Posts Tagged ‘debt consolidation’

Consolidation of debts: Why it’s not the solution?

December 9th, 2016 by eldecoin under debt consolidation

Many people talk about debt consolidation as a solution to their debt problems.

However, most of the time it is an empty promise that, by not solving the root cause, ends up generating more problems.

WHAT IS DEBT CONSOLIDATION?
The consolidation of debts implies, in some way, to take a loan and with the amount of this, to liquidate all the others that we have in force. That is: we change all our debts by one.

For this to make sense, the new debt should have a significantly lower interest rate than the loans we had. And of course: the amount we have to pay each month should also be much lower, so that we can be a bit less tight in our cash flow.

The problem is that this rarely happens. If we are indebted to the neck, as it is commonly said, it is very difficult to obtain a loan that is sufficient to be able to pay all the other debts that we have. But in addition, in case we can get it, it is very unlikely to be at a lower interest rate, since we represent a risk to the institution that gives us the money.

Finally, the new debt that we have acquired has to be a long term so that it can actually imply a lower monthly payment than we had before doing the debt consolidation.

WHY IS DEBT CONSOLIDATION NOT THE SOLUTION?
People who have a severe debt problem usually bought it because for several months – or years – they have become accustomed to spending more than they earn. That is, the money they receive is not enough for them to live, and therefore they have to use credit to get ahead.

Debt consolidation does not solve this – it’s simply changing several loans by one. The underlying problem, the reason we fall into a severe problem of indebtedness, is still there. And this can be very dangerous.

I have seen several cases of people who managed to consolidate their debts but continued to use their credit cards: those who paid with the amount of the new loan they obtained to make the consolidation.

Then, they are left with a great debt – the consolidated one – but they begin to acquire others derived from the use – again – of their credit cards.

Many readers might think this is very innocent and very little happens. For I have seen it: it happens much more often than you imagine. The reason is very simple and we have already commented: people are already accustomed to spend more than they earn. They usually can not meet their needs – and the payment of consolidated debt – with the income they have.

Then, they are forced to take back their credit cards, which causes their problem to grow and again get out of control. There is even a very close case of friends who consolidated their debts through a liquidity mortgage. But they went back to using their credit cards and little by little they were falling into a huge problem. Now they have a high risk of losing their home: they are struggling a lot to continue paying that mortgage.

There are occasions, however, in which debt consolidation can make sense. Of this I will speak in the following post.
WHAT DO YOU CONSIDER OF DEBT CONSOLIDATION?

What is consolidation, reunification or unification of debts?

December 9th, 2016 by eldecoin under deuda

If we were forced to take action with our debts, there is the possibility of debt consolidation in a single and long term, which would reduce the monthly payment.

To carry it out you need to own some property that will be mortgaged, be able to pay the unified amount, have a steady income, and may a guarantor.

The amount to be paid is considerably reduced as we stop paying interest on each debt and because the interest on the mortgage is lower than other loans.

Definition of debt consolidation: The consolidation of debts consists of obtaining a loan to pay other loans and / or credits (credit card, etc.). With debt consolidation you can pay off several debts in a single monthly payment. Debt consolidation is just one of the solutions to reduce your debts.

The desire to possess material things has made people have major debt problems today. Debts happen mostly because of the uncontrolled and impulsive spending of a person beyond their means.

It is important to get rid of debts, because if you get to have large debts you can damage your financial history or even lose your home. But every problem has a solution, millions of people have transformed their debts into a learning experience and have been able to pay them off.

Debt consolidation is one of the solutions to get rid of all your debts.

What is Debt Consolidation?

Consolidation, reunification or unification of debts is a process that allows you to convert all your monthly payments into a single payment less than the sum of all your current monthly payments, hence the term consolidate or unify, because it groups all your debts into one.

In order to carry out the consolidation it is necessary that you are the owner of some property, even if it is mortgaged. Unification consists of mortgaging your property or renegotiating the mortgage you currently have to pay your other debts. There are also companies that grant loans to carry out the consolidation, but you have to be very careful if you take this path.

When you cancel other debts, and since the interest rate on mortgages is much lower than that on personal loans, credit cards, etc., you save a lot of money on interest, so your debt is reduced. When you reduce your debt the only monthly fee you will have to pay after reunification is usually also lower than the sum of all that you paid before.

Ultimately, what you get with debt reunification is to convert all your current debts, whether long or short term, into a single minor and long term debt, and with it, pay less each month.

Requirements for Debt Consolidation

A copy of your monthly expenses, to present it at the bank and see if you are able to pay the monthly unified amount.
You must have stable monthly income to repay the loan.
You may need a co-signer (a person who signs as being responsible for your payments if you do not) or a material guarantee, such as a house or a car.

Types of Debts Eliminated with Debt Consolidation

Debt consolidation loans are usually granted to pay off any of the following debts:

Credit card debt.
Medical debt.
Card debts granted by commercial entities.
Personal loans.
Loans for studies.
Checks rejected.

How to make a dispute of an error in your credit report with Experian

December 7th, 2016 by eldecoin under Uncategorized

Let’s give some tools for yourself (a) repair your credit history.
You know the first thing to do is make sure that what appears on your credit history is correct. Read here our article on how to request your free credit history once a year.

If you find errors in your credit history such as:

Errors in identification: name, address or phone
Accounts that are not yours
Accounts and payment (hill) but appear still open (with balance)
Accounts that you have paid on time and appear as late or delinquent

The same account appears several times with different companies (this happens a lot with bone criminals those already sent to collectors – collections)

Debts of more than 7 years and should have already disappeared from your credit history.

Accounts with the wrong balance
Accounts with credit limit incorrect

You must correct them immediately. Each of these errors takes away points to your credit score.
Errors in the credit report? To do to correct errors:

Unfortunately, it takes time to correct mistakes. And you can not rely on companies that are committed to correct them. So you say they’re going to do. You have to make sure to document the corrections. Do not trust that others will do what they promised it …
Contact the company that reported the error to your credit history:

The company that sold the product or pay the servicion. Contact phones must be in their receipts or look for them online. Inform error reporting your credit history and ask to have it corrected. Also have evidence that your statement or balance.

That statement will show the correct balance and other information you consider important to your credit. Many times you can see your receipts and statements online accounts.

Contact the 3 credit bureaus:

You can do this in several ways. Electronically by going directly to the websites of them. Here I give you the link of each of the three credit reporting companies. Copy them into your browser or click on the link.

Equifax: https://www.ai.equifax.com/CreditInvestigation/home.action. Link a dispute with Equifax here

Transunion: https://www.transunion.com/credit-disputes/dispute-your-credit. Link a dispute with TransUnion here

Experian : https://www.experian.com/disputes/main.html. Link a dispute with experian here

Have ready documents (statement) that prove that you are “right” . If an account already paid and the company does not give you back your balance or for any reason does not test can send copy of payment (bank statement, canceled check image, etc.).

Send all explained and documents that prove what you say either. Try to use short, clear sentences. Employees do not have the time or patience to read long and complicated explanations.

An example of Dispute:

Error: The xyz company reports that my balance is $ 50 but already fully paid.
Xyz call and ask to correct the error with the credit bureaus. We asked the statement or go to the website to download the statement with balance $ 0.

2. Then go to the 3 websites of credit card companies and report the error.
In the explanation we wrote:
My account 1234 With XYZ has an error in the reporting
The balance is $ 0

I was never late. I paid the full amount with my credit card in 01/01/2016
I am attaching proof of the balance and payment
Please the late payment removed from my credit report
And then we got the documents proving that what we say is true.
Wait 30 -45 days for agencies to process your dispute
These steps are those that have to do for each of disputes.

The credit bureaus will read and investigate their documents and explanation and 30-45 days will make a decision: correct information, ask more documents or explanations or deny the request. Be sure to send the necessary documentation to you quickly correct the errors.
If you can not ask them to correct the errors on the website (do not give you access to dispute system, etc.) can send a letter by certified mail. Be sure to correctly identify (full name, address, social security number, date of birth, etc.).

Contact Because I made the mistake and agencies?

It seems we’re doing double work, calling those who reported the error and the credit bureau to fix it. Why?
Many times companies (employees) are very busy and “help” with our problems is not a priority for them. The probability is high that not contact the credit bureau.

Many times companies have an error in your documents and if we do not tell them to correct it when the credit bureaus contact them to ask if the bill is wrong they will say no. And agencies will deny the dispute.

Remember when you correct a mistake must do so with the 3 credit bureaus. And do it yourself (a) do not wait for banks or other companies do.

Is it advisable to make a experian dispute? When to do it?

December 7th, 2016 by eldecoin under Uncategorized

Often errors occur with our Experian credit, and we need a solution as soon as possible, so it is ideal to perform an experian dispute, in order to be able to claim any inconvenience that appears in our credit report, including those accounts that are closed.

In order for this process to be done quickly and easily, it is best done online on the Experian website, since in only one session, you get the recent credit reports, in addition to being able to verify The incorrect information and make our dispute, in addition can be kept a follow up to see the status of the complaint and / or results.

To perform an experiment dispute you must:

Request a copy of our most recent credit report or a copy, as it will only be valid for 90 days.

Identify the report number.

Perform a complete visualization of the report, identifying the specific information that is inaccurate or erroneous. From there you should go to the page of Experian and look where conflict says, entering the place of disputes.

Enter the number of our report and the social insurance, always following the instructions.

Once inside, start filing your dispute experian, looking closely at all credit accounts, then follow the instructions until you submit your complaint and close the system.

The dispute will be answered in the next 30 days, where Experian will contact its creditors to verify the information, since if it is not correct it can be eliminated.

Finally an email should be expected in response, where the results of the investigation will be notified, showing the results of the complaint.

It can be said that this is the best alternative to solve any inconvenience that comes with your Experian credit, because in making direct contact with the company and its creditors, you will have more reliability and better results, putting your statements in good hands And solving any wrong situation with your credit.

To file a dispute with Experian credit bureau

December 7th, 2016 by eldecoin under Uncategorized

You must write a dispute letter. When they receive their dispute letter they will investigate the disputed list. The first step is however to get a copy of your credit report. You can get a free credit report once a year from each credit bureau. I recommend that you go to the annual credit report, which will provide you with your free copy.Once you have received your credit report you need to identify which brands are incorrect.

These will be the signs that you will dispute.You will dispute the articles by creating your dispute letter and mail it to the Experian credit bureau. Once they receive your letter they will determine if it is valid or invalid.If it is considered invalid then you will write you request more information about the dispute. If this happens, you will have to respond accordingly and provide the requested details.However if you find your dispute valid you will investigate the mark.

During an investigation you will get in touch with the creator of the topic and ask them to verify the account, balance, and found the dates to the account.It the investigations will often result in a list being withdrawn. This is the result of many companies not being willing to spend checking resources disputed debts.You can also hire a credit repair service to dispute negative credit in your report as well.

If you choose this option, you will only have to identify each brand you want to dispute and they will make the case rest.In an item is verified then a credit repair service can be very useful as they have advanced techniques of solution Differences. These include; Creditor direct intervention, escalated conflicting information requests, and debt validation.If you have several bad credit items you wish to dispute then I suggest you hire a service, plus you will have no problem getting a valid dispute submitted. However, if you only have one or two bad credit articles to dispute then you can do it yourself.

Be aware that you should send a dispute letter to each credit bureau. If it is not possible to remove a negative mark from your credit report Experian however this mark will remain on your credit report.In addition Equifax and TransUnion can dispute Experian and cause you to withdraw negative credit from your

How can I dispute an error on my credit report?

December 7th, 2016 by eldecoin under Uncategorized

Contact the credit reporting company and the company that provided the information. You must explain what you think is wrong, why, and include copies of the documents that support your challenge.

Warning: Do not include the original copies of the documents that will serve to support your challenge.

Tip: To correct mistakes, you can help communicate with both the credit reporting company and the source of the information.

If you find an error in a report from a credit reporting company, you can file a challenge not only to the credit reporting company, but also directly to the company that originated the information. However, there are certain types of disputes that companies are not required to investigate.

If the company corrects the information as a result of its challenge, it must notify all credit reporting companies that provided the wrong information so that they can update their reports with the correct information.

If you file a challenge by mail, your challenge letter must include:

Full name
Address
Phone number
The confirmation number of the report, if available
The number of the account in dispute.
Tip: Clearly identify each error, state the facts, explain why you are challenging the information and request that it be deleted or corrected.

You may want to include a copy of the portion of your credit report that contains the disputed items, circle or highlight the contested items. You must include copies (not original) of the documents that support your position.

Challenge letters for credit reporting companies must send them by registered mail, always requesting an acknowledgment, to have a record that your letter was received.

You can communicate online, by mail, or by phone with the various national credit reporting companies:

Equifax
Online: www.ai.equifax.com/CreditInvestigation
By mail: Click here to download the dispute form
Send the dispute form with your letter to:
Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30374
By Phone: The telephone number appears on the credit report or at (800) 864-2978

Experian
Online: www.experian.com/disputes/main.html
By mail: Use the address on your credit report or send your letter to:
Experian
P.O. Box 4000
Allen, TX 75013
By Phone: The phone number appears on the credit report or at (888) 397-3742

TransUnion
Online: www.transunion.com/personal-credit/credit-disputes-alerts-freezes.page
By mail: Click here to download the dispute form
Send the dispute form with your letter to:
TransUnion Consumer Solutions
P.O. Box 2000,
Chester, PA 19016
By phone: (800) 916-8800

Keep copies of your dispute letter and attachments.

Tip: If you have a complaint about a credit report, you can submit it to the CFPB online. We will send your complaint to the company and we will do our best to get you an answer.

Warning: Do not include original copies of the documents used to support your dispute.

Tip: To correct errors, contact both the credit reporting company and the company that provided the information.

Tip: If you suspect that the error in the report is the result of an identity theft, visit the Federal Trade Commission’s Anti-Identity Theft website for information on identity theft and steps to Follow if you have been a victim. This includes filing a fraud alert and possibly blocking your credit report for safety.

What does experian dispute mean?

December 7th, 2016 by eldecoin under Uncategorized

The experian dispute consists of making a complaint to the credit agency Experian, when you want to improve our credit score or remove elements that are not correct from our reports, for this you must submit a dispute, either online through Website or sending a letter, delimiting details of our complaint.

Steps to submit dispute experian:

Locate a copy of our Experian credit report, which can be found annually by going to AnnualCreditReport or by calling 877 322 8228.
Take into account what elements of the credit are wanted to present in the complaint.

Visit the experian site, initiating the dispute in the next 3 months after receiving credit reports, which has a report number that will be activated during this time period only.

When entering the site, place a mark next to where the online dispute begins, then press “continue”.

Record the personal information on the page, where you will be asked for the number of the report and social security, state where you are and your zip code.

After placing checkmarks in the details should be sent, from there you get a copy of the report.

Then identify the element to dispute, giving details that justify the reason for it.

Enter our email at the end, so that we can receive a response in the same, which can be received in 30 days.

If the dispute does not comply with what the person expects, another must be made in writing, including evidence that physically proves the error of Experian.

If the dispute is to be made in writing, a letter containing data such as name, address, telephone number, date of birth, social security numbers and credit reports, photocopy of identification and any recent invoice of any Service, as long as you have the name of the person.

File a dispute with Experian in writing

December 6th, 2016 by eldecoin under Uncategorized

Get a copy of your Experian credit report. You can get a free copy of your Experian credit report annually by visiting www.AnnualCreditReport.com or by calling (877) FACTACT and requesting your credit report.

Identify the credit elements you want to dispute with Experian.
You must file your dispute within 90 days of receiving the credit report, as each credit report contains a unique report number that expires after that time.

Prepare a letter for Experian that contains the following information:
Your full name, address and contact phone number
Birthdate
Social Security number
Credit Report Number
A photocopy of a valid photo ID, such as a passport or driver’s license
A copy of a recent bill for basic services that includes your name and address
A list of each item of credit in dispute and an explanation of why you think the information is not correct
All physical evidence or document that supports your dispute

Send your letter by mail and all applicable information to Experian to: Experian, P.O. Box 2002, Allen, TX 75013. Then Experian will open an investigation about your dispute and will contact you via email or telephone with the result of the investigation within 30 days.

Tips

Another possibility is to file your dispute to Experian by phone at (888) 397-3742 or (800) 493-1058. However, financial experts do not recommend submitting disputes over the phone and instead suggest filing disputes online or by post so that you have physical or digital evidence of them. [4]

If you want to apply for a loan and you have difficulties being approved, get a copy of your credit report and dispute all the incorrect information with Experian and other credit reporting agencies. It is possible that one or more of an incorrect credit item is interfering with your loan approval.

Debt Consolidation: The Tips You Need To Know

December 24th, 2013 by eldecoin under Info, Uncategorized

How did you end up in debt? Was it something you never saw coming? Did it happen outside of your control? Do you want to know how you can fix it no matter how it began? The steps you need to take to use debt consolidation to fix your financial faux pas can be found below.

Don’t fall victim to companies claiming to cut your monthly payments in half with just one phone call. It is understandable that you want a quick solution to your problems, however, you can just be making your situation worse. Sit down and consider the different debt consolidation options that are available to you and decide on the pros and cons.

Be cautious about working with a company that has a lot of ads or that solicits through email campaigns. Good companies usually get referrals from other clients, which means they don’t have to resort to trying to drum up business through spam mail. Obviously, all companies will have some advertisements, but be wary of those that seem over the top.

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Ask your debt consolidation firm about any sort of education services they offer. Quite often, these firms have excellent training opportunities that can help keep you out of this situation in the future. That’s important for your financial well being! Take advantage of any opportunities that they might have, even if you think you’re already prepared.

Try paying your debt off with a credit card. Apply for a credit card with no interests and use it to make payments to your creditors. Pay the minimum amount on your credit card once a month. This is a good way to buy more time to pay your debt off.

When struggling with making several payments, you may want to see if you can qualify for a personal loan. These signature based loans are based on your credit profile. One benefit to these type of loans is that they lower your payments by extending the length of the loan.

When trying to pay debt off, you have two options. Option one is to pay off the smallest debts first. The second option is to pay the highest interest rates off first. Both options have their own set of benefits, so choose the option that works for you and begin getting out of debt today.

Do not get involved with a debt counselor that works for a company that pays by commission. This is a red flag as it’s going to alter your situation according to the best interests of the debt counselor and not your best interests. Instead, look for a reputable company that pays their counselors accordingly.

There is no harm in comparison shopping for consolidation loans. The fact is that some financial institutions, or friends and family, may offer you a better rate than others. Whether it is a line of credit, mortgage, credit card or loan, compare the interest rate and terms and figure out which is the best bet.

Learn about the privacy and security practices at any debt consolidation company you consider. It’s important that you know that there is a policy in place, even if it’s not something you think about all the time. You are going to be giving them very personal information, so make sure that the information is protected.

Make sure the money you pay the debt consolidation company gets to your creditors. Follow up every month to make sure that your creditors have gotten a payment. Some debt consolidation companies tend to skim some of your payment to put toward various fees, but you need to make sure you know what is going on.

Before you make a payment offer, make sure that you can truly afford the payment. Although saving 30 percent off your minimum payment may sound good, it will not help you unless you can afford the decrease in payment. Once you have determined the amount you can afford, contact your creditor and try to come to a payment agreement.

Ask the debt consolidation company what they will say to your creditors. They will negotiate on your behalf, but make sure that the terms they are going to offer are terms that are acceptable to you. You don’t want to get into a worse financial situation than you already are in.

Christian debt consolidation is very similar to standard debt consolidations except it is based on principles taken from the Bible. Christian debt consolidation works to help Christians break the bondage of debt and free themselves so they devote themselves to God with their whole heart. Without the weight of debt, Christians can give their attention and praise to god.

Remember that a consolidation loan won’t be instant, so you need to keep paying your monthly debts until the loan is available. Keep this in mind and on your budget as you can’t just forget about those payments. If you do, you will end up in trouble with your creditors.

When searching for a good debt consolidation company, see if you know anyone that can recommend one to you personally. Talk to your family and friends to see if they have used one before or if they know of a reliable one. This gives you a great start to finding a company begin some preliminary discussions with.

When working to consolidate obligations, try to identify methods of saving money. An example of this could be that instead of driving to work by yourself you see if someone would like to form a carpool. Carpooling is a great way to save money, as is cutting coupons, shopping grocery sales and cutting down on eating out as often.

It’s important that you take the time to learn all you can about debt consolidation so that you can use it to deal with the debt which has built up. This article is a great start, and reading it in full will be a huge help. Go forward and seek out debt consolidation to help you be free of your burden.