Car loans = bad. Buy used.

I am of the position that getting a car loan is generally a bad idea. Cars depreciate in value and the payment can make up a significant part of your budget. To further drive this point home I feel that getting a car loan after bankruptcy is not only a bad thing to do but can throw you right back into the same situation that you have removed yourself from – in debt.

I filed bankruptcy, now what

If you have filed bankruptcy then it is time to move on. You did what you thought was best. However, keep in mind that it is what you do next that is the important point to consider.

After you file bankruptcy and the bankruptcy is discharged, you may start to receive several different loan offers from lenders eager to give you a car loan. Filers who have had their credit slate wiped clean are extremely attractive to lenders. Not only do recent filers have no debt, they also have a scarlet letter on their credit that gives lenders the green light to charge ridiculous amounts in interest. Make a wise decision and truly understand the consequences of getting a car loan after filing for bankruptcy.

High Interest Rates

Car loans for individuals who have recently filed bankruptcy are commonly called sub-prime loans. Sub-prime loans carry more risk which gives the lender an opportunity to charge higher interest rates. Some individuals will leap at the chance to get a new auto loan once they have filed bankruptcy. When you do this, you are letting anxious lenders take advantage of you. You are the perfect risk for their company. Knowing you have just filed bankruptcy, they know that you cannot file again for at least 7 years. This certainty, combined with the fact that lenders can charge 20 percent of more in interest, is what makes sub-prime lenders profitable. If you calculate how much you will pay over the life of the loan, you will see that you truly do not need the new car smell that bad.

Limited Vehicle Selection

Sub-prime lenders can approve or deny your loan based on the year, make, and model of the vehicle you are trying to finance. You may have your eyes on a new 4-door sedan and the lender may see you in a used compact. Having a recent bankruptcy on your credit report limits your options. If you really want a car, you are willing to settle with a car you may not have chosen otherwise. If you can, delay getting a car loan until you can get approved for what you really want.

Getting approved for a auto loan after bankruptcy is far from difficult. The main factor you should consider is do you really need a new car? Your current car has gotten you through tough times. If you have a reliable car, save up money and start to re-establish your credit so that you can get begin to build a strong financial foundation once again.

Step One: Know Your Finances

The first step in dealing with debt collectors is to know exactly what you owe and why you owe it. There are a number of individuals and organizations that tend to pursue accounts that are no longer in existence, and you must not be intimidated into paying money that you do not owe. Make sure that you have financial records ready when dealing with your creditors; after your first phone call, begin to note not only what the creditor claims that you owe, but also who you spoke to and when.

Step Two: Bargain from Power

One secret that few collectors will let you know is that you are in the position of power, not them. You have the money that they want; while they can annoy you and threaten you, they cannot actually cause you any long-lasting harm. Remember in every conversation that you actually have the upper hand in the agreement. Offer to negotiate payments with them or try to come to some form of agreement. While you do owe the company money, you should still be treated with respect and with courtesy.

Step Three: Know the Law

If you are in debt, it is important to know what your debtors can and cannot do. They cannot accost you. They cannot call your work or let others know about your situation. They must identify themselves to you, and they must honor agreements that were put into writing. If you are armed with this information, the overall intimidation factor that most collectors rely upon can be greatly diminished. Do know that it is possible for these individuals to take you to court and depending on the circumstances and type of account, possible for certain items to be repossessed. All other threats are nothing more than bluster.

Step Four: No Fear

No matter what else you do when dealing with debt collectors, never show fear. The slightest sign of weakness will be pounced upon by most agents, as will guilt. On the same hand, always make sure to treat these individuals with respect. Debt collectors are only doing their job, and dealing with them fairly is often the best way to negotiate a better debt settlement. If you are willing to deal with the agency as an equal, you will be surprised how much progress you can make in a relatively short amount of time.

Having a debt collector call can be scary, but it is not the end of the world. As long as you realize that you are in charge of the situation, know exactly what your debts are, and know what a collector can or cannot do to you, the process of discharging your debts can be quite simple.

Many who go about trying to settle debt try to do so themselves. They may have little experience in trying to negotiate to settle debts and can make matters worse for themselves by agreeing to pay the debt plus high penalties. Some who try settling debt on their own end up also paying those who a company has hired to collect those debts. This is an expense that a person in debt should not even consider taking on.

People that are in debt often get letters in the mail from collection companies that buy their debt. Usually when it gets this far it is already reported on your credit report. This can cause your credit score to take a serious dive. The companies that buy the debt usually do so for pennies on the dollar. You should never offer them anything near the amount of money they request you pay them to settle your debt. These debt collection agencies are really trying to turn a profit off people who don’t know they will take a much lower amount of money to settle the problem.

If you feel the debt you are accused of owing is wrong, you can dispute the claim. Sometimes the lender or company that says you owe them is mistaken. Maybe you sent the last payment in and they made an accounting error. If you can prove that the debt is an error, you should attempt to do so. Why pay what you don’t owe?

One of the best ways to go about settling debt is hiring a professional to help you. In many cases this professional may be an attorney. These attorneys usually have years of experience in dealing with helping clients get out of financial troubles. They can negotiate a fair settlement that makes everybody involved happy. After years of handling these cases they know all the ins and outs of how to settle debts.

About the Author
The Author has good experience in the finance field, who has been writing on various related topics such as debt settlement & debt relief attorney to help people understand the Debt Settlement process and help them save their home from foreclosure.

Quick and easy money
Let’s say that you are considering borrowing money in order to consolidate your many credit card balances into one loan and you would like to use a 125 second mortgage also known as a no equity debt consolidation loan as the means to make this happen. If your house is worth $200,000 and you currently owe $150,000 then you would potentially be able to borrow up to 125 percent of the appraised value. In this case you could borrow up to $275,000 or a total of $125,000. If however, you were going to use a traditional second mortgage then you could only borrow $10,000 so that your loan to home value stays within 80%. As you can see, a 125 second mortgage allows you access to a lot more money but let’s look at the risks.

Consider the risks
The lender does view this type of loan as more risky than other such mortgage loans. Due to the fact that you have the ability to borrow more money than the house is actually worth. You could be upside down on the loan and on top of that what if your house declines in value then you could be in even worst shape. Because of this fact, the interest rate may not be as favorable and you may incur higher upfront costs and fees. What if you default? Then the lender will seize your house and if you owe more than the house is worth they will also try to get remaining money that is due to the lender as well.

When does it make sense?
This type of loan may be suitable when home values are increasing on a year by year basis. Also, if you intend to stay in the home for a long time then it may be right for you. A situation where you are using for consolidation is very risky and probably is not for everyone. The fact that you are considering borrowing money in order to handle a debt problem in and of itself does not make a whole lot of sense.

Overall, using a 125 second mortgage can overextend your finances and add a tremendous amount of stress to your life. Be sure to consult a financial professional for expert advice.

A debt consolidation program is really a low interest, unsecured loan to payoff your total non-mortgage debts. This type of program provides a single monthly payment and has little or no extra costs. Many providers of debt management service can instruct their clients on several options for this type of loan.

Here are some guidelines on how to go about obtaining a free debt consolidation quote.

1. First gather up all your debts. Credit cards, medical bills, dental bills, auto repair bills, home repair bills, auto loans, old college loans, any and all debts that are not a part of your mortgage.
2. Locate a lender who works in the debt consolidation market and is reliable. As was stated earlier, providers of debt management services are a good place to start. It is not hard to get a quote from many lending institutions, but there are some who add on a great deal in hidden fees and other costs. If they advertise free, make sure it is absolutely free and that the quote does not make you liable for anything.
3. It is not good to obtain a debt consolidation loan from regular banks or mortgage brokers, for they are really looking to get you into a second mortgage program which further ties up your home as a point of collateral and/or the equity in your home. What you are attempting to do through debt consolidation is not to get into more debt, but to eradicate as much debt as you possibly can.
4. At this point you have a choice between visiting a debt management company in a brick, block and steel building and talk to a live debt counselor or going online. There are dozens of websites available that offer free debt consolidation quotes. However, you will not have the privilege of receiving tailor made instruction and guidance with the online company up front as you will with a debt management company. The choice is yours. If you go to a local company that specializes in counseling clients for debt management and debt consolidation be sure to talk to a counselor. A good counselor will give you much in the way of personal attention. He will be able to structure a debt consolidation program that will fit into your budget, and he will also personally be involved with working with those to whom you are in debt to help reduce your monthly payments to a practical acceptance for both parties.

Whatever debt consolidation program you decide upon be sure to follow through the disciplines that are set up for you and your debt. Make your monthly payments on time, and communicate whenever there is a problem. All of this working together will help your credit score improve to a beneficial position a lot sooner than without using the help. It all starts with the free debt consolidation quote. Get yours today.

Unsecured debt consolidation loans require no collateral. You are not required to have a down payment or anything else to secure the loan. The secret of the loan is that the company making the loan available to you guarantees it.

By lumping all your debt into one big debt, consolidating it, sounds good because you really are borrowing enough money to pay off all those pesky smaller debts that have been hounding you to death. But now you have a big loan and a smaller monthly payment. All seems well in your world. But there is a catch. You will be tied to this loan for a very long time. That is how the maker of the loan makes money. You will be paying smaller monthly payments at an interest rate that more than likely is smaller than any that you had before, but if you are careful to analyze how much money will be coming out of your pocket over the term of the loan you will find that you will have paid out a whole lot more money than you would have if you had stayed where your were financially in the beginning.

You see the problem for you and the ace in the sleeve of the lender of the unsecured debt consolidation loans is that he knows that you got in trouble financially probably due to ignorance of money management. Now, you might argue that it wasn’t your fault that you lost that great job when they closed down the plant, or that the accident you were in robbed you of your ability to continue earning good income. That is all well and true, but if you really were an expert at money management, you might have been able to absorb those circumstances through certain disciplines that you had put into effect years before.

The real answer to get out of a debt problem is through a mindset transformation. You have got to change the way you think about money and the way your manage it. It is quite likely that you will need some help from reliable professional advisors who can train you in the right way to manage money. You will need to establish an emergency fund to help you in the midst of life’s financial woes when they raise their ugly heads, and they will do so again and again especially as you get older.

It might sound good to use unsecured debt consolidation loans, especially for short-term situations. However, get some good financial training that you can literally bank on to help you change the way you spend and the way you plan for your financial future.

The idea of debt consolidation plays to common sense. Why not take out an unsecured debt consolidation loan to lump all your debts into one easy to pay monthly payment? After all it is so hard to face all the various credit card debts, doctor bills, dentist bills, car repair bills, etc. each month that millions of debt-ridden Americans can barely pay the minimum payment. Well therein lies the problem.

The millions of Americans in debt have never been taught how to manage their money. When they became adults, and especially when they married, there was no financial planning owner’s manual in the glove box of life. So, you and I American debtor just continued stumbling along adding more and more credit cards, multiple car loans, and other revolving credit charges to our non-existent budgets. Financial management ignorance is the bane of a huge majority of the American people.

American debt consolidation works this way:

• Look into local credit unions or banks where you currently do not have any business dealings.
• Apply for an unsecured debt consolidation loan that has a low interest rate and a long payment period.
• Once the loan is arranged and you receive the loan proceeds, pay off all your debts.
• Start making monthly payments for a long, long, long time.

Now here is where the problem comes into play. At no time has anyone questioned how you have gotten in way over your head financially. You think that just because all your credit cards have been paid off that you are free to use those cards and any new cards that may come your way, and there will be a bunch of them, too. Now because you have not changed any of your financial lifestyle decisions and practices, you will begin to add more debt to the big debt consolidation plan that you are paying on. You will be in worse shape than before.

The real answer is to not look to any American debt consolidation program as the answer to your debt problem. Instead you should seek out some advice and counsel from reliable debt counseling centers that will able to help you change your financial mismanagement ways. They will help you negotiate credit card debt and will seek ways to create a working budget with your current level of income. That is the answer and that is the only way that you will ever overcome a huge debt problem.

Everyone facing this dilemma seems to be in shock. They don’t know what to do or where to turn. The Christian soon finds himself without an income and unable to provide for his family. Some may be able to go to their churches and seek out the benevolence ministry, but they soon find that in most churches, that area of ministry has been one of the most under funded and can only provide limited help at best. Where does the Christian turn now?

Christian debt consolidation loans are not necessarily a new concept  but Christian Debt Management is a source for professional guidance founded upon Christian values. They have been in business for over 21 years helping thousands of individuals and families work through financial problems and point them toward a debt free life. Their trained counselors provide professional assistance through advice, education, service, and a personal financial plan geared for each individual client.

The plan based upon information gathered through a comprehensive review of the client’s debt portfolio will be managed to provide timely payoffs through low monthly payments. Christian Debt Management is different because of the following benefits it provides:

• Prompt service by highly trained professional advisors
• Quick debt payoff
• No hidden fees
• No minimum financial requirements
• All applicants are accepted regardless of their credit – damaged, good or excellent.
• No waiting period – plans start immediately upon ascertaining the proper direction.
• CDM handles all the potential harassing phone calls and eliminate most late charges imposed by creditors.
• An affordable monthly payment is designed to fit within the client’s budget.

Christian Debt Management is located on the internet at christiandebtmanagement.com or through a toll free phone call at 800.297.7898. CDM is a member of the Better Business Bureau in Boca Raton, Florida.

The truth of the Christian experience according to the teachings of the Apostle Paul is that believers in Christ are “joined and held together by every supporting ligament”. That is the truth of relationship we find in Christ and in the body of Christ the church. We are responsible for one another even in the midst of economic woes. That is why Christian Debt Management can be a source for the hurting Christian today.

What can the small business owner do besides bankruptcy in these circumstances? Here are some ideas to consider if you find yourself in this situation.

1. Develop a plan.
   Determine your total business debt. Sometimes it is good to write it out with the following information:
   • The amount of the debt
   • Who the debt is to
   • What are the rates of interest and are there any hidden fees
   • All the account information – account name, number, contact person(s), etc.
2. a.  If you still have your business, work on paying off the business credit with the lowest balance first.
   This action will clear up that account quickly. It will provide you with a sense of accomplishment and it will also help your credit score. Remember to maintain, as best as possible, the other accounts by paying minimum payments for a while. Once that first business credit card is paid off, reanalyze your debt and begin paying off the next card with the lowest balance by taking the payments from the paid off card and applying them to this account along with the minimum payment. Soon that business credit card will be paid off. Continue with that program until all have been paid off.
   b.  If you have closed your business, take care of your personal finances first.
   You may have to do some sacrificing where possible. You also might have to take on extra work if available. Next, communicate with your personal creditors see if they will work with you. Remember this, they may not know of what you have been going through and they need to know, because you have made them a promise to pay and you owe them any explanation of any change in your situation. Ask them if they will remove any late fees and waive any annual fees on your accounts. They may help you make a new payment plan that might be extended to help you out of this present circumstance.
3. Look for a debt negotiator.
   These people are professional financial counselors that are quire capable of helping you map your way out of this business credit card debt problem. Your business attorney may be able to steer you in the right direction to find someone best suited for your type of debt.

Remember, bankruptcy is not the first thing to consider when your business goes sour. A debt is a promise to pay, and nothing can help you business credit card debt better than working out a means to do just that. It will help you maintain a good name for you and your business.

The founders of Debt Free America have developed their business due to a huge increase in the financial world of debt problems. Many consumers are faced with dilemmas for many different reasons which are compounded through the recent economic downturn our country is experiencing. Debt Free America has approached this service need with an interesting tool. They have developed an interactive website that succinctly brings advice and economic training to those who need it now.

The website is found at debtfreeamerica.com and is a guide for debt eradication and re-establishment of positive personal economics. The consumer has the option of calling a toll-free number listed on the website or to use the ‘Guide me online!’ link to begin their process. There is also a registration for a free newsletter from the company.

The “Guide me online!” features four modules or steps that introduce some basic economic facts to the consumer. Ray Noftsinger, the owner of Harbour Credit Counseling and NewSuccessPath.com presents a video and basic financial news articles in the modules to begin the process of debt free living.

The Modules are as follows:

1. Module One – Spending Plan and Net Worth
   The video and written script describe the two basic measuring points for a family’s financial health.
2. Module Two – Net Worth – Details
   This module discusses what assets and liabilities are and how each of those affect a families cash flow.
3. Module Three – Cash Flow Concept to Lifestyle
   The third module defines cash flow concept. The video and script explain how a lifestyle concept is developed through understanding and improving one’s cash flow.
4. Module Four – Compound Interest and Asset Categories
   The last module provides an interesting lesson on how compound interest can work for you and how to pursue a cash flow engine that will produce for you. It also talks about three categories of status: Employee, Small Business and Self-Employed, and Business Owner and Investor.

The use of an interactive website with interesting videos and graphics is a novel approach to introducing debt eradication and wealth building to a needy public. It is a good way to learn personal family economic basics and to introduce you to the world of debt counseling.