http://creditfederal.com/article en-us http://creditfederal.com/article N/A article@creditfederal.com Sat, 04 Jul 2009 16:08:09 CDT 20 http://creditfederal.com/article/blogs/347/Short-Sale-Deal If you are wanting a good deal on a home, consider doing a Short Sale. This means you could offer a lender or a bank an offer on a home that is in the last stages of foreclosure. Apply for a new home loan (purchase)Apply for mortgage refinancing (2nd mortgage, equity cashout, remodeling)The last stage of foreclosure means the homeowner has received a "Default Notice" that has been recorded. Default Notices are given usually when three or more mortgage payments are deliquent. Just because the Default Notice has been recorded, does not mean homeowners who are involved can't catch up with notes, back taxes, late fees, or other fees and bring the mortgage out of foreclosure.  Homeowners often find themselves in foreclosure when problems arise due to job loss, medical problems, or for other reasons.A foreclosure can be the best low deal around for investment purposes. However, buyers must understand that homeowners could get current with their mortgage debts and pull out of foreclosure until the very end.The lender who has the mortgage can be more willing to negotiate on a lower price when the homeowner is in the last stage of foreclosure. A lender does not want to loose money or loose extra money on a deal.It can be in the lender's best interest if the home does not enter into an auction. At auctions, the lender may loose even more money. Lenders and banks usually want to try to make some small profit off the sale and don't want to keep too many foreclosures.When you call the lender you will need to request the Short Sales packet and you can tell them you want to make an offer. They may ask if you are a real estate attorney. Once you get the packet, it explains exactly what is needed for the Short Sale deal.Part of the Short Sale involves a real estate agent who must give an opinion on the worth of the home. This can be called the Brokers Price Opinion or BPO. What the BPO says has a big effect on the deal.It is good for the buyer if the BPO stays low on the value of the home. This helps work in the favor of the buyer to get the home at a better price from the lender. For foreclosure homes priced over $500,000, buyers can usually purchase a home at a very good price.There are buyers who seek out homes in foreclosures because they make a living doing "Short Sale Deals". It is unfortunate that some homeowners must be in a foreclosure situation due to problems. There are other homeowners who are in foreclosure because they walk away from their mortgage by choice. Credit Federal Tue, 30 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/346/Good-Credit-Score-Importance-Increases Good credit scores are becoming more important than ever.  Read our free tips on how to improve credit scores, and download our budget software to track expenses.As banks tighten lending standards, one factor; the credit score, is playing an increasingly critical role in determining the financial worth of consumers.Lenders use credit scores to determine whether to approve or to deny credit and; if approved, at what interest rate. As lenders demand higher scores, more Americans are having trouble getting credit card and loan approval.Some have worse scores and aren't getting loans at all; and, if democrats have their way, one of the last refuges (the payday personal loan) may also become extinct.There are many reasons why consumers have bad credit scores... perhaps they lost their jobs, and/or didn't keep up with credit card and mortgage payments. Because these consumers now pose a high risk, credit card issuers have either closed their accounts or reduced credit limits. Because of the closed accounts and/or lowered credit limits, these consumers suffer even worse credit scores.To add to their crisis, people who try to take matters in hand and pay to find out their credit scores discover that it can be difficult to learn the score that lenders actually use to evaluate them."Credit scores have taken on a new degree of importance," said Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable, an industry group. "In the past it was a question of 'What will your interest rate be?', and now it's 'Will you even get a loan?'"As a result, credit is less available to both low risk and high risk consumers at a time when they, and the economy, need it the most.This is not only bad news for consumers... it's also trouble for businesses and the economy. When consumers cannot get approved for loans, merchandise, new cars and homes sit unsold.People with a 700 credit score were once viewed as very desirable by lenders (most lenders use the FICO score, which runs on a scale of 300 to 850). But now, many lenders demand credit scores of 720 or higher. But it's not all the fault of consumers. Democrats are passing legislations which stifle; and may completely eradicate, bad credit loan offers. Instead of allowing free-trade within the credit industry which promotes competition amongst lenders, democrats are tying the hands of free-trade and pushing many subprime lenders out of business. Who's going to provide bad credit people with loans and credit cards? Government democrats who destroyed these loan options? Not likely. Review our Government Bad Credit Loan Legislation article.New Government Credit Card Act - how it may stop bad credit card and no credit check loan offers.Government Credit Card Control Dooms Rewards - how government rules may stifle free competition. Credit Federal Sun, 28 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/345/Debt-Arbitrators-Code-of-Ethics Review the Code of Ethics of the International Association of Professional Debt Arbitrators  Apply for Debt Settlement or Counseling - Click Here - Preamble and Applicability -This Code of Ethics (the "Code") has been adopted by IAPDA to provide principles and rules to all persons whom it has recognized and certified to use the "CDA", "Certified Debt Arbitrator" and "CDS", "Certified Debt Specialist" designations. These designations are owned by the International Association of Professional Debt Arbitrators ("IAPDA"), and IAPDA is the sole organization authorized to award them. IAPDA determines who is recognized and certified to use these designations. Implicit in IAPDA's acceptance of this authorization is an obligation not only to ensure compliance with the mandates and requirements of all applicable laws and regulations, but also to require its CDA and CDS designated professionals to act in an ethical and professionally responsible manner becoming of the debt settlement profession.For purposes of this Code, a person recognized and certified by IAPDA to use the designations is called a CDA and CDS professional. This Code applies to CDA and CDS professionals actively involved in the practice of debt settlement. In addition, some principles, specifically Principle 1 and Principle 6, also apply more generally to the activities of CDA and CDS professionals even when acting outside the scope of their capacity as debt settlement practitioners.- Composition and Scope -The Code consists of two parts: Part 1 - Principles and Part II - Rules. The Principles are statements expressing in general terms the ethical and professional ideals of CDA and CDS professionals, ideals they should strive to display in their professional activities. As such the Principles are intended to be a source of guidance for CDA and CDS professionals. The comments following each Principle further explain the meaning of the Principle. The Rules provide practical guidelines derived from the tenets embodied in the Principles. As such, the Rules set forth the standards of ethical and professional conduct expected to be followed in particular situations. This Code does not undertake to define standards of professional conduct of CDA and CDS professionals for purposes of civil liability.The Code is structured so that the presentation of the Rules parallels the presentation of the Principles. For example, the Rules which relate to Principle 1 (Integrity) are numbered in the 100 to 199 series while those Rules relating to Principle 2 (Objectivity) are numbered in the 200 to 299 series.- Compliance -The IAPDA requires adherence to this Code by all those it recognizes and certifies to use its designations. Compliance with the Code, individually and by the profession as a whole, depends on each CDA and CDS professional's knowledge of and adherence to the Principles and applicable Rules, the influence of fellow professionals and public opinion, and disciplinary proceedings, when necessary, involving CDA and CDS professionals who fail to comply with the applicable provisions of the Code.Part I - PrinciplesIntroductionThese Principles of the Code recognize the individual CDA and CDS professional's responsibilities to the public, clients, colleagues, employers and to the profession. They apply to all CDA and CDS professionals in all aspects of their work, and provide specific guidance to them in the performance of debt settlement.Principle 1: IntegrityA CDA and CDS professional shall always act with integrity.CDA and CDS professionals may be placed by clients in positions of trust and confidence. The ultimate source of such public trust is the CDA and CDS professional's personal integrity. In deciding what is right and just, a CDA and CDS professional should rely on his or her integrity as the appropriate touchstone. Integrity demands honesty and candor that must not be subordinated to personal gain and advantage. Within the characteristic of integrity, allowance can be made for legitimate difference of opinion; but integrity cannot co-exist with deceit or subordination of one's principles. Integrity requires the CDA and CDS professional to observe not only the letter but also the spirit of this Code.Principle 2: ObjectivityA CDA and CDS professional shall be objective in providing debt settlement services to clients.Objectivity requires intellectual honesty and impartiality. It is an essential quality for any professional. Regardless of the particular service rendered or the capacity in which a CDA and CDS professional functions, a CDA and CDS professional should protect the integrity of his or her work, maintain objectivity, and avoid the subordination of his or her judgment, which would be in violation of this Code.Principle 3: CompetenceA CDA and CDS professional shall provide services to clients competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the CDA and CDS professional is engaged.One is competent only when one has attained and maintained an adequate level of knowledge and skill, and applies that knowledge effectively in providing services to clients. Competence also includes the wisdom to recognize the limitations of that knowledge and when consultation or client referral is appropriate. A CDA and CDS professional, by virtue of having earned the CDA and CDS designation, is deemed to be qualified to practice debt settlement. However, in addition to assimilating the core competencies and knowledge required, and acquiring the necessary experience, a CDA and CDS professional shall make a commitment to continuous learning and professional development.Principle 4: FairnessA CDA and CDS professional shall perform debt settlement in a manner that is fair and reasonable to debtor clients, creditors, collectors, and collection attorneys and shall disclose conflicts of interest in providing such services.Fairness requires impartiality, intellectual honesty, and disclosure of conflicts of interest. It involves a subordination of one's own feelings, prejudices, and desires so as to achieve a proper balance of conflicting interests. Fairness is treating others in the same fashion that one would want to be treated and is an essential trait of any professional.Principle 5: ConfidentialityA CDA and CDS professional shall maintain confidentiality of all client information.A client, by seeking the services of a CDA and CDS professional, expects to develop a relationship of personal trust and confidence. This type of relationship must be built upon the understanding that information supplied to the CDA and CDS professional will be confidential. In order to provide debt settlement effectively and to protect the client's privacy, the CDA and CDS professional shall safeguard the confidentiality of such information.Principle 6: ProfessionalismA CDA and CDS professional's conduct in all matters shall reflect credit upon the profession.A CDA and CDS professional shall behave in a manner that maintains the good reputation of the profession and its ability to serve the public interest. A CDA and CDS professional shall avoid activities that adversely affect the quality of his or her debt settlement advice.Principle 7: DiligenceA CDA and CDS professional shall act diligently in providing debt settlement.Diligence is the provision of services in a prompt and thorough manner. Diligence also includes proper planning for and supervision of the rendering of professional services.Part II - RulesIntroductionThese Rules provide practical guidelines derived from the tenets embodied in the Principles. As such, the Rules set forth the standards of ethical and professionally responsible conduct expected to be followed in particular situations.Principle 1: IntegrityA CDA and CDS professional shall always act with integrity.Rule 101 - A CDA and CDS professional shall not engage in or associate with conduct involving dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement.Rule 102 - A CDA and CDS professional has the following responsibilities regarding funds and/or other property of clients:A CDA and CDS professional who takes custody of any part of a client's assets for debt settlement purposes, shall do so with the care required of a fiduciary;In exercising custody of, or discretionary authority over, client funds, a CDA and CDS professional shall act only in accordance with the authority set forth in the governing legal instrument (e.g., limited power of attorney);A CDA and CDS professional shall identify and keep complete records of all funds of a client in their custody, or under the discretionary authority, of the CDA and CDS professional;Upon receiving funds of a client, a CDA and CDS professional shall promptly or as otherwise permitted by law or provided by agreement with the client, deliver to the client or third party any funds or other property that the client or third party is entitled to receive and, upon request by the client or any person duly authorized, render a full accounting regarding such funds or other property;A CDA and CDS professional shall not commingle client funds with a CDA and CDS professional's personal funds and/or other property or the funds and/or other property of a CDA and CDS professional's firm. Commingling one or more clients' funds or other property together is permitted, subject to compliance with applicable legal requirements and provided accurate records are maintained for each client's funds or other property;A CDA and CDS professional shall not use, transfer, withdraw or otherwise employ funds for his or her fees, or for any other purpose not provided for in the engagement, except when authorized in writing by the client; andA client's assets in the custody of the CDA and CDS professional shall be used only for the means intended.Rule 103 - A CDA and CDS professional shall not solicit clients through false or misleading communications or advertisements, and for greater certainty:A CDA and CDS professional shall not make a false or misleading communication about the size, scope or areas of competence of the CDA and CDS professional's practice or of any organization with which the CDA and CDS professional is associated;A CDA and CDS professional shall not make false or misleading communications to the public or create unverifiable expectations regarding matters relating to debt settlement or competence of the CDA and CDS professional; andA CDA and CDS professional shall not give the impression that he/she is representing the views of IAPDA or any other group unless the CDA and CDS professional has been authorized to do so.Principle 2: ObjectivityA CDA and CDS professional shall be objective in providing debt settlement to clients.Rule 201 - A CDA and CDS professional shall exercise reasonable and prudent professional judgment in providing debt settlement.Rule 202 - A CDA and CDS professional shall act in the interests of the client.Principle 3: CompetenceA CDA and CDS professional shall provide debt settlement to clients competently and maintain the necessary competence and knowledge to continue to do so in those areas in which the CDA and CDS professional is engaged.Rule 301 - A CDA and CDS professional shall offer advice only in those areas in which the CDA and CDS professional is competent to do so. In areas where the CDA and CDS professional is not sufficiently competent, the CDA and CDS professional shall seek the counsel of qualified individuals and/or refer clients to such parties.Rule 302 - A CDA and CDS professional shall abstain from intervening in the personal affairs of the client on matters outside the scope of the engagement.Principle 4: FairnessA CDA and CDS professional shall perform debt settlement in a manner that is fair and reasonable to debtor clients, creditors, collectors, and collection attorneys, and shall disclose conflicts of interest in providing such services.Rule 401 - A CDA and CDS professional shall make timely written disclosure of all material information relative to the professional relationship. Written disclosures that include the following information are considered to be in compliance with this Rule:A statement indicating whether the CDA and CDS professional's compensation arrangements involve fee-for-service, % commission or any combination of the foregoing. A CDA and CDS professional shall not hold out as a fee-for-service practitioner if the CDA and CDS professional receives commissions or other forms of economic benefit from parties other than the client;The client must be informed of the basis upon which the CDA and CDS professional is compensated. To this end, the CDA and CDS professional is governed by the accepted disclosure guidelines.;A statement describing material agency or employment relationships a CDA and CDS professional (or his/her firm) has with third parties, including the nature of the compensation arrangements (if applicable).A statement identifying any conflicts of interest; andThe information required by all laws and regulations applicable to the relationship in a manner complying with such.Rule 402 - In rendering services that do not encompass debt settlement, a CDA and CDS professional shall inform the client of the scope of the services that shall be rendered and that the CDA and CDS professional is not taking on the responsibilities of a financial planner. Such understanding obtained at the start of a relationship need be updated only when the nature of the services to be performed changes.Rule 403 - A CDA and CDS professional shall inform the client of changes in circumstances and material information that arise subsequent to the original engagement that may have an impact on the professional relationship or services to be rendered. Such changes include, but are not limited to:conflicts of interest;the CDA and CDS professional's business affiliation;compensation structure affecting the professional services to be rendered; andnew or changed agency relationships.Rule 404 - Where debt settlement may be compensated for on a contingency fee basis, such a fee arrangement must be disclosed in writing to the client.Rule 405 - A CDA and CDS professional shall not engage in discriminatory practices as defined in applicable human rights legislation.Principle 5: ConfidentialityA CDA and CDS professional shall maintain confidentiality of all client information.Rule 501 - A CDA and CDS professional shall not disclose any confidential client information without the specific consent of the client unless in response to proper legal or regulatory process. A client's name shall not be disclosed to another party unless specific consent has been granted for the use of the client as a reference.Rule 502 - A CDA and CDS professional is bound to professional secrecy and may not disclose confidential information revealed by reason of his or her position or profession unless required by law.Rule 503 - The use of client information for personal benefit is improper, whether or not it actually causes harm to the client.Rule 504 - A CDA and CDS professional shall maintain the same standards of confidentiality for employers as for clients while employed and thereafter.Rule 505 - A CDA and CDS professional doing business as a partner or principal of a debt settlement firm owes to the CDA and CDS professional's partners or co-owners a responsibility to act in good faith. This includes, but is not limited to, adherence to reasonable expectations of confidentiality both while in business together and thereafter.Principle 6: ProfessionalismA CDA and CDS professional's conduct in all matters shall reflect credit upon the profession.Rule 601 - A CDA and CDS professional shall not engage in any conduct that reflects adversely on his or her integrity or fitness as a CDA and CDS professional, upon the designations, or upon the profession.Rule 602 - A CDA and CDS professional shall use the designations in compliance with the rules and regulations of IAPDA, as established and amended from time to time.Rule 603 - A CDA and CDS professional who has knowledge that another CDA and CDS professional has committed a violation of this Code, which raises substantial questions as to the CDA and CDS professional's honesty, trustworthiness or fitness as a CDA and CDS professional in other respects, shall promptly inform IAPDA. This rule does not require disclosure of information or reporting based on knowledge gained as a consultant or expert witness in anticipation of or related to litigation or other dispute resolution mechanisms. For purposes of this rule, knowledge means no substantial doubt.Rule 604 - A CDA and CDS professional shall not criticize another CDA and CDS professional without first submitting this criticism to the CDA and CDS professional for explanation. Where the criticism may result in a complaint being lodged with IAPDA, the CDA and CDS professional must, where required, first submit that criticism in writing to the other CDA and CDS professional for explanation. Notwithstanding this rule, a CDA and CDS professional may first submit a criticism of another CDA and CDS professional to IAPDA, should the matter be considered of such a nature that prior notice is not appropriate.Rule 605 - A CDA and CDS professional who has knowledge that raises a substantial question of unprofessional, fraudulent or illegal conduct by a CDA and CDS professional or other financial professional, shall promptly inform the appropriate regulatory and/or professional disciplinary body. This rule does not require disclosure or reporting of information gained as a consultant or expert witness in anticipation of, or related to litigation or other dispute resolution mechanisms. For purposes of this Rule, knowledge means no substantial doubt.Rule 606 - A CDA and CDS professional who has reason to suspect illegal conduct within the CDA and CDS professional's organization shall make timely disclosure of the available evidence to the CDA and CDS professional's immediate supervisor and/or partners or co-owners. If the CDA and CDS professional is convinced that illegal conduct exists within the CDA and CDS professional's organization, and that appropriate measures are not taken to remedy the situation, the CDA and CDS professional shall, where appropriate, alert the appropriate regulatory authorities including IAPDA in a timely manner.Rule 607 - A CDA and CDS professional shall perform debt settlement in accordance with applicable laws, rules, regulations and established policies of governmental agencies or other applicable authorities including IAPDA.Rule 608 - A CDA and CDS professional shall not adopt any method of obtaining or retaining clients that tends to lower the standard of dignity of the profession.Rule 609 - A CDA and CDS professional shall not practice any other profession or offer to provide such additional services unless the CDA and CDS professional is qualified to practice in those fields and is licensed or registered as required by law.Rule 610 - A CDA and CDS professional shall return the client's original records in a timely manner after their return has been requested by the client.Rule 611 - A CDA and CDS professional shall not bring or threaten to bring a disciplinary proceeding under this Code, or report or threaten to report information to IAPDA pursuant to Rules 602 or 603 or make or threaten to make use of this Code for no substantial purpose other than to harass, maliciously injure, embarrass and/or unfairly burden another CDA and CDS professional.Principle 7: DiligenceA CDA and CDS professional shall act diligently in providing debt settlement.Rule 701 - A CDA and CDS professional shall enter into a client engagement only after securing sufficient information to be satisfied that the relationship is warranted by the individual's needs and objectives, and that the CDA and CDS professional has the ability to either provide the requisite competent services or to involve and supervise other professionals who can provide such services.Rule 702 - A CDA and CDS professional shall make and/or implement only those recommendations that are suitable for the client.Rule 703 - Consistent with the nature and scope of the engagement, a CDA and CDS professional shall carry out a reasonable investigation regarding the financial services recommended to clients. Such an investigation may be made by the CDA and CDS professional or by others provided the CDA and CDS professional acts reasonably in relying upon such investigation.Rule 704 - Before ceasing to act for a client, a CDA and CDS professional shall give the client reasonable advanced notice of his or her intent and shall make sure the withdrawal will not prejudice the client.Rule 705 - A CDA and CDS professional shall properly supervise subordinates with regard to their delivery of debt settlement, and shall not accept or condone conduct in violation of this Code. Credit Federal Fri, 26 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/344/Credit-Statistics-Survey-Report A credit statistics survery report comprised from searches spanning 114 days, reveals the percentages of bad credit, poor credit, fair and excellent credit ratings, as well as popularities with credit cards and loans. Over the past 114 days, a percentage of visitors to CreditFederal have used our self scoring credit check and/or our search tool. Below is the credit survey report:Using our self-scoring credit check:52% of visitors were in the bad credit range.20.7% of visitors were in the poor credit range.9.3% of visitors were in the fair credit range.18% of visitors were in the excellent credit range.Interesting Notes:According to the self-rated credit survey, it appears the percentage of middleclass people in the fair credit range are the minority. There's a noticeable drop in the fair credit range as compared to the poor credit and excellent credit ranges.Since the majority rated in the bad credit range, the data strengthens our concern over government legislation that will stifle; or terminate, subprime credit offers for bad credit people.For info about the dangers of government legislation, review these articles:New Government Credit Card ActGovernment Credit Card Control Dooms RewardsMore credit stats:In comparison between credit card searches for a gas card or a card that offers general travel rewards, 54.14% desired a gas card as opposed to 45.86 desiring a travel (hotel, skymiles, etc) card. Although there's not a large gap between these two card types, the data may indicate a drop in vacation travel due to the economy slump and a greater concern for fuel savings.Comparing major, name brand credit cards versus bad credit card offers, only 9.51% searched for name brand credit cards, whereas 90.49% searched for bad credit card offers. Again, this data highlights a continuing and increased need for subprime credit offers, and less government regulations which restrict; or eliminate, the availability of bad credit offers.Comparing only searches for major, name brand credit cards (excluding searches for bad credit card offers), 48.15% searched for Chase cards, 28.23% searched for American Express cards, and 23.62% searched for Discover cards.Comparing credit card searches to loan (auto, home, personal, etc) searches, 64.67% sought credit cards whereas only 35.33% sought loans.Statistics Survey Disclaimer: Data was collected online via CreditFederal's search and self-rated credit check tools. As such, these statistics may not accurately reflect consumer credit stats on a net-wide level. Use of our survey results are at your own discretion and your own liability.Is my credit score OK or average?How do you rate your credit score? Use our simple, free credit check calculator to estimate your credit range. You can also use our credit prequalification tool to gauge your credit.Other credit survey reports:Federal Credit Card Survey RatingsCredit Card SurveyVisa Emergency Savings SurveyNew Home Loan and Mortgage Refinancing Stats Credit Federal Thu, 25 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/343/New-Budget-Skills The Economic Crisis Generates New Budget Skills  The latest economic recession seems to be generating new money mangement skills from consumers. With many consumers feeling the crush of slashed incomes, finding money for debts and daily needs requires more creative measures. For some, the family budget is reflecting new budget skills toward spending less for materialistic things. Necessity often brings about a creative spirit in hard times. Now it is all about eliminating new bills, paying down debts,  and spending less.For the last few years consumers have been spending tons of money and never gave much thought to thumping down credit cards. Now, being in debt is on its way out. Consumers don't want to be in debt. Vacations and vacation homes, luxury cars, boats, designer clothes, and other high dollar things use to be paid with home equity loans or credit cards without any after thoughts. Now consumers are deciding they need to make better decisions about how their money is spent.Yes, money has possessed consumers in the past but that has been changing. Consumers are deciding to rethink spending habits, and are even reading the terms and conditions of contracts. Financial services are affected by credit reports and scores, and consumers are taking an active role in their personal credit history. The new budget is geared toward more frugal living and living with less.Here are some ways spending money has changed and is generating a new family budget: using coupons to save money, recycling, controlling utility bills, eating out less, trading out skills instead of hiring people to do a job, giving time instead of money to charities, and just becoming more thrifty.Other ways consumers are managing their budgets include: when deep in debt they are consulting professional credit counselors for advice, when having less than a few thousand in credit card debts they are doing balance transfers onto one low interest card, and they are checking on mortgage rates to determine if refinancing will be beneficial.There is not one magic budget plan to follow with all the economic woes. Consumers must take the initiative and generate the necessary budgeting skills needed to survive. Where Did All of Your Money Go???Did YOU Spend It All?Did Your SPOUSE Blow It All?Was It Wasted on 'MISC' Expenses?   Track, Sort, and Itemize ExpendituresAlso Ideal for Itemizing Tax Deductions   FREE, Easy to Use Software, Functions like an Electronic Checkbook Register.  Credit Federal Wed, 24 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/342/New-Government-Credit-Card-Act The CARD Act was signed by President Obama. The supposed aim of this potentially fatal act is to put an end to "so-called" unfair rate hikes and hidden fees. However; at a time when our economy is in desperate need of credit, democrats are putting a restrictive squeeze on the credit industry's ability to offer easy approval loans and credit cards to all consumers, including bad credit people who need credit now the most. Review our article:Government Credit Card Control Dooms RewardsIt is estimated that 80% of consumers have credit cards, with over 40% of them carrying a balance. This clearly shows how deeply Americans rely upon revolving credit for emergency expenses between pay checks.Now, the Federal Reserve has taken steps to squash free-lending by putting an end to what they deem as inadequate disclosures and unfair practices. How much more mumbo jumbo do we really need?There seems to be four areas targeted by democrats in the credit card reform. They claim these measures are to protect consumers, to make credit card statements and disclosures simpler (because the government thinks the average person is stupid), and to punish those companies whom the government feels is engaging in deceptive practices (so the congressman/senator can get re-elected for looking like a hero).But, what will be the most likely result? Less credit for everyone, higher rates for everyone and; perhaps, absolutely no credit for bad credit people.President Obama's ill-fated Law claims it will ban unfair rate increases, prevent unfair fee traps, and outline plain language disclosures and accountability. The House Financial Services Committee and the Senate Banking Committee; both overwhelmingly democrat, pushed for this legislation. Hence, when you find it even more difficult to obtain credit; or have to pay outrageously high rates on new credit, you'll know where to point the finger of blame.Because of the new law, interest rates on existing balances cannot be increased by credit card companies for "any reason" or for "universal default", and restricts retroactive rate increases due to late payments. This is a dangerous piece of legislation... if a credit card company cannot increase interest rates on a cardholder who has become a bad credit, high risk threat of default, such company will likely discontinue offering credit; or decent interest rates, to new applicants who may even vaguely represent a potential threat of default... including people with only 'some' credit problems.The new law does allow for promotional rates with new accounts, but those rates must extend for at least 6 months. You can bet credit card companies will not offer promotional rates to anyone with less than good credit, since the promo rate must extend for at least 6 months and cannot be raised if the customer proves later to have credit issues.The new law also requires credit card companies to give card holders at least 21 calendar days from time of mailing to pay. Companies can no longer charge fees for weekend deadlines, and must apply excess payments to the highest interest balance first.The new law makes it difficult for cardholders to charge beyond their credit limit, because they must first give their lender permission. Only then can the cardholder charge beyond their limit, at which time the card company may then charge an over-limit fee.There are restraints on fees for subprime and low-limit credit cards. Regarding Gift and Stored Value Cards there are restrictions for inactivity fees unless the card has been inactive for at least 12 months.Creditors must give consumers clear disclosures of the terms before they open an account. They must also provide clear statements of the activity on the accounts afterwards. Issuers must display information on statements about how long it would take to pay off the existing balance and the total interest cost only the minimum due is paid. They also have to display the payment amount and the total interest cost to pay off the existing balance in 36 months.With all this added-work now required of credit card companies (and the additional paperwork they are required to provide), who do you think will pay for these extra costs? If you guessed the cardholder, you guessed right. Although the new law prohibits credit card companies from adjusting interest rates on existing accounts of people who's credit scores drop, this means the card companies will have to automatically charge much higher interest rates from the get-go on all new accounts.Very soon, people will miss the 'good-ol days' of easy credit, the days back before democrats burdened the credit industry with rules that prevented poor credit people from getting credit and forced card companies to charge everyone sky-high rates to offset losses caused only by a minority of bad credit people.Government regulations have already destroyed the auto industry... also it was government regulations that required banks to extend mortgage loans to high risk people. Call your congressman and senator and tell them you support a free-trade nation that allows companies to compete against each other (instead of against consumers), to offer the best deals. Tell your congressman/senator to keep the government out of the credit industry. Credit Federal Tue, 23 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/341/Free-Trade-In-Vouchers-for-New-Cars The federal government will soon offer free trade in vouchers for new cars. If you have an old junker, trade it in and use the money as a free downpayment on a new auto loan. Get a free auto loan rate quote here.Be ready to get that new auto and get a $3,500 or $4,500 voucher toward the trade in of an old auto. This offer will only be available for a few short months. It is the "Cash For Clunkers" program.The government wants to get gas guzzlers off the road. Hopefully it will not only get old autos off the road but fuel the auto economy as well. This offer will only last until October 1, 2009.This just may be the thing that will get consumers back into the auto industry. Auto companies need millions of buyers and this may only provide about ten percent more than needed. Consumers who own autos that are worth more than the $4,500 for the voucher will not benefit from the program. The dealer must make sure the auto is taken off the street and crushed or shredded.Autos from 1984 or newer that gets less than 18 miles per gallon may be eligible, but there are a couple of rules. The owner must have owned it a year and it must be drivable. The new auto must cost about $45,000 or less. If it is a deal for the vouche, the dealer must prove the auto was scrapped.A similar program worked in Europe, but we don't keep our autos as long as Europeans do. Germany did offer $3,200 for autos nine years and older to be traded in and had a forty percent increse in sales.Our sales are down nearly 50% lower than 2008. The President would like for consumers to have the confidence to return to the marketplace and hopes the vouchers will work. Consumers will benefit by spending around $700 less in fuel costs each year.The Government is changing out older gas guzzlers too. They are modernizing the U.S. government's fleet with fuel-efficient vehicles. By doing this gasoline consumption can be reduced by millions of gallons each year. It can also prevent tons of CO2 in the atmosphere. Dealers are able to get your voucher for you online. Don't try and trade in any auto that is more than 25 years old and has not been insured the last year as it is not eligible. The funding will last until the money runs out, so get your clunker and get in line. Credit Federal Mon, 22 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/340/Consumer-Credit-Advocates Online Consumer Credit Advocates can help you eliminate bills and be debt free faster than counseling and much easier than bankruptcy. Review all the facts about debt settlement and decide if you want do-it-yourself free debt negotiation or to hire an agency. First of all, what is debt settlement? Debt settlement is a method of getting out of debt by negotiating a reduction of the amount owed to creditors.Next you need to decide if debt settlement is the best option for you, or if you should choose credit counseling or file bankruptcy. Review our article about credit counseling versus debt settlement, and read the highlight FAQs about debt settlement below.Will debt settlement hurt my credit? The main purpose of debt settlement is to get out of debt fast and at a substantial reduction. It's main objective is not to improve credit scores. If you partake in a debt settlement program, it is likely that your credit will get worse initially and then may improve over time, much like the affects of filing bankruptcy. But, if you already have bad credit, the affect may be minor, if at all.How long does it take to complete a debt settlement? This can also vary, mainly whether you do-it-yourself or if you hire a more experienced negotiator who; may not only be faster, but who may also have more skills to get you a larger settlement.Some of the time factors include: total amount of debt, number of creditors owed and availability of funds to be used for settlements. If; for example, your debt is $20,000 on one credit card account and you and your creditor agree to a settlement payoff of $7,000, you could complete the process in just a matter of days (if you have the $7,000 available to send immediately).Will the IRS tax the settled amount? Possibly, because creditors are required to report forgiven debt over $600 to the Internal Revenue Service. The consumer is also required to report the same amount of forgiven debt as income on their tax return. You should receive a form 1099-C from the creditors that have forgiven over $600.00 of your debt at the end of the tax year. You may be able to write off the income from forgiven debts or you may be required to pay taxes on the income amount.What's the first thing a debt settlement company will do for me? Most debt settlement companies will conduct a free budget analysis to determine whether or not debt settlement is the best route for you.What kind of debt can I settle for less? Most debt settlement companies only take unsecured debt, such as credit card debt, personal loans, medical bills, maybe utility bills, etc. Most debt settlement companies do not handle secured debts like car loans and mortgages, nor debts for child support, alimony and taxes.Once you've decided debt settlement is right for you, the next decision to make is if you want to negotiate settlements with creditors yourself or if you'd rather pass that hassle on to a debt settlement company. To help you decide, first review our free debt settlement steps and tips, as well as download our sample debt settlement letter. Here's another creditor debt settlement letter example.Here are more tips and advice to assist you:Chargeoff credit card - How to charge off credit card balances yourself, or get professional help from a debt settlement company.Debt Consolidation and Debt SettlementDebt Settlement FactsDo It Yourself Free Debt Settlement or Use a Debt Negotiation Company Credit Federal Thu, 18 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/339/Bad-Budget-Blues When your budget plan fails. Budgets are great but they can be just as difficult to follow as a diet plan. Budget failures could be from over spending needlessly, the plan is not clearly defined, reachable goals are not set, or the plan does not fit your needs.  What Happened to All of Your Money?Did YOU Spend It All?Did Your SPOUSE Spend It All?Was It Wasted on 'MISC' Expenses?   Track, Sort, and Itemize ExpendituresAlso Ideal for Itemizing Tax Deductions   FREE, Easy to Use Software, Functions like an Electronic Checkbook Register.      Checking and savings accounts can be helpful when it comes to managing money. Get a good savings account to earn interest and consider getting two checking accounts. One for all bills that must be paid and one for expenses that vary like entertainment, food, gifts etc.For the savings account, set a goal to put in something out of every paycheck and stick with the plan. It makes good sense to have a safety net for extra expenses or emergencies. When things make sense or they are important to us, we usually have more motivation and success. The motivation for a savings account can be that you will not have to worry when extra expenses or emergencies happen. The savings account could also be a way to build toward retirement or a vacation.Open two checking accounts. The first Checking Account will be just for bills. This can provide a good way to help manage monthly debts. The account will only be used to pay bills and nothing else. Look through the last few months of your bills and get a total amount needed each month. Divide it by the number of paychecks you get each month. Make sure a percentage of every paycheck gets deposited into each of the three accounts. Don't forget that utility bills can change each month and figure in any once a year bills like home insurance or auto insurance.The second Checking Account will be for expenses like groceries, clothes, school expenses, fun activites, etc.. Your family lifestyle will be revealed by these expenses. These are the areas where expenses can be cut to have more money for the bill account or the savings account. Review the last few months of your spending habits. Identify when expenses are necessary or just impulsive spending. If you can't review the last months of spending, simply begin using the two checking accounts and the savings account.If debts are a problem because spending has been out of control, consider another drastic method. It can be difficult but find an item, or an expense that can be removed to save money. For example, if you have an extra auto that is not needed, a boat, or a membership to a club, this can be a quick fix to help get out of debt. Anything that can be sold or cancelled can help with the finances.Other means of having more money could be to stop getting monthly pedicures for you or your pet, spending too much on gifts or parties, golfing, or going out to eat everyday. These type of expenses are things you may not need but just want.When debts are a problem, set a goal to delay some of your wants for a while. Once the accounts are created, the bills are identified, and the goals are set it will be time to get the budget going. Make sure that a certain amount is deposited into each account from every paycheck. Usually for something to become a habit it must be performed several times. Just like any other plan, strive to make your personal budget plan work. Online banking can be very helpful, but resist the impulse to transfer money into the fun activity account.A final suggestion is to get support in planning and implementing the budget. It could be a spouse, family member, or friend who can help you stick to your budget. They could offer suggestions, help you identify spending habits, and help set the goals for each account. They can also provide suggestions on how to reward yourself when there is success. Don't over due the reward, make it simple and not expensive. The best reward from a budget it getting debts under control and living a more stressless life.More money saving tips and budget help:Savings calculator - Calculate savings (interest) with this simple tool.Credit Card Savings AccountsStop Debt Save MoneyBudgets, Debt Management, Consolidation, Settlement, Counseling and Bankruptcy10 Personal Budget ReasonsCut Expenses from Personal Budget Credit Federal Thu, 18 Jun 2009 00:00:00 CDT http://creditfederal.com/article/blogs/338/Retire-Or-Save-Money What to do about retirement... 401k, IRA, Save Money, Retire Late, Get A Lump Sum Or Monthly Check? Many consumers who are about 55 years old and older are wondering how they can still retire early and have enough money to support themselves. With the housing market down, 401(k)s and IRAs down there is much concern.The recent economy is making not only younger people question their future, but those nearing retirement are searching for answers about how to build wealth before retiring. There is also concern about how to manage money that is in place for retirement years.The numbers are indicating that many people are not going to pursue early retirement and those ready to retire may work longer. The average age may be at age 63 and those working longer are working about 4 extra years. Many who will retire may take on a part time job. Evidence seems to indicate that retirement living may bring on health problems due to inactivity. Those who are staying active in the work force may have fewer health problems and spend less on medical expenses.On average, retirement spans about nineteen years which is much higher than the during 1950s. Making sure a nest egg is in place for those years is crucial. Anyone who  will be retiring should figure all expenses and the money that will be needed. Cutting expenses before retirement is very important.Many people may be at their peak earning power at age sixty. They also have control of their expenses or have fewer expenses. Working at age 60 could yield more toward saving. Those affected by the 2008 drop in stocks may need to consider working longer. Being able to work is an asset that can harvest good results if retirement is delayed.For those who are delaying retirement, consider cutting costs and living on a strict budget. Slash expenses that you normally pay for and do more yourself. This helps grow your savings and working keeps you active.Anyone who is age 50 could catch-up on contributions to IRAs and 401(k)s. The IRS allows contributions up to $5,000 pretax to IRAs and 401(k)s. Ask your accountant about taking advantage of retirement accounts.If you are planning for your retirement and have a pension plan at work, there may be a choice of one lump payment or a monthly annuity. Getting a check each month sounds good after what has happened in the market during 2008 - unless the need for a large sum of money arises. The monthly check may not be adjusted for inflation.A lump sum could allow more maneuvering power and provide a good stash for needed expenses. The problem could be if you were not careful and depleted the money. Investing the money is another option for a lump sum. With the economy as it is, it would be wise to check with a professional for investment suggestions. The best thing to do about a pension plan at work is check with someone in the company. Ask questions and get all the facts about both options. Also know that companies could have problems later. There is the Pension Protection Act of 2006 that is to make sure pensions are secure. There is much to consider before entering into retirement. More may be gained by staying in the workforce as long as possible and save as much as possible.More advice to help you save money and to plan retirement, and tips to pass on to your children:Free personal budget softwareTop Tips to Save MoneyDebt Free MoneyTeen Money TipsTeach Children Value of MoneyMoney Market Savings InvestingWhen to Borrow Money and How MuchManage Money With No Software TechnologyRetirement Planning SavingRetirement Planning TipsKeeping Your Home After RetirementEquity for RetirementRetirement Scams RisingRetirement Survey and ServicesRetirement Planning PitfallsSavings Plan Retirement Pension Credit Federal Wed, 17 Jun 2009 00:00:00 CDT