Tag Archives: good
Debt Settlement, the Better Debt Relief Approach
In our struggling economy, indebted Americans are looking for a way to relieve themselves of financial and emotional stress. Many debt relief options have become available. Amongst them are the popular three: debt settlement, debt consolidation, and credit counseling. With these services being promoted so heavily, how can one choose and then not regret their decision later?
To make the proper choice, we must view these options from both good and bad perspectives, as well as individual situations.
Let’s start with the bad. Credit counseling and debt consolidation appear on your credit score stating that you are “currently enrolled in debt counseling program” which poorly reflects on you when applying for new credit. Debt settlement lowers your credit score because it requires a four month delinquency to negotiate. The accounts enrolled in debt settlement are closed (questionably bad as it can save many from repeating their mistake).
Regarding the benefits, credit counseling and debt consolidation programs allow you to be debt free within five years with a lowered interest rate (approximately 5%) saving you a good deal of money over time with the monthly payments being put into one single payment and slightly lowered. They also allow you to keep your accounts open (also questionable). Debt settlement allows you to be debt free within 12-36 months, while paying 55% of your total debt (in most cases) and 0% interest, resulting in savings of more than 60% because of no interest accrual. The payment is also consolidated in one single monthly program payment while being lowered substantially (by up to three times less).
Although debt settlement lowers your credit score initially, the purpose and goal is to get you debt free as soon as possible, and help you start rebuilding your credit score immediately – by staying on time with secured loans like mortgages and auto payments (which reflect the most on your credit score).
Most importantly, always remember to view a company’s Better Business Bureau profile for a high rating and a powerful track record. You can never be too careful about who you’re trusting your finances with!
College Student Credit Cards: Friend or Foe?
There is much debate surrounding college student credit cards. Some swear up and down that they’re a disaster waiting to happen while others vehemently object and insist they are a must-have financial tool for college students. Which side is right?
When deciding whether college student credit cards are good or bad, you need to weigh the facts. These three truths will help you come to your own conclusion.
1. Aggressive Marketing
College student credit cards have gotten a bad rap when it comes to their marketing tactics — and some would say that it’s for good reason. You can’t hit a single college campus without coming across at least one application for college student credit cards.
That being said, while the applications are definitely readily available (to put it lightly), no one is forcing college students to sign the application. It’s the responsibility of a parent to instruct their children on wise financial decisions.
The credit card companies are marketing their product — that’s what they do. Parents need to do their part and make sure that they instruct their children in the ways of the credit world.
2. They’ve Got to Grow Up Sometime
Everyone has to grow up sooner or later and college student credit cards can provide some priceless lessons in the world of adult finance. For the first time, college students can be responsible for their own spending and their own monthly bills.
Yes, college student credit cards can provide the potential for disaster (but so can a number of situations that students encounter in college). Just because student credit cards have the potential to be misused, it doesn’t mean that they will be. Have some faith in today’s college students!
3. Paving the Way
Once a college student graduates, they’re going to need some things (a place to live and a car to name a few) and they’re going to need credit to get the things they need. If they don’t start building their credit history in college, when are they supposed to do it?
If a college student wants to be completely prepared when they graduate, they’re going to need to work on building a solid credit history while they’re in school. College student credit cards can be the means to that end.
If you know a college student (or are a college student) who has been debating about whether college student credit cards are good or bad, consider the above three facts and remember, it’s not college student credit cards themselves that are good are bad — it is who is using them and how they are being used that make the difference.