-term support levels are the open gap at 1,221, the 50 day MA, currently about 1,213 1/2, and the longest Price-by-Volume bar at around 1,200. If SPX fails to hold the 200 day MA, e.g. in Sep, then it may close the gaps at 1,174, 1,143, and 1,138.

Next week economic reports are: Mon: None, Tue: Productivity, Wholesale Inventories, and the FOMC announcement, Wed: Treasury Budget, Thu: Retail Sales, Unemployment Claims, and Business Inventories, Fri: Export & Import Prices, Trade Balance, and Michigan Consumer Sentiment. The FOMC is expected to raise the Fed Funds Rate another quarter point to 3.50% Tue. I believe the FOMC will continue to tighten the rest of this year, until monetary policy reaches a neutral stance (perhaps 5% Fed Funds Rate). The weekly oil inventory report is Wed.

Chart available at PeakTrader.com Forum Index Market Overview section.

Arthur Albert Eckart is the founder and owner of PeakTrader. Arthur has worked for commercial banks, e.g. Wells Fargo, Banc One, and First Commerce Technologies, during the 1980s and 1990s. He has also worked for Janus Funds from 1999-00. Arthur Eckart has a BA & MA in Economics from the University of Colorado. He has worked on options portfolio optimization since 1998.

Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time. This methodology has resulted in excellent returns with low risk over the past three years.

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1. Request Quotes

It is easy to compare rates online, but you really need to request quotes to do real comparison. You should compare car loans much like a mortgage. A difference as little as $17.00 a month can save you over $1000 on a 60 month loan. Some lenders charge fees, so watch for those. Sometimes small fees up front will save you money through lower interest payments over the course of your loan.

To find low rates consider using a car loan broker. They work with several different lenders to bring you multiple offers to choose from. You can also request quotes from individual lender websites. With either type of site, you will receive your quote instantly, enabling you to make a quick comparison.

2. Compare Terms

It is equally important to the compare terms of your car loan. The longer loan term you choose, the more you will pay in interest. However, longer loans also have smaller monthly payments. You will also want to look at fees that may be associated with early repayment or late payments.

Another factor to consider is increasing your down payment to 20% of the vehicle’s value. In some cases, this can qualify you for a lower rate.

3. Get Prequalified

To gain added leverage in you car purchase get prequalified for you car loan. By being prequalified, you get a blank check by FedEx to go shopping with. You can use it to purchase a vehicle from a dealership or individual.

In either case, you have the advantage as a cash buyer. There is no question about your credit history, so there is the incentive for the seller to close the deal. Take this advantage by negotiating a lower price.

To view our list of recommended auto finance companies online, visit this page: Recommended Car Loan Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

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Credit Counselling Helps People with Bad Credit.

It is much easier to borrow money now than it ever has been. This can prove helpful when seeking a first-time mortgage or wanting to borrow some money to buy that essential purchase. In the long run, borrowing money at the increased rate you are charged can lead to financial ruin.

Secured credit cards can be obtained with a few simple clicks of a mouse, and you rarely think about the consequences of your actions until it is too late. Credit counselling can help. A credit counselling service looks at your finances and works out exactly how much income and outgoing you have and then creates a repayment plan to help you pay off your debts. They contact your major lenders to agree a reduced repayment rate, in order that you can pay off all of your debts, and, above all, they can help set your mind at ease.

Structured Repayments.

Having many different debts with many different companies causes a lot of debt problems. With payments going out at different times and to different people it is very difficult to keep track; once you miss one payment these things tend to mount up very quickly.

Don’t be embarrassed.

One of the hardest things about contacting a consumer credit counselling service is that you may be too embarrassed about the situation you find yourself in, yet you really don’t need to be. Credit counsellors deal with cases like yours on a daily basis, and there is always somebody in a worse situation than your own. The worst mistake to make when considering credit counselling is not considering it soon enough.

Credit counselling does not help consolidate your debts but they can stop debt collectors knocking at the door. They can help with credit repair and they can make people with bad credit rating feel like they are humans again.

Melanie Slade is a freelance author from Naporville, Illinois. For examples of other articles, see http://www.a1-credit-counseling.net

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Don’t get pre-approved or pre-qualified for a loan; lose your dream home to someone else.

Being pre-qualified shows some commitment on your part to both the mortgage broker and the seller. Being pre-approved is an even better step to take. The lender knows your financial standing and is able to present you with the loan deal. If you are neither pre-approved nor pre-qualified, a real estate agent representing the seller will not treat you seriously, and the property you want will most likely sell to someone else during the time you waste securing a home loan. Go ahead and procrastinate, you didn’t want that house anyway.

Make verbal contracts only. Talk is not cheap.

Since they are not enforceable in most states, make sure that the details of the deal regarding who pays certain costs or necessary repairs are agreed on verbally, and only verbally. Similarly, when the lender tells you that your rate is locked in, don’t ask for written evidence. You might be in for a big surprise at the closing appointment, but who doesn’t like surprises?

No need to be discriminating. Choose a lender by using only one criteria.

A favorite criteria of most people is to go with a bank that offers the lowest interest rate, without any consideration of the true cost of the loan. Even if you know how to calculate it, you’ll probably choose the lowest rate loan. The chances are that the lowest rate bank is charging a lot more in fees and points than others, but who has time to shop around? Life is busy. Others, usually more cautious people, go with the bank where they have their checking account. After all, your bank loves you and would not wish any financial harm, right?

Pay more than you should. Choose the seller’s real estate agent to represent you.

It is truly the best option. Rather than asking friends or colleagues for referrals, picking up the yellow pages or searching online for your own agent, simply go with someone whose job it is to get the best deal for the seller. Who cares about conflict of interest. Be house poor.

No need for tedious professional home inspections.

After all, what could go wrong? Leaky roofs, plumbing problems, termites, asbestos; all a minor nuisance. If electrical problems happen to start a fire? well, that’s what smoke detectors are for.

Don’t bother reading important contracts. Just sign all documents.

They are long, difficult to read and understand and are very time consuming. Rather than familiarize yourself with them ahead of time, just wait and sign everything at your closing appointment. Besides, what you’ve signed may open the door to a world of surprising homeowner adventures you could never have imagined. More surprises for you to enjoy!

Buying a house will most likely be the most important purchase you make in your life. Don’t mess it up!

There are countless websites, magazines, books etc with which you can empower yourself in this daunting task. Don’t let yourself be taken advantage of; learn all that there is when it comes to buying a home. If you want to fail, just follow the preceding steps. But, success at negotiating the best price and the best loan rates can be achieved by simply avoiding these foolish and costly mistakes. The lenders and agents are counting on you to walk blindly into your home purchase. For them, the bottom line is getting the commission. They are hoping for as quick a sale as possible, and they would like you to be a typical uninformed client who makes decisions with their hearts only and not their heads. Make the agents work for you. Take the extra time, arm yourself with the knowledge of home buying and lending practices in order to make informed, sound judgments and decisions. You’ve worked very hard to get to the point of buying a house, so be smart about it and don’t mess up!

Find more about home loans, insurance, and money saving tips at: How Much? http://www.howmuchanswers.com/

Simon Fox is a senior staff member with How Much? - Comparing financial products. http://www.howmuchanswers.com

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When you see ads like this, they are often from Credit Counseling firms. In this article, I’ll explain the principles behind the Credit Counseling approach and discuss the main problem consumers face when they join one of these programs.

First, let’s get our definitions straight. The term “Credit Counseling” is actually quite misleading, since it has nothing to do with preserving or improving your credit score. In fact, Credit Counseling will often damage your credit, an unpleasant reality that is sometimes downplayed by industry representatives.

Credit Counseling is a debt management program where you make a single monthly payment to an agency. In turn, that agency distributes the money to your creditors on your behalf, ideally at lower interest rates so you can pay off the debt faster. Credit Counseling should not be confused with Debt Consolidation, Debt Settlement, or Debt Termination. Each of these debt programs takes a very different approach from Credit Counseling.

Of all the available debt options, Credit Counseling is by far the most popular, with millions of Americans participating. Does this mean it’s the best choice for most people struggling with debt? No! There are numerous problems with this approach.

In recent years, the Credit Counseling industry has been heavily criticized by impartial consumer groups like the Consumer Federation of America. But these criticisms often miss the mark entirely. They usually focus on the aggressive companies that use their non-profit status to trick consumers into thinking they are charitable organizations, or even that their services are free of charge. In reality, these outfits charge hefty “voluntary” contributions, often adding up to hundreds of dollars, plus steep monthly fees as well.

However, I’m not talking here about the bad companies who provide little or no actual “counseling,” or the ones that are only in business to make their owners rich. No, I’m talking about serious problems with the actual business model itself. So let’s take a closer look at how Credit Counseling works.

Let’s say you owe $25,000 on several different credit cards. Let’s also assume your average interest rate before you enrolled was 20% (which is actually low these days, especially if you’ve missed any payments). Your minimum monthly payments are $500, which you’ve been struggling to keep up with. At this rate, it will take a whopping 109 months (more than 9 years) to pay off your debts, assuming you don’t miss a single payment along the way.

You enroll in a Credit Counseling program that promises to get you out of debt faster. But does it? Assuming your creditors agree to participate in the program (not always the case), the real key is the concession they will grant on your interest rates. In prior years, creditors looked more favorably on Credit Counseling and they offered steep discounts off the normal interest rates. But lately they have squeezed the industry, and the concessions are not so good any more. Currently, most of the major players will reduce interest rates down to a range of 7% on the low side to 18% on the high side. We’ll use 12% as the average.

So if you keep your payments at $500 per month at the new 12% rate, how long will it take? First, we need to deduct the monthly fee charged by the agency. In this example, we’ll use a fee of $25 per month, so $475 of your $500 will go toward debt reduction. The good news is you’ll be out of debt faster. The bad news is that it will still take 75 months (more than 6 years) to become debt-free.

But what happens if you can’t keep up with that $500 per month? After all, you sought help from a credit counselor because you were struggling financially, right? Let’s say you drop down to $450 per month. After deducting the $25 monthly fee, that leaves $425 toward your debt plan. Now you’re looking at 90 months (7 years & 6 months), which is not much better than the 109 months you started out with.

So how can credit counselors claim to cut your payments in half? Good question. If you dropped down to $250 per month, you’ll never pay off your debt! At 12% interest, the debt will climb faster than your $250 per month can reduce it. The lowest you could go would be $300 per month. However, it would now take 20 years to pay off the debt, hardly an improvement!

In order to truly cut your payments in half, down to $250 in this example, the agency would need to completely eliminate all interest! And even then, it would still take more than 9 years to pay off the balance! So the ads claiming you can cut your payments in half are simply false.

Bear in mind here that in our example, we’re assuming you’re working with a good company that charges low fees and actually obtains good interest rate concessions from all of your creditors. Even with the best of credit counselors, you’re still looking at a 5-9 year program to pay off your debts.

That’s why Credit Counseling is usually only effective for people with short-term financial problems. Consumers with long-term financial instability have trouble keeping up with the regular payment stream required to make these programs work. The result? Even the most favorable statistics show that about 3 out of 4 people drop out of Credit Counseling programs before completing them.

If you do decide to join one of these programs in order to obtain some short-term relief, be sure to do your homework first. Here are a few tips to help in your selection:

1. Look for a company that actually provides old-fashioned budget advice and counseling. If they want to sign you up right away without first understanding your budget situation, move on!

2. Obtain copies of the contract and read it carefully before signing up. Make sure you understand all of the fees involved. Are there enrollment fees? “Voluntary” contributions? Monthly fees? Extra fees per account? These hidden fees can add up to big bucks.

3. Make sure they work with all the creditors on your list and not just some of them.

4. Don’t be fooled by “non-profit” status. That doesn’t guarantee you’re dealing with a good company. And it certainly doesn’t mean the service is free!

5. Aim to find a local company that you can visit in person. Check out your target company with the local Better Business Bureau.

6. Make sure they provide support after the sale. Try calling their customer service number to see if you can get through promptly.

Remember, you can eliminate your debts if you take a disciplined approach to your finances, make a budget and stick to it, and don’t use your credit cards unless you can pay off new balances in full each month.

Good luck in your financial future!

Charles J. Phelan has been helping consumers become debt-free without bankruptcy since 1997. A former senior executive with one of the nation’s largest debt settlement firms, he is the author of the Debt Elimination Success Seminar?, a five-hour audio-CD course that teaches consumers how to choose between debt program options based on their financial situation. The course focuses on comprehensive instruction in do-it-yourself debt negotiation & settlement designed to save $1,000s. Personal coaching and follow-up support is included. Achieves the same results as professional firms for a tiny fraction of the cost.

http://www.zipdebt.com/article1

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Without question, the best way to pay for a home is to pay cash. It’s the cheapest way to buy a home and once you pay for it, you are done. Few Americans are in a position to do so, however. Homes are expensive. And depending on economic conditions, it may actually be cheaper to take out a loan than to pay cash. If you could borrow money for thirty years at six percent and invest money at ten percent, you’d be better off borrowing and investing instead of paying cash. But lenders and others who mean well often mention that tax deduction as though it should be a deciding factor in how a home is purchased.

The interest on a primary residence is deductible on loans of up to one million dollars. That means that the amount of interest paid in a calendar year can be deducted from taxable income, effectively reducing the amount of income tax paid. More often than not, this turns out to be of little benefit to taxpayers. It’s not as though the Government is paying your interest. For the typical American taxpayer who pays in the 28% tax bracket, the deduction amounts to a rebate of twenty eight cents for every dollar paid in interest. Complicating matters is the fact that this is only true for that portion of the interest that exceeds the standard deduction allowed for every taxpayer that files. That deduction, currently $10,000 per married couple, is usually greater than the amount of mortgage interest most couples pay during the year. What this means is that many, if not most, Americans derive no tax benefit from their mortgage interest whatsoever.

Of course, homeowners who pay more than 28% of their income in taxes or those who own homes with large mortgages can benefit more from the tax deduction. Most American homeowners, on the other hand, get nothing from it. The tax deduction isn’t entirely insignificant, but it shouldn’t be a deciding factor in determining how to pay for a home. Prospective buyers should realize that while the deduction is a potential perk of taking out a mortgage, the likely tax benefit from it ranges from "very small" to "nothing at all."

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans.

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If you aren’t aware of it yet, Uncle Sam pays no interest. If he deducts your tax payment monthly or quarterly, and takes more than his fair share, he doesn’t give you anything back for the privilege of using your hard earned money. By the same token, if you don’t pay in enough, he charges you a penalty and interest.

As a W-2 wage earner, if you are over paying your tax debt, you may be considering it a ‘forced savings plan’, but you gain nothing, using that particular plan. By putting the same amount in savings every year, earning interest on the balance, and continuing to regularly invest in your savings fund, you may be able to utilize the retirement savings plan reducing your tax debt significantly. With the advice of a competent tax consultant, your savings can become an investment with a tax reduction at the end of the year.

As a business owner paying tax quarterly, over paying your taxes can cost you considerably more. Your tax debt may actually be borrowed money, on a line of credit from the bank where you pay interest for the use of the money. If tax planning were part of your business expenses, you get to deduct the amount paid to the tax consultant from your business, you don’t have to pay interest on more than you need to pay in (if using a line of credit to pay taxes), and any saved money can be placed in a retirement fund or savings plan to draw interest for you. Once again, a tax consultant can save you money.

These are just a couple of ways you can save money by hiring a tax consultant. So, who is your Tax Deity? Your tax consultant or Uncle Sam?

Copyright © 2005 ? Jan Verhoeff

Tax planning is an important part of setting up your business, working your job, or living in a world where taxes are a fact of life. Consider saving money on your taxes this year, by planning well, and paying yourself first. Visit eBiz Brand Performance for more information.

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Cash advance loan shops are popping up all over, reminding me of the Starbucks craze. Even online you can easily find payday loan sites that are eager to help folks whose payday check can’t come quick enough. So which is better, the traditional banks or online loan companies? It’s hard to say, there is a place for both I think.

When placing an application for a home loan, person to person interaction would be more comforting I believe. Home aquisition is one of the most important steps a person will ever take, so making contact with another person calms fears of the unknown, especially with the task of a home loan. In cases of bad credit histories, an application through an online loan company can be a welcome relief. It is much easier to receive rejection through a computer than face to face. Also online loan companies can be more lenient towards people with poor credit which helps those that want to get out from under the black mark of bad credit. Investigate both avenues when it’s time to acquire a loan to find out which route is best for your individual needs. I suggest looking at my site for online loan reviews..http://www.onlineloanreviews.com.

Connie Barker is the author of this article and owner of http://www.onlineloanreviews.com

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