In the last post we showed you some of the options to get a budget together and get financially organized. Now you have come to some of your options and realities. With some belt tightening, getting rid of club memberships, services and luxuries you know you can do without for the moment you can find a way to be solvent every month. You even may find some money you can start stacking away in a savings account. This is good but if you cannot find a way to at the least break even every month you have some tough decisions to make.
Never get the impression that this blog will be about saving the BMW or Mercedes from repossession because I can tell you to cash out on them now while you can find some money to get adequate transportation. We are talking about owning the transportation you need to get your daily routine taken care of. If you are that caliber of person perhaps you should read The Millionaire Next Door to understand what I am talking about. The Millionaire Next Door gives you an idea of true wealth amongst high income people and that you do not necessarily need a big income to become wealthy. You will find nothing in this blog that will tell you I have any sympathy for those who have the need to keep up with the Joneses. It is a part of American Society that is more of a fable than the American Dream. In fact this is only the dream that advertisers and big banking want you to believe. I am tired of falling for their myths and tricks how about you?
Ok! You have gone through everything that you owe with the pay-off dates. Then look at your budget and think of what you can do without to pay back your debt and become solvent. Look to see if you own property and if you have some equity you can cash out on. When I say this forget about what your banker told you. Get banks and bankers out of your head. They only tell you what they want you to hear. Get an estimate of what your loan to value is on your property. If you have no property you can still follow this plan so please read on what I am going to tell you may surprise you.
Federal Credit Unions are for the regular everyday person. When the banks tells you they can do nothing for you means they lend to people that can secure their debt (wealthy people). Banks lend to the rich and big business and any unsecured debt is where they make their money by charging more for their services. Big banks are not interested in helping you pay less your debt unless you can secure these loans. Big Banks mean only secure loans with individuals yet they will take chance with big business investments as we saw in 2008.
Enough of that! If you can benefit from a lower payment and you are willing to sacrifice some credit card accounts a Federal Credit Union may be able to help you. If your credit score is at least in the high 600s you may qualify for an unsecured loan through a Federal Credit Union. You do have to prove that you can pay the money back. The criteria for Credit Unions are different from regular banks as far as lending. If you do have some equity in your property and a bank will not let you cash out again the criteria is different with a Credit Union. Credit Unions will go up to 90% loan to value on your property where banks will go only to 80% Loan To Value. Banks charge you processing fees for your financing where Credit Unions do not. This can make a big difference in what you receive in the funding you get in your loan. Not to mention all the loan programs with credit unions are fair with their interest rates and more tailored to the individual.
Never get the impression that this blog will be about saving the BMW or Mercedes from repossession because I can tell you to cash out on them now while you can find some money to get adequate transportation. We are talking about owning the transportation you need to get your daily routine taken care of. If you are that caliber of person perhaps you should read The Millionaire Next Door to understand what I am talking about. The Millionaire Next Door gives you an idea of true wealth amongst high income people and that you do not necessarily need a big income to become wealthy. You will find nothing in this blog that will tell you I have any sympathy for those who have the need to keep up with the Joneses. It is a part of American Society that is more of a fable than the American Dream. In fact this is only the dream that advertisers and big banking want you to believe. I am tired of falling for their myths and tricks how about you?
Ok! You have gone through everything that you owe with the pay-off dates. Then look at your budget and think of what you can do without to pay back your debt and become solvent. Look to see if you own property and if you have some equity you can cash out on. When I say this forget about what your banker told you. Get banks and bankers out of your head. They only tell you what they want you to hear. Get an estimate of what your loan to value is on your property. If you have no property you can still follow this plan so please read on what I am going to tell you may surprise you.
Federal Credit Unions are for the regular everyday person. When the banks tells you they can do nothing for you means they lend to people that can secure their debt (wealthy people). Banks lend to the rich and big business and any unsecured debt is where they make their money by charging more for their services. Big banks are not interested in helping you pay less your debt unless you can secure these loans. Big Banks mean only secure loans with individuals yet they will take chance with big business investments as we saw in 2008.
Enough of that! If you can benefit from a lower payment and you are willing to sacrifice some credit card accounts a Federal Credit Union may be able to help you. If your credit score is at least in the high 600s you may qualify for an unsecured loan through a Federal Credit Union. You do have to prove that you can pay the money back. The criteria for Credit Unions are different from regular banks as far as lending. If you do have some equity in your property and a bank will not let you cash out again the criteria is different with a Credit Union. Credit Unions will go up to 90% loan to value on your property where banks will go only to 80% Loan To Value. Banks charge you processing fees for your financing where Credit Unions do not. This can make a big difference in what you receive in the funding you get in your loan. Not to mention all the loan programs with credit unions are fair with their interest rates and more tailored to the individual.
This again is where My Shopping Genie will help you. Credit Unions are regional and the best way to find one is calling and asking what the membership requirements are for the Credit Unions in your area. My shopping Genie will help you find the Credit Union Suitable for you by using your favorite Search Engine.
Remember the My Shopping Genie is a free to download and My Shopping Genie will help you save time and money on all goods and services you may need in these hard times of recovering financially.
Desperate Times Call For Desperate Measures
Here is where we have exhausted all options. At this point you want to stop the financial bleeding and the constant badgering from banks, creditors and debt collectors. These are the measures you can take to basically tell all those who have badgered you to do something anatomically impossible and start over at the same time.
When all options are exhausted you may want to consider Debt Settlement. Debt Settlement at this point may or may not be better than bankruptcy. What you have to consider with Debt Settlement is the time it takes to get the negative entries off your credit report. Even if the accounts you settle are marked paid and current they will also be marked as settled and prevent your credit score from going up. It will take an additional seven years from the time all your accounts are settled to successfully get them off your credit report.
When all options are exhausted you may want to consider Debt Settlement. Debt Settlement at this point may or may not be better than bankruptcy. What you have to consider with Debt Settlement is the time it takes to get the negative entries off your credit report. Even if the accounts you settle are marked paid and current they will also be marked as settled and prevent your credit score from going up. It will take an additional seven years from the time all your accounts are settled to successfully get them off your credit report.
When accounts get settled through Debt Settlement you also may be liable for the difference between what is settled and what you paid. This will be considered income to the IRS. Please note when you settle debt, the financial Institution may send you a 1099 with the unpaid balance to you as income so they can deduct it as your income from the IRS. This sometimes is overlooked by individuals seeking debt settlement and can further hurt you in your financial recovery process. If you are in debt the last thing you want to do is get into debt with the IRS. The fines and penalties are far worse than dealing with creditors.
View More Consequences of Debt Settlement in the Videos Below This Entry.
The Last Option Is Bankruptcy
The threat can be worse than the solution. There is a lot to consider with bankruptcy however, do not rule it out if you are over your head. With debt settlement depending on how swiftly all the debt is settled it can take nine or ten years to get your credit history or report in good reporting condition. With Bankruptcy it takes ten years. With both you can obtain credit in that time, but at what expense to you as the consumer? The answer to these questions really lay in a lawyers hands. He will actually tell you how you can protect some of your assets where if you waited until forclosure let’s say the result could be completely different. With the help of a lawyer and if bankruptcy is done right it can help you save you from losing your car or transportation if they are paid for in full and you have title to them. Bankruptcy means protection from creditors because of financial hardship. I can write paragraph after paragraph on why or why not to go bankrupt and only you can make that financial decision. Only you can make that decision to stop the constant phone calls and the financial bleeding. If you do not take action the problem will never go away. All you are doing is letting the big financial institutions rob you of your dreams, your peace of mind, your relationships and worse your health and wellbeing. They call it civil law but there is nothing civil on how they treat you when you cannot pay your debts.
We have resources to help you find a lawyer or again My Shopping Genie will help you using search engines.
This Weeks Rant
After reading book after book and article after article on banking and consumer rights concerning debt I can’t help but to be angered. The reason we all take on debt is to get the things we want faster instead of saving for the things we want. Since I was young how the flow of credit has infiltrated the poor and middle class with people being victims of credit misuse. Do not kid yourself big financial instutions do not want to see you succeed they just want your money when you fall behind. They rock you and sock you with late charges topped with default rates that make you fail instead of helping you find an equitable solution. These financial institutions have lawyers on their side. If you are bleeding financially seek help. Go back and read the past entries and stop the bleeding now! Or, find a good bankruptcy lawyer and get your life back. There is plenty of help out there and there is plenty of help in this blog with more to come so get going and help yourself today to start living a happier more prosperous life.
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