|
rapidrecov's
Aeonity Blog view recent entries / profile / friends / archive / rss / Aeonity Blog |
| Everything You Need To Know About Credit Reports |
Jun 10th, 2010 8:52:40 am - Subscribe |
| Your credit score can be likened to your criminal record. Both follow you around for a really long time, and both are supposed to be reflections of the person you are. Only you and maybe your lawyer know your criminal record. But your credit score can be pulled when you apply for a credit card, or go to get a new vehicle, or even try to move in to a new place. For those not in the know, your credit score is based upon a number system between 300 and 850. A secret formula (OK a mathematical algorithm) will determine what your number will be. Creditors and experts both claim that your credit score is said to be a really accurate prediction of how likely you are to pay off your bills. Your credit score is an important thing to know. If you already have a credit card, the creditor will most likely look at your credit score to determine whether to decrease your credit limit, or give you a higher interest rate. Those lucky people with the highest scores get the lowest rates. But don't freak out yet if you have a low credit score; there are ways to improve your situation. Most importantly, try to pay your bills on time. Paying late or even worse, allowing a negative account to go to collection can have a negative impact on your credit score. It logically follows that the longer you pay your bills on time the better your credit score will be. Attempt to pay off debt rather than move it around. It's just the most effective way to improve your credit score. Don't close your unused credit cards. Closing is going to close the gap between the amount of credit you are using, and the whole amount available. If you have a lot of credit, and only use a little, its good. And for the love of God, do not open new accounts. New accounts are just not helpful in credit scoring because they will make your average account age lower. Which leads me to my final point. Longevity. Try to maintain your oldest accounts. Longevity has a lot of clout on credit reports, so the oldest account you have is the most available. |
|
| mood: snazzy |
(0) comments |
| Shady Debt Consolidation Promises To Watch Out For |
Jun 9th, 2010 1:29:31 pm - Subscribe |
| If you are being inundated with phone calls from debt collectors demanding money, and advertisements that blare "get out of debt now," debt consolidation and debt settlement businesses may be looking very good to you at this current moment. With debt settlement and consolidation centers, you combine your debts and pay a portion of the total. However, many of these businesses may be just too good to be true. Any debt consolidation place that seeks to satisfy your debt for "cents on the dollar" should be considered dubious. After all, it is difficult, near to impossible to make and keep a promise like that without being aware of the details of how long you have owed the money, how much money you owe, and to which creditors. These debt consolidation companies aren't aware of your past payment history. They don't know what creditors you owe. Also, each person has different assets that can be used to satisfy their own debts. You can never make a blanket statement. Debt settlement centers that guarantee that you will be debt free in three months should also be taken with a grain of salt. Again, the business is unaware of how much you owe, or who you owe it to. Additionally, some obligations, such as student loans, child support and back taxes cannot be covered in a debt settlement plan. Companies that claim that you can not obtain help without paying an upfront fee or deposit may be less than reputable. While some debt consolidation businesses may accept an upfront fee of as little as fifty dollars, generally, the person in debt pays the debt settlement company a percentage of the debt owed, often fifteen percent, for negotiating the deal. Generally, the firm will negotiate a payment between you and the businesses and people you know and will accumulate enough money to make that payment. The debt settlement company will hold on to the money until you reach the settlement amount. In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into more debt. Instead of taking this gamble check out a not for profit credit counseling firm that might charge you only twenty dollars, if anything. Instead of billing the debtor, these non profit counselors will generally get what is called a fair share percentage payment from your creditors after your debts have been paid. Finally, and most important, do NOT automatically trust in the debt settlement counselor who let's you know that "We will handle everything. You should stop communicating with your creditors." Despite the thought that the idea of not speaking to creditors and ignoring their mail sounds like it could be a real load off of your back, ultimately, it is your debt, your money owed and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company. It is important to bear in mind that the creditor is the one with whom you signed your contractual agreement. When all of your statements are being sent to the debt settlement company, you relinquish that control. You do not know how much in interest and late fees are being tacked on. You also won't know if your debt has been moved into collection. A few final words of wisdom. If you believe that you need debt settlement, try debt management first. Call up your creditors and request suspended payment, reduced interest or any other payment terms that may suit your financial situation in a more favorable light. Even though it might seem like a long shot, or a pain, it is always very important if you are about to miss a payment to call your creditor and say "Listen, I can't make this month's payment. I'd like to work something out with you." |
|
| mood: neutral |
(0) comments |
| 15 Tips To Help Your Finances |
Jun 7th, 2010 1:59:18 pm - Subscribe |
Financially, times have been tough for all of us. Organizing your budget and giving your finances a good spring cleaning could be very helpful right about now. Below are fifteen tips for getting started. First, we will tackle your debt situation, or dig up some additional cash, then we will figure out ways to utilize that new found money. 1. Check your credit card interest rates. Even if you pay off your credit card bills each month, it is a good idea to double check your rates in the case that you hit a rough financial patch and have to delay paying your cards in full for a couple of months. Many credit card companies raised their rates in the last year, but as a result, they did lose a lot of customers. A few of these companies are trying to win customers with a good history back, so you can find a good bargain out there with the help of internet search tools like bankrate.com. 2. Set up autopay on your debts. This is something you want to get on right away. Just one late payment can hit your credit tremendously, and you could end up seeing your interest rates shoot sky high. Even though the new credit card law puts more controls on credit card companies, they can raise your rates for at least six months when you pay late. Additionally, you have the capacity to even earn points if you pay your bills on a credit card with reward points. If you are not allowed to use credit to pay some of your debts, set up an autopay utilizing online banking. That way, you will never have to worry about a late payment. 3. Check your reward cards. Many credit card companies reduced their reward benefits before the new credit card bill took effect, but some have introduced cards with better rewards as they look for the best customers. So if you do have good credit, take advantage of it and compare your rewards with the new cards on the market. 4. Review your cable deal. Cable companies are constantly running new deals that introduce new channels or internet services. Go to their website and check out the deals that are available now. You might be able to get a better one! 5. Review your wireless bill. Look over your wireless usage and be sure that you have a plan that meets your needs. Can you lower the amount of minutes you use, resulting in a lower bill? Or should you buy extra time instead of letting those extra minutes rack up? 6. Check the deal on your home phone. Nowadays, more and more telephone companies offer unlimited long distance. Also, many offer package deals that include wireless and cable. Figure out which one is the best considering how much you use wireless, landline and cable services. 7. Look over your home and car insurance policies. With home prices plummeting, you might be able to save some cash by lowering your insurance to match the current value of your home. You might also be able to lower costs by increasing deductibles. 8. Shop for new home and auto policies. After you look over your policies, take a while to shop for new policies. You might discover that you can save money by switching insurers. Check with Insurance.com begin your search. 9. Spend your gift cards. Don’t let them just expire because you forgot about them! Use them to buy items you may need right away. If they hang out in your wallet too long, you could even end up losing them. Look at it this way: if you don’t spend the money, consider it a gift to the store or credit card company from which it was bought. 10. Check your credit reports. For free, once a year by using annualcreditreport.com. It is much easier to fix a problem the sooner you catch it. Also, it will help you to be vigilant on your watch for identity theft. 11. Fix any credit problems. If you do find any errors, or questionable accounts in your credit report, work on it immediately. You will receive instructions that explain how to question errors on your report when you receive your copy. 12. Increase your retirement savings. Now that you have a little more money, increase your automatic savings into your retirement account! An increase as small as 1% a year can really make a difference. 13. Review your investments. Look into them, see how they are doing and see how your investments add up. \ 14. Rebalance your investments. Make sure you have the right percentage invested in stocks or stock mutual funds, bond mutual funds, or bonds and cash. 15. Set up an appointment with a financial planner. It is a good idea to sit down with a financial planner once a year to look over what you are doing with your money, set achievable goals and make sure that your money is in the right spots so you have the opportunity to meet those goals. Seek out a planner who is fee based rather than commission based. When a planner receives money based on commission, you may be getting advice that helps the planner earn more money, not you. Looking through and organizing your finances this year is a lot more important as we bounce back from one of the worst downturns this country has ever experienced. While it is a good idea to look over your finances every year, it is crucial to review them now. |
|
| mood: clumsy |
(0) comments |
| BMI Turns To Ringback Tones To Collect On Royalties |
Jun 1st, 2010 2:15:49 pm - Subscribe |
| It appears as though the music industry has found a new strategy to cash in on royalties. As music lovers are well aware, at first these companies tried to sue individual users for illegally downloading music. But it is painfully clear that this approach to recover from major financial loss has destroyed their image in the public eye. In lieu of lowering the price of albums in order to go up against the free music circulating through the internet, the music industry has turned to collection agencies who are now taking legal action against cellphone companies over royalties from ring tones. They claimed that ring tones counted as public performances so cell phone companies should be obligated to pay performance fees. The courts quickly renounced this claim. After this unsuccessful attempt to collect money, Broadcast Music Inc is now suing T-Mobile over ring back tones, contesting that the cell phone company is selling them without agreeing to licensing agreements. Instead of ring tones, which play out loud when someone calls a cellphone, ring back tones play expressly to the person calling. That is to say, instead of hearing a cellphone dialing tone, the caller will hear a song chosen by the cell owner. Critics are quick to point out the apparent irony of this lawsuit. If ringtones, which can be heard by anyone around a cellphone, do not constitute public performance, it seems ludicrous to sue the mobile carriers over a ringback tone that can be heard only by the caller. With record companies suffering from huge financial losses, it seems as though they are grasping at straws in order to collect any money that they possibly can. It does not appear that lowering the cost of CDs, DVDs and other media is an plan that has occurred to the music industry. There are still quite a few fans out there that prefer to collect and own the actual products, but with prices constantly spiking, downloading music for free seems very appealing. Many CDs generally go on sale for about seventeen dollars. A few bands have bypassed the issue of free music downloads through creative tactics. Radiohead, an alternative rock band, built a website where fans can obtain the mp3s for free, or for a donation. Nine Inch Nails' Trent Reznor made a similar site. The music industry's unsuccessful lawsuits and declining public image leads one to believe that thinking outside of the box and lower pricing may be more effective than bullying money out of mobile carriers and individual users. |
|
| mood: wicked |
(0) comments |
| Debt Collector Scam- An Oldie But A Goodie! |
May 28th, 2010 10:13:07 am - Subscribe |
Even though it's an oldie, apparently it's still a goodie. Enjoying a recent boost in popularity, the fake debt collector scam still fools unknowing victims. First, you will get a phone call from a number that will not be recognizable. Sometimes, it will seem legitimate, but ultimately, not familiar. When you get the call, the person calling will let you know that they are a debt collector with so and so debt collection agency, and that this is an attempt to collect debt. At times, the phonies have been known to claim that they are working in addition to a local lawyer to get your delinquent account settled. The conman will tell you that you have accumulated a large amount of debt from a previous account. Typically, the crooks will tell you that you potentially owe them thousands, but if you are willing to settle, they will "settle: for, oh say, five hundred dollars. And could you wire the money via Western Union? An interesting hint of ingenuity on the part of the scam artists is that many times these calls will arrive on a late Friday evening, or afternoon. When they call at these times, any government offices that you might report this to will be closed. On numerous occasions the phony debt collectors will be calling from outside of the United States. An example of this was a recent scam involving a call center in India. Using services in order to mask their number, call centers located outside of the country may even choose a number from an area code nearby to where you live. If you have gotten a call from a bill collector that you feel might be a scheme, it is important to be vigilant. Ask your debt collector for a written statement of your debt. If they won't provide you with written proof, don't fork out any money to this suspicious agency. If you feel as though you may have been victimized by a phony bill collector scam, it is necessary to file a report with the Attorney General's office in your state. It is important to collect as much information as you can to provide more details in your complaint. |
|
| mood: agitated |
(0) comments |