Tidbits® - May 2006
Credit insight from Credit.com
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 focusing on recovering from credit problems. We'd love to
hear from you! Send an email to tidbits@credit.com with your credit
questions or comments anytime!
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 ormicrowaving can ruin
the magnetic strips.
Click here to read more about reducing your debts -
http://www.credit.com/r/tidbits_debt2wealth/af=p40523&ag=debt
Credit Crisis 101
Tips for Handling Financial Emergencies
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. Check your credit report and credit
score here for free - http://www.credit.com/r/truelink/af=p40523&ag=article
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 - http://www.credit.com/r/tidbits_payday_loans/af=p40523&ag=article
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 - http://www.credit.com/r/tidbits_debt/af=p40523&ag=article
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.
Apply online here -
http://www.credit.com/r/ploanc/af=p40523&ag=article
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
-
http://www.credit.com/r/tidbits_contact/af=p40523&ag=article
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.
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.
Read more about refinancing your mortgage online here -
http://www.credit.com/r/tidbits_eykatmiiw/af=p40523&ag=feature
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 - http://www.creditbloggers.com/2006/04/how_to_cope_wit.html
Quote of the Month
Empty pockets never held anyone back. Only empty heads and empty
hearts can do that.
- Norman Vincent Peale
Tidbits® - May 2006
About this newsletter
This information has been compiled and provided by Credit.com as
a service to the public. While our goal is to provide information
that will help consumers to manage their credit and debt, this information
should not be considered legal advice. Such advice must be specific
to the various circumstances of each person's situation, and the
general information provided on these pages should not be used as
a substitute for the advice of competent legal counsel.
Credit.com
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