Ignorance never was bliss, especially when it comes to one’s mounting debt. In order to rid yourself of the often overwhelming burden, you will need to face the ugly truth: find out just how deep you are and begin to dig your way out. Here’s how:

• Before you start to tackle the debt you already have, you must stop acquiring new debt. This means getting rid of all the current credit cards you have so you will not use them. Keep one card to use in case of emergencies or for major necessities; this should be the card with the lowest interest rate and most favorable terms.
• Learn to use cash instead of credit cards. This will ensure that (aside from emergencies and major necessities, as stated above) you do not purchase anything you cannot afford. Major necessities would include something like purchasing a new washing machine if your current one breaks.
• If you have a sizable savings account, use that to help pay down your debt. It makes absolutely no sense to earn upwards of 3% on your savings account when you are paying anywhere from 15 - 20% interest (or more) on your credit card. Savings should be a priority only after you are completely rid of credit card debt.
• If you are able to, refinance your mortgage at a lower rate. Or better yet, consider using an early mortgage payoff plan to help pay off your mortgage much quicker than expected.
• Get rid of any valuables or big ticket items, especially if you are financing them. This includes fancy cars, boats, RVs, or any other luxury item that are pulling you into debt and financial ruin.
• Make a monthly budget! This is critical to ensure you have enough for the necessities while trying to pay off your debt. Housing costs, groceries, car payments, and insurance should all be factored in. You should also assign an additional amount from your surplus income to put towards debt. Creating and sticking to your monthly budget is by far the most effective way to manage your finances.

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A secured debt is a debt in which the creditor maintains a security interest in an item or piece of personal property such as a house or an automobile. With secured debts, if you fall behind on payments, the lender can repossess the property that originally secured the debt. An additional drawback to secured debt is the fact that you may remain liable for the deficiency balance owing on the debt after your property has been repossessed and sold.

However, the laws regarding home mortgages vary from state to state. This means that a lender’s debt recovery rights will depend on the terms of your mortgage and whether any other lenders also have an interest in the property.

Unsecured debt is debt in which you borrow from a creditor to obtain goods or services on credit in exchange for your promise to repay the debt. The primary difference between secured and unsecured debt is that unsecured debt is not collateralized by personal property.

Unsecured debt is commonly given in the form of credit card debt, commercial debt, medical debt, and personal loans. If you fall behind on an unsecured debt, lenders can take legal action against you, but more commonly will try to work out a reasonable debt settlement. It is possible for a secured debt to become an unsecured debt when the property that is securing the loan has already been repossessed and sold by the creditor.

Traditionally, if the sale of the property does not cover the full amount of the debt, it will result in a deficiency balance which is still the responsibility of the consumer. This deficiency balance is now considered an unsecured debt because no property is securing it. In many cases, this balance can be successfully resolved through a debt settlement program.

Alan Barnes
IAPDA Certified Debt Arbitrator and
President and CEO of Debt Regret
http://www.debtregret.com

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The proverbial, ever-changing credit score, we can’t do without it, but how can we make it better. It may seem obvious to some, but nevertheless, here are 7 quick fire ways improve your credit score and maintain a higher credit score:

1. Pay your bills on time.
2. Only apply for credit when you absolutely need it. Applying for 10 credit cards last weekend isn’t going to make your rating better! Trust me.
3. The longer your credit history the better it looks for potential future lenders. Cancelling old credit cards can shorten your credit history, so think twice before resorting to this and resort to other tactics first.
4. Each month, try really hard to make more than the minimum required payment on your card(s).
5. Keep your credit card balance to less than 50% of the total available limit on your credit card(s).
6. A mixture of revolving and installment type accounts stands you in good stead too. Mixing varied monthly payments (credit cards) with fixed monthly payments (car loan, student loan) shows you can manage your money with confidence and the banks really like this.
7. Your credit report may contain errors that you don’t know about. Check it every so often (every 3 months is a good pattern). Be sure to check you are not a victim of ID theft, a crime that is on the rise.

Ok, so, now that you know how to maintain great credit, or improve bad credit, as a bonus, here are some superb ways to destroy your credit rating, sending you back to the stone-age (figuratively speaking):

1. Open and close lots of credit accounts over the space of a few days.
2. Write checks that bounce.
3. Default on a loan, or miss payment due dates, (even once can be a warning on your file).
4. Exceed your credit card limit AND don’t repay on time (a real destroyer this one).
5. Declare you are bankrupt (seek legal advice before making this decision)

There are other ways. Use your imagination - just don’t actually do it if you can help it.

Seriously though, a bad credit rating can cost you a job because more and more employers check your rating to assess how responsible you are for a potential position. More and more organizations assess your eligibility for credit even for renting an apartment, getting a cell phone or even to pay utility bills. Don’t get denied for the most basic of services. Credit card debt is at an all time high. This is a friendly wake-up call saying try your best to not be a part of it. Wishing you a happy life of good credit!

Ashley Bowkett has been headhunting and recruiting quality graduates and working professionals alike for more than 5 years into the television industry. And as an almost full time internet marketer with unique expertise on marketing and doing business in and across China, Ashley seeks to address the concerns of candidates of any age.

For reliable information on degree level education visit his website at http://degree-distance-learning.com/

When Ashley isn’t writing articles and setting up joint ventures, he is a chief development director of a television network responsible for offices in New York and Beijing. Ashley’s Personal Site http://ashleybowkett.com/career-guidance-articles/ is a feast of useful information and products designed to help you better your career as soon as possible. If you are an author, you can even easily submit your articles to his site as well.

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In this day and age many people find themselves facing financial difficulties. With consumer debt at sky high levels, a series of interest rate rises, and the increasing cost of petrol and food, financial management has become a nightmare for many households. For those with a range of debts problems can be even worse, as there are more financial commitments to try and stay on top of.

Many people find themselves struggling to make ends meet each month, but it is vital that you do not ignore your financial difficulties, as this can quickly lead to missed and late repayments on debts and financial commitments, which in turn can lead to a myriad of consequences, such as a ruined credit rating and court action. As soon as you realise that you are getting into financial difficulties you need to look at your options.

Of course, most of us experience the odd month or two where money is tight, but if this a regular occurrence - for example if you realise that your outgoings are more than your income - you need to take action as quickly as possible before things get out of hand. There are a number of options available to those experiencing financial problems, and the one that is best suited to your needs will depend on the circumstances.

One of the simplest ways to reduce your outgoings and ease financial difficulties is to consider consolidation of your existing debts. By taking out a consolidation loan and repaying all of your smaller debts, such as credit cards, store cards, loans, etc, you could find that your finances are far easier to manage, and more importantly you pay out less each month leaving you with reduced outgoings.

If you want advice on how to better manage your finances and ease financial problems you can look at getting debt counselling from one of the various debt charities in the UK. You may also find that you are eligible for a debt management plan, where you make one monthly payment to a debt management company based on your income and outgoings, and this is then split between your creditors. However, this can mean that you are in debt for far longer and your credit rating is affected.

Another solution is to contact your creditors yourself and speak to them about your financial situation. This could mean asking if you can extend the term of credit and pay less each month in order to increase affordability. There are also solutions for those with severe debt and financial problems, and this includes the Individual Voluntary Arrangement. With this process you pay a set amount each month for five years to your creditors, after which time any remaining balance is written off. However, do bear in mind the serious long term effects on your credit rating and financial future.

Loans4 provide homeowner loan solutions for homeowners. Please visit www.loans4.co.uk for the latest finance related news.

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Before we jump right in and answer the question ‘What’s A Good Credit Score’, let cover off the basic of what a Credit Score actually is.

A credit score is a judgment about your financial health at a specific point in time. The credit score is derived from a credit report which is a histories of everything you are doing with your credit now, and everything you have done in the past. The credit bureaus ( such as Trans Union, Experian, or Equifax) collect this information, list it on your credit report, and then sell it to credit grantors who wish to see your credit history before they decide to lend you money.

Essentially, A credit score is a measure of risk you represent for lenders, compared with other consumers.

What factors affect your credit score?

Previous credit performance or payment history,current level of indebtedness or amount owed,amount of time credit has been in use (Length of Credit), pursuit of new credit and types of credit experience.

So to answer the question ‘What’s A Good Credit Score’ is:

You are considered a ‘prime borrower’, if your credit score is above 680. You will have no problems getting a good interest rate on your home loan, car loan, or credit card. The higher your score, the more favorably lenders look upon you as a limited credit risk thus help you save money in the long run.

With a credit score under 680,you are ’sub prime’, and will likely pay a much higher interest rate yours loans and credit cards.

With a credit score falling below 560 most lenders and credit issuers perceive you as a very High RISK, This is no place for an individual to be.You will still be able to get a credit card but the likelihood of you being charged security deposit or high acquisition fee is quite high. In addition to that your interest rate will likely be 22 to 27%. Most home loans and the majority of new car loans will be unreachable with a score below 560.With the score below 560, you will pay significantly more for interest on loans plus pay unnecessary fees. A low credit score may also deny you from getting a job with many companies.

So to recap, what’s a good credit score? 680 and above are considered ‘prime borrower’ anything less will cost you more money in interest costs.

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