Information about Credit Cards

Credit cards are convenient, but unless you are careful about your spending, you may be shocked when you get your monthly bill. Keep all of your receipts in order to keep track of what you have spent. Credit cards are convenient for consumers. Cards are easy to get. Credit cards are a privilege that offers many advantages. Having a student credit card allows you to pay bills and make purchases online or over the telephone with great convenience.

Credit cards are widely used. Shops and restaurants that accept credit cards have stickers at the entrance or signs posted elsewhere to designate which cards are accepted. Credit cards are only one means of stealing your identity. They are surely the most convenient form. Credit cards are one of the financial staples of modern society and with them come the additional necessity of credit debt management. Credit cards allow anyone who qualifies to purchase things that they may not be able to purchase with cash and then pay it off in smaller payments.

Credit cards are the most commonly used medium of making purchases and paying-off debts. People believe that those who have bad credit history can never get a credit card. Credit cards are everywhere and it’s important for you to be a part of it. Credit cards are best to use if you want to borrow a small amount of money for a short time. They are best for people who have the means to pay the money off quickly, and who are good at budgeting.

Buying Fresh Mortgage Leads

Mortgage leads can be bought in quite a few different varieties. And depending on which loan officer you ask, some are better than others.

If you buy leads in bulk, most likely you will be buying old or recycled leads.

Mortgage leads can also be bought by way of cherry picking, where you can actually view the lead before you purchase it. You can also see how many times it has been purchased by other loan officers.

Or, you can buy your leads “fresh,” or hot off the press.

All types of leads can have their benefits to loan officers, but it is very difficult to compete with fresh leads.

You won’t be hearing objections, such as:

I did that months ago,” or “I closed that loan last week.”

Mortgage leads that are sold fresh, or in real time are delivered to your doorstep the second the potential customer hits the submit button on the on-line application.

If you are a loan officer or mortgage broker interested in the purchase of fresh leads, be sure you know where the lead provider is obtaining their leads from in order to assure their quality.

Look for the lead companies that obtain their leads through web sites that they own and operate on their own.

Steer clear of the mortgage lead companies that purchase their leads from third party vendors and than sell them to loan officers at a profit.

You never know how many times that third party vendor is selling those leads to other lead companies.

In the end, if it is quality that you are looking for, than give serious consideration to the purchase of fresh leads.

Build Equity By Choosing The Right Mortgage

Homeownership is the key to building wealth for most people because it is an involuntary savings account. As you pay down your mortgage each month, the value of your interest in the home rises.

Build Equity By Choosing The Right Mortgage

Equity is a beautiful word as every homeowner knows. Once you get used to making your mortgage payments, you can rest assured that you are creating a nest egg every month. Throw in the appreciation on the property and your nest egg can grow large before you realize it. This savings account, better known as equity, can provide the means for putting your kids through college, dealing with emergencies and retiring.

Building equity is fairly simple. Just make your monthly mortgage payment. There are additional steps you can take to move the process along at a faster pace. These steps are all about the type of mortgage you obtain when you purchase your home.

When you purchase a property, particular for the first time, it can be a stressful event. Right or wrong, most people tend to take anything they can get in a mortgage loan so they can meet the closing of escrow. This is understandable, but can come back to haunt you financially. If you can step back from the chaos for a moment, you might consider the following options that will help build equity.

A 30 year mortgage is the default for most homebuyers. It is the first thing that comes to mind and most assume it is the safest option. A 15 year mortgage, however, is going to cut down on the total interest you pay on the loan as well as supercharge your equity growth. The 15 year loan is far better than a longer option, but only if you are absolutely sure you can meet the monthly payment requirements. If you have any doubts whatsoever, there is another option that you can consider.

Making prepayments on principal is a simple, proven way to build equity. The idea is to make an extra monthly payment when you have sufficient cash to do so. Effectively, you use your home as a savings account by doing this. The advantage over other investments is the equity growth should be tax free. Before taking this step, find out from your lender if there are any prepayment penalties. Regardless, making two of these payments each year will quickly build equity in your home.

If any of these ideas sound interesting, you can still take advantage of them even if you currently have a mortgage. Refinancing your mortgage gives you an opportunity to correct mistakes you made when you more focused on getting through escrow. Talk with a mortgage broker to find out your options.

Dealing With Your Debts

Managing your debts is probably something that you keep putting off. It is pretty difficult to do when the creditors continue to call. And call. And call some more. It is about time you quit hiding, and start dealing with your debts face to face. There are steps that can be taken to assist you in managing your debt, and clearing your name from the creditors phone list once and for all.

The first thing you should do is develop a budget. This is a crucial part in eliminating your debts. It also assists in helping you take control of your current monetary position. You need to first examine your set expenses such as mortgage, car and rent payments, insurance co-payments and premiums,etc. Then list your other costs such as entertainment and recreational activities. You must prioritize these expenses and determine whether or not you have enough money left over each month to donate to your debt reduction efforts.

Another option in reducing debts is to increase your monthly payments on credit cards. When you pay more than the minimum payment, a greater sum of money is applied towards the overall account balance. In the end, this will cost a person less money in interest. If you add just a few extra dollars each payment, the number of payments of each loan or credit card can be decreased. What does this mean for you? Decreasing the amount of payments made lowers the sum an individual pays in interests and in fees and charges.

When attempting to manage your debts, you should contact your creditors immediately. Occasionally, if you let creditors know that you are attempting to eliminate your debts, credit companies will decrease your card interest rates. Also, if you are having problems making monthly payments, let the creditor know, and many will arrange a specialized plan for you.

Consolidation is a significant option in reducing and managing your debts. Having numerous high interest loans, high interest bills or credit cards causes you to spend more money for the items that were purchased then they were actually worth.If you are a real estate owner, think about a second mortgage or even a home equity loan. This will eliminate the high interest rate debts. However, beware. Most of these types of loans will require you to put up your house as a source of collateral. If you fail to make your payments, you could very easily lose your home.

Credit counseling may be the perfect solution for managing your debt. Most credit counseling services assist you in coming up with a logical option for eliminating debt. These organizations can provides a variety of services such as, debt managing advice, and classes and workshops aimed towards money management, debt consolidation and budgeting.

Is Filing For Bankruptcy The Solution?

Bankruptcy may seem to be an easy solution for major financial problems. But it is always better to avoid filing bankruptcy at all cost and to turn to it only as a last resort.

Once you file for bankruptcy, this point will remain on your credit record for ten years. This will make it difficult for you to receive loans and credit. Some lenders may allow for limited credit with bankrupt; but only after extensive explanations, and at a higher interest rate and with added credit fees. Another reason for avoiding bankruptcy is that some types of bankruptcy call for repossession of assets. Once the bank finds that there is something with you that is not necessary for living, the item may be seized to pay for debts and bankruptcy expenses.

With bankruptcy, financial difficulty will not be solved and your life becomes an open book as the court pries into all aspects of life wherein you will have to provide all financial information like savings, investments and assets. Though bankruptcy may seem to suggest some freedom from financial debts, there may be other debts that will have to be paid like alimony, court judgment costs or child support.

So keeping these points in mind, it is always better to avoid bankruptcy. Debt consolidation is one of the best means of avoiding bankruptcy. These companies help you by examining your current loans and come up with a program that incorporates all these debts. The company handles the payment to all the creditors; you just have to make a single payment to them every month. They will also get you a lower rate of interest and a longer time period to repay the loans, thus making you save some money.

Easy access to credit cards and credit accounts at department stores has now made it rather easy to fall into debt. It is better to pay bills with cash, and not use credit when money runs low. So cancel the credit card account! If you fall in debt, instead of hiding from the debt companies, it is better to talk to them as they may be able to negotiate and help you solve your debt. It is always better to plan a budget calculating debt ratio to income when in debt. Just write all the bills and expenditure that you have. Then you can determine how much has to be paid for bills, and how much is left for other spending. If required, you can also sell your home and downsize to avoid bankruptcy.

The only benefits of filing for bankruptcy are that the stress of dealing with numerous creditors is relieved. Once bankruptcy is discharged, as most of the debts get written off, creditors cannot pursue them. However, the disadvantages to bankruptcy are many. Businesses can be sold and employees dismissed with bankruptcy. Equity in a home is most likely to be sold as with bankruptcy, reliable assets of value are lost.

Bankruptcy is a costly process where all the fees for courts and trustee are drawn from the debtor’s assets. On filing for bankruptcy, it is not possible to hold certain public offices like MP, magistrate or even practice as an accountant or a solicitor. Moreover, with the new bankruptcy reform law, it is difficult to use Chapter 7 bankruptcy to get a new start in one’s financial lives.

Under the old law, one could file for bankruptcy through Chapter 7 or 13. In Chapter 7, you can keep your exempt property like the equity in your home. Here most of the debts are discharged. However, in Chapter 13 bankruptcy, you have to agree to pay off all your debts over a period of three to five years. So according to the new bankruptcy law, most of the bankruptcies are forced to file for Chapter 13 bankruptcy.

Moreover, according to the new law, you have to meet with a credit counselor for six months before applying for bankruptcy. However, as there are insufficient credit counselors, it is rather hard to accomplish this. It is also required that you attend money management courses at your expense before discharging your debts. However, it is always better to approach a good bankruptcy lawyer before taking any steps!

Debt Collection Facts

Debt Collection Facts


The insolvency procedures open to a creditor are a powerful
tool in recovering debts.  Whether the debtor is a company or an individual, an
intelligent application of the insolvency rules can enable a creditor to obtain
payment of their debts without the need for protracted and costly litigation.

The insolvency rules can be used for a broad range of debts
exceeding £750 provided that the debt is not genuinely disputed by the debtor.
Insolvency procedures however can be a high risk strategy and one needs to be
very careful in using these procedures. There are substantial adverse cost
consequences where the procedure is incorrectly used.


It is often the case that debts that are difficult to
collect from the debtor company are as a result of inadequate checks being made
as to the financial strength of the company when the contract was entered
into.  It is therefore essential that you should check the credit rating of any
potential new customer or client and where there is concern as to the ability
of the company to make payment for goods or services supplied, then you should
obtain a guarantee either from a parent company of sufficient financial
standing or an individual to ensure performance of the contract.

It is essential that any guarantee is documented in writing
and clearly places the guarantor under a binding and contractual obligation to
meet the liabilities of the company or individual if they default in meeting
their contractual obligations.  It is essential that the wording of the
guarantee is well drafted as the courts tend to construe the terms of a
guarantee strictly and will only find that there is a third party liability if
it is quite clear from the wording of the guarantee.


Where a debtor has failed to pay you monies for goods or
services supplied, it is normal to charge interest for late payment.  Interest
can be charged either in accordance with your terms and conditions of business
provided your terms make provision for this or, alternatively, you can apply
the Late Payment of Commercial Debts (Interest) Act 1998 which allows you to
claim interest on overdue accounts.  If the contract with the debtor predates
7th August 2002, then businesses that are eligible to charge interest can do so
at a rate of 8% above the Bank of England base rate that was in place on the
day the debt became overdue. For contracts dated on or after 7th August 2002,
all businesses can charge interest at a rate of 8% above the late payment
reference rate.

The Bank of England base rate on 31 December, is the “reference rate”
for debts becoming overdue between 1st January to 30th June each year.
The Bank of England base rate on 30 June, is the “reference rate” for
debts becoming overdue between 1st July to 31st December each year.


A well drafted set of terms and conditions of business will
include a retention of title clause.  The effect of such a clause enables a
seller of goods to retain ownership of the goods supplied until payment has
been received in full.  This can be of great value where the purchaser of the
goods supplied becomes insolvent.

There are various types of retention of title clauses but
the essence of a well drafted clause means that a seller will have added
protection in the event of failure by the purchaser to comply with their
contractual obligations and pay for the goods ordered.  In particular where a
buyer subsequently goes into liquidation after acquiring stock which is subject
to a retention of title clause, then the seller of the goods may be able to
obtain the return of the goods notwithstanding the fact that the buyer has gone
into liquidation.

A carefully drafted retention of title clause is a powerful
tool to assert ownership rights and recover property.  They can however be
complicated and need careful consideration.


One of the major reasons that clients have difficulty in
recovering their debts is because they either have inadequate terms and
conditions of business or they in fact fail to have any written terms and
conditions of business.

Although terms and conditions will vary from one business to
another and from one industry to another, certain key areas are common to all
businesses and need to be addressed in your terms and conditions.  Your terms
and conditions should :-

– Ensure that the customer or client’s details are correctly shown.

– Make clear whether you are dealing with an individual, a
partnership or a limited company.

– Set out what services or goods you will be supplying.

– Clarify when payment is due.

– Make provisions to protect you if for good reason you are unable
to supply the goods or services or only part deliver the goods or services or
if faulty goods or inadequate services are provided.

– Ensure that you retain ownership of goods until payment in full
is received.

– Make clear any additional charges that may be payable if the
customer or client fails to pay in accordance with the payment terms.  In
particular the right to claim interest and the right to claim for collection
costs and solicitor’s fees should be clearly set out in the terms and conditions.

– Ensure you comply with all statutory


A well drafted set of terms and
conditions will make collection of a debt substantially easier.