The Debt Management Expert

In today’s world there are no shortage of people with debt management issues. So where do you go for debt management help? Here are a few quick tips from the debt management expert…

1) Go to Debt Management Expert web sites: This site is organized to give you helpful advice on a variety of debt management issues. We are specifically looking at large issues involving your home and credit. We also recommend that you look to other debt management sites to get helpful tips. There is no substitute for reading up on the issues that you face and looking at how different experts recommend you approach those issues.

2) Talk to people who may be in similar debt management situations: They may not be debt management experts but they certainly will give you another perspective. It may be uncomfortable but it is highly likely that someone in your situation has tried something to help their situation that may actually help your situation. If you don’t know anyone directly join a debt forum and learn in a more anonymous fashion.

3) Explore debt management and debt settlement companies as potential debt management experts: These companies can help but there a both pros and cons to working with them. Make sure you really understand what you get out of this before taking the dive. Many are debt management experts but they are also trying to make a buck. For more information on this read our recent post: Enrolling in a Debt Management Plan to Help Your Monthly Budget and How Debt Management and Debt Settlement Companies Can Simplify Your Financial Life.
4) Attorneys as debt management experts: Talk to a bankruptcy attorney or a loan modification attorney. Attorney’s can be a good solution if you need to modify your loan or if you are considering bankruptcy, but again this comes down to your specific situation. Don’t limit you conversation to one attorney. Talk to several if you go this route and then toughly reference them to make sure that they are debt management experts with good track records.

If you spend the time to do all these well, the next time you look in the mirror you may see a Debt Management Expert.

Related Articles:

• 15 signs: When to call a debt expert
• 5-minute guide to managing debt
  

OVERVIEW
Here are 10 tips to help you increase your FICO score by using credit responsibly.

In order to keep your finances in great shape and increase your FICO score, it is important to use your credit responsibly.

Your FICO score is a score created by credit bureaus such as Experian, Equifax, and TransUnion. Institutions lend money based on the FICO score created by credit bureaus. Here are some tips for keeping the FICO score in good shape.

1. To Increase Your FICO Score, Pay Your Bills On Time
Late payments have a negative effect on your FICO score. Do your absolute best to make sure every payment arrives on time. If you have missed payments, get caught up. The longer you have a good record of paying your bills on time, the more your FICO score will increase.

2. To Increase Your FICO Score, Keep Balances Low on Revolving Accounts
Credit cards are a type of revolving credit. This means you can pay off the line of credit and then use it again. Keep balances low on this type of credit. Having high amounts of credit card debt will lower your FICO score.

3. To Increase Your FICO Score, Pay Off Credit – Don’t Just Move it Around
Moving credit around is not the same as paying it off. Your FICO score will increase if you consolidate your credit. If you have a balance, but fewer open accounts, your FICO score will increase.

4. To Increase Your FICO Score, Don’t Open Accounts Your Don’t Need
People will often open a number of accounts in order to try to increase the amount of available credit. This strategy can often backfire and lower your FICO score, instead of increasing it.

5. To Increase Your FICO Score, Avoid Collection Accounts
Be aware that any account that has gone to collection will stay on your credit report for seven years. These accounts will negatively affect your FICO score.

6. To Increase Your FICO Score, Open Accounts and Pay Responsibly
If you’ve had trouble in the past with credit, it pays to open a new account and use it responsibly. Establishing a pattern of responsible credit use will help to increase your FICO score over time.

7. To Increase Your FICO Score, Avoid Closing Accounts
Closing an account doesn’t make that account disappear from your credit history. Each account you’ve opened and closed will show up on your credit report and will affect your FICO score.

8. To Increase Your FICO Score, Use Credit Cards
People who have no credit history have a difficult time obtaining credit. It’s important to obtain credit early on and use it responsibly. People who do this have higher FICO scores than someone who never uses credit at all.

9. To Increase Your FICO Score, Seek Credit Counseling
If you are in trouble with debt and your FICO score is lower than you would like, it’s a good idea to seek the advice of a legitimate credit counselor. These counselors can help you navigate your credit report as well as help you make a concrete plan to help you increase your score.

10. To Increase Your FICO Score, Remember it Takes Time
Remember, there are no quick fixes for increasing your credit score. It takes time to establish a good credit history, or to repair damaged credit. If you look at it as a process, you’ll be able to create solid goals and to achieve them.

OVERVIEW
Do you have too much credit card debt? It will take commitment and discipline, but here are some tips to get yourself out of credit card debt.

Do you have too much credit card debt? Many people are embarrassed or ashamed of how much credit card debt they have or how they got to that point in their lives. If you have too much credit card debt, admitting that is the first step toward getting yourself out. It will take commitment and discipline, but here are some tips to get yourself out of credit card debt:

• Too Much Credit Card Debt? Stop Using Your Credit Card
Stopping your credit card usage can be the toughest step of all, but it’s the most important. If you are aware you have too much credit card debt, you need to stop using the cards. Not incurring more credit card debt is the best way to digging yourself out of further problems.

• Too Much Credit Card Debt? Find Small Ways to Save
Take a good, hard look at where your money goes every day. The latte you grab on the way into work and the $10.00 sandwich are expenses that add up if you incur them every day. Take a look at your cell phone plan, your cable bill, and any other subscription services you have that could be trimmed or entirely cut out. Seemingly small savings of $50-100 can make a big difference when paying down your credit card debt.

• Too Much Credit Card Debt? Check on Interest Rates
Contact your lenders and ask about lowering the interest rate they’re charging on your credit card debt. The credit market is very competitive and many companies are willing to work with you and not lose your business. Once you’ve gotten your interest rates lowered, prioritize your payments, paying off higher interest rate credit card debt first.

• Too Much Credit Card Debt? Contact Your Creditors
If you find yourself in the position of having to miss a payment, contact your creditor and let them know about this. Try to set up a payment plan that you are sure you can meet. You don’t want to come back to them at a later date and try to renegotiate.

• Too Much Credit Card Debt? Home Equity Loans
It’s possible to tap into your home equity for a secured loan to pay off your credit card debt. You can secure a lower interest rate, fixed monthly payments, and peace of mind. Be sure to only do this if you have kicked the credit card spending habit. Many people will pay off credit card debt with home equity, only to run up their bills again.

• Too Much Credit Card Debt? Debt Consolidation
Unsecured debt consolidation is a possible solution to your credit card debt problem. Finding a non-profit debt settlement company can help you get your credit card debt consolidated into one monthly payment that you can afford.

Credit card debt has become immensely popular these days, with every nearly every other person finding themselves in debt problems. The trick is, in knowing how to deal with your credit card debt situation and taking steps to rectify your problems.

OVERVIEW
Debt management or debt settlement companies can often save you time and trouble when it comes to debt consolidation. A benefit of using a debt management company is the ease of the transition from having many, smaller debts to having one larger one. That being said you need to closely review any company you plan to work with to ensure that they are doing what you agree to.

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The process of debt consolidation can be tricky and intimidating and often not something for you to try, if you are not financially savvy. Debt management or debt settlement companies can often save you time and trouble when it comes to debt consolidation. A benefit of using a debt management company is the ease of the transition from having many, smaller debts to having one larger one. A debt settlement company will take over paying all your creditors. You have to make one simple payment every month.

The idea of debt consolidation is simple. The many smaller debts you carry are covered by one large loan. These are typically unsecured loans such as credit cards, personal loans, store credit cards, and bank overdrafts. The benefits of debt consolidation are that that you can negotiate one interest rate for this loan and you can negotiate the amount of the payment. Often, during the negotiation process, you can often reduce the amount of the debt.

Pros of Debt Settlement
• Avoid bankruptcy – By using a debt management company to consolidate your debt, you will can reduce your debt burden and pay off your bills more comfortably. You can protect assets, such as your car and your home, using debt settlement.
• Make One Easy Payment – You will make one payment to consolidate your debt each month to the debt management company. They will disperse the funds to the creditors. This one payment on your consolidated debt simplifies your bill paying enormously.
• Avoid Harassment – Debt collectors are notorious for their ruthless tactics. A debt management company eliminates a debt collector’s ability to hound you for payment on your consolidated debt.
• Avoid Lawsuit – Debt settlement companies can help you get a hold of your consolidated debts and get them settled in reasonable manner. This can help eliminate the possibility of a lawsuit against you.

Cons
• Debt consolidation negatively affects your credit score.
• During debt settlement, some of your accounts will get charged off. Debt consolidation can negatively impact your credit score. Debt consolidation can be repaired through time and careful use of credit in the future.
• Fees
• Some unscrupulous debt management companies will charge exorbitant fees for their services. Often, you will be asked to pay a percentage of your monthly payment to the debt settlement company in fees.

Points to remember:
• Choose a reputable non-profit debt management agency for debt consolidation. Make sure you toughly investigate the company you decide to use. You need to make sure you choose your debt management company wisely.
• Learn the fee structure for debt consolidation up front.
• Before you agree to a debt management plan, understand the impact this will have on your credit rating.
• Stop using your credit while you’re trying to repair your debt. Create a budget and stick to it.

Related Articles:

• How to Choose a Debt Management Company (Super Pages)
• Debt Help that isn’t (Bankrate)
• Debt Management Company Watch Outs (About.com)
• Your 3 worst debt consolidation moves (MSN)
• The Perils of Debt Management Companies (Find Law)

Examples of Debt Management Companies:

• Debt Consolidation Care
• Credit Counselors
• CareOne