Showing posts with label which. Show all posts
Showing posts with label which. Show all posts

Sunday, February 9, 2014

Student Loan Consolidation Repayment Options Which One is Right For You


Asking for a student loan is easy, but repaying it can not only difficult but can also extend longer than one might expect. Students who have decided to consolidate their loans find that their original plan of repaying their loans right after they finish their studies are often put on hold for one reason or another. As a solution, they look for student loan consolidation repayment options.

A couple of the most common reasons why students search high and low for repayment options are the inability to land a job right after they graduate, and the lack of sufficient salary to answer for their past student loans. During this time, they have difficulty in fending for themselves, let alone repay their student loans. Student loan consolidation provides them with an opportunity to finally get their finances on the right track and be free from debt sooner than later. Obviously, one of the best ways to do this is to consolidate the repayments so that only one repayment per month is required.

Another one of the many options are to apply for graduate repayment plan, which is designed to start with low repayments that increase gradually until the balance is repaid. Students can specify how much the repayments should increase according to their current financial capability. Practical methods include juggling sideline jobs in order to earn extra income and living below their current means until they can afford to buy things without having to worry about how to cover the current months installment payment. As a last resort, students can apply for forbearance to suspend their repayment obligations in case they are having extreme difficulty in their present financial state.

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Tuesday, January 21, 2014

Reader Question Which is Worse for Credit Score Settlement or Bankruptcy

Hello Lee!

I, like all of the people on here, am stuck in a bad situation and I dont know what to do. I went thru a nasty divorce that lasted 3.5 years and in that time I was a single mom trying to survive. All money I made went to lawyers, a roof over our heads and food. I had to take loans out and credit cards to just buy groceries. Im slowly (I mean SLOWLY!) getting back on my feet. Im looking at $27,00.00 in debt. I thought about filing bankrupt papers but wanted to look into setteling my debts with the CA. Which would kill my credit more you think? It literally has been years since I paid anything. I think last year I paid $50.00 to each company (4 of them) to get them to stop harrassing me on the phone. You seem to give amazing advice! Please Help!!!


Monica


Monica,

Unfortunately, $27,000 is a large enough amount that a collection agency wouldnt hesitate to sue. Im hoping this $27,000 is your total debt and not your debt to a single creditor. That might make this situation easier to manage. 

You made a mistake by paying them anything. Each time you send them money, that resets the statute of limitations for a lawsuit. You dont mention which state youre in, but the SOL ranges from 4-6 years in most states. 

Your position to settle depends on your ability to pay. For example, if you have a job, money in the bank or own property, such as a home or car, the collection agency can sue you and force you to pay the full amount by garnishing your wages, emptying your bank accounts and seizing and selling your property. When you contact a CA you havent heard from or spoken with in a long time and propose a settlement, all youre basically saying is "I have money now! Come and get me!" So, of course, the CA begins to rabidly pursue you (usually for the full balance). 

The older an account gets, the less likely it is that the CA will get paid and the more likely a CA is to accept a settlement. Theyll generally send you a settlement proposal in the mail. Once you know the company is ready to settle, you can then call the company and negotiate back and forth. Negotiate up, not down. For example, name a lower number than you can afford to pay and let the collector bring your price up. Dont start from the collectors settlement offer and start negotiating down. This is a cheap psychological trick, but it often works. It makes the collector feel that hes "won" by getting you to pay significantly more than you offered while simultaneously helping you get a lower settlement than you would have gotten by negotiating down from their offer. 

Settling with the original creditor on a debt will decimate your credit, that much is true. Settling with a collection agency, however, wont. You see, the collection account on your report is as bad as it can get. It cant get any worse. So whether its paid, unpaid or settled, its still a collection account and it still affects your credit rating exactly the same. In general, however, bankruptcy is always worse for your credit report than settling with anyone. And if you file Chapter 13, you have to pay those debts back anyway – sometimes in their entirety.

Now, since you mentioned bankruptcy, heres where things get interesting. If you end up filing for bankruptcy, the collection agencies get NOTHING and they cant sell the debt either. If and when you call for a settlement, tell the collector you speak with that you are filing for bankruptcy if you cant get these debts taken care of. The word "bankruptcy" will usually make creditors much easier to work with. After all, youve got them over a barrel. They either work with you and give you a reasonable repayment option or they get nothing. 

If bankruptcy is really an option, I wouldnt make a single payment to any of these creditors until youve got settlement agreements IN WRITING from each of them. The last thing you need is to settle with several of them only to have the last sue you and force you into bankruptcy. If you end up filing bankruptcy anyway, paying the first few settlements was nothing more than a big waste of money. Its all or nothing here. 

Oh, and if youre outside of the SOL in your state for any of these debts, feel free to twiddle your fingers until they go away. They cant sue you. You can send a written request that they stop telephoning you and they have to adhere to it. Its just as effective as sending a payment and, if the SOL has expired, a whole heck of a lot safer. If the SOL hasnt expired, let them call. Prohibiting contact with an SOL thats still in effect is just begging for a lawsuit. 

If you have any other questions, feel free to ask. 


Best of luck to you, 
Lee 
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Tuesday, May 21, 2013

Practical Ways in which to Save Money Around the House

By Annie Pearson


Its no secret that the UK, in fact the entire world is in the midst of a tough and unrelenting recession. Despite recent promises that filtered down to us from the powers that be via the media, things still arent looking good! Although were now forecast to be making our way out of recession, growth forecasts are constantly being reduced as markets dont make the headway they were anticipated to by industry experts. For this reason budgets are still being slashed and purse strings tightened; the buttoned-down hatches are still firmly in place for a lot of businesses. Gas, oil and electricity prices havent fallen and instead increased, which has made making savings where possible not only preferable, but also necessary for many families. Heres what you can do

This first suggestion concerning heating is far from ideal considering the distinct lack of spring weather were long overdue. If you work away from home and are out all day though its well worth setting it up on timer, leaving it off both during the night and during the day when youre out. Nowadays there are numerous heating gadgets available that allow you to pre-set your heating in advance, leaving the heating on for longer at weekends for example when people are more likely to be at home.

Next on the list after central heating usage is water usage. Water is again, something that has made its presence known throughout the media over recent months due to rising bills that seem to rise proportionally with profits. It does seem somewhat unfair that in the midst of a recession when common folk are struggling to pay their bills, big companies raise their profit levels from us, not taking a financial hit at all. However, despite these unfair actions we can reduce our water usage significantly without too much effort. Use the dishwasher more sparingly, turn the tap off whilst brushing your teeth and have showers instead of baths.

Continuing on with the theme of appliances our next money saving idea is to switch appliances OFF when youre not using them. Those handy standby buttons are so tempting, but they certainly make their mark when that quarterly electricity bill comes in.

You can also re-design your old clothes if youre handy with a needle and make old items of clothing look not only brand new but on-trend too. Patches, cropped trousers and sleeves plus bringing in old tops and putting them under crochet jumpers can all create new looks with old attire. Get creative! This can save the shopping budget and associated low levels of enthusiasm that can come from looking in the wardrobe and seeing the same collection of clothes youve been greeted with for the past five years.

One very easy and long term way in which to save money on your energy bill is to switch to using energy saving light bulbs. These are competitive in cost and now emit practically the same amount of light that standard light bulbs do.

Running with the theme of long-term solutions, solar panels that attach to the roof of your home and harness the suns energy are now becoming more and more mainstream. Although they come with a hefty initial cost not only does the solar energy you collect come off your own bill, you also get reimbursed for any additional energy used by the board provided by your house, the returns really can be quite generous in Summer.

Finally, combining energy providers or even threatening to leave and move elsewhere can work wonders when it comes to saving money - call them up and have a chat, and while youre at it, ring up your phone and internet providers too!




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