We hear the terms “debit” and “credit” used on a daily basis.  In the context of a conversation they can mean a different thing each time that we use them.  In the context of accounting practices, debits and credits actually mean the opposite of what we would expect.

What do you think of when you hear the word “debit”?  For most people today, they think of a debit card.  The card is used to take money out of our account.  We use it at ATM machines and in the store.  For us, a debit means that we have less money in our account.

Switching to credits, a credit is seen as something that we get.  Finance companies give us credit cards and we go crazy.  It’s money that we didn’t work for but can use to buy other things.  In our eyes, a credit is a positive thing.

Now, let’s pretend that we are sitting in an accounting class.  The teacher asks us to explain debits and credits.  Most likely, the explanation above is what the teacher will hear.  However, this answer is wrong - at least partially.

According to accounting textbooks, any transaction that we make has a debit side and a credit side.  This is neither good nor bad but a simple fact.  If we take a second to think about it, the reasoning does make sense.

You go to the store and buy a pair of pants.  You use your debit card to pay for it.  The money is deducted from your account for the transaction.  We understand that.  Now, the money is being deposited as a transaction into the account of the store.  This we also understand.  As such, a type of transaction has taken place in each situation.

A debit is what was received by someone.  A credit is what was used to get the thing that you received.  If you’re still with me, then applaud!  Accounting is not an easy thing to understand.  

When you buy something and use a credit card, you receive the item that you wanted to buy.  That is a debit even though you received something.  We think of receiving something as a credit, but not to an accountant.  The credit card company pays the bill, but this decreases their liability to you so it is a credit for them.  

Liabilities are credit accounts.  Putting money in the bank is a credit because it increases their liability.  That is money that they must keep track of for you.  When you remove money, it reduces their liability because your money is back in your hands.  This is debit for them.  We have come to use the bank’s terms for their transactions as our own, but it doesn’t always work that way.

Debits and credits are interesting, if not a bit confusing.  Suffice it to say, any transaction is made up of someone getting something and someone losing something.

Retirement can come at any age.  It doesn’t have to be at age sixty-five.  People retire earlier for many reasons.  But, there are benefits to waiting until that magic number to officially hang up your work clothes.

Some people will have many jobs in their lifetime.  For baby boomers, it was more the norm to have one job and stay there for thirty years.  After thirty years with a state or federal job, you can draw a pension.  Some people retire then.  

Companies with employees that are approaching the retirement age may offer incentives to them to retire early.  By doing so, a company can lower its overheads and hire two people fresh out of college for less than it was paying one older employee.

Many baby boomers are working longer than their younger counterparts.  Even if they have thirty years in, they are continuing to work until the government appointed retirement age.  To their way of thinking, there are benefits in doing so.

People are living longer.  This is a good thing.  Where retirement used to last for ten or fifteen years, it is now lasting twenty to thirty years.  A person can be retired almost as long as they have worked.  As such, more money is needed for expenses.  These expenses include medical care, housing considerations, and leisure activities.  Did you know that the age that seniors can start drawing their social security is sixty-two years of age?  You might say that that means you can cut three years off of your working life.

However, listen to this.  A person who retires at sixty-two will not receive their full social security benefit.  You know that statement that is sent out each year to you that tells you what you would earn per month if you kept the same earnings until retirement?  This is your full retirement, but that is not what you will receive if you retire at sixty-two.

For baby boomers, in order to receive 100% of the retirement benefit owed to them, they would have to work until they are sixty-six!  Even those people who turn sixty-five this year will have to wait an additional ten months to receive a full benefit.  

Retiring early will mean a twenty-five percent reduction in the benefit received from social security.  This will continue for the entire time that you are retired.  Just four fewer years and you lose a quarter of the money that you would otherwise be getting.  

There is a bright spot.  You can continue to work those four extra years but you can’t make over a certain amount of money.  This sounds okay if you have saved accordingly.  A full time worker can go part-time for four years and still be eligible for full social security benefits when they turn sixty-six.

There are benefits to working after age sixty-five.  You can continue to work but at a more leisurely job until the benefits of social security kick in for you.

In this day and age, almost any type of mortgage that you need can be found.  

Homeowners are not limited like their parents and grandparents were.  The choices that exist are a result of the market today and real estate investments.

One such type of mortgage is a balloon mortgage.  You may have heard of people making “balloon payments.”  Just like a hot air balloon, a balloon payment represents a larger than normal payment made to the financial institution that holds the note.  These types of payments are made to stop foreclosures and other financial issues.

Along that same line is the balloon mortgage.  Unlike the balloon payment, a balloon mortgage is a choice made by the homeowner when choosing the type of mortgage loan that will suit their needs.  Here are a few of the particulars.

Someone choosing a balloon mortgage will have a lower interest rate on their loan for a specific time.  In that respect, a balloon mortgage is like an adjustable rate mortgage.  The interest rate can be guaranteed within a certain time frame.  After that, the rate will change.

The lower interest rate period for a balloon mortgage can range from three to ten years.  During that time, the owner enjoys the benefit that a fixed rate mortgage owner enjoys.  The mortgage is the same each month which is easier for budgeting purposes.

Unlike either a fixed rate mortgage or an adjustable rate mortgage, the balloon mortgage requires a lump sum payout at the end of the fixed rate period.  This may seem insane to most people.  Who would want to be responsible for paying off the balance of the mortgage in one lump sum?  Who could afford it?

However, this is a good option for real estate investors.  The fixed period allows them to take advantage of other investment opportunities and build capital.  The lump sum payout means that they own the house free and clear.  When they rent the property, they create a positive cash flow back to themselves.  

A homeowner can convert that mortgage to another form when the fixed period ends.  They can choose a fixed or an adjustable rate mortgage.  Many choose to sell the house.

There are advantages to a balloon mortgage.  The owner may not be planning to live in the house for an extended period of time.  As such, this option allows him to pay a fixed amount at a low interest rate for the time he plans to own it.  If he sells, he can make the lump sum payment and still have money left over.  During the time of ownership, home improvements and property appreciation can make the home more valuable and thus command a greater asking price when sold.

On the other hand, the circumstances that existed when the balloon mortgage was chosen can change years down the road.  Someone may lose a job.  A deal may fall through.  Any number of things can happen.  In that case, refinancing is an option to keep the home out of foreclosure.  Refinancing does involve closing costs, and the possibility of a higher interest rate for a fixed mortgage or a variable interest rate for an adjustable mortgage.

Balloon mortgages are for certain instances and should not be chosen lightly.  There could be big problems in the future if things don’t work out like you planned.

Description:  This book will leave  nothing to chance as you learn about and begin to build your retirement future.  Filled with answers to questions everyone has makes very informative reading.  Very easy to use and understand.

Review:  Retirement, oh yea, that’s something I’ll think about when I’m older.  Have you ever heard yourself say that?  I used to all the time and now it’s almost time for me to retire and I have no idea what to do or where to start.  I do now with this book.

This book is wonderful for anyone at any age.  It answers all the big questions everyone has about retiring.  It helps you to determine what you need when you retire.  Not just money wise but in every aspect of retirement.

One area in this book helps you discover your own dreams.  It guides you into taking a look at where you want to be when you retire.  It gives you guidance in how to turn these dreams into reality during your retirement.  

Helping you know the difference between 401(k), IRA’s and other types of retirement funds are a part of this book also.  I wasn’t sure which way to go or what would be best for my needs. This book helped me determine what these types of things were all about.  It even gave me some ideas about investing, along with some tips on financial advisors.

Being ready to retire can be a frustrating battle from beginning to end but having help like this book offers can keep those stress levels down.  Now that I have this book, I feel much better about my financial future as I move into my retirement.  I’m ready and willing to face it with a smile.

Mortgages are the way we finance our dream home.  Most people make a decision between a fixed rate and an adjustable rate mortgage of some sort.  Before choosing one over the other, learn the advantages and disadvantages of both.

 
Adjustable rate Mortgages

These mortgages offer a homeowner the advantage of a fixed rate for a specific period.  This option works well for mortgage holders who do not have A+ credit and don’t qualify for a fixed rate mortgage.  They can still budget for a mortgage payment that is the same each month, at least for a certain time.  Adjustable rate mortgages can adjust after one, three, or five years.  If you can get a five-year adjustable, that is a good deal.  

Interest rates can be low when securing the loan, which is even better.  This is good news for borrowers who will sell their home in five years.  They reap the benefits of a fixed rate mortgage without having one.  The rate on this type of mortgage adjusts with the market.  A homeowner could have the luck of having an interest rate that falls when it is time to adjust.  Lower mortgage rates can be taken advantage of without the hassle of going through a refinancing.

However, adjustable rate mortgages can become a burden as well.  When the rate does adjust, the jump in the monthly payment can be one that the owner did not anticipate.  Your payment can increase a couple of hundred dollars from one month to the next.

After the fixed period is over, the loan can rise as much as six percent from then on.  No one would want a loan payment with 12% interest.  Monthly payments would go through the roof.  On a 30-year mortgage, there would be no end in sight unless you refinanced the loan.

 
Fixed Rate Mortgages

This is the type of mortgage that you want if you can get it.  A fixed rate mortgage means the payment will remain the same for the life of the loan.  In a good market, an interest rate of 5.5% is great.  Even if the rates go up over the years, you don’t have to worry about it.  You are secure in that 5.5% you had in the beginning.  The stability is what most homeowners want.  Even if finances change, the mortgage payment will not.  

Fixed rate mortgages also have a downside, however.  If you catch the interest rate when the market is not favorable, you could be locked into an 8% mortgage rate for the life of the loan.  In this instance, the fixed rate mortgage can be an expensive option.  To catch a lower interest rate, the homeowner would have to refinance.  Refinancing involves another closing, closing costs, and going through the same process that you went through the first time.  It can be time-consuming.

Mortgages are tricky things.  Do as much research as you can on adjustable and fixed rate mortgages before approaching a lender.

For more financial information, visit All-About-Finances.com

Refinancing Online Provides Opportunities for Homeowners

(ARA) - Homeowners refinance for a variety of reasons including to take cash out of their home equity to make home improvements, to consolidate debt, and to move from an adjustable-rate mortgage to a predictable, fixed-rate mortgage. Depending on the current interest rate, many homeowners who refinance may save money on their monthly mortgage payment, or even adjust their mortgage to shorten the term (on the length) of the loan.

As more and more consumers head online to shop for a variety of products and services, shopping online to refinance a mortgage has become commonplace. The ease and convenience of gathering information and applying for a refinance at any time of day or night is perhaps the biggest reason time-crunched Americans have been flocking to the Web.

“Refinancing online often makes the process much more simple and certainly more convenient,” says Frank Destra, managing director and senior vice president of national sales for Internet lender, Ditech. “The convenience of shopping for a mortgage directly from your home or office, on your own time, is one of the primary reasons there has been an increased demand for online lenders. Many people conduct all of their financial transactions online already, so ‘why not get your mortgage online too?’ seems to be a much more common attitude.”

Another benefit of refinancing online is that many mortgage lenders’ Web sites have a wealth of free educational information available to help you learn about the overall refinancing process. You will find articles and tools that may help you decide if refinancing might be a good option. For example, Ditech has a refinance calculator that can help determine how many months you will need to live in your home to recoup the cost of refinancing.

So what are some of the refinancing options you might want to consider before you boot up the computer? Consider this:

* A fixed-rate mortgage has an interest rate that stays the same throughout the entire life of the loan, so your monthly mortgage payment of principal and interest will not rise in the future. Refinancing from an adjustable-rate mortgage into a fixed-rate mortgage may provide you with peace of mind knowing that your new interest rate will not reset to a higher rate.

* Roll-down refinancing allows you to include the refinancing fees in the mortgage, so you will not have to pay costs up front.

* Cash-out refinancing allows homeowners with enough equity in their home to take out cash when they refinance to pay for other expenses such as a wedding, college or a home remodeling project, or possibly even to invest.

* A 15-year or 20-year fixed-rate mortgage will shorten the life of your loan, and may allow you to get a lower mortgage rate, but your monthly mortgage payment will be higher than with a 30-year fixed-rate mortgage.

* Refinancing with a traditional 30-year mortgage, will help reduce the monthly mortgage payment by extending the term of your current loan.

As you consider refinancing your home, be sure to check out the convenient and competitive options that may be available to you from online mortgage lenders. Your next mortgage may be only a click away.

To learn more about refinancing, visit www.ditech.com or call Ditech at (800) 715-3483.

Courtesy of ARAcontent

You go into a lender’s office prepared to apply for and receive a loan. After all, you’ve done your homework, you’ve pulled your credit reports and you know what your credit scores are–you even got one score from each of the three major credit bureaus: Equifax. Experian, and TransUnion. You are shocked when your loan is denied, or maybe you were approved, but the interest rate is much higher than you anticipated. How can that be you say? My credit score is good, I know I checked. Maybe it’s not as good as you think. It all depends on there you got it and what kind of credit score it is. 

The fact is there are several different credit scoring methods. Credit scores calculated from the same credit reports can differ substantially from credit scoring method to credit scoring method. So how can you ever know what your credit score really is? Well, luckily, 75% percent of lenders use FICO scores exclusively and you can purchase FICO scores yourself–you just have to know where to go. (www.myfico.com) 

FICO credit scoring is a numeric method of scoring your credit worthiness developed by Fair Isaac and Company. Your credit score is a number between 300 and 850 that tells creditors how likely you are to pay your bills. The higher the number, the better it looks to potential lenders and creditors. 

The three major credit bureaus each have their own version of the FICO score: Equifax uses the Beacon system, TransUnion uses the Empirica system, and Experian uses the Experian/Fair Isaac system. Despite each credit bureaus’ use of their own versions, all systems are based the original Fair Isaac FICO scoring method, so each credit score calculated with these systems are generally called FICO scores. However, although most lenders do use FICO scoring, some lenders may have their own scoring methods. 

There is only one place where you can get your FICO score from all three bureaus and that is at www.myfico.com. If you order your credit score from anywhere else, again be aware that these scores are “FAKOs” (or “fake”) and can differ considerably from your FICO credit scores. 

Adding to the confusion is the credit bureaus themselves. Recently, Experian revealed that the national average credit score of its consumers is 678. This is very misleading to the average consumer. When you buy your credit report and score directly from Experians website, you are getting what they call the “PLUS Score,” which is NOT a FICO score, and is NOT used by lenders anywhere. (Equifax is the exception–you can buy your FICO score directly from them at their website; however, the only place to get all three scores together is at www.myfico.com.) The 678 PLUS Score reported by Experian is actually the average of consumers’ PLUS Scores, not their FICO Scores. 

Clearly, the PLUS Score (and all Non-FICO scores) are useless. Not only that, but such hype misleads consumers into purchasing their PLUS Score thinking that they are getting the same credit score that their lender will use. Non-FICO scores are worthless not matter what the credit bureaus or any website selling non-FICO scores claim. Even a few points difference in your credit score can mean confronting the reality of the loss of thousands of dollars out of your pocket–a loss that you probably didn’t plan for. The next time you want the most accurate credit score available, do yourself a favor and get the industry standard: the FICO credit score.

For more financial information, visit All-About-Finances.com

A great way to start living a frugal life is to plan for it. And when it comes to finances, the most important plan is a budget. Setting up a budget is possible no matter what you income, how you get paid, or what your current financial situation. Developing a budget is the first (and most crucial step) to becoming frugal. Here are some great tips on how to do it:

1. Write down your spending. You can’t plan out how you will spend your money until you know how you are spending it at present. Carry around a small notebook for a month and write down every purchase you make. This will help you see how your money is disappearing.

2. Make a list of all your expenses and include the spending you have in your notebook along with any monthly bills that you might not have written down. Total up the categories that you have and the total spending as well.

3. Write out all of your income and how it arrives (monthly, weekly, bi-weekly). Total up your income.

4. Write out your budget (based on the last month that you recorded). Compare that budget with your income. If you have more going out than coming in, then it’s time to make some changes. You can either cut your expenses or you can make more money.

5. Study your budget and even take a few days to really think about the items you have listed there. Make better choices. If you only watch your television once a week then cancel your cable. Save that money for something else. If you have so many clothes that you can’t open your closet then determine to pass on the shopping for a while. Decide to choose a future instead of a fleeting present.

6. After you have cut all that you can cut, review your budget balances. If there is still a deficit, it’s time to consider a second job (or a job change). The only way to balance a budget (and start saving money) is to bring in more than you spend.

7. Review your budget regularly. Your situation will continue to change and so should your budget. As you learn to live a frugal life, you may well find that items on your budget are no longer important to you and can be removed.

If you want to live a frugal life then it is important to understand your spending and learn to get it under control. Setting up a budget is a first step towards that prosperous way of life.

For more financial information, visit All-About-Finances.com

The options for retirement are growing. It used to be that workers depended on their pension after working thirty years or more for a company. These days, employers offer retirement benefits to employees, and employees can also find other options on their own. For the self-employed person, a Keogh is an option for retirement saving.

What is a Keogh plan? A Keogh is a tax-deferred way of saving for retirement if you work for yourself. It operates in a way that is similar to an employer’s retirement plan. You put money in it and it’s invested in a way that is determined by the account holder to grow their money. Keogh plans can be of two types: defined contribution and defined benefit.

A defined benefit plan is when the account holder contributes a certain percentage of money to the plan on a regular basis. For most, it is deducted on a monthly basis from their paycheck. If they get paid twice a month, the amount is split between two paychecks. The amount that you hope to receive from the plan when you retire is based on what you have put into it.

A defined contribution plan is one based on money put into an account for you. This can be based on the profits of the company. When the company makes a profit, money is distributed into the plan accounts. This plan can also be based on money contributed to employee accounts, regardless of whether the company made a profit or not. This type of defined contribution is called a money-purchase pension.

For defined contribution plans, a limit of $30,000 exists. No more than that can be contributed to the plan. With a defined benefit plan, the maximum annual amount is around $100,000. This amount is based on a retirement at sixty-five years of age.

I know it sounds complicated. This is one of the disadvantages of a Keogh. Like other more conventional retirement plans, there are penalties assessed if the money is withdrawn before retirement age. The Keogh plan does not apply to retired business owners. If you are no longer active in the business, even though you may get profits, you cannot set up a Keogh retirement plan.

Every disadvantage also has an advantage. Even a plan like this has a few. The funds that are put into a Keogh plan are tax deferred until they are withdrawn. The amount is deducted from gross income and not the net. If you contribute early during the year, the money has time to accumulate over the year. Some business owners can’t assess how much they make until near the end of the year, but contributions are still allowed at this time.

A person who owns more than one business is not limited to one Keogh plan. A Keogh plan can be started for each business a person owns. Self-employed people who also work a regular job can open a Keogh for their business.

Look at all of your options for retirement. Determine if they will help you to maximize your retirement funds.

by Caroline Fouts

Bankruptcy Filings are on the Rise

In first half of this year, bankruptcy filings in the US rose 48 percent over the same period for the previous year, with 391,105 households with consumer debt filing for bankruptcy. (Source: American Bankruptcy Institute)

Samuel J Gerdano, the Executive Director of the American Bankruptcy Institute reported that “The new upward trend in bankruptcies reflects the economic reality of households under increasing financial stress. [...] We expect bankruptcy filings to continue to rise for the balance of the year.”

The Foreclosure Epidemic

The sub-prime mortgage meltdown and the resulting spike in foreclosures have contributed to some consumers’ need to file bankruptcy. In October 224,451 foreclosures were filed nationwide, up 94% from October according to RealtyTrac.

According to Daren Blomquist, a spokesman for RealtyTrac, foreclosures could hit homeowners even harder in the year ahead. As the interest rates on many adjustable-rate mortgages reset, mortgage payments could rise beyond some borrowers’ ability to pay.

“The other side of the vise pressing on these people is that it’s harder to refinance because lenders’ standards are tighter,” Blomquist said.

The drastic change in the housing market has even caught some real estate professionals off guard. A couple of years ago, Rob Rozzen, a real-estate agent in Las Vegas, bought 16 homes at the height of the boom. He hoped that the appreciation in his investment properties would provide a comfortable retirement.

When he was no longer able to keep up with the monthly mortgage payments that totaled $45,000, he stopped making payments. The lenders foreclosed on all of his investment properties, which he says caused his credit score to drop from 730 to the high 400s.

Now Mr. Rozzen says he is considering filing bankruptcy. He says he had no other option but to walk away from his investment properties, “You get to a point where your hands are tied.”

Credit CAN be Restored After Bankruptcy

If you’ve got financial troubles, it’s cold comfort to know that you’re not alone. But there is some good news. You can rebuild a good credit rating after bankruptcy, and it can be faster than you might expect.

Anita Burleson filed for bankruptcy a couple of years ago and has had difficulty reestablishing credit. But she knows that some other debtors have successfully borrowed after their bankruptcies.

“When I was in bankruptcy court, there was a couple that had filed for bankruptcy twice prior to this one,” Burleson said. “How could they get enough credit to get them into this much debt (three times)?”

Just about anyone can get credit soon after a bankruptcy, if they know how.

What Effect Does Bankruptcy have on your Credit Rating?

Of course, filing a bankruptcy has a negative effect on your credit rating. A Chapter 7 bankruptcy can stay on your credit report for 10 years, as can a Chapter 13 filing (although 7 years is typical). Plus, debts that are discharged through bankruptcy are not automatically removed from your credit report, and may continue to show as derogatory items unless steps are taken to clean up your credit report.

Lenders are primarily interested in the last 12 to 24 months of a borrower’s credit history. The challenge for the post-bankruptcy borrower is convince lenders that he or she has turned a new leaf… that the bankruptcy is old information, and the borrower now has his or her finances well under control.

Naturally, it is vital that no new late payments appear on your credit report. A consumer wants to distance him or herself from the bankruptcy. To convince lenders that your financial picture has changed since the bankruptcy, you have to show a new, clean credit history. Even one new report of a late payment may cause lenders to believe the potential borrower is still suffering financial difficulties.

From a creditor’s perspective, there are some advantages to lending to someone who has recently filed bankruptcy. The fact that the bankruptcy has discharged old, pre-existing debts makes it easier for many borrowers to repay new debts. Out from under the obligation to repay the old debt, these borrowers are also now free from the threat of potential judgments, wage garnishments or other collection efforts that might limit the borrower’s available funds to repay the new debts.

In addition, federal law prohibits debtors who have had debts discharged by a previous bankruptcy from having new debts discharged for as long as 8 years after the original bankruptcy filing. See 11 U.S.C.A. Section 727(a)(8) and 11 U.S.C. Section 1328(f).) So a lender can be assured that any borrower who has recently discharged debts in bankruptcy won’t be able to discharge any new loan for years. 

Rebuild Credit with a Secured Loan

It’s always safer for a lender to make a loan that is secured by some form of property rather than an unsecured loan. After all, if the borrower should default, the lender can recover the amount they lent from the security property, whether it’s a car, home, or funds on deposit in a bank account.

The safety of having a backup source for repayment makes lenders more likely to offer secured loans to consumers reestablishing credit after a bankruptcy.

Expect to Pay More—but Not For Long

Offering the bank collateral may get you a loan, but it won’t get you a low interest rate—at least initially. Immediately after a bankruptcy, you should expect to pay a higher interest rate on just about any kind of loan.

Steve Rhode, president of Myvesta.org, says families with a good credit history pay an average of $1,100 each month for mortgage and auto loans. But, due to higher interest rates, after a bankruptcy, a family pays almost $1,900 for the same items—an increase of approximately $800 per month.

But the high interest rates don’t have to last forever. Once a consumer has started to re-establish their post-bankruptcy credit, he or she can refinance their loans at lower rates. And it can happen pretty quickly.

“My first vehicle out of bankruptcy (had an interest rate of) 21%,” said Chance Nelson, an Indianapolis man who applied for and got a car loan just a few months after bankruptcy discharged his debts. “After paying this for about two years, I went and traded it in and purchased another (at) 13.99%.” Through a series of re-finances, within 5 years of filing bankruptcy, the interest rate on Nelson’s auto loan was down to just 6%.

Of course, if you plan to refinance any loan, be sure it doesn’t have a pre-payment penalty. As your credit rating improves and lower interest rates become available to you, refinancing becomes an increasingly attractive option. 

Subprime Merchandise Cards at www.CSBCards.com

One type of loan that is available to virtually all post-bankruptcy borrowers is a subprime merchandise card. This is a credit card that is easy to obtain but can only be used for online merchandise. It is NOT a visa or mastercard but reports to the credit bureau like one. This allows you to add new positive credit on your report quickly since virtually everyone is approved.

A subprime merchandise card works by reporting $5,000 in credit on your report and thereby increasing your high credit limit while at the same time lowering your debt to credit ratio. The end result is a significant improvement in your overall credit profile. Again, while it is not a visa or mastercard it does give you the credit benefits of one.

In spite of these limitations, for a post-bankruptcy borrower who needs to establish new credit, a subprime merchandise card is the best option. Many of these cards can be found at the website: www.CSBCards.com

Bankruptcy is Serious, but Doesn’t Last Forever

The decision to file for bankruptcy is very serious and has far-reaching consequences. It should never be entered into lightly. If you are thinking about filing bankruptcy, discuss your legal rights with an attorney.

Credit ratings can plummet as a result of a bankruptcy filing. It usually takes some planning, patience, and the willingness to pay high interest rates for a while to reestablish a good credit rating.

To rebuild good credit, you will have to maintain a history of timely payments, get a couple of new loans, and avoid over using your new lines of credit. But since lenders focus primarily on the last 12 to 24 months of a borrower’s credit history, it doesn’t have to take long to restore your credit and have access to loans at conventional interest rates. Currently, subprime merchandise cards seem to be the credit challenged consumers secret weapon. To find out more about them just visit the website: www.CSBCards.com 

Consumer Publishing Group is the publisher of the Credit Secrets Bible (in print since 1994). To receive Free Credit Tips including “How to Bullet-Proof Yourself From Identity Theft For FREE!” visit their website.