Debt Consolidation or Debt Settlement

When people are drowned under the sea of outstanding debt and want to come out of it, debt settlement and debt consolidation are two viable avenues. Debt settlement is a process that allows people negotiate with creditors in order to reduce the pay-off amount, while debt consolidation is a process that allows consolidating all the debts into a fixed monthly payment.

Now whether you want to pursue debt settlement or debt consolidation will be your personal financial decision. But whichever option you go for, you must consider the pros and cons associated with the processes, and must consult debt settlement lawyers or consolidation lawyer who will work with you in accordance to your fiscal situation.

Eligibility criteria:

Before you go for debt consolidation or debt settlement, find out the eligibility criteria. To qualify for a debt consolidation loan, you must have a house and enough equity to use as collateral. You must also have a FICO score of 720 or above and a stable source of income so that you can make monthly payments on time. On the other hand, to qualify for debt settlement, you must typically owe $7,500 or more to your creditor.

Advantages:

Debt consolidation lowers the interest rate by consolidating all the high interest debts into a lower interest loan. This lowers your monthly payments and helps you pay off the debt in as little as three to five years. Consolidation also turns your debts to a single monthly payment; therefore you can make one payment to a creditor instead of several payments to several creditors. With debt consolidation, you can also eliminate the late fees, penalties, and other charge-offs associated with debts.

Debt settlement lowers your pay-off amount negotiating with creditors so that you can afford to pay off your debt as soon as possible. Through debt settlement you can lower your debt by upto 40 to 60 percent, which can be paid off in as little as two to three years. In addition, with debt settlement, you can also re-age your accounts and bring it to a current status. Penalty fees and charge-offs can also be waived off.

Disadvantages:

Debt consolidation turns your unsecured debts to a secured loan as you may need to put up collateral while acquiring a consolidation loan. If a person defaults on loan repayment, he/she will lose the property. This is the primary disadvantage associated with debt consolidation. Another disadvantage of debt consolidation is that paying back a loan over longer period of time may end up paying you more interest than you should.

When pursuing debt settlement with creditors, the latter may report it to credit bureaus, which will impair your credit report and affect your ability to get a new loan. Even after your debt is settled, creditors may sue you for your unpaid debt and debt collectors may continue to harass. All above, the IRA considers the pay-ff amount as an additional income, so people will have to pay taxes if the settled debt is over $600.

Thus, to conclude, while choosing between debt consolidation and debt settlement, you must give a careful thought and do a research. Consider all the pros and cons associated with the two programs and analyze your fiscal situation.

Author’s Bio: The following article is contributed by Sophie Kinsella. She is a contributory guest columnist for various websites and communities including Oak View Law Group. She has completed her Graduation in Finance and is currently working with an Investment company located in California. She has written some great articles on topics like bankruptcy, investment opportunities,  credit card debt settlement , debt consolidation vs debt settlement and more.

Save Money on Your Next Holiday

In the 21st century the world is getting smaller and everyone wants to see parts of the world that are foreign to them whilst experiencing cultures different to those on home soil. However, it doesn’t come without a price tag. It is said booking holidays are some of the stressful things people can do, with finances playing a big part. There are some tips and tricks that can see you saving some of those much-needed pennies that you can instead send on that holiday.

Using a credit card for a holiday could see you paying much smaller amounts over a longer period of time. This way there isn’t a direct noticeable dent in your pocket. Before signing up make sure you compare credit cards so that way you will know exactly what you’re paying for and when.

Credit cards are also a good way of improving your credit rating if you make sure to pay them back at the right time. Coach trips are a good way of having a holiday for less with some companies introducing return trips to European destinations for as little as at £2, what you save in money you lose in time. Coach trips can be long and see you sitting for hours so if you get cramps easily or just can’t sit still they are probably not the best bet for you!

Some flight companies are offering packages where you get your hotel and flights for as little as £100. The hotels are 3-4 star and they also offer more exotic destinations for £150-200 saving you a pretty penny for souvenir shopping!

Book on-line! This can save you a plenitude of cash. Lots of companies offer discounts for booking online. There are also lots of exclusives on-line that reward those who take the time to book it on-line. It also means there’s no pressure from sales advisor’s in store and you can go at your own pace!

However, on the subject of pace, booking closer to your travel date can save you money. This can be because other people have cancelled their plans and the companies are eager to sell the holidays, or it can simply be a promotion to encourage travel. Conversely booking way in advance can be a clever way of saving money. Just make sure you know exactly when you want to go as changing the date can be costly.

0% UK Credit Cards – The Top 5

 2012 may be the year to take control of your personal finances and if you find have started the year in debt then a quick way to start attacking the problem could be to transfer your debt to a 0% interest credit card. This means that your debt won’t continue to rise whilst the offer is in place, giving you the chance to take control over your spending and start making some repayments. Spend some time working our your monthly budget and where you can make some savings and you can grab up to 18 months of interest free leeway to start chipping away at your debt.

0% credit cards also offer a great way to borrow money if you don’t have existing debts. If used correctly you can borrow money for up to 18 months with no interest. Caution is appropriate however, as in these turbulent financial times a loss of employment could result in an inability to repay debts and this could lead to severe financial trouble.

Thankfully the credit card industry is very competitive, and there are some great deals to be found with companies offering attractive introductory offers in the hope that you go on to become a loyal customer. However, if you’re in it for the free ride, it’s crucial to set a reminder in your calendar, so that you have plenty of time to take action before the offer runs out. Here’s a selection of what the market has to offer.

• With their select card Nationwide offer 18 months of 0% interest spending. However, to qualify you must be a new or existing Flex Account customer that pays £750 a month into their account. The card offers other perks including 0.5% cash back on all spending and no additional charges for transactions overseas.
• The Tesco Clubcard credit card delivers 0% for 15 months on all new purchases. The caveat is that you must earn over £5000 annually to apply. As a perk, Tesco Clubcard points of accrued at the rate of one for every £4 spent.
• Marks & Spencer store credit cards are another great option delivering 15 months of 0% spending after which the rate jumps to 15.9% representative APR. Points accrued through spending are converted to Marks & Spencer’s vouchers.
• Halifax have a strong offering with their all in one card, which provides 15 months of 0% spending. This is extended to balance transfers with a 3% fee.
• Last in this list is the Barclaycard Platinum card that offers a shorter 14-month period. Those with existing debts can take advantage of a balance transfer with a similar period for a 2.9% fee.

A credit card should never be seen as a license to spend money. Despite your new line of credit it’s vital to ensure that you continue to live within your means. Adding to your credit card balance can lead to a downward financial spiral and should be avoided if at all possible.

High Interest Bank Accounts – Still The Safest Way to Invest

There are so many options available for people who have some money to invest. If you’ve already made some inquiries you’ll probably have already realized how many choices you have. It can be really tempting to go for the higher rewards options like Forex and shares but there is danger involved with these options. As the saying goes ‘there is no reward without risk’. However do you really want to put your savings at risk if you know little about these high risk investment options? This is where a high interest savings account can be your best option.

When choosing the type of investment option it really comes down to what you know about it. If you have knowledge of the stock market for example then you can greatly reduce the risk of losing your money. Having said that, even some of the most experienced fund managers come unstuck from time to time. Plus the very nature of the stock market means that it’s a risky business.

High interest bank accounts on the other hand have virtually no risk at all attached to them. Obviously the amount of money you can earn with them will be less than with other riskier investments but the plus side is that you’ll be able to sleep at night without worrying about losing your investment.

To put it simply, if you don’t have a great deal of financial knowledge then the easiest way to make your money work for you is with a high interest bank account.

What to Look For in a High Interest Bank Account

There are several types of high interest account that you can find. Which one is right for you will depend entirely on your own circumstances. The first type that you could look at is a high interest current account. The obvious advantage with high interest current accounts is that you can easily get your money if you need to. The downside is that most of them don’t really offer very high interest rates.

If a high interest current account is what you’re after then make sure you check the fine print regarding bank charges. Many banks will have increased banking fees on these types of accounts which is how they make their money back from paying interest on a current account.

The most popular type of high interest account is a savings account. High interest savings accounts give you the highest rate of interest with the downside being that you can’t easily get to your cash in a hurry. If you are making an investment though you should be aware of that anyway.

The best thing to do is have a look around and see what your local banks are offering. Compare the pros and cons of each account and see which one is the best one for you. If you want to learn about the more riskier type of investing like Forex, you can learn about profitable Forex trading by visiting this page about automated Forex on Forexeasystems’ website.

Find The The Best Bank Account For Your Kids

In this day and age it’s important to teach your children about money and finance from an early age. Any child that gets any kind of financial education is going to find life a lot easier in the years to come. It’s still quite shocking that basic finance isn’t taught to kids at school, but as it’s not it’s up to you! The best way to start teaching your kids about money is to open a special bank account for children.

You’ll find that most banks have a bank account designed for children. It’s in the banks best interest to get new customers at a young age which means the should offer some great deals on any kind of bank account for children.

What is The Best Bank Account For Children?

This really depends on where you are. You should have a look at all your local banks as there’s no point opening an account at a bank which is too far away. You need to get your kids used to go into the bank quite often which means a local bank is essential.

See which ones offer the best deals fro kids. Don’t just settle for the bank you’re currently using as there could be much better options.

Good Bank Account For Children Should Have:

• Higher Interest to Encourage Saving
• Reduced or Zero Bank Fees
• Some Kind of Free Gift
• Incentives For Saving

You’ll find that different banks have different ways of making their bank accounts more attractive to children. Get all the information from your local banks and then let your child choose. More often than not it will just come down to the kind of free gift or incentives.

The important thing is to let your child decide and choose the one they want. Remember the whole point of opening a kids bank account is to making saving money and understanding finance a lot more interesting!

Are You Looking For a Second Chance Checking Account?

In this day and age it’s pretty common for just about everyone to have financial problems and debt problems. There are now more people stuck in the ChexSystems than ever before. If that includes you then you’re not alone. The thing is, what are you gonna do about it? Getting out of the ChexSystems database is possible and it takes a long time, five years to be exact and will require you to open a ‘second chance checking account’.

Not All Second Chance Checking Accounts Are Equal!

Where ever money is concerned there will be people (and companies) who will gladly rip you off. This is true when it comes to second chance bank accounts. Some of them are total scams and they’ll just end up making your financial situation even worse. They don’t seem to care what trouble people are in as long at they can make money from them.



There are lots of companies that will offer you a second chance checking account. It might seem like a good deal but once you’ve opened the account you will soon realize that there are lots of restrictions as well as over the top bank fees. While you can expect certain restrictions with a second chance bank account, some of the scam companies will literally make your account unusable.

Instead of naming and shaming all the scam companies (mainly because it would take far too long) we’ve decided to just recommend you the one we recommend to all our clients and that’s NewBankAccounts.net They’ve been in business since 2007 and have a pretty much 100% acceptance rate.

Their banking restrictions are pretty lenient when compared to other second chance checking accounts ans their fees are a lot less. You can apply in under 5 minutes by filling in a few online forms. Click here now to apply for your second chance bank account.

In a job market that has taken a nose-dive of a downward turn in the past several months, it’s more important than ever to have a strategy for finding a new gig if you’ve been laid off recently.

It’s also important to remember to be creative and resourceful when job hunting these days. Tactics that probably worked wonders during your last hunt are likely not going to cut it in today’s market.

For example, while in the past it may have been quite effective to use sites like Monster and Craigslist to find a new job, this tactic won’t get you as far when these sites are positively flooded with job seekers all in the same laid-off boat. It’s still somewhat useful to post your resume online, but don’t spend too much of your time online as it will mostly amount to a waste due to the number of people doing the same.

So, where to look then? In good times, only about 20% of available positions are ever advertised. In a slower economy, even fewer jobs than that are publicly announced in any way because employers don’t want to be flooded by resumes. It’ll help you immensely to dig for unadvertised openings through networking and by contacting potential employers directly.

A good way to spend some time online, however, is to get more involved in social networking sites. Though Myspace probably won’t help land you your dream job, sites like www.Facebook.com

and www.LinkedIn.com can be incredibly helpful in establishing contacts and career networking. These days any way you can connect reliably through people you know gives a huge jump on the game. Just remember of course to keep your profiles looking top notch.

Another strategy job seekers are taking on is to drastically up the number of contacts they make by sending out as many resumes as they can per day, and also becoming more flexible in the jobs that they’ll accept. Unfortunately, a down economy breeds the need for a bit more give from job seekers, and it may be difficult to find a full-time job with the salary and other conditions you have in mind. You may be offered contract or project work, part time work or a bit less than the salary you’d had in mind. If you can afford to, accept what they’re offering, especially if it’s at a company where you see growth and the potential for bigger opportunities later. A foot in the door will be worth more than all the resumes you can drop in the mail in uncertain financial times.

Most importantly you want to get back in the game and work hard from there. In today’s market your first step is to get a job; the next step is to continue your “search” and work hard to get to the job you want. Don’t rest on your laurels once you are hired but instead take finding your job and career in bite sized chunks.

To gain a bit more of an edge, consider relocating. Not only are job candidates who are willing to move in even shorter supply than usual these days due in part to a collapsed real estate market that could mean selling a house for much less than it’s worth, but expanding the geography of your job search greatly increases the number of opportunities you’ll have to hook a new one.
Most of all, don’t become discouraged if you find it harder to make contacts than it used to be. Remember, although a good portion of the country is in the same situation, if you’re dedicated, flexible and persistent you will find that job you’ve been searching for.

You’ve done this Christmas thing before. You already know about the deals you can find on ebay, on half.com and at the big O Overstock.com when hunting for affordable gifts, but where do the particularly savvy online holiday shoppers go for their stellar deals? Here’s a list of ten sites on the web full of fantastic deals, until now known only to the most committed of bargain hunters.

Pull up the front page of Slickdeals.net and you’ll find a page full of the hottest deals of the day. For example, right now I see a link to a site that’ll sell you a pair of Vans kicks for only $17, and a huge tip on an online only Office Depot clearance. (Note that it is DOT NET not DOT COM).

Now, for those looking for bargains on technology, XPBargains.com is a treasure of a site. From computers to gaming systems to mobile phones and mp3 players, this is the place to go if you’re in search of a price break on electronics.

Though the site requires registration, FatWallet.com is full of good deals and cash back offers. GottaDeal.com is another one full of spectacular deals which also features a forum in which to discuss bargains with other smart shoppers.

The Dealnews.com manifesto states, “At dealnews, every deal we list is the lowest price we could find for that product, sold by a reputable store. That means we list the best deals period” and with prominent ads for 70% Adidas shoes and North Face boots, that does seem to be the case.

DealNews.com also runs an affiliate called DealCoupon.com which is an incredibly useful list of online coupon codes. This is also a good site for free shipping fanatics.

There’s been a lot of controversy over BFAds.net, a site that posts sales for Black Friday before they’re announced publicly so you know whether or not that great deal you found today will be a great deal later, or if you should wait for the holiday sales to begin.

DealLocker.com is loaded with great coupons, but the big tip on this site is to look for the Secret Amazon Discount Tool. This allows you to search Amazon by category, keyword, and discount range (up to 90% off). Most importantly, it allows you to limit your results to items eligible for Amazon Prime, meaning that they’ll also be eligible for free shipping and the Amazon return policy. Which means no more rip-offs by affiliated merchants who slash prices only to gouge on shipping costs.

DealCatcher.com is a uniquely useful site in that its deals are sorted by site. Especially helpful if you’re shopping with a gift card or have a preference for a certain retailer.

Want to do a good deed while you shop, while also finding out if you’ve really found the best deal out there? BeatMyPrice.com is a site that allows you to type in the item and the place you found it; it then proceeds to search for a better price and if it finds one, it’ll let you know—the really keen part about this process is that if the site doesn’t find a better price, your price becomes the new lowest and the people who come after you will be able to find the same great deal! Doesn’t that leave you a warm and fuzzy bargain shopper?

Get debt consolidation help and advice for bad credit. The unexpected can always happen. Medical emergencies or job loss and unemployment can quickly put you behind on you credit card payments and monthly bills, and before you know it, you are falling into serious debt.

Bad credit debt consolidating can literally put money back into your pocket and preserve your credit rating. Request a FREE consultation and an approved debt counseling partner will contact you.

A debt management program is a proven method for getting out of debt. Participation in a debt management program will not only help to stop harassing collector calls, but will allow you to both reduce your monthly payments and reduce or eliminate interest and late charges. Reduced interest and late charges means that more of your money is paid towards the principal, getting you out of debt faster.