Three organizations dedicated to financial literacy have joined forces on a year-long coast-to-coast bus tour to provide consumers with information about debt reduction, money management and improving their financial positions. The National Association of Personal Financial Advisors (NAPFA) Consumer Education Foundation, TD AMERITRADE Institutional and Kiplinger's Personal Finance magazine will start their tour on September 29 in Jersy City, New Jersey.
The overall message the companies hope to deliver is that it is never too late to start preparing for your financial future. Volunteer financial advisers will be available at each tour stop to give free advice, conduct workshops, answer questions and address audience members' financial concerns.
The initial tour dates will feature stops in Connecticut, Georgia, Maine, Maryland, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Virginia and Washington, DC.
The companies were spurred to act by the alarming growth in credit card debt between 1989 and 2006, when consumer debt grew from $69 billion to $1.8 trillion. Today, consumer debt is hovering around $2.6 trillion. The goal of the tour is to help consumers understand the inherent dangers of carrying too much debt, and helping them to reverse this trend.
The group's Web site is www.YourMoneyBus.com
Tuesday, October 21, 2008
Monday, October 13, 2008
Do Debt Counseling and Debt Negotiation Work?
When your debt becomes overwhelming, naturally you want to find a solution that can help. You may see advertisements or receive email from firms that claim to be able to reduce your debt, improve your interest rates, or restore your credit rating. At best, these are lofty promises; at worst, they're scams designed to take advantage of those who can least afford to lose additional cash right now.
Depending upon the debt-counseling firm you choose, you may be able to lower your interest rate and develop a plan that will enable you to pay off your debts. No one, however, can restore your credit score or remove truthful negative information from your credit report.
Debt settlement and debt negotiation are popular approaches right now and they can work, but they're not universally available. If you've made your payments regularly and run into problems like an unexpected job loss or a medical crisis, your creditors are likely to work with you. There are several solutions that they may apply to your situation, including lowering your interest rates, your monthly payments or deferring principal or interest payments until such time that you're ready to resume making regular payments.
If your payment history hasn't been good – that is, you've been late or skipped payments regularly – your creditors are unlikely to recognize your extenuating circumstances and pitch in to help. That's why it's important to maintain a good payment history, even if you can't make full payments every month.
There are some psychological benefits to debt counseling that can make the process worthwhile if you want to pay off your credit cards and develop better financial habits. First, it puts someone in your corner. Managing a crushing debt load alone can be overwhelming. Having someone to help with guidance and debt negotiations can provide a psychological lift. Second, it provides a knowledgeable counselor who can give you correct, timely information about your situation, and help you develop a plan to dig yourself out. Third, a good debt counseling firm can help you see hope in what seems like a hopeless situation.
It will take time to pay off your credit debt, but with a good debt counseling firm and a debt negotiation plan, you can both reform your spending habits and reduce your credit balance sooner than you think.
Depending upon the debt-counseling firm you choose, you may be able to lower your interest rate and develop a plan that will enable you to pay off your debts. No one, however, can restore your credit score or remove truthful negative information from your credit report.
Debt settlement and debt negotiation are popular approaches right now and they can work, but they're not universally available. If you've made your payments regularly and run into problems like an unexpected job loss or a medical crisis, your creditors are likely to work with you. There are several solutions that they may apply to your situation, including lowering your interest rates, your monthly payments or deferring principal or interest payments until such time that you're ready to resume making regular payments.
If your payment history hasn't been good – that is, you've been late or skipped payments regularly – your creditors are unlikely to recognize your extenuating circumstances and pitch in to help. That's why it's important to maintain a good payment history, even if you can't make full payments every month.
There are some psychological benefits to debt counseling that can make the process worthwhile if you want to pay off your credit cards and develop better financial habits. First, it puts someone in your corner. Managing a crushing debt load alone can be overwhelming. Having someone to help with guidance and debt negotiations can provide a psychological lift. Second, it provides a knowledgeable counselor who can give you correct, timely information about your situation, and help you develop a plan to dig yourself out. Third, a good debt counseling firm can help you see hope in what seems like a hopeless situation.
It will take time to pay off your credit debt, but with a good debt counseling firm and a debt negotiation plan, you can both reform your spending habits and reduce your credit balance sooner than you think.
Monday, October 6, 2008
Finding The Right Credit Counseling Firm
No one enjoys financial trouble. It's stressful and embarrassing. The most promising routes out of debt – debt settlement or debt negotiation – often require skills that most individuals don't feel like they possess. Good information about debt settlement is hard to find and debtors often feel like they're going it alone against corporate financial giants.
Credit counseling can provide valuable services to individuals in financial trouble, but most people wait too long to ask for assistance. Is credit counseling worth the trouble? How can you find a reputable credit counseling firm to help you with debt settlement or debt negotiation?
First, it's always preferable to negotiate or settle your debts than it is to declare bankruptcy, or even let an account go into collections. If you're concerned about your credit report – and you should be – a negotiated debt or a settlement will indeed make a negative impact on your credit. The mark won't be as negative as a bankruptcy or an uncollected debt. Information about a negotiated debt will remain on your credit report for seven years, while bankruptcies will stay on your report for ten years.
Second, when you determine that you want to look for a credit counseling firm for assistance, look for agencies that are members of the local Better Business Bureau or a national body of credit counseling firms. Ask if the agency is accredited, and if so, by whom. Avoid "self-accredited" firms. You want to find a firm that has been accredited by an independent third party. Before handing over any of your personal information, verify that the firm's credentials are in order.
Look for a 501(c)(3) non-profit organization that's based in your community. Ask about their fee schedule, and avoid firms that want to be paid in full up front. Some firms charge a set-up fee and an on-going monthly fee. These aren't unusual, but the fee schedule should be reasonable. Monthly fees that exceed $25-$50 aren't reasonable.
Ask how much of your monthly payment will be applied to your credit balances, and how you will know that your debts are being paid. Ask if the agency offers consumer education classes. If they don't, steer clear of the firm. Ask for a written plan that shows how long it will take to resolve your debts. Depending upon how much you owe and how much you make, eliminating your debts could take as many as five years.
Credit counseling can be an excellent way to help you resolve your debts, as long as the agency you use is reputable and offers a reasonable way for you to meet your credit obligations. You'll also find many firms that will take advantage of your situation, so use extreme care when selecting a credit counseling firm.
Credit counseling can provide valuable services to individuals in financial trouble, but most people wait too long to ask for assistance. Is credit counseling worth the trouble? How can you find a reputable credit counseling firm to help you with debt settlement or debt negotiation?
First, it's always preferable to negotiate or settle your debts than it is to declare bankruptcy, or even let an account go into collections. If you're concerned about your credit report – and you should be – a negotiated debt or a settlement will indeed make a negative impact on your credit. The mark won't be as negative as a bankruptcy or an uncollected debt. Information about a negotiated debt will remain on your credit report for seven years, while bankruptcies will stay on your report for ten years.
Second, when you determine that you want to look for a credit counseling firm for assistance, look for agencies that are members of the local Better Business Bureau or a national body of credit counseling firms. Ask if the agency is accredited, and if so, by whom. Avoid "self-accredited" firms. You want to find a firm that has been accredited by an independent third party. Before handing over any of your personal information, verify that the firm's credentials are in order.
Look for a 501(c)(3) non-profit organization that's based in your community. Ask about their fee schedule, and avoid firms that want to be paid in full up front. Some firms charge a set-up fee and an on-going monthly fee. These aren't unusual, but the fee schedule should be reasonable. Monthly fees that exceed $25-$50 aren't reasonable.
Ask how much of your monthly payment will be applied to your credit balances, and how you will know that your debts are being paid. Ask if the agency offers consumer education classes. If they don't, steer clear of the firm. Ask for a written plan that shows how long it will take to resolve your debts. Depending upon how much you owe and how much you make, eliminating your debts could take as many as five years.
Credit counseling can be an excellent way to help you resolve your debts, as long as the agency you use is reputable and offers a reasonable way for you to meet your credit obligations. You'll also find many firms that will take advantage of your situation, so use extreme care when selecting a credit counseling firm.
Subscribe to:
Posts (Atom)