How to be debt free?

Debt free life and how to manage it

youlki22@gmail.com (youlki22) — Fri, 15 May 2009 16:21:00 +0000

Someone has said it right that debts are toxic. They should be eliminated from our lives. Leading a debt free life seems to be a far cry these days and there are very few American households living without debts. The aftermath of sub prime mortgage crisis is not new to us and we are still waiting for the stock markets to turn around. There has been a change in investor sentiment; the credit card issuers have changed their payment policies and the lenders have also taken a different stand as far as lending is concerned. Credit crunch has made lending more stringent. Lenders are being very selective in accepting loan requests.

If you are in a debt trap and wondering how to become debt free, there are a number of debt relief options that should lessen your debt burden. Debt consolidation is an option that majority of the debt help firms offer. If you are hiring the services of a debt consolidation agency, they do all the talking with your creditors. The debt consolidation agency requests creditors to lower your interest rate. And if your interest rate is lowered, your monthly payments get lowered too. You are also able to make payments as per a new repayment schedule. It enables you to manage your debts more effectively and consequently your finances.

You can also take a debt consolidation loan but it is better not to do so. The main reason is it only adds to your existing debts. It is better to reorganize your current debts and manage them instead. While choosing a debt consolidation agency, make sure that the firm is accredited by BBB or Better Business Bureau. Reports (as of March 27, 2009) suggest that the BBB is receiving more complaints related to 3 party debt counselors. So, before you hire services of a debt consolidation or debt help company, don’t forget to do your bit of homework.

Global financial crises and its effects

youlki22@gmail.com (youlki22) — Wed, 13 May 2009 15:21:00 +0000

Global financial crises is effecting the people all around the world and common people who have a limited budget to live are more worried because they can't save any money for future of emergency needs.

According to a report from 'Global issues' it says:

'The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.

On the one hand many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world.'

Global financial crises is effecting UK citizens as well!

The most prudent and cautious UK citizens have been affected by the global financial collapse, primarily due to falls in property prices. The March 2009 Halifax House Price Index showed that the average UK property now stands at £157,326. House prices are officially 17.5 per cent lower than they were just 12 months earlier and have returned to the level that they stood at in May 2004.

The Financial Services Authority (FSA) recently stated that if property prices fell by 30 per cent from their 2007 high, over 2 million people would fall into negative equity. They also believe that half a million buy-to-let mortgage holders would face negative equity. According to the latest housing market report by Capital Economics, it is believed that property prices will fall by a further 20 per cent during 2009. If this pessimistic scenario was to become a reality, the FSA's worst-case scenario will easily have been exceeded.

More at: Global Crisis hits UK families

Related posts:

* Why the Global Financial System is About to Collapse

* Global Financial Crisis

Pawnbroking is on rise due to financial crises

youlki22@gmail.com (youlki22) — Thu, 30 Apr 2009 08:37:00 +0000

Pawnbroking is on rise with struggling families as a result of financial crises. Let's learn about the definition of the term and some useful information about it.

According to definition of wikipedia: A pawnbroker (or pawnshop) is an individual or business that offers monetary loans in exchange for an item of value that is given to the pawn broker.

Few words about 'pawnbroking': Business of advancing loans to customers who have pledged household goods or personal effects as security on the loans. The trade of the pawnbroker is one of the oldest known to humanity; it existed in China 2,000 to 3,000 years ago. Ancient Greece and Rome were familiar with its operation; they laid the legal foundations on which modern statutory regulation was built.

With seven million people in the UK (having no access to bank or building society credit), pawnbroking is the fastest-growing part of the finance industry.

In a post at 'Debt free direct' 'Struggling families turn to Pawnbrokers' it describes some facts and figures for 'why people turn to pawnbrokers':

In the last 6 months of 2008, pawnbrokers Albemarle and Bond’s profits have increased from £24.9 million to £26.5 million.

There are no best-buy loans available at 7.9% per annum. Most pawnbrokers charge 3-5% APR per month on their loans. This is considerably cheaper than unsecured Payday loans where the figure is nearer 20% per month.

According to the National Pawnbrokers Association, approximately 88% of pledged goods are redeemed by their owners. Given the rate of interest and the fact that pawnbrokers are dealing with bad credit customers, redemption levels are good

More facts and useful posts/links:

* Pawnbroking on the rise

* National Pawnbrokers Associations

Lean about Bankruptcy and alternatives of it

youlki22@gmail.com (youlki22) — Wed, 25 Mar 2009 17:24:00 +0000

When debt problems take severe turn and you feel like digging under debts, then you need some advice or helping hand to tackle the situation. Because in some cases it can lead up to bankruptcy and loosing your own home which is happening to many home owners in this critical financial situation. This article would help you learn more about bankruptcy and its alternatives, so that you can be mentally prepared for the worst situation and have patience to get advice or suggestion from the professionals.

According to 'Debt free direct' "bankruptcy" means your assets are sold off and the money used to pay people you owe money to. Assets could include life insurance and pensions. You would probably have to sell your house.

You can think if there are any alternates of bankruptcy. Yes there are but it is better to get advice or suggestion from your other family members, friends or consultants who have a good knowledge of the finance or money topics.

What are the alternatives to Bankruptcy?

- An IVA or Individual Voluntary Arrangement - where a formal and legally binding agreement is created and managed by an Insolvency Practitioner that outlines what amount you can afford to pay back to people you owe money to and over what period. If accepted by people you owe money to, you'll be looking at paying a much smaller total amount of debt off over what is normally 5 years.

- Debt Management Plans - where through an informal arrangement between you and people you owe money to, you pay back the whole debt over an agreed period of time.

- Re-mortgaging - 'borrowing against the equity in your property to pay back your debt'.
- consolidation loans 'is a loan that is taken out to pay back your other debts'.

These are alternative to Bankruptcy. After consulting a debt adviser you can choose any of the option.

Debt Free Direct are the UK's leading debt help company and are the UK's largest IVA provider. Our advice is based on our ˜best advice model' and does not favour any one solution, and is based purely on what is debt solution is best for you and most likely to help you become debt free.

'Debt Free Direct' Helps people to overcome debt problems. You can get free best advice by calling to them. Their aim is to suggest effective debt solutions using sophisticated Best Advice Model (BAM) - BAM quickly and accurately analysis the information on each person's situation and recommends the most appropriate, least drastic solution for them.

Related post:

- Debt management solutions and "IVA vs. Bankruptcy"

- Learn Bankruptcy Facts & How They Affect You

Debt management solutions and "IVA vs. Bankruptcy"

youlki22@gmail.com (youlki22) — Wed, 04 Mar 2009 16:38:00 +0000

When your debts are very serious then you are mentally prepared for the possibility of bankruptcy. At this condition there is an alternate of bankruptcy which is called "IVA" or Individual Voluntary Arrangement. This post would help you learn about this debt management system.

More about IVA

An IVA is an arrangement to settle debts within a fixed period of time normally 5 years. All interest is frozen and after the end of the arrangement, outstanding debt is written off. The arrangement is governed by the Insolvency Act of 1986.

It is only available in the UK. It's basically an alternative to bankruptcy - the major advantage being that people do not have to lose their home. It's eligible to UK residents so long as they are in regular employment, and have over £15,000 debt owed to three or more creditors. IT stands for Individual Voluntary Arrangement, and debtors commit (it's legally binding) to making an agreed payment over a period of time (usually five years). Providing the debtor sticks to the terms of their IVA and makes the payments, they have potential to wipe off the remainder of their debt.

IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled. Due to its formal nature, an Individual Voluntary Arrangement - IVA has to be set up by a licensed professional called an Insolvency Practioner (IP)

Why use an IVA?
Besides overcoming the problems outlined in Why avoid other Debt Solutions? An IVA offers a real solution, a “Light at the end of the Tunnel”, where informal debt solutions as described above do not.

* You have an agreement with your creditors to make a single reduced payment each month.
* It lasts for a sensible period of time (normally 5 years).
* Once agreed, creditors are not allowed to add further interest or charges to your accounts by law.
* The agreement is fixed, meaning that creditors cannot randomly demand changes to it.

Its Purpose?
It is a legally binding agreement between you and your creditors (people you owe money to). It helps those in financial difficulties to make a formal proposal to settle their debt.

What Are The Arrangements?
Monthly payments are based on an affordable disposable income. Once the final payment is made, any outstanding debt is legally written off. The arrangement can write off up to 65% of your debts (subject to your circumstances).

How does it work?
Debts are settled within a reasonable and fixed period of time (normally 5 years). Any interest and debt charges will be frozen and creditors will be prohibited from demanding additional payments.

Once a decision has been made that an Individual Voluntary Arrangement - IVA is right for you, you will be asked questions regarding your current financial situation. Based on the information you have given, a repayment amount will be agreed with you. Once proposals have been drawn up you will need to check and sign these and return them to your Insolvency Practitioner (IP).

An application may then be made to the court for an Interim Order. Once this is in place, no creditors will be able to take legal action against you. You may be asked to attend your creditors meeting but this rarely happens, normally you are asked to be contactable by phone on the day.

For an Individual Voluntary Arrangement - IVA to be approved, creditors will be called upon to vote either for or against the arrangement. If only one creditor votes "for" the Individual Voluntary Arrangement - IVA, the Individual Voluntary Arrangement - IVA will be approved. However, if only one creditor votes against the Individual Voluntary Arrangement - IVA and they represent less than 25% of your total debt, the meeting will be suspended for a later date and other creditors who did not vote will be called upon for their vote.

If the creditor who voted against the Individual Voluntary Arrangement - IVA represents more than 25% of the total debt you owe the Individual Voluntary Arrangement - IVA will fail. This is because an Individual Voluntary Arrangement - IVA will only ever be approved if 75% in monetary value is voted for. If any of the creditors don't vote, it is assumed that they will vote FOR the Individual Voluntary Arrangement - IVA.

To read more:
Individual Voluntary Arrangement

Useful studies:
* LOANS AND IVA DEBT MANAGEMENT

* Debt Management IVA: Eliminating Debts the Easy Way

How to be debt free during current economic crisis

youlki22@gmail.com (youlki22) — Thu, 19 Feb 2009 16:00:00 +0000

The current economy feels worse than any previous recessions. And it is now more difficult to stay debt free during current economic crises. People around the world are equally feeling that now its not safe with their jobs, banks or even business in terms of money or investment.

'Wikipedia' describes it a "global financial crises" and says further:

The global financial crisis of 2008–2009 is an ongoing major financial crisis. It became prominently visible in September 2008 with the failure, merger, or conservatorship of several large United States-based financial firms. The underlying causes leading to the crisis had been reported in business journals for many months before September, with commentary about the financial stability of leading U.S. and European investment banks, insurance firms and mortgage banks consequent to the subprime mortgage crisis.

Beginning with failures of large financial institutions in the United States, it rapidly evolved into a global credit crisis, deflation and sharp reductions in shipping resulting in a number of European bank failures and declines in various stock indexes, and large reductions in the market value of equities (stock)[7] and commodities worldwide.

The crisis led to a liquidity problem and the de-leveraging of financial institutions especially in the United States and Europe, which further accelerated the liquidity crisis, and a decrease in international shipping and commerce. World political leaders and national ministers of finance and central bank directors have coordinated their efforts[14] to reduce fears but the crisis is ongoing and continues to change, evolving at the close of October into a currency crisis with investors transferring vast capital resources into stronger currencies such as the yen, the dollar and the Swiss franc, leading many emergent economies to seek aid from the International Monetary Fund. The crisis was triggered by the subprime mortgage crisis and is an acute phase of the financial crisis of 2007–2009.

Either you are a self employed person or a businessman current economical crises may effect you. There are increasing number of bankruptcy around us then few years ago.

The main cause of bankruptcy:

Companies are downsizing, rightsizing, and filing for bankruptcy. There is no such thing as job security. If you were downsized, you may have taken a job that paid substantially less than what you were paid when you took on the debt load that you have currently. The unemployment rate continues to get worse, and it does not account for those who have exhausted their unemployment and continue to be unable to find work. If you are unable to make up that money in a part-time or another full-time job because of family constraints, you will continue to get further behind.

Self employed persons rely on consumer spending to continue to be successful. As consumer spending falls, it creates an overall poor financial outlook for small businesses.

Current economic crisis is not effecting big names but common person who was interested in saving money and then investing it to a profitable industry is hesitating to step forward.

Related posts:

* Alternative views of the economic crisis

* At this year's World Economic Forum in Davos, top business and political leaders offered their analysis of what caused our current turmoil and presented ideas on how to put the global economy back together.

Read the full story: The World Ecnomic Crisis, What's Your Solution?

* This articles shows the reasons why people think that this is best time in history to make lot’s of money and become filthy rich

Read the full articles: How to Become Filthy Rich During Economic Crisis?

Mortgage possession orders and effects on home owners

youlki22@gmail.com (youlki22) — Wed, 11 Feb 2009 16:41:00 +0000

People around the world are facing the worst financial situation. As unemplyment rate is on hike, people are unable to pay the mortgage and as a result losing their homes. This article would help you know the statistics and related posts which are concerned to this topic.

Recent economical downfall has increased the rate of unemployment and with the effect of the global credit crunch on the markets, together with recent figures from the Ministry of Justice, which reported a 17% rise in mortgage possession claims from the second quarter of 2008 when compared with the same period last year, it is likely that an increasing number of clients will get into trouble with their repayments.

Ministry of Justice figures show that mortgage possession orders – made by judges in the county courts – were up by 24% in the third quarter of 2008, compared with the same period last year.

Debt free direct provides these figures in this regard:

The FSA reported a total of 13,161 homes were repossessed by lenders in the third quarter of 2008, as households across the UK continue to struggle with home loan repayments in this grim economic climate.

While the amount of mortgage possession claims issued has only risen by 9% since the third quarter of 2007, the amount of mortgage possessions ordered by County Courts continues to rise. Regionally, Wales was the hardest hit with a 38% increase since the third quarter of 2007, while the Midlands saw the lowest increase in England of 16%.

Some 36,923 landlord possession claims were made, with 28,086 orders granted in the third quarter of 2008. This figure has risen 4% since the same quarter last year and shows that it’s not just UK homeowners struggling with finances.

Council of Mortgage Lenders says:

What happens to your mortgage debt after your home is repossessed?

After your lender takes your property into possession they have a legal duty to sell the property for the best price that can reasonably be obtained. The property will generally go on the market as soon as possible and your lender will get independent, expert advice on the price it should be sold for and the best method of sale.

If the sale of the property results in a surplus after all the money owed to the lender and any other secured lender has been repaid, then this surplus is returned you. Your lender should notify you of the surplus but if you cannot be contacted, the money will either be held by the court or your lender until you can be contacted.

But if the sale proceeds are not enough to pay off the money you owe to the lender, then there is a "shortfall debt" which you still owe your lender after possession.

Interest will usually continue to be charged on your mortgage loan until the property is sold and any shortfall is repaid. There will also be other costs charged to your mortgage account, including estate agents' costs in selling the property and legal costs.

More related articles:

* New pre-action protocol for mortgage possession claims
From "Mortgage solutions" Nine tenths of the law-what happens behind the scenes and the timescales involved

* "Mortgage Introducer" says: Mortgage arrears up but repossession figures stable

Credit card tips to get most from it

youlki22@gmail.com (youlki22) — Wed, 07 Jan 2009 12:21:00 +0000

These simple but effective tips are suggested by 'Federal Reserve.gov' to get most from your plastics. I have seen many persons dealing very carefully with credit cards but they were unaware of the some important facts and secrets which we ignore usually and face the bad credit score.

Tips:

* Pay on time.
Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your payment is due. If your bill is due at an inconvenient time of the month--for example, if it's due on the 10th and you get paid on the 15th--contact your credit card company to see if they will change your billing cycle to fit your cash flow.

* Stay below your credit limit.
If you go over your credit limit on your card, your card issuer could charge a fee and increase your interest rate to a higher penalty rate. To avoid this, keep a record of your spending or check your balance online. Also, be aware that some merchants (for example, hotel and car rental companies) put a "hold" on your credit card based on their estimate of the amount you will charge. This can reduce your available credit until the final charge is processed.

* Avoid unnecessary fees.
Credit card companies not only charge late payment and over-the-limit fees, but also fees for cash advances, transferring balances, and having a payment returned. Some companies charge a fee when you pay your bill by phone. Pay attention to the transactions that trigger these fees. If you need a cash advance, withdraw enough so that you don't have to take a second cash advance--and incur a second fee--later in the month. Read your credit card agreement to learn more about the fees that your credit card company charges.

* Pay more than the minimum payment.
If you can't pay your balance in full each month, try to pay as much of the total as you can. Over time, you'll pay less in interest charges--money that you will be able to spend on other things, and you'll pay off your balance sooner.

* Watch for changes in the terms of your account.
Credit card companies can change the terms and conditions of your account. They will send you advance notices about changes in fees, interest rates, billing, and other features. By reading these "change in terms" notices, you can decide whether you want to change the way you use the card. For example, if cash advance fees increase, you may decide to use a different card for cash advances. If you have a card with a variable rate or if you have an introductory rate that is ending, be aware that credit card companies are not required to send you a notice about raising your interest rate. Interest rates are listed on your monthly bill. Read your bill carefully and take note of any changes.

Get Printable version (97 KB PDF(

'Ask Mr Credit Card' - Helping you understand credit cards

youlki22@gmail.com (youlki22) — Mon, 05 Jan 2009 11:36:00 +0000

As the money matters are all concerned with plastics or credit cards, we need to learn more about credit cards. Normally when we decide to select credit cards, we take suggestions from the people around us or simply follow the ads which are bombared on us every moment. The easiest way of getting credit card may be simply filling out a form that arrives in the mail. But what if you could rely on a source which can help and guide you in expert way for selecting your credit cards?

Ask Mr. Credit Card is a site helping you understand credit cards well. This site acts like a sincere friend who suggests you tips and advice regarding plastics/credit cards.

You get the reviews of many credit cards and editor's choice which is the best recommendation for the best available credit cards. If you have any question about credit cards, you can ask from the site owner.
Read the other person's views and comments about credit cards related issues at forum or become a member if you need to share your own experience with others.

Few popular article titles are:

Where to get a no annual fee Continental Airlines OnePass credit card?
Which Hilton Hhonors credit card to get? Visa or Amex?
Which Marriott Rewards Credit Card to get?

Check the blog fro latest posts.

'Tips and advice' page reveals many credit card facts which we didn't notice before.

'Quest to be debt free'- Another finance blog helping you to be debt free

youlki22@gmail.com (youlki22) — Sun, 28 Dec 2008 04:28:00 +0000

I am trying to make this blog a place where you can easily find the reources and useful links to money or finance related information. I am not a tech or an expert person about money or finance related topics. I am an educator who learned very basics of budgeting, saving from her own life and still learning. I hope that my learning quest would help you find ideas and tips help you stay debt free.

'On a quest to be debt free' is a prettey finance blog. It helps make the transition from living life in debt to learning to live on less than we earn.

Anna (the blogger) started this site to help other families to learn 'to be debt free' as prior to raising her children she spent more money than earning. As she learned the saving and debt free life lessons from her own life, she shares it with her readers.

Top ten posts have these titles:
What is a Household Notebook?
CVS Posts
18 Ways to Beat the Rising Cost of Living
Money Hacks Carnival #30~Fall is in the Air Edition
25 Free or Low-Cost Entertainment Ideas
How To Cut Back on Discretionary Spending
The Five Best Coupon Sites on the Web
Finance Fiesta #15~The Patriot Day Edition
Carnival of Debt Reduction #159~They Never Said It Edition
Coupon Acronyms and Terms

These post topics can help you find out the information you expect to see at this site.

Use budgeting software to help you stay debt free

youlki22@gmail.com (youlki22) — Sun, 21 Dec 2008 08:31:00 +0000

Idea was not bad at all. One of my friends suggested me to use a software for budgeting purposes. I was not sure that it budget software can really help me to stay debt free, until I used it myself. I keep all my documents with me, saved at hard disk of my laptop. Usually I keep record of all essential documents and I felt that I was free from other worries involved in money management after using the budget software. It works like a budget planner, and no doubt that you can call it your financial assisstant. It is one of the essential tools which helps you manage your finances in a very easy manner.

We need to make monthly budget as it creates focused intensity and direction for your money, how to wisely spend it. The best part of budgeting software is that with a minimal amount of time, you can easily make a budget on your computer.
It can helps you to maintain personal budget or family budget. You can track your expenses and investments ase well ad calculating the difference.

'Early Retirement Extreme' - A personal finance blog

youlki22@gmail.com (youlki22) — Wed, 17 Dec 2008 04:03:00 +0000

As I have reviewed many money and finance related blogs, which were mostly from individuals who learned budgeting, planning and financial freedom out of their experiences. The reason of reviewing those sites is only one that we can learn better from individuals like us rather than consulting a professional. 'Early Retirement Extremes' is a blog which details the life, thoughts, and experiences of an ordinary person.

Early Retirement Extreme offers posts about financial independence, fugality, self-sufficiency, ecology, saptilism and voluntary. When I started browsing the blog, I thought that blogger would be near to retirement age (as name of the blog shows) and I was surprise to know that, Jacob (the blogger) is around 30.

This is short story of achieving financial freedom of the blogger:

"Six years ago, I decided that a lifestyle based on bills, mortgages, retirement plans, and conspicuous consumption that depended on working a job for thirty more years or maybe even the rest of my life was not for me. Therefore I set out on a journey of becoming wealthy and skilled enough to never have to work for money again. Five years later I reached that goal.

The most important thing I have learned during my journey is that financial success is not about how much money one earns and spends, it’s about how much one spends and how much one keeps. In other words, it is about values and efficiency. For several years I have now lived at an expense level that is comparable to the poverty rate and even half the poverty rate for some of the years while saving the rest and eventually investing it. For this reason my savings rate has consistently been around 70%."

To read more about his persoal story, click on the post link: How I became financially independent in 5 years

Other post titles:
- What early retirement means when you’re too young to retire

- Early Retirement Extreme’s budget

You can subscribe to the blog by submitting your email at the blog.

Credit Card tips for saving money

youlki22@gmail.com (youlki22) — Sat, 13 Dec 2008 03:54:00 +0000

These credit card secrets or tips are very important for a credit card holder, which bank don't want you to know. These tips or techniques are easy to keep in mind and can save you from future hassele as well as saving money.

1. Interest Backdating

Most card issuers charge interest from the day a charge is posted to your account if you don¹t pay in full monthly. But, some charge interest from the date of purchase, days before they have even paid the store on your behalf!
Tip: Find another card issuer, or always pay your bill in full by the due date.

2. Two-Cycle Billing

Issuers which use this method of calculating interest, charge two months worth of interest for the first month you failed to pay off your total balance in full. This issue arises only when you switch from paying in full to carrying a balance from month to month
Tip: Switch issuers or always pay your balance in full.

3. The Right To Setoff

If you have money on deposit at a bank, and also have your credit card there, you may have signed an agreement when you opened the deposit account which permits the bank to take those funds if you become delinquent on your credit card.
Tip: Bank at separate institutions, or avoid delinquencies.

4. Fees Are Negotiable

You may be paying up to $50 a year or more as an annual fee on your credit card. You may also be subject to finance charges of over 18%.
Tip: If you are a good customer, the bank may be willing to drop the annual fee, and reduce the interest rate 9 you only have to ask! Otherwise, you can switch issuers to a lower- priced card.

5. Interest Rate Hikes Are Retroactive

If you sign up for a credit card with a low "teaser" rate, such as 7.9%, when the low rate period expires, your existing balance will likely be subject to the regular and substantially higher interest rate.

Tip: Pay in full before the rate increase or close the account.

6. Shortened Due Dates

Most card issuers offer a 25 day grace period in which to pay for new purchases without incurring finance charges. Some banks have shortened the grace period to 20 days9 but only for customers who pay in full monthly.
Tip: Ask to go back to 25 days.

Download Free e-book 'Money Matters For All Ages'

youlki22@gmail.com (youlki22) — Sun, 07 Dec 2008 03:57:00 +0000

I am a learner like you who want to make life financially secured and debt free. I have tried to accumulate useful resources, links which can help us learn more about money and finance matters. I have personally learned a lot from these FREE links. You would be noticing free e-books on the side bar of this blog, and I strongly recommend those books to every one as these e-books and tutorials are very helpful. (These links are not selling anything to you, but offering handful of useful information to you)

"Debt Free Revolution" is offering 'Money matters for all ages' which is a combination of a series or posts from different blogs. You can easily download this free e-book and distribute it as well.

* Download link for pdf version

"Debt FREE Revolution" is from an Army wife, sharing her debt reduction efforts and strategies with us.

You can check the best posts of the blog at 'this link'

Get tips and ideas for saving and investing at -'A Penny Closer'

youlki22@gmail.com (youlki22) — Fri, 05 Dec 2008 03:23:00 +0000

The easiest way to learn is from others as learning from our own mistakes is always expensive. For money or finance matters it is true that we should plan ahead or we have to suffer a lot. Planning, budgeting, saving and investing are some tools which can help us live debt free. There are many sites or blogs around sharing ideas, tips and suggestions relating to these topics and naturally reading that stuff motivates us in this regard.

The story behind creation of 'A Penny Closer' is very inspiring. Melissa is one of the persons who learn from their mistakes or life experiences and share those words with others.

A Penny Closer is for those of us who want to improve how we spend, save, and invest. It is a site sharing ideas and tips for budgeting, saving and investing.

Mission: We want to be able to manage our money so that we can use it to enjoy our lives today while still saving to reach our dreams. It is about finding ways to cut back in areas that mean little to us while putting our money into the areas that count.

Few post titles are:

How We Chose Our Credit Card
The Downside to Debt Consolidation Loans
Using Credit Cards Online
Manage Rising Fuel Costs With Plastic
You Can Avoid The 24 Hour Flu
You can subscribe for the blog posts by submitting your e-mail at the site.

"Ovation Credit Services"- Offering credit repair and credit report repair services

youlki22@gmail.com (youlki22) — Wed, 03 Dec 2008 16:16:00 +0000

The first question come in our mind "Why do we need to worry about credit report repair?" Financial statistics can answer the question:

Facts about credit reports:

- 79% of credit reports contain some type of error.
- 25% of all credit reports contain errors serious enough to result in the denial of credit.
- 29% of consumers have variances of 50 points or more in their credit scores as reported by each of the three major credit bureaus.
- 54% of credit reports contain personal demographic identifying information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect 30%of credit reports contain credit accounts that had been closed by the consumer but incorrectly remained listed as open. These errors are costing consumers billions of dollars.

In financial terms, repairing your credit profile is the most important part. But how to get help in achieving our optimal credit profile by making the credit repair process easier?

Naturally our problems can be solved by the people who are expert in financial matters, offering you legal expertise and good customer service. We have to select the service which could provide us help in correcting our credit reports, credit scores and credit profiles.

There are a lot of companies which deal in credit repair or bad credit, or dealing in fix credit but better to check the companies whith good record and the services they offer. "Ovation Credit Services Inc." is one of the credit repair and credit report repair companies.

Speciality of Ovation Credit Services Inc.

- They work with the credit bureaus and creditors to resolve issues on credit reports. Their programs are based upon extensive research of consumer credit laws, credit bureau tactics and persistence for the clients.

- It is one of the lowest priced programs available. Their program choices start at only $35 per month.

- It is founded by attorneys who continually encountered individuals plagued by inaccurate and misleading credit reports.

- They assign an individual Credit Advisor to you, so you get one-to-one customer service.

- Their Fast Track service ensures that the client gets priority same day service throughout the disputing process

- They offer a 100% Service Satisfaction Guarantee, with a no hassle cancellation policy.

- You can have a professional case analyst review your credit situation with you over the phone with no obligation. During the consultation you'll be able to clarify exactly what Ovation can do for you, how the process works, the costs and timeframe involved, and what to expect during the course of being a client... all for no charge

To know more: About

Tips to reduce stress and debts

youlki22@gmail.com (youlki22) — Tue, 02 Dec 2008 16:28:00 +0000

Americans are stressed out about making ends meet, which is affecting their work and personal relationships. Nevertheless, many are optimistic and say they are committed to persevering with their personal finances, according to a new survey.

The Western Union Money Mindset Survey, taken in August, shows consumers are taking steps to manage their bill payments so they can pay on time and reduce their stress. For example, one in four (25 percent) have cut recreational activities (gym memberships, sports gear) and nearly three out of four (72 percent) have cut back on dining out.

“Americans have worked too hard to save their money and pursue their goals, and they are not going to just give up. Many people are wisely scaling back their budgets and seeking solutions that will greatly improve their situations,” says David Shapiro, senior vice president at Western Union. “Only 4 percent of people who believe their situation is going to get worse feel that declaring bankruptcy or defaulting on debt will help. To improve their situations, many are looking for a new, better-paying job or a second job to keep up with their bills.”

One in five Americans is paying bills late, the survey shows, and 31 percent of those surveyed were waiting longer to pay, racking up late fees and risking good credit standing.

Bad debt isn’t healthy for individuals or the people close to them. And some choices made to correct bad debt, such as withdrawing from a 401(k) account to make bill payments, can lead to bigger issues, impacting future financial activities like obtaining loans for mortgages and cars or getting a job.

tips to help people avoid and reduce debt:

* Start or revise a monthly budget -- Use calculators at www.BankRate.com to determine if your mortgage should be refinanced or if your money market account is earning interest that can help you build up savings or pay your bills off faster. Visit www.financialplan.com to download a budget tracker as a monthly guide for managing your money. You can also examine your expenses and see what you can cut back.

* Start an emergency fund -- Finance experts recommend having between three and six months of your budget stored in a savings account in preparation for unplanned events like losing a job, needing emergency medical help or treatment for a long-term illness. Try to cut back on entertainment activities so you can be ready for that last-minute car repair.

* Arrange automatic payments -- Having your rent or mortgage payment, utility bill or telephone bill automatically withdrawn on a designated day of the month helps you plan your finances better, maintain your cash flow and avoid late payment fees.

* Explore all payment options -- For instance, consider paying the bill on the day it’s due by going to a Western Union Agent location and paying in cash. Ask your bank or biller to explain all of the bill payment options available.

* Negotiate rates -- Contact your telecom provider to see if you can reduce your monthly bill payment by bundling your phone, Internet and cable services. Call your credit card company and see if you can get a lower interest rate. Research credit cards with the lowest rates by visiting www.cardratings.com.

* Winterize your home -- Insulate your windows, doors and pipes for energy efficiency. Visit your local energy provider for tips and check Web sites such as www.energyassistance.org and www.acf.hhs.gov.

Courtesy of ARAcontent

Learn about loans and personal finance at - 'Persoanl Money Store'

youlki22@gmail.com (youlki22) — Thu, 27 Nov 2008 06:03:00 +0000

"Persoal Money Store" is one of the site with Free tutorials and information which can guide you in terms of money and finance.
Personal Money Store offers you knowledge and information you need to make educated decisions about your financial choices. Basically you can learn about loans & personal finance at the site.

Few post titles show what we can learn and read at the blog:

- Debt Collectors | The War On American Consumers
- Recycling and Payday Loans Add Green to Your Budget
- Don’t Credit Repair to easyJet: “NO” to Trachea Transplant Ride
- Managing Your Debts Through Debt Consolidation
- Intentional Fouls, Lost Space Backpack| Mistakes Happen, Get Free Credit Repair

You can learn basics of some finance terms like in 'Cash Advance' post, they explain it in these words:

'A Cash Advance is a form of short term lending designed specifically to assist consumers in paying all of their monthly bills on time when their wages fall short, or when they’re facing a surprise expense such as an emergency room visit or last minute trip to the mechanic a few days before payday. Also known as Payday Loans, a Payday Advance, Personal Loans, Quick Loans, or Short Term Installment Loans they are typically lent out in amounts ranging from $100 to $1,500.'

There are more tutorial posts on topics covering:

Payday Loans
Payday Advance
Personal Loans
Quick Loans
Short Term Installment Loans
Credit Repair
Site also offers facility of applying for online loans.

"Free Money Finance" - Helping you increase your net worth

youlki22@gmail.com (youlki22) — Tue, 18 Nov 2008 13:25:00 +0000

I love to read finance blogs which are created just to share personal finance experiences to the visitors. It's in human nature that we are more inspired and motivated by the personal experience based stories and may be simple calculations or figures don't impress us. "Free Money Finance" is a blog which is one of the finance blogs where bloggers has its own story to share with us.

Free money finance is about one simple thing: 'growing your net worth'. All financial topics are subsets of net worth, and this blog will talk about them – but always with the goal in mind of increasing your net worth – making you better off financially.

Why this blog was created?
(In blogger's own words)

'The current state of personal financial media/information/data (or whatever you want to call it) is dismal. It’s full of a bunch of sales people (“experts”) who want to:

1) Overcomplicate the facts so the average person thinks he/she can’t possibly manage it alone
2) Want to make “your” money “their” money (or at least take part of what you have to give you “valuable” advice)
3) Don’t know much about personal finances.

I’ve found that there is a lack of financial wisdom, real wisdom, out there that is simple and easy to implement. Therefore, this site is an attempt to talk about finances in a simple, easy-to-understand manner that allows the reader to manage his or her finances without a lot of effort.'

The real life story behind it

I've never really detailed my personal financial journey, so I thought I'd give you the basics today on where I've been. Maybe it will add some perspective on what I write about and why.

My parents were divorced when I was in the third grade and from that time until my mother remarried when I was in high school, we lived on one minimum wage income with very little child support from my father. It was certainly tight money-wise, but I never really knew how bad it was until many years later. I can only imagine the years my mom fretted over where our next few meals were coming from.

Things improved when my mom got remarried, and we moved up to the lower-middle class. Through the years, my stepdad's business did well, my parents got better at saving more, and we moved into the middle class. It really didn't matter for me though as I was away at college. I studied hard, worked all the way through school, and borrowed money from my grandmother. Thanks to hard work and scholarships, I left grad school with two degrees under my belt, only $5,000 in debt, and a job that paid more than my parents earned.

Through the years, I've done the things I've talked about here at Free Money Finance -- spent less than I've earned, paid off all my debt, managed my career, invested regularly and the like. During that time my net worth has grown and grown, allowing my family to be in the upper percentages of wealth in the U.S.

I share this information with you for the following reasons:

1. So you can get a feel for the person who writes these posts.

2. To demonstrate that the American dream is alive and well -- that it's possible for a poor kid to become well off without winning the lottery, robbing a bank or having a rich relative die.

3. To let you know that I'm writing from experience. I know what works financially since it's worked for me. I'm not writing about topics I've read about one time and regurgitated with opinions based on nothing -- I have lived these topics, applied these principles, and know what works and what doesn't. I then use 'Free Money Finance' to communicate what I know in hopes that you all will be the beneficiaries of this experience.

Source: My Story from Rags (Kinda) to Riches (Kinda)

Achievements:
Blog has earned good reputation among media and reviews at some known sites are worth to check:

BUSINESS WEEK MAGAZINE: "We've identified some of the most worthwhile investing blogs...worth visiting, whether you're a casual stockpicker or a seasoned pro in search of fresh ideas. [Free Money Finance] offers an inspiring mix of timeless investing wisdom and money-making ideas."

THE WALL STREET JOURNAL: "There are thousands of personal-finance blogs on the Internet. [Here is] a popular one."

US NEWS AND WORLD REPORT: "Practical advice on maximizing income, curbing expenses, and amassing wealth."

There are many good posts on the blog. There are 519 posts about 'saving money'. Not only saving money, but there are lot of money, finance, career, budget, credit cards, investement related posts which are worth to check.

Bill paying tips

youlki22@gmail.com (youlki22) — Mon, 17 Nov 2008 07:10:00 +0000

We all have to pay bills, and we plan ahead for bill paying process, it can make our life easier and hassle free. These tips can help you maintain a simple process making bill paying habit easy and stress free for you.

First step towards bill paying is to organize your bills.

Organizing tips

- Designate one specific container for your bills – a file folder, basket or letter tray on your desk, etc. As soon as you get the mail, sort out the bills and put them in your designated place.
- Create a convenient place to pay your bills. Supply it with everything you need -- checkbook, calendar, notebook, pens/pencil, stamps, etc.
- Schedule a weekly time to do bills. Consider it a standing appointment that you keep, just like a doctor’s appointment or work meeting. It’s much easier to stay on top of your bills if you do it weekly
- Set up a simple filing system to keep track of your bills and when/how you’ve paid them.

Bill-Paying Tips

* When you open your bill, circle or highlight the due date, and put it in an organizer or calendar to pay one week prior to the due date. Paying bills late can affect your credit history. Being tagged as a “chronic late payer” affects your credit score, which can mean you’ll be denied, or have to pay more, for a loan in the future.
* After you’ve written the check or paid the bill (via money order or electronically), make a note on the bottom of the bill indicating the date paid and the check number. File the bill stub/receipt. Keeping a file of your paid bills will help you with budgeting and in the event you have disputes with creditors.
* Consider setting up automatic withdrawal for as many bills as possible – including direct deposit for savings! Automatic withdrawal will save you time, ensure that your bills are paid on time, and will help boost your chances of maintaining a good credit history (or improving your current record).

* If you have Internet access, look into online bill paying. There are three ways to pay bills online:
1) First, you can pay online through your creditors’ website (i.e. some utility, phone, and other companies will allow you to pay your bills by credit card online). If you choose to pay your bills online by using your credit card, make sure that you can pay the card off at the end of the month so you’re not accumulating more debt.
2) Second, you can use an online bank to pay your bills; or
3) Use an online bill payment system that charges a monthly fee to pay your bills for you.
* Eager to eliminate the paperwork? Check out money management software packages such as Microsoft Money or Intuit’s Quicken. These programs can help you create an electronic budget, track spending by category, prepare for taxes, and print checks electronically downloaded from your computer.
* You can tame the “bill beast” by adopting even just one of these tips. Remember, taking small, manageable steps makes it more likely that you’ll stick to it and be successful. Take a first step toward gaining control over your bills today!

Source: Tomorrow's money

"Quatloos" - A cyber museum of scams and frauds

youlki22@gmail.com (youlki22) — Sun, 16 Nov 2008 07:57:00 +0000

"Quatloos" is a FREE to access site helping us learn about financial scams and frauds around us. The weapon to fight scams and frauds is to get knowledge about it. It can help us saving our money from fraudulant peoples who are around us and trying to grab it from us.

What is 'Quatloons'
Quatloos is a public educational website covering a wide variety of financial scams and frauds. Quatloos is sponsored by Financial & Tax Fraud Education Associates, Inc., a California not-for-profit company. It is an ad free site, supported by donations.

Mission: "This website seeks to educate you about certain types of financial frauds, how these deals really work, and how you can manage your risk of financial fraud"

What this Cyber Museum offers us?

* Quatloos! covers a wide variety of financial scams, including wacky “prime bank” frauds supposedly involving $100 Billion dollars investments that you can buy for a mere $100, exotic foreign currency scams claiming 80% per week returns, and many forms of offshore investment frauds.

* Quatloos! also warns about many types of tax scams, including claims that payments to the IRS are voluntary or that the income tax is unconstitutional, to “Pure Trust” structures that purport to be financial black holes but in reality will win you an extended stay at Club Fed.

* Quatloos! keeps readers’ attention by collecting some of the funniest scams around, such as non-existent countries and financial programs that are guaranteed by space aliens from the far reaches of the galaxy, as well as would-be victims’ responses to the scam artists’ offers - such as the Brad Christiansen Exhibit where Brad leads Nigerian scam artists on wild goose chases around the globe to try to collect his money.

Funny though these scams are, the sad truth is that many persons – including otherwise well-educated professionals and experienced businessmen – annually lose tens and hundreds of millions of dollars to these scams. By raising the public’s awareness about these scams, and providing a valuable on-line resource where potential victims can read up on frauds and fraud artists quickly, Quatloos! has saved would-be crime victims well over $100 million dollars over the last five years and probably much more than that.

people worldwide send information to Quatloos! and in many ways it has become a clearinghouse for information on the latest scams. Additionally, many law enforcement agencies have requested the use of Quatloos! materials for law enforcement and training materials, and Quatloos! materials are now being included in many books and articles written about scams.

Their forum is a place to discuss frauds and scams. Comment on Quatloos, give ideas for improving the website or fighting fraud, exchange theories on the origins of the term “Quatloos!”, and other stuff relating to the Synergistic Debentured Netdom of Quatloosia.

Why invest in bonds?

youlki22@gmail.com (youlki22) — Sat, 15 Nov 2008 06:47:00 +0000

Deciding to save and invest is the first step towards secure financial future. We can invest our money at many places but there are few options with low risks which might be stocks or bonds and among both investing in bond is better as they add safety and stability to your investment plan. Bonds are fixed-income investments, meaning that the amount of income you'll receive back on your investment is fixed in advance.

As every financial expert advises, the key to sound investing is diversifying – in other words, splitting your money up into different kinds of investments to reduce risk. The three main places to “park” your money are stocks, bonds, and cash/or savings.

Bonds can be a dependable source of steady, fixed income available for you to spend or reinvest.

The Benefits of Bonds

Financial Security
Who doesn't like the sound of “financial security”? There's a reason that a bond is called a “fixed-income” security – not only are you highly likely to get back your principal but you can also count on receiving interest on your investment.

Portfolio Balance & Diversification
Bonds can be great financial “buffers.” When the stock market is on a roller-coaster ride, bonds can help steady your pulse because they're a very safe financial tool to help balance the risk in your overall portfolio.

Tax breaks
One of the not so well known facts about bonds is that they're very often free from many taxes. For example, most bonds issued by state or local governments (also known as “municipalities” or “munis”) are exempt from federal income taxes. All bonds issued by the U.S. Government (also known as “Treasurys”) are exempt from state and local income taxes. Some municipal bonds (“munis”) are free from all three – city, state and federal taxes – a condition known as being “triple tax free.”

Weighing the Risks
Probably the first thing you've heard about investing is that it's never risk-free. True enough. And although highly-rated bonds are considered one of the safest ways to invest your money, you should still take the risks into account before making any decisions.

Bankruptcy
Bond issuers are not some mysterious “Wizard of Oz”-like entities. They're companies and units of government. And, sad to say, companies and sometimes even local governments can go bankrupt and default on their loans. Bonds with high credit ratings very seldom default and U.S. Treasury securities are considered essentially risk-free. But it's a fact to consider. Even bonds (except Treasurys) aren't risk free.

Your bond is “called”
Some bonds can be paid back early – what's known as your bond being “called.” If you own a callable bond and it is called you will still be paid back your initial investment and any interest you've earned so far, but you will not receive the future interest you would have otherwise gained. From our example, let's say your 9% bond was called after 8 years. You would be repaid your initial $1,000 investment (the principal), plus the $720 you had accumulated in interest. However, you would not receive the additional interest you were expecting when you made your initial investment for 10 years. Most important, if the company decided to call the bond, chances are that interest rates are now lower and you won't be able to find a similarly rated bond paying as high as the original 9% interest you were receiving.

Rising inflation
If inflation rises, the interest you make on your initial investment will look low compared to bonds currently being issued. And with your money locked in a bond, you could lose some principal if you sell it in order to move it into another investment that could give you a higher rate of return.

Selling your bond before maturity
If you decide you need your money back earlier than the date that your bond matures, You're taking “a chance” that you may get more, or less, than you paid. This depends mostly on the interest rates at which new bonds are being issued. That's why individuals who invest in bonds typically plan to hold them till they mature. And that's why it's important to determine when you'll want, or need, to reach your financial goal in order to purchase a bond that matures at that same time.
Now that you understand the benefits and risks, you should better understand the importance of bonds as part of your overall portfolio – they add some safety and stability to your investment plan. Next let's look at your bond buying options.
Source: Tomorrow's money

Basic Investment Tips

youlki22@gmail.com (youlki22) — Fri, 14 Nov 2008 07:27:00 +0000

'Knowledge is of two kinds. We know a subject ourselves, or we know where we can find information on it.'
By: Samuel Johnson

Internet is a good place to start learning about money, finance, budget, saving and investment. Starting point seeems difficult to find but if we learn how and where to start learning, whole process is easy and can leads towards

Some basic tips on investing

• Educate yourself: Contact organizations that offer investment basics. Regional chapters of the NAIC, the AARP, and the American Association of Individual Investors hold investment workshops for consumers of all ages. They will expose you to the financial terms and standards you need to understand when considering buying stocks, bonds or certificates of deposit (CDs).
•Go to school. Consider taking a community college or university extension course on investing. Such courses offer tips on the best magazines and Web sites to raise your confidence in investing.

• Ask around: If you do consult a financial adviser, investigate different planners before subscribing to a particular investment plan. Many financial planners meet with clients for free, but may push certain investment products that do not suit your investment style.

• Think about how "risk averse" you are: If you don't have much time -- or the stomach -- to monitor your investments in individual stocks, consider other types of investing, such as mutual funds. It's a less risky way of getting involved in the stock market, and provides much more stable returns. You can request performance information about particular funds on the Internet or by requesting a prospectus from the company. As many people have lost money on the market as have gained wealth, so seniors should proceed cautiously.

• Investigate your investment adviser: Make sure your adviser doesn't have any disciplinary actions against him or her. Ask to see what's called a "Form ADV," which lists education and investment strategies. You can check out a dealer by contacting the Financial Industry Regulatory Authority (FINRA) at finra.org or 800/289-9999 or the North American Securities Administrators Association (NASAA) at 202/737-0900.

• Read agreements for investment accounts carefully: They usually spell out how much risk you will take, how investments will be paid for, who makes the decisions, and how disputes are resolved. Make sure you don't budget more for investing than you can spare from your monthly pension.

• Ask for a commission schedule: This outlines how much commission you will pay. Never make out a check to an individual broker.

• Report abuses: FINRA maintains an Investor Complaint Center on its web page http://www.finra.org/complaint or you can call them at 240/386-4357. The Securities Investor Protection Corp. (SIPC) offers general investment advice and helps consumers with investment problems. Contact them at 202/371-8300.

Source: Seniors and investing

"If you have knowledge, let others light their candles at it."
By: Margaret Fuller

An online FREE tutorial - "Investing For Your Life"

youlki22@gmail.com (youlki22) — Wed, 12 Nov 2008 13:02:00 +0000

We make planning and save money for our future and the best use of our saving is to invest it at a place which is reliable and could provide profit for our hard earned money. But when our saving is not too much and we are new to 'investing', we need a guidance in this regard. This post is about an online FREE tutorial which is basically a home study course "Investing for Your Future".

This online FREE tutorial is helpful for the people who save money and want to invest their money for their future needs. It is especially for beginning inverstors with a little savings. You can also get the print out of this course as it is very easy to download at your hard disk.

"Investing for Your Future"– is brought to you by the USDA's Cooperative State Research, Education, and Extension Service, this home-study curriculum covers the basic building blocks of sound financial management.

Details of the home study course

11-unit home study course is developed by the Cooperative Extension system for beginning investors with small dollar amounts to invest at any one time. It was assumed that many readers will be investing for the first time or selecting investment products, such as a stock index fund or unit investment trust, that they have not purchased previously.

The course units were developed in a logical order. "Basic" topics such as setting goals, investment terms (e.g., diversification, dollar-cost averaging, asset allocation), and finding money to invest lay a foundation to help readers understand how and why they’re investing. You’ll also begin to understand that there’s generally a trade off between risk and reward. The more risk an investor assumes, the greater the chance of a high return, as well as the greater chance of loss.

After exploring "the basics," the course describes specific types of investments (e.g., stocks and bonds) in detail. You’ll begin to understand their characteristics, how they are purchased, and what it costs to purchase each investment. There are also units that focus specifically on tax-advantaged investments and investments that can be purchased with $1,000 or less.

Finally, Investing For Your Future concludes with additional topics of use to investors: available resources, how to select professional financial advisors, and information to help you avoid becoming a victim of investment fraud. You can choose to read the entire course, in any order that makes sense to you, or select only those topics that are of most interest. The choice is yours.

Simply reading Investing For Your Future will not turn you into a successful investor, however. A printed page simply can never replace the personal motivation that is required to take action to achieve financial goals. That is why there are "action steps" listed at the end of each unit. These are specific steps that readers can take to apply the course material to their lives. We urge you to consider each action step carefully and take action that is appropriate for your individual financial situation. The course also contains a number of worksheets, which, again, are tools to help readers apply the information contained within each unit.

Link: Home study course

How to recognize Credit Repair Scam?

youlki22@gmail.com (youlki22) — Tue, 11 Nov 2008 12:40:00 +0000

This article is helpful for the people having bad credit history or score, providing you tips to recognize the scams of credit repair.

You would notice many ads claiming to help you repair your bad credits or create a new credit identity, but The Federal Trade Commission (FTC) suggests you to not believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.

How to recognize a Credit Repair Scam?

Everyday, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

- The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

- The company doesn’t tell you your rights and what you can do for yourself for free.

- The company recommends that you do not contact any of the three major national credit reporting companies directly.

- The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

- The company suggests that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.

- The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.

Source: The Federal Trade Commission (FTC)