Tuesday, July 31, 2012

Student Loan: Debt Elimination

Debt Elimination Scams 
You've seen the commercials that promise debt elimination on late-night TV; heard them on the radio as you are driving home from work or taking the kids to soccer practice. You may even have received what seem like legitimate letters from what seem like legitimate companies in your mailbox. They all seem to promise the same thing.

"Credit problems? No problem!"

"We can remove bankruptcies and bad loans from your credit history--guaranteed."

There are literally hundreds, even thousands of companies, who advertise on the Internet, through the airwaves, via snail mail and in person. They all promise to:

• Create a plan to completely eliminate all your mortgage, automobile and credit card debt 
• Show you how you can avoid bankruptcy and other practices; this will damage your credit report as well as strictly limit any future borrowing options 
• Keep your personal finances private 
• Avoid costly debt consolidation loans. This actually increases your debt and can extend the time it takes you to get out of debt • Set you on a course of a future without the insecurity of being in debt

Too bad that most of these so-called legitimate companies are not really legitimate. In addition to not helping put an end to your debt problems, most of the techniques that they propose may actually increase your debt and increase the time until you are free of debt.

Many of these companies have a very good fa├žade; they certainly appear like they want to help you and your family eliminate your ongoing financial woes. However, even the companies that claim they are 'non-profit', are not. Just like many other sham companies, they are in business to play on your worry about your tenuous financial predicament and make themselves rich at your expense. Do not fall for these illegal claims!

Deciphering Debt Elimination Claims 
Many of the claims that these companies make in their ads are, fundamentally, sound. However, the claims that they make take in only a small dimension of a person's financial state while omitting important factors.

Some of these programs play hardball with your creditors, which will sometimes succeed in getting a reduction in your debt level. However, this often has a serious deleterious effect on your credit scores, making it harder to get future credit and possibly increasing insurance rates.

Many of these programs charge a large fee for a simple debt consolidation. Sometimes, the new consolidated debt results in the consumer repaying debt with higher interest rates for a longer period of time. Sounds like a great solution, doesn't it?!

Many the tactics used by these companies are well-known and easy to set up on one's own, without paying for the services.

The plans implemented by these companies may, indeed, work for many consumers. The problem is that, even if they are legal, you do not have to pay for them. Call your creditors yourself and attempt to work out a revised debt payment program. Sit down with your family and work out a tight but reasonable budget that you can all live with. Work out a plan to slowly but surely work out a plan to eliminate your debt and prevent you from ever getting into financial difficulty again. You can do it-we can help!

Federal Trade Commission Report 
The Federal Trade Commission (FTC) says that consumers should simply not believe these claims claiming debt elimination; they are almost assuredly a scam. FTC attorneys at the nation's consumer protection agency report that they have never seen a legitimate credit repair or elimination operation that makes these claims.

Unfortunately for the millions of American consumers who find themselves deeply in debt, there is simply no easy fix for poor credit scores. You can, most assuredly, improve your credit report legitimately, but it takes time and effort-- and sticking to a budget! Not so easy for most consumers.

If you are considering any debt elimination program, we hope that the above information was helpful. Because you are currently seeking help for you financial status, you also need to be wary of Debt Elimination Scams. You need to be fully prepared before you make any definite decisions, and the best way to do that is to speak with one of our knowledgeable legal representatives. Fill out the form on the bottom of this page right now and take your first steps toward debt elimination today.

Saturday, July 14, 2012

Three Options for Getting a Private Student Loan

People who apply for private student loans often do not have the type of credit history that lenders value. Young people often have not had much time to build a credit history at all; other older students might be going back to school to find jobs that pay higher wages because they have been stuck in a negative cash flow for years, which often means abuse of credit.

All is not lost, however, in seeking private student loans. There are some avenues that can lead to success in this quest. If you have almost no credit history, or a poor one due to a high debt-to-income ratio or late payments on other loans, you can still find a lender to fund your dream towards a diploma.

One common option is to apply for a private student loan along with a sterling cosigner. Many students use their parents as a cosigner; others ask a family member or friend to cosign. To improve your chances of getting one of the private student loans that are available, find someone with a credit score above 700 that understands what being a cosigner entails. Use of such a cosigner will dramatically improve your chances of being approved for a private student loan.

Another option is the myriad online lenders that give private, unsecured loans to people with bad credit. Shop around carefully for one that has the lowest interest rates, fees and other charges. Some of these online lenders are legitimate, others are not. Some charge outrageous fees and interest rates, so don't apply to the first one that promises approval.

You should also check with the Better Business Bureau to make sure that the lenders you are considering are respected and trustworthy. If not, run!

A third option for getting a private student loan with bad credit is to improve your credit score before applying for a loan. Most people do that in these ways:

- Obtain a free credit report and correct any errors that are on your record

- Get a student credit card and make payments on time to raise your score

- Pay off existing debt to boost your score

In this case, there is no substitute for time in raising your credit score to improve your chances at getting a private student loan. You might need to delay your enrollment a semester or two to gather the funds needed to pay tuition and fees through loan approval.