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Welcome
to the Credit.com newsletter!
Each month, this free email newsletter delivers easy-to-read
tidbits about credit directly from personal finance experts.
In this issue we're talking about managing a financial
crisis, freezing credit cards and refinancing mortgages.
We'd love to hear from you! Send
us an email with your credit questions or comments
anytime! |
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Quick
Tip
Having
trouble with your credit card debt? Freeze your credit
cards in a block of ice and leave them in the
freezer until you've reduced your balances. If you need
to use the cards, you'll have a built in "cooling
off" period while they thaw. Freezing will not
damage the cards. No cheating! Heating or microwaving
can ruin the magnetic strips.
Click
here to read about reducing debt. |
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Featured
Article
Refinancing
your home loan should be all about lowering your monthly
payment, right? Wrong! Read the truth about refinancing
from our mortgage expert, Randy Johnson.
Find
out more
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On
the Blog
Gas
prices are on the rise again. Paying more than $3.00
a gallon at the pump can have a major impact on your
monthly budget. On CreditBloggers.com we've go tips
for making your car more fuel efficient and ideas for
dealing with expensive fuel costs.
Read
tips for dealing with gas prices.
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Credit Crisis 101
Most people have experienced a financial emergency at one time or
another. Such an emergency could be something as "simple" as not
being able to make ends meet in a given month, or as complicated
as facing a bankruptcy filing. Here are a few tips to help you during
a financial crisis:
Short on Cash
If you find yourself unable to pay all your bills, it is important
to prioritize. Paying your rent or mortgage should be your first
priority. After that, pay the accounts that appear on your credit
reports. Leave utilities and other bills for last. Consider
using credit cards, obtaining an advance on your paycheck, or borrowing
money from a relative or friend in order to pay your bills. Emergency
payday
loans can also be a good option, but only if you understand
how to use them responsibly.
Deep in Debt
If you are facing a large amount of debt, you should develop
a plan for paying it off over time. Calculate
exactly how much you can afford to pay toward your debts each month.
Subtract all your minimum payments from this amount and put the
rest towards the debt with the highest interest rate and the highest
balance. Track your progress monthly, and don't add new charges
to your accounts. Find
more debt help online.
Being Sent to Collections
Unpaid debts, such as medical bills, library charges, video store
charges, and credit card bills, can be sold to collections agencies.
Take collection notices seriously. Once a debt is sold to collections,
it will remain as a negative record on your credit
report for seven years. You should try to pay the debt before
it is sold, even if you don't believe the bill is accurate. You
can continue negotiating with the company after you have paid the
debt.
Sudden Unemployment
In the event of a job loss, it can be difficult to make ends meet.
If you were laid off, you should see if you qualify for unemployment
benefits. You can also contact your creditors, explain that you
are temporarily unemployed, and find out what sort of payment options
they offer. You may want to reduce your expenses and take out a
personal
loan to get by until you find a new job.
Facing Bankruptcy
Don't wait until you are completely broke before choosing bankruptcy.
If you think a bankruptcy filing may be the only solution to your
financial problems, start talking to a bankruptcy lawyer early.
Be prepared for your bankruptcy filing to cost $300-$2,000. Keep
in mind that bankruptcy damages your credit
scores for up to 10 years. It should only be considered
as a last resort.
If you take a step back and consider all the options available to
you, you can take control of your financial crisis. Don’t
let a short-term money problem turn into a long-term nightmare.
If you have questions about your situation and what services are
right for you, contact
our customer service team for assistance.
Bonus Tip:
Remember
to communicate with your creditors and lenders during a financial
emergency. It can seem intimidating, but these companies often provide
valuable help to customers in distress.
Quote
of the Month
Empty
pockets never held anyone back. Only empty heads and empty hearts
can do that.
- Norman Vincent Peale
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