Free credit score law could help consumers, while debt consolidation can lower credit card bill

Having high credit card debt or being late on payments can lead to lower a person's credit score.

However, the actual affect of these actions may not be known to consumers, as they have to pay a fee to get access to their score. This may change with a law proposed by Mark Udall, a Democratic senator from Colorado.

Through the Fair Access to Credit Scores Act, Udall wants to make scores available to consumers when they gain access to their credit report. Federal law already mandates that people have access to a free report from the three bureaus every 12 months.

"These free reports include information such as the number and credit lines of open accounts, as well as consumers' repayment, loan and employment histories, but not the score number that banks, lenders and even employers rely on so heavily," Udall said.

Consumers who have high credit card debt will find that their credit scores are affected negatively. However, an option they may consider is debt consolidation, which can lower the amount of interest people pay. It can also make it easier to pay off debt by reducing multiple statements into one.ADNFCR-2800-ID-19743092-ADNFCR

Too Much Credit Card Debt? Easiest Ways to Get Legitimate Debt Relief For Credit Cards

Every time you have too much credit card debt and every time you are not in a position to repay them it is the right time for you to think about debt settlement. When an individual is having debts, particularly credit card debt, which is the bad amongst them because of the inevitable outcomes of it, citizens are inclined to look for a lot of ways to eliminate debt. However, as I can advise it is realistic to think about debt settlement whenever you have too much of credit card debt.

If your debt is less than 10,000 dollars, then there is no requirement of consulting debt assistance experts in settlement companies. That kind of small sum of debts can be effortlessly settled if you consider sensibly regarding that crisis and if you make use of a well planned procedure to work them out. However, if your debt is in excess of 10,000 dollars then it is the time you must think about debt settlement with the aim of getting debt release.

If your debt is over 10,000 dollars, it is sympathetic for you to settle on debt settlement instead of looking for any other alternatives, since you can simply get rid of at least 50 % to 60 % of your credit card debt, which is a grand opening for an individual having too much of financial difficulties. You can acquire the most from the stimulus money which is provided by the government. In accordance with the latest regulations initiated by US government, they have launched a method of paying government funds to the credit card companies with the purpose of getting their losses back which take place as a result of the inevitable debts of the clients. Due to the recession existing in the state it is a tough time for the credit companies also.

Therefore, simply if you appoint a debt settlement company, you can get the help from the stimulus money also. It can furthermore facilitate you in obtaining a large cutback of the unpaid amount. In the intervening time debt settlement procedure may raise your life to a debt free life by offering you the essential suggestions to get a power on your expenditures too. As a result, every time you are seriously in debt, it is the most excellent time to think about debt settlement, if you actually desire to end your financial crisis.

Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

Banks Flock to New Credit Card Debt Relief Formula that Shows Consumers how to Reduce Credit Card Debt for Pennies

New credit card debt relief formula, developed by www.paymentreduction.com using latest debt settlement guidelines, gets banks running ahead of all others, to reduce credit card debt 70% or more for high debt consumers starting to suffer financial hardship.

High debt consumers are finally getting debt relief with the new "Debt Away" www.debtaway.cc debt relief program from paymentreduction.com. This program uses an exclusive debt relief, debt settlement formula, designed by and available only through paymentreduction.com. This special debt relief, debt settlement formula, automatically calculates just the right combination of (income, cost of living, tax bracket, hardship and more), to get the banks and credit card companies running to reduce credit card debt up to 70% for consumers suffering hardship. This exclusive debt relief formula was developed primarily for cash strapped consumers who have found themselves using credit cards for day to day living expenses, and now find themselves $20,000 or more in unsecured debt.

The founders of paymentreduction.com and developers of the "Debt Away" debt relief formula, are highly successful executives from the banking industry who after years of observing the high credit card interest rate practices of the Banks and Credit card companies have switched sides to give back and help the average consumers find debt relief and financial help in these tough economic times.
"More and more banks are embracing our "Debt Away" program and formula as a way to minimize their losses on high risk debt", saving thousands on discounted collection losses and legal fees". says Client Services Director Todd N. Its really helping struggling consumers who have found themselves over $20,000 in credit card and other unsecured debt such as medical bills, get real debt relief and back on their feet. "Its win-win for both bank and credit card holder" says COO H. Eugene

How To Best Eliminate Credit Card Debt

It's actually not uncommon for people not know exactly how much credit card debt they owe, especially if that credit card debt is spread out on more than one credit card.
If you or someone you know is struggling with credit card debt, you are not alone. Credit card debt affects most people and most families in America today. There are steps and processes which you can take to get yourself out of debt. With the credit card debt programs of today, it is possible to eliminate up to 50% of credit card debt in most cases.

It's actually not uncommon for people not know exactly how much credit card debt they owe, especially if that credit card debt is spread out on more than one credit card. Debt, and the total of this debt therefore needs to be determined, hard as that may be to face, before one can begin to take the necessary steps to begin breaking free from this credit card debt.

With the debt relief programs of today, it is possible to eliminate up to 50% of credit card debt in most cases. This is debt that can be forgiven, and never needs to be repaid.

Debt relief works fast, is proven to be effective, and can work for you. To learn more about the debt relief programs available in your area and how to get started, please visit Debt Relief at:

www.debtrelief.bz

Credit Card Debt Consolidation: Know Your Debt Relief Options

Los Angeles, CA (PRWEB) April 9, 2010 -- Crippling growth in credit card debt has seen a steady rise ever since credit cards were first introduced in America over 50 years ago. Since then, Americans have had a lifelong love affair with credit cards and buying & spending on plastic. But that love affair how now run its course. Federal Debt Relief Program - a private, non-government program, discusses the issue of credit card debt and what the best debt relief options available today are.
It's not uncommon for individuals and families today to be using credit cards to make ends meet, using plastic to cover monthly deficits in their personal household budgets. Not only is this practice not uncommon, it's become a virtual necessity, especially when one suffers a job loss, illness, serious injury or other crisis.
Yet credit cards have their spending limits, and there are personal limits as well as to how much one can afford to pay each month. And this is where credit card debt relief programs can help.
Debt Consolidation - One of the oldest debt relief programs, debt consolidation is a program in which, typically, a new loan is taken out to pay off existing loans or credit card bills. This new, single loan offers the convenience of a single monthly payment to manage, and possibly a lower interest rate and/or a fixed rate.
Yet consumers need to be wary of debt consolidation loans that are packaged in the form of home equity loans. In these cases, one's home is used as collateral. This may or may not be a problem down the road, so long as the borrower is able to maintain making their monthly loan payments on time.
Debt Settlement - One of the newer debt relief programs today, debt settlement is a program which only works for unsecured debt such as credit card debt and medical bills. Mortgage loans, government loans, and student loans are not eligible for debt settlement. In this type of program, outstanding debt is negotiated between a debt relief firm working on behalf of the consumer in debt, and their creditors. In most cases, unsecured debt can be reduced by up to 50%, allowing for the balance to be paid off in much quicker fashion.
Consumer Credit Counseling - In this program, credit counselors work with those in debt to examine their finances, determine strengths and weaknesses, establish a budget, and possibly negotiate better payment terms for those in debt. Consumer credit counseling works best for those who are employed, and who are able to stick with a monthly household budget.
With this many options of credit card debt relief programs available today, there is no reason for anyone to continue to suffer under the weight of unbearable amounts of credit card debt which they are unable to pay.
Federal Debt Relief Program offers a free debt evaluation and savings quote, which can be taken advantage of at their website:
www.federaldebtreliefprogram.com

7 Decisions That Lead To Bankruptcy

According to the Sunday Times, in 2009, 340 people a day declared for bankruptcy in Britain – and they're not alone. Over the past three years, personal bankruptcies have been on the rise throughout the United Kingdom. Over 70% of bankruptcy cases cited "living beyond the bankrupt's means" as the primary reason for insolvency. Here are the seven decisions that lead people in the U.K. into bankruptcy.

1. Lack of an Emergency FundExpect the unexpected. Unplanned changes are the second leading cause of bankruptcies. Not having an emergency fund is one of the worst financial decisions that you could make because emergency expenses can destroy even the best of financial plans. Job loss, home repairs, car troubles and medical issues are examples of unplanned expenses that can pop up at anytime. Without an emergency fund these unplanned expenses can land you deep in debt and throw a monkey wrench into your carefully crafted financial plans. (Learn more in Build Yourself An Emergency Fund.)
   
   
2. Buying Too Much HouseBuying a house that is too big for your wallet can turn your dream home into a financial nightmare. A mortgage payment that is too large can rob you of your retirement and hinder your kids' college plans. A large mortgage payment has other bills associated with it including higher property taxes, maintenance bills and insurance. The worst part about overspending on your home is that it can land you in foreclosure, making bankruptcy court a likely destination. (Hidden costs can create what looks like a good deal. Find out how to find the best mortgage possible. Read Score A Cheap Mortgage.)
   
   
3. Poor Financial PlanningThere is an old proverb about how people that fail to plan, plan to fail. Failing to have a budget will land you in hot water. How do you know how much money you have left to spend if you don't keep track of your monthly expenses? Most people aren't realistic about their spending habits and underestimate their monthly expenses, leaving them strapped for cash and vulnerable to insolvency. It's important to remember that you should even record one-time expenses and seasonal purchases like birthday and Christmas presents. (Learn how to start planning, read 6 Months To A Better Budget.)
   
   
4. Ignoring DebtWhen people fall behind on their bills, they have a tendency to ignore their debts. Out-of-sight, out-of-mind doesn't work when it comes to debt. Ignoring bills doesn't make them go away. Avoiding court hearings, bill statements and creditor telephone calls are all signs that you are on the road to financial ruin. You may find that creditors will be willing to work with you if they are informed that you are having difficulty paying your bills.
   
   
5. Too Much Credit Card DebtPeople that are facing financial difficulties often rely on their credit cards in order to survive. Racking up massive credit card debt has led many consumers down the path of insolvency. This year alone over one million U.K. residents have borrowed from their credit cards to make mortgage and rent payments according to the BBC. While this may temporarily stave off bankruptcy, it's only a short-term solution. You can't eliminate debt by borrowing more money at a higher interest rate. These borrowers are navigating a slippery slope and are only increasing their debt problems long term. (Learn how to avoid this. Read Expert Tips For Cutting Credit Card Debt.)
   
   
6. GamblingDo you love the thrill and excitement of the casino? Maybe you prefer placing a bet from the privacy of your own home. While occasional gambling might be a recreational hobby, habitual gambling will lead you straight to the poorhouse. In the past, betting on card games, lotteries and sports was the method of choice for gamblers. With the rise of the internet, more people are turning to online gambling. Mortgage payments, car notes and bill payments are gambled away every day on online poker sites and online sports books.
   
   
7. Tax ProblemsTax problems are one of the leading causes of bankruptcy in the U.K. Whether failing to pay personal taxes or business taxes, tax problems have led many U.K. residents into bankruptcy court. The British government can force citizens that fall behind on council tax payments to sell off assets through bankruptcy proceedings to repay tax debts.

The Bottom LineLiving beyond your means greatly increases your chances of facing financial difficulties and going through bankruptcy. Making the right choices can help keep your financial future on sound footing, whereas the wrong decisions can lead you to financial ruin.

How much debt is too much?

As housing prices across Canada continue to rise and a 20 per cent down payment gets harder to come by, many people find themselves wondering how big a mortgage is too big.
But they are asking the wrong question, says Henrietta Ross, chief executive officer of the Canadian Association of Credit Counselling Services, based in Grimsby, Ont. Her offices helped 130,000 Canadians face their debt problems -- including mortgages -- last year.
"People should not be looking at mortgage debt but rather at their overall levels of family debt," she says. "Mortgages alone are not usually the cause of financial problems."
Her advice is spot on, say mortgage brokers Sue Pimento, east Toronto regional manager for Invis, and Sean Binkley, a mortgage broker with Mortgage Intelligence in Ottawa. Both note that debt consolidation through home refinancing is on the rise.
"People are taking advantage of those historic low mortgage rates to get rid of credit card and other debt with interest rates as high as 19 per cent," says Binkley. "The problem is they are taking short-term consumer debt and turning it into long-term mortgage debt."
The move may solve their current financial problems but it also frees them up to take on even more new debt through credit card spending and household purchases, he says.
As Pimento notes: "money is never the solution to money problems. A change in behaviour is the solution to money problems."
This is where Ross and the CACCS come in. Her members offer counselling on the phone, online ( www.caccs.ca)and in person to people struggling with creditors.
The telltale signs that family debt loads might be too high are not hard to spot. Binkley says debt consolidation through a mortgage is one. "I see people coming to me every two or three years," he says. "That is a sure sign something is wrong."
So is living on the financial edge, making minimum payments each month on bills and loans, especially credit card loans.
What are people caught in this situation to do? Ross offers a few tips to anyone taking out a mortgage. The first is to ignore guidelines offered by lenders as to what you can afford to pay. "As a rule of thumb, lenders allow you to borrow based on gross income -- up to 30 per cent or even a little more. But we don't live on gross income. We live on income after taxes and other deductions.
"You also have to remember that home ownership comes with a lot of other bills like taxes, utilities, heating, insurance and regular maintenance. That could in some cases drive the total cost of home ownership up to 40 per cent of gross income."
She says a more reasonable guide is 30 per cent of net income -- what you take home in cash to pay the bills.
Then keep all other debt to 10 per cent of net income. That includes things like car payments and credit card spending.
"Before taking out a mortgage think about the unexpected," she says.
What happens if one spouse loses a job or becomes pregnant? What happens if illness strikes and the borrower is unable to work? What happens if interest rates begin to rise?
"Many young people also carry a large burden in student loans," she says. "This obligation may mean either delaying a house purchase or opting for something less expensive."
To understand how big a mortgage you can afford, Ross suggests trying one of the budgeting calculators the CACCS offers on its website. "A lender may tell you that you qualify for a $300,000 mortgage on paper but in reality you may find your take-home pay can only support a $200,000 mortgage."