Questions to Ask a Credit Counseling Service about Debt ReliefWritten by Tim Gorman
Debt relief is a topic on a lot of consumers' minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple amount from 1989. In that same time period, average credit card increase for a middle-class family was 75%. The amounts were even higher for low-income families and senior citizens. At one time, such a high amount of credit card debt would seem frivolous as buyers spent money they didn't have on luxury items such as electronics or jewelry. Today, however, in less stable economic times and a poor job market, more people are turning to credit cards as a way to extend their income. More and more debt is being rung up for everyday items such as groceries and medical bills. How can people get real help with debt relief?Credit counseling services were originally established by credit card companies who wanted to get at least some of their money back before a client decided to declare bankruptcy. While that may seem shady to some people, for others it is a legitimate way to pay debt they owe. When seeking debt relief, however, be wary and be an informed consumer. Do your research before signing on with any one service. Here are some questions to ask:
| | Bad Credit? No Credit? Yeah, It's a Problem.Written by Tim Gorman
Many companies use slogan "Bad Credit? No Credit? No Problem!" The truth is that it is in fact a problem and there is no easy way to correct it. It takes a lot of time and effort to obtain credit when you do not have any and even longer to fix bad credit. The first step to solving these credit problems is to understand what your credit score means. In doing this, you will have a better idea of how to fix it. Creditors use a point system to evaluate your credit. The more points you have, better your credit is. These are some typical scoring methods used by most creditors. * Age -Under 21= 0 points -24-64 = 2 points -65+ = 0 points * Marital Status -Single = 0 points -Married = 1 point -Divorced = 0 points * Number of Dependants -None = 0 points -1-3 = 1 point -Over 3 = 0 points * Current Residence -Living with family or friends = 0 points -Living in an apartment = 1 point -Living in a home that you are buying = 3 points -Living in a home that is paid for = 4 points * Previous Residence (Varies with creditors) -0-5 years = 0 points -5 or more = 1 point * Employment History (Each creditor determines whether job is considered skilled, unskilled or professional) -Unskilled job = 1 point -Skilled job = 2 points -Professional job = 3 points
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