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How Chapter 13 Bankruptcy Lowers Credit Card Debt

Uncontrollable credit card debt has led many American citizens to look for a way out that really works. While some individuals resort to debt settlement programs, others favor the complete judicial protection that is offered by Chapter 13 Bankruptcy. Chapter 13 Bankruptcy assists US consumers to lower their monthly payments on credit card debt. You can become debt free simply within 3-5 years with complete judicial protection. Individuals who have non-exempt assets like rental properties frequently opt for reconstituting their credit liabilities throughout a 3 to 5 year period for the purpose of lowering the monthly payments. At the same time when there would be a negative impact on their FICO scores for up to seven years, those who are facing severe financial difficulties can become debt free. The Distinction Between Chapter 7 and Chapter 13 Bankruptcy The main distinction between Chapter 7 and Chapter 13 bankruptcy is that the second permits a consumer to hold non-exempt assets.
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Credit solutions: Your guide to avoiding bad debts

Credit Solutions are effective ways to get out of debt or a bad credit situation that can jeopardize your credit score and your credit worthiness in the eyes of your creditors. Credit solutions…. tackle 3 credit problems you often face, these are: Too many credit cards: When you have multiple credit cards, you try to transfer balances from one card to another instead of decreasing an individual account. This way, each of your cards has a high balance that does not decrease creating a problem. Late or missed payments for loans or credit cards: Continual late payments hurt your borrowing capacity and your lenders lower your credit worthiness from the pattern of your late payments. Too much ….outstanding debt: If you have a disproportional high debts compared to your income, you can risk getting into a tricky credit situation. This might also frighten future lenders from offering you loans. How credit solutions work in a bad credit situation You can find 6 different credit solu

How credit scores can change your lives?

Credit score is a 3 digit number that indicates your ability to repay a loan. It is calculated statistically and is based on your credit history. It reflects your creditworthiness or your past and future ability to repay debts. When your credit score is calculated, your income, liabilities and expenses to repay the loan are taken into account. Why is a credit score important to you? Your credit score helps lenders to objectively measure your overall credit risk. Your credit score is specific and gives your creditors a fair knowledge of your credit situation. Scores can be viewed by your lenders easily and this allows your lenders to speed up the loan approvals. With your credit score, your lender can approve your loan much faster. Scoring enables the lender to take faster credit decisions. Where can you find your credit score? Credit scores appear in your credit report, which is a file that contains all your borrowing details. Your credit report is generated by a consumer reportin

Getting a Home equity loan? Keep these factors in mind

A home equity loan is meant for those home owners who borrow money keeping their home as collateral. A home equity loan gives you the access to a large sum of cash that you can use up for other expenses or investment purposes. The home equity loan has the advantage of lower rate of interest, monthly payments that are tax deductible etc. Some times the cash available is up to 125% of the property value. For example, if you are a resident of Toronto, and are planning for a home equity loan, then make sure to conduct ample research so as to understand the procedure of getting such a loan and how it works in your county. The home owners usually apply for a home loan for making bigger purchases like buying another property or going for a home renovation etc. Here are a few things that you should keep in mind while applying for a home equity loan: Research and compare the rates It is a wise idea to shop around for various lenders a little instead of hopping straight into the bank. Vario

The future mortgage rates in Canada

The previous few years have been very turbulent for the regular investors. Since the lat two years, the investors are facing inner turmoil while investing in stocks or property. Although the entire world suffered the consequences, the Canada property market has stood strong and is in fact on the rise since the beginning of 2010. The property sales in Canada had reached an exceptional high in the beginning of the year 2010 due to the rise in demand and Lower Canada mortgage rates. All these factors pushed the Canada home markets to a position that was better than the rest of the world. There have been record sales in terms of property in the year 2010 which depended on several factors like the all time low Canada mortgage rates, huge demand and low level of inventory. As the property market stabilizes over the increase in number of inventories, the home prices are about to stabilize too. In places like Ontario and British Columbia, most of the home buyers are also rushing to avoid th

Vantage score: Key facts you wanted to know

A vantage score is a new term that you will hear a lot in the coming months. It is a 3-digit number created by your consumer reporting agency (CRA) based on your borrowing details. Your vantage score is a numerical representation of your credit history, based on your debt-paying performance in the past. It was jointly developed by the 3 main American CRAs: Equifax, Experian, Trans Union and revealed on Tuesday, March 14 2006. How is vantage score unique? The exact details of how your vantage score is calculated are unknown. It has some unique features. These are as follows: Unified scoring model: You have a single vantage score and all the 3 agencies use the same standard to calculate it. They use the same algorithm to calculate your score. Today, all 3 credit bureaus will report the same score to you unlike in the past when your score would vary from one agency to another. Revolutionary scorecard technology: Your vantage score is measured with the help of revolutionary technolo

What are the different risks and mistakes the older people prone to?

The mistakes for which the old people have to pay: 1) Did not plan for future while you were young: A mistake the older people makes at the young age is that they don't plan for future. In the older age when you look for financial security, you have to pay for the consequences of being reluctant in days of youth. You did not understand the responsibility you had to take in order to pave a way for a more brighter and secured future. As you never thought about your life after retirement, meeting the daily expenses now would leave you with no cash in hand. If a long term financial strategy is not planned then you might face disappointment now. 2) One of the mistake is to Listen to the expert's Advice: The elder people who opted for expert financial advice for the retirement account has come across very unfortunate scenario due to loss in the value from 40% to 50 %. Many financial advisors do not give much priority to the needs and requirement of the clients. These financi