When you explore outside agencies, you will immediately notice that there is a plethora of credit repair companies promising you the moon and the stars. Sure, credit repair in 24 hours sounds great, but you can be sure that it’s not going to happen.

This kind of claim can be easily dismissed. Also, the Internet will offer to have several agencies contact you. They will (in 5 months) and/ or they will make some possibly nasty phone calls to you. Avoid these offers.

If you are going with the third party option, you will need to conduct a serious investigation of the agencies you select for consideration. There is some basic information that you are going to require prior to selecting an agency to meet your needs. Shop and compare.

Initially, you want to contact agencies to get an idea of what services are offered, time frames, rates and any other financial help available. Some of the agencies will ask for your financial information before they will provide agency information. Avoid these agencies. The basic information is a must.

Any agency that you contact should be more than willing to explain how they operate, the services they provide, cost structure, any other available help without knowing any of your personal information.

When you find an agency that responds to your satisfaction during a first contact you can then ask further questions. You’re going to want to find out how the process may affect your credit report, debt management services, additional money management help. You also need to know how the agency will keep you informed about their activities.

One of the most important pieces of information you will need to know is about any FEES CHARGED by the agency. Some may require large sums of money upfront along with large monthly fees. How could this work for you if you already can’t pay your debts. Make sure you can handle any fees charged even if the agency says it is not for profit.

It is apparent that finding the right credit repair agency will take some work from you, the payoff will be finding the right match for you.

According to a recent L.A. Times article dated July 4, 2009, mortgage defaults have surged to record levels amid rising unemployment and falling home prices. Lenders are expected to move quickly to clear up backlogs as moratoriums on foreclosures expire.

Government and company reports both show that the number of completed foreclosures nationwide slowed sharply late last year and into early this year, largely because of various moratoriums in effect during much of the first quarter.

But anecdotal reports indicate that foreclosure sales have started to climb again in the second quarter. It appears that the pipeline is clearly getting fuller.

In the first quarter, some 1.8 million homeowners nationwide fell behind on their loans by 60 to 90 days, a 15% increase from the prior quarter, according to Moody’s Economy.com. The research firm said that loan defaults rose sharply as well, to 844,000 in the first three months of this year.

California accounts for an astonishing share of mortgage loan defaults. A whopping 135,431 homeowners in the state were hit with notices of default in the first quarter, an increase of 11% from the earlier peak in the second quarter of 2008, according to real estate information service MDA DataQuick. Foreclosure sales in the state have been moderating after averaging a high of 26,500 a month last summer.

In some communities such as Stockton, Calif., where the real estate market has been among the hardest hit in the nation with home prices plunging 60% in the last two years, many people are expecting a large increase in foreclosures.

Sales of foreclosed houses soared last year as investors and first-time home buyers swarmed over what were considered bargain houses. This year it’s been unusually quiet, says Jerry Abbott, a broker and co-owner of Grupe Real Estate in Stockton. That doesn’t make sense, he said, because he sees many houses in foreclosure in the city.

But more importantly, what alternatives are out there? Foreclosures have a serious and long-term effect on your credit history that you should understand before it happens.

Foreclosure is one of the most damaging items you can have on your credit score, other than a bankruptcy, and it will stay on your score for at least seven years. This means that the effects of foreclosure are going to haunt you for a long time, perhaps even after you get your feet back on the ground after your financial difficulties.

The exact amount that your credit score will drop after a foreclosure is going to vary from case to case. If you have very good credit before you face foreclosure, it may not have as devastating of an impact on your score as it would if you have less than perfect information on your score before foreclosure occurs.

Remember, your credit score is made from all of your credit report information, not just one event, such as the foreclosure.

Eliminating a Foreclosure

Once a foreclosure is on your credit score, you will have to take action to remove it. It cannot be removed for at least seven years. However, after seven years, you can have it removed, but you will need to ask. Write to all three credit reporting bureaus and ask them to remove the mark. Then, request a copy of your credit score to make sure that it has been removed.

How Low Credit Scores Affect You

If you have never had a low credit score, you may be wondering how it will affect you after foreclosure. Once you have lost your home in the foreclosure process, you will need somewhere else to live. If you want to buy a new home, you will have a hard time getting a mortgage because of the foreclosure on your history. If your circumstances have changed, such as would be the case if you had been unemployed but are now employed in a secure job, you may be able to get a loan. However, you will find that the Toronto mortgage rates you are offered are much higher than the average rate, because you will be considered a high-risk buyer.

Even getting a rental will be a challenge with a foreclosure on your history. A low credit score will also affect your ability to get a loan for a car, a credit card, or any other type of debt. You may even find that getting a job is more difficult, because some employers check credit scores to determine whether or not an applicant is responsible.

Alternatives to Foreclosure

Because of the affects of foreclosure on your credit score are so devastating, it is best to avoid foreclosure if possible. Again, it does not ruin your credit forever, so foreclosure is not the end of your financial future, but if you can avoid it, you should.

One option is to see if you can refinance at a lower rate or for a longer period of time. Current refinance rates are low, so you might be able to lower your monthly payment by refinancing, if your credit has not already been damaged.

Another option is to talk to your lender. Lenders do not want to have a property go into foreclosure, so they may work with you to lower your payment for a few months while you work through the problems you are facing.

However, make the effort before your loan goes into default. Lenders are typically unwilling to work with borrowers who have already stopped paying. Be proactive, and you may be able to avoid foreclosure altogether.

However, years passed, oil prices fell, the speed limit policy was eased in the late 1980s, and any tie to federal highway funds was completely repealed as one of the first acts of Newt Gingrich’s Republican Congress in 1995.

Today, I doubt that many drivers think about the connection between speed and gas consumption.

So I was surprised to read in the Congressional Budget Office’s recent study on the impact of high gasoline prices the conclusion that pain at the gas pump was causing many motorists to drive more slowly. The researchers looked at uncongested (weekend) freeways in California, where numerous automatic data collection devices have recorded large quantities of traffic data from many locations over long periods.

After doing statistical tests to rule out whether the effects were due to seasonal or other factors, the researchers concluded that many drivers did seem to be easing off on the gas pedal. Perhaps a minority of drivers were having an impact, slowing the drivers around them—ever so slightly.

Essentially, the results translated to a 10 percent increase in the price of gasoline causing the median speed to decline by about 0.5 percent. (The slowdown was more pronounced for the slowest drivers on the road and nonexistent for the fastest drivers on the road.) That’s saving a little gasoline—less than one-twentieth of a gallon per 100 miles or, as the CBO researchers put it, a teaspoon of gas every 2.6 miles.

But could we do better? The CBO researchers cite a study conducted by Oak Ridge National Laboratory showing that slowing from 70 mph to 65 mph—a 7.1 percent reduction—would cut a typical vehicle’s fuel consumption by 8.2 percent. At $3 per gallon, the fuel savings would be worth 9 cents every 10 miles. Travel time would increase by about 4 seconds per mile.

I wonder if drivers think it would be worth it. From a policy standpoint, achieving an 8.2 percent reduction in highway gas consumption without doing a thing to improve cars seems pretty compelling. It’s an idea on which politicians have been deafeningly silent. But maybe short of a mandate, there’s a way of getting the word out that slowing down makes more sense now than ever.

Bully pulpit, anyone?

With the challenges placed on us by the economy, finding and keeping a job is more and more difficult. So those who are so inclined are taking matters into their own hands and opening their own businesses.

Business start-ups are often compared to babies, in that they begin by crawling, then walking, and finally running. Sometimes for businesses, the crawling stage can be discouraging, but that’s to be expected. It is important to stay focused and to not give up hope. Quitters never win.

Motivational posters really do work, and hanging a few in your work area will make a difference. Name recognition for your business is very important, though advertising is often overlooked in startup budgets. Small ads in local newspapers are inexpensive and offer surprisingly large returns.

Sponsoring local youth sports teams is also a great way to market. Parents are always in the bleachers and they like to do business with companies that help their children. Late night tv ads are also an excellent investment, since people who are up late are known to pay more attention to the ads and commercials than those who watch at other times of the day.

In today’s world, a website is almost a requirement. Your site can be as informative as you want it to be, with discussions, information, and even videos. Marketing it can be very inexpensive or even free. Posting free ads on commercial classified websites is another very effective way to sell your brand.

Basic accounting practices must be put in place if you are to be successful. The making of money is really what your business is all about and management of it must take priority. If you don’t have accounting skills, there are software programs available to help you. Otherwise, a family member or friend may be able to offer you some guidance.

Opening your own business can be challenging, yet invigorating. And it can also be very lucrative. It will take time and lots of determination, considering the fierce competition in the business world today. But no matter what industry you involve yourself in, if you stick to it and work hard, chances are you’ll one day have the wealth you’ve dreamed of.

From the everyday Joe on main street to auto workers in Detroit to traders on Wall Street, money seems like it much harder to come by, but there is money to be borrowed.

I see business owners everyday who are surviving the economic climate the best way they know how. Hard work. Its an American heritage that will never die More often than not, however, growing a business takes more than just working harder than the guy down the street. It takes getting more money to grow your enterprise through business financing.

Even in this economy, we have been able to secure personal and business loans for business owners in need. With the current economic black cloud hovering over the nation, this is no small feat.

Contrary to what most people think, the money is out there and depending on your circumstances, it’s a lot quicker and easier to get than you might think. When you work with a business financing company, it is important to have someone who has multiple connections to successfully securing the money that you need in an expedient manner.

Ask them for references, check out their Better Business Bureau record, and get to know them. You want to be treated like a valuable client, not just a number in line for a business loan.

Any reliable and professional financial planner or stock broker must know this so he can help you determine your risk tolerance. Then, that professional needs to help you by recommending which investments don’t exceed that risk level.

It’s a commonly believed misconception that people’s emotions are the only factor in determining investment risk tolerance. That’s not the case at all. Actually, a lot is involved with determining what your risk tolerance level is, and emotions are only a piece of the overall picture.

Understanding your risk tolerance level, with regards to online stock market investing, requires that you consider multiple factors. One is that you have to know how much money you have available to invest, and you also have to be completely cognizant of your financial end game.

As an illustration, If you think you’ll retire in 10 years and you haven’t accumulated any money in your savings account,’ you’ll need a substantial risk tolerance and do some aggressive investing to reach your financial goals by the time you want to retire.

On the other hand, if you start investing quite early for your retirement, your beginner stock market investing risk tolerance will be low. Starting early will allow you to grow your money slowly. When you combine this with what you know about your emotional reaction to financial issues, you will have the investment formula that’s right for you.

This can be difficult to figure out for yourself, so it’s best to use a dependable financial planner or stock broker that can help you find an acceptable risk tolerance, and assist you with selecting appropriate investment opportunities.

Understanding your personal risk tolerance will help you find your own investment approach and allow you and the investment professional you select to invest with confidence. Even though there are myriad investment types, there are really only three specific investment styles – and those three styles tie in with your risk tolerance. Those three styles are called aggressive, moderate and conservative. But I will cover those in another article!

Think back to when you first started investing in the account. Remember what you were told? See if this sounds familiar:

1) Put money away today in a retirement account and you’ll be able to use your contribution as a tax deduction against your other income.
2) Invest the contribution that you made to the retirement account whenever you want and the growth on that contribution will grow tax deferred
3) When you retire, and begin to take withdrawals from your retirement account, you’ll be able to put money away on a tax deductible basis when you’re in a higher tax bracket and take money out during retirement when you’re in a lower tax bracket.

Assuming that you were told all three things when you started to contribute to a retirement plan, my question for you is this: Were all three things true?

My experience working with clients tells me that in many cases only 2 of these 3 things were proven true – remember 3 above, for many clients, was not.

Don’t get me wrong, IRA’s and retirement accounts are useful products, but many folks who put money away in one tax bracket while they were working are now retired and drawing money from these retirement accounts only to find out they’re actually in a higher tax bracket now that they were when they were putting the money away.

Why did that happen?

It could be a number of reasons, but in many cases the culprit is the fact that the IRS (Internal Revenue Service) code, the rules that the ‘tax’ game is played by, changed.

In fact, under today’s tax code, if your estate is large enough, up to 67% of your IRA could be lost to tax at death, unless you do appropriate planning.

This assumes maximum federal estate and income tax, and no state income tax. If your state has income tax, your tax may be higher. For example: $500,000 IRA @ 45% Estate tax. Remaining taxed at 35% Federal Income Tax Rate. Total tax of $322,500 which is approximately 65% of $500,000

That’s where the SmartIRA planning strategy may come in. The SmartIRA planning process is designed to reduce, or in some cases, even eliminate taxes on a client’s IRA. However, the outcome of the strategy is dependent upon the circumstances of your individual situation, so results will vary.

If you have an IRA, you may want to get more information about the SmartIRA planning process.

Remember this special note: With traditional IRA’s, early withdrawals may be subject to a surrender charge. I addition, distributions prior to age 59 1/2 may be subject to a 10% tax penalty.

Author:  Robert G. Poage Jr. – Wealth Enhancement & Preservation Strategies – Call (916)784-0520

But everyone would like to know where mortgage interest rates are headed in 2009. Particularly in these erratic times. Everyone knows that forecasts are not one hundred percent reliable, but fairly educated guesses based on the recent economic events, can be made.

Low interest rates are promoted by lenders all over the country. But this fact is only applicable for individuals that have credit scores higher than 700. If you desire getting a five percent interest or below, you not only need a credit score above seven hundred, but also need to make a considerable down payment.

If your credit score is under seven hundred, or you don’t have the financial reserves for a huge down payment, you will have to pay a higher interest rate.

Mortgage interest rates have declined steadily the past few months. The bigger question is when do interest rates finally go up again? Because of the interest rates consistently going down, you may lose a lot of money when you buy right now. But if you delay your decision, and interest rates suddenly go up, you also lose.

Numerous people have applied for mortgages the last couple of months. Many lenders have tried to slow the application flow down by increasing their fees, because they are loaded with mortgage applications. The general trend for mortgage interest is that it’s going down, but it’s not unrealistic to expect a bounce in interest rate pretty soon.

This bounce is not a bad thing. What you need to do is hold off on your decision and buy when interest rates are coming down again. The mortgage market will reach it’s bottom in that period and you can benefit from it. Think about getting a fixed rate mortgage if you can. When mortgage interest rates go up again, you won’t regret your decision.

You are not alone. Most college students graduate with at least some student loans.

College is expensive and it takes a lot of money to pay for it, a lot of money that most people don’t have. This leads to a lot of money taken out on loan. Once you graduate college you are required to pay these loans off, and it can cost you a lot of money every month.

A lot of recent college graduates have trouble finding jobs. Whether you have the job you’ve been searching for or not, you still have to pay back the money for your student loans. Even if you do get a job right when you graduate, you’re not going to be making what you really want to be earning.

If you aren’t making a lot of money, you might have to stay living with your parents for a while in order to pay them back. If you have to live on your own, heavy student loans can be more than you can handle. If you can’t pay them, you are hurting your credit which can keep you from getting a loan in the future.

Consolidation is one way to lower your monthly student loan payments. If you have several loans from the government and other private loans, you probably have to pay different amounts at different rates. You could be paying 6% on one loan and 15% on another. With different rates and different loans it is disorganized, but also it could be costing you a lot more money.

With loan consolidation, you are gathering all the loans together into one loan. If you have several loans, you can make the minimum payments and focus more on the high interest loans, but if you can only afford the minimum payments, there is no way to more quickly get rid of the higher rate loan payments.

When you consolidate, you can get one low interest rate. It might not be as low as your lowest rate, but it will hopefully be lower than the average rate, and you will be paying it on the whole loan.

Once you graduate college, you must pay off all your student loans and get out of debt as soon as possible. This will ensure that you have good credit. Pay off all consumer debt and student loans as fast as possible.