Credit - Leverage and Other Peoples Money - Secrets Revealed

[ Bookmark this page! ] [ get HTML Version ]

Credit Counselling or Debt Management Plan
I am often asked to explain the various options for dealing with debt, and most of the time people want me to start with options that do not involve personal bankruptcy. Assuming a debt consolidation loan is not an option, people in debt want to know whether they should get credit counseling, do a debt management plan, or file a consumer proposal.

First, it should be noted that credit c... Read credit counseling article



Dispute Credit Report Errors
Your credit report is a type of consumer report and contains information about where you work, live, what you own and how you pay your bills. It also may show whether you've been sued or arrested or have filed for bankruptcy. Companies called consumer reporting agencies (CRAs) or credit bureaus compile and sell your credit report to businesses. Because businesses use this information to evaluate y... Read credit counseling article



Credit - Leverage and Other Peoples Money - Secrets Revealed
Credit: Simply put, credit is financial responsibility and a way to pay for goods and services immediately but arranging for a deferred payment of purchase or loan.

Credit cards have changed the way we live, globally, but they've also put us into massive credit card debt. But "debt" whether through credit cards or loans doesn't necessarily have to be good or bad. It's all relative to what the debt was used to purchase.

Good debt is when you gain a financial benefit. This can mean an investment where money comes into your pocket every month (say from a rental property) or a business where the income or assets exceed the debt every month. It can even be a "no frills" credit card which can be used to buy property to give you an income.

Bad debt is when people use debt to cover depreciable luxury items, holidays or even consumables and so live beyond their means because at the end of the day they still have an outstanding balance.

Leverage is one of the most powerful words and greatest means of creating wealth. Warren Buffet, Billionaire, said "I'd rather have 100 people working for one hour, than 100 hours working on my own" - that's leverage of time, and this is basically how big business, network marketing etc work - the use of leverage.

However to make use of this tool when using other people's money (OPM) - which increases your purchasing power - you have to first have good credit relationships, prove to be trustworthy in your past credit dealings, and now more and more, a good FICO score. When you use OPM you must be certain to calculate how you're going to repay the individual or institution who loaned you the money. Remember using other people's money has been the way many honest poor men have become rich.

The wealthy in our society know that credit is much more than those things above. The wealthy also think differently to the average borrower with a mindset of millions or billions, not thousands or tens of thousands of dollars. I always remember during one of my first jobs my boss saying "always think BIG" - at the time I didn't understand the enormity of that statement but as time went on the mindset of "abundance" over "scarcity" and a positive mental attitude (PMA) became clear. Ironically, just today I read an article on Donald Trump's Trump University blog "You Can't Get Rich by Thinking Small" - check it out.

With a mindset change and PMA, evaluating where you are at present with your debt and getting professional help if you can't handle your finances, is a great start to become greater than average - but it does mean you have to ACT ... do it now! Educate yourself on credit, debt, investment - there's plenty of free stuff on the internet. Of course one of the ways to learn is to follow what the wealthy do - there's information on two of these people: Donald Trump and Warren Buffet as a starting point.

Bookmark this page | Search this site | E-mail to a Friend



Fix Your Credit

Though there is not a quick way of reestablishing credit, these tips can aid you in the process. Patience is necessary since raising your credit score won't happen in a day or two. It can take months or even years to rebuild your credit history depending on the amount and seriousness of the delinquencies that have affected your credit.

Make Sure Creditors Are Reporting All Your Timely Payments

You can have creditors adding good information to your credit report. Creditors are not required to report information to any of the three credit bureaus. After obtaining copies of your credit reports, make sure to note if there are any creditors with whom you have a good history that haven't reported this to the credit bureaus.

If this is the case, contact them and ask them to release the information to the credit bureaus. For a small fee, a credit bureau will contact your creditor. Simply call and give the credit bureau your creditors name and phone number. Positive repayment information can help neutralize some of the negative information on your credit report.

Tell Your Story

Add a statement to your credit report telling your side of the story. You may include a 100-word statement in your credit report to explain negative credit reports. Write each credit bureau a letter and ask them to include your statement in your credit file. State the facts about your situation. If your credit history shows that you typically pay your bills, a statement can explain away an isolated instance or period of bad credit.

Most financial transactions and situations are susceptible of being proved. Thus, don't waste your time making up stories, if you have a good justification for the delinquencies that appear on your credit report, add the statement. Otherwise, refrain from doing so and concentrate on improving your credit score by making all your payments on time.

Keep Creditors on Your Side

You can also work with your creditors to clear your credit record. If your poor credit resulted from circumstances that were beyond your control, like illness or losing your job, make sure to keep in contact with your creditors. Once you have reconciled your account, your creditor may be willing to remove negative information from your credit report or at least report you've brought your account current.

If you can't make your payments, contact the creditor and propose a pay-off schedule. If the creditor has charged-off your debt, they may work with you. You may be able to work out a proposal in which you make partial payments, and the creditor changes the information it provides to your credit bureau. Be sure to get your agreement in writing.




Top rated articles for credit counseling

1. Credit Cards for Bad Credit
Half of the world's population suffers from bad credit, though the severity of the situation varies from one person to the next. Some people have extremely bad credit, while others just have a few den... Read credit counseling article

2. Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans t... Read article

3. Avoiding credit card debt
We all know the key to good health begins with a dose of prevention - eat right, exercise regularly, and get a good night's sleep. Your financial health is no different. By taking a few steps of preve... Read credit counseling article

4. Mandatory Credit Counseling Before Bankruptcy
In a study released in October, 2006 by the National Foundation for Credit Counseling (NFCC) on the eve of the one year anniversary of the 2005 Bankruptcy Reform legislation, there were a number of un... Read credit counseling article

5. Credit Counseling - Are you overwhelmed with debt
Hundreds of thousands of people overwhelmed with debt -- often credit card debt -- are turning to nonprofit credit-counseling agencies that have become as ubiquitous as ATMs.

But just like ... Read credit counseling article

6. Credit Scoring System - Improve Your Credit Score
Understanding what a credit score is, how it's computed, and its purpose can be confusing and difficult to understand. Detailed below is information that will help you understand all of the basic conc... Read credit counseling article

7. Home Mortgage: Bad Credit Won't Rule Out a New Home
When you're looking for a way to afford your dream home, home mortgage bad credit options can offer a way to get you into the home that you want to buy. Not long ago, people with less than perfect cre... Read article

8. Erase Bad Credit With A Little Help
Everyone has a little trouble now and then. If your little trouble ended up recorded in your credit history, it may take a little effort to erase bad credit and get a clean start, but it's an effort w... Read article

9. Credit Rating
People seldom know why they have been turned down for credit. In fact, it often comes as a shock. Some people don't find out till they are standing in a shop with a store card application in their han... Read credit counseling article

10. Credit Counselling or Debt Management Plan
I am often asked to explain the various options for dealing with debt, and most of the time people want me to start with options that do not involve personal bankruptcy. Assuming a debt consolidation ... Read credit counseling article


Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Credit - Leverage and Other Peoples Money - Secrets Revealed
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

Add website or submit URL link of your site to 1000 free directory
50 Signal Hill credit counseling - California 49 Vernon credit counseling - California 48 Grand Lake credit counseling - Colorado 47 Idaho Springs credit counseling - Colorado 46 Meeker credit counseling - Colorado 45 Old Lyme credit counseling - Connecticut 44 Stonington credit counseling - Connecticut 43 Willimantic credit counseling - Connecticut 42 Okeechobee credit counseling - Florida 41 Bainbridge credit counseling - Georgia 40 Dawsonville credit counseling - Georgia 39 Greensboro credit counseling - Georgia 38 Riverdale credit counseling - Georgia 37 Honaunau credit counseling - Hawaii 36 Alsip credit counseling - Illinois 35 Belvidere credit counseling - Illinois 34 Clarendon Hills credit counseling - Illinois 33 Lebanon credit counseling - Indiana 32 Logansport credit counseling - Indiana 31 Spencer credit counseling - Iowa 30 Garden City credit counseling - Kansas 29 Winfield credit counseling - Kansas 28 Bardstown credit counseling - Kentucky 27 Harrodsburg credit counseling - Kentucky 26 London credit counseling - Kentucky 25 Naples credit counseling - Maine 24 Belchertown credit counseling - Massachusetts 23 Deerfield credit counseling - Massachusetts 22 Dracut credit counseling - Massachusetts 21 Harwich credit counseling - Massachusetts 20 Seekonk credit counseling - Massachusetts 19 Winthrop credit counseling - Massachusetts 18 Allendale credit counseling - Michigan 17 Berkley credit counseling - Michigan 16 Holt credit counseling - Michigan 15 Lincoln Park credit counseling - Michigan 14 Mackinaw City credit counseling - Michigan 13 Cloquet credit counseling - Minnesota 12 Crookston credit counseling - Minnesota 11 Hackensack credit counseling - Minnesota 10 Rogers credit counseling - Minnesota 9 Corinth credit counseling - Mississippi 8 Madison credit counseling - Mississippi 7 Ava credit counseling - Missouri 6 Perryville credit counseling - Missouri 5 North Platte credit counseling - Nebraska 4 New London credit counseling - New Hampshire 3 Glen Rock credit counseling - New Hampshire 2 Maplewood credit counseling - New Hampshire 1 Egg Harbor Township credit counseling - New Jersey