Credit and debt unfortunately go hand in hand. We want something we cant afford to pay for, so we secure a credit card or consumer loan to acquire the goods or services. Once we sign on that dotted line and accept the funding, we are instantly in debt, and this debt along with interest and charges always needs to be paid back. One of the biggest mistakes that people make when considering a loan of any type, is the failure to consider any change in circumstances in the future that may affect their ability to repay the debt.

Job loss, health issues, unexpected and/or over-spending can all be reasons for our circumstances changing and it is important that in these times we still have enough access to funds, or insurance, to make sure that any repayments we need to make, can in fact be made. The moment we start defaulting on repayments, is the moment we start to negatively impact our credit history and our reputation as a good or low credit risk. Therefore the key component of any successful loan or credit agreement, is our ability to ensure the ongoing supply of money to repay that debt.

There are various forms of insurance that can be purchased and in some cases for a reasonable amount, that will in these times of uncertainty or change, allow us to continue to make those loan repayments, eliminating the risk of adversely affecting our credit standing. By making sure that all of these things are in place at the commencement of any loan, through the construction of a valid budget, is the only way to ensure our future liabilities will be met on time and as expected.

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There are many more organizations that simply finance companies and other lenders who are relying on access to our personal credit history to make decisions about us in one way or another. Some of these are employers, utility companies, rental or lease agencies, and many others, and they all have various access to our personal information in order to assess our credibility. In fact it would seem that our finance and credit history is speaking more about us as people, that our character or reputation.

A good credit history and one that is orchestrated by us, is as simple as making sure that when we do borrow money or sign up for credit cards, that we stay within our limits, and use the facility in any way possible to positively gear our credit record. As an example, imagine taking $3,000 from the bank and using it as a down payment on a car worth $5,000. We then finance the balance of $2,000 plus costs, through the easy repayments over 24 months, and use this payment history to bolster our credit worthiness. Sure we may have had the full $5,000 in the bank, but for the cost of the loan we have been able to build a great credit report by utilizing our money to work for us.

This is what the smart people do, and by making sure that whatever finance they secure is affordable and legitimate, they can kill two birds with one stone, and cement their future reputation by constructing their own credit history.

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A lender will always look to certain things when determining whether or not you are a good or bad credit risk, or if in fact you are a worthy candidate for a job or other position that may be involved somehow with the finance industry. One of these is the level of effort that has been applied by you to fix your situation and address the reasons for the trouble in the first place. If you can show clear and effective efforts have been made to remedy your situation, and the lender can see that these remedies have in fact been in some productive, there is more likelihood that you will be seen in a favorable manner.

Don’t let this detract though from the fact that you got into trouble in the first place. It is important to use any and all resources available to you to not only fix your current situation, but to show that you have learned something from the experience and have in some way protected yourself from revisiting this place again.

Making sure that you keep all of your accounts within the 30 day limit or below the “overdue” cap is one method to improve your chances with future lenders. They are looking for ways to lend you money as your business is important to their own growth, but they will obviously not lend money to people who are perceived to be a high risk, or who cannot be seen to have tried to rectify any negativity on their file. This of course is something to be expected and should not be seen as a personal attack on you. It is all about business and your ability to repay your debt.

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Fortunately for consumers there is a law that encompasses the requirements of any organization purporting to be able to assist with repairing bad credit and you owe it to yourself to understand the requirements of these organizations prior to entering into any agreement, or handing over any money you may have. This law is known as the Credit Repair Organizations Act and it is there to protect the rights of all consumers as much as possible, against the unlawful and immoral practices of the few companies that deal in unethical practices.

There are some very clear indicators that you may be getting scammed or that the organization you have approached is in the business of scamming people. One of these is the provision of a copy of the “Consumer Credit File Rights Under State and Federal Law” which outlines your rights as a consumer. This is a requirement under the act but this does not stop some companies from avoiding their responsibilities. If you have not received this, ask for it.

Another indicator would be if you have been asked to sign any document that you have not been given fair chance to read and understand. Never sign anything until you have completely read the terms and conditions, and understood them, and if you are in any doubt about the contents of any document you have been asked to sign, ask that you be given a fair amount of time to present the document to your legal people to review.

Any contract must contain the following information in order for it to be considered fair and just, under the terms of the act. (a) The amounts and breakdown of any money you are being charged, (b) Complete details of any and all services that are going to be performed on your behalf, (c) the completion date of the services to be performed, (d) the name and complete business address of the company you are doing business with, including all official registration details, and (e) a statement outlining your rights and time frame to cancel the contract (generally 3 business days)

If whenever you are about to enter an agreement or you approach a company or organization to assist with your credit repair, make absolutely sure to get all of these requirements before you proceed. If the company or person you are dealing with refuses, do business elsewhere and report them to the relevant authorities.

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Some companies offering credit repair services will promise to remove any negative marks from your credit file. The reality is that if the information contained within your credit report is incorrect, incomplete, or blemished in another way, you have the right under current law to dispute the information with the credit reporting bureaus. The bureau then has a set amount of time to remedy the errors or remove the listing until the facts can be established. This is simply a matter of obtaining a copy of, reading, and understanding your credit report, and does not need the input of any professional.

If on the other hand your credit report is bad, and all of the details contained in it are accurate, you have no right to dispute the information, and it is there to stay until the law dictates otherwise, or the debt is settled. No company or professional can remove or have removed, information that is deemed to be accurate.

Even though if you are in the position of needing to repair your credit file, you may be or feel vulnerable, it is very important to make sure that scammers do not sense and feed on that vulnerability. If you can mange to overcome whatever emotional connection you have with your overdue or outstanding accounts, and deal with the situation in a timely fashion, you can achieve everything that a professional can, without the cost or the risk involved. It is certainly worth thinking about.

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What exactly is the debt to income ratio?

The debt to income ratio gives a snapshot of your ability to repay your loans. Thus, it is simply a measure of your attractiveness to financial institutions. Banks prefer debt to income levels that are less than 35% because this means that currently 35% of your gross income is used to repay debt obligations. This is considered an acceptable level and generally indicates that you should be able to handle additional credit and still manage to stay on top of your other living expenses.

How is the debt to income ratio calculated?

The debt to income ratio is a surprisingly simple calculation. To do it yourself, you need to find the total of your household debt. This may include car loans, student loans, credit card bills and any other personal loans. You should not add what you spend on groceries or any other discretionary expense as only actual debt commitments are included.

The next step is to divide the total debt expense by your total gross income. This is your income before taxes are deducted. From the description of how the debt to income ratio is calculated it should be apparent that this ratio is only an estimation of how much additional debt you may be able to carry.

This is because gross income is used which does not consider taxes that will not be available to help towards loan payments. Also living expenses are not factored into the equation, so again in reality this reduces the actual cash flow available to repay loan installments. The take away here is just because you can qualify for a sizable mortgage doesn’t mean you can afford it. You need to examine your willingness to make lifestyle sacrifices and then take on what you would be comfortable repaying.

Why is the debt to income ratio important?

The debt to income ratio is important because it is the measure used by all financial institutions to help determine how much they are willing to lend you. It therefore affects the amount of money you will have to spend on your house.

What if your debt to income ratio is too high?

If you have an extremely high debt to income ratio and it is crippling your ability to qualify for a mortgage all is not lost. You can either find ways to decrease your outstanding debts or increase your income. To reduce your debts you can use savings to pay off balances on loans that are close to completion or implement cost cutting strategies that free up additional money that can be used toward debt repayment.

To increase your income you may be able to ask for a raise or establish another source of income from starting a business or taking a second job. Increasing your income may be harder or take longer than cutting down the expenses, but the option is there.

Keep tabs on your debt to income ratio

Now that you are aware of how easy it is to calculate your debt to income ratio, you can start checking your ratio every quarter to monitor changes in your financial health. Bear in mind that additional debt without increases in income will increase your ratio and the closer you get to 50% the nearer you are to probable financial ruin. Keeping one eye on your debt ratio can therefore help to ensure that you are on the track to financial freedom and not headed in the opposite direction.

Sal Orlando is a debt specialist for Debtfreedestiny.com, a financial services provider in the credit card consolidation industry. Visit Debtfreedestiny.com to find the financial resources you are looking for today!

*How Long is the Statute of Limitations?

The Statute of Limitations begins on the account’s last date of activity. The time may be generous and it varies between three and eight years, depending on the state. California for example, has a Statute of Limitation of two years on oral contracts, and four years for credit card accounts. Wyoming, on the other hand, has an eight year Statute for oral and credit card accounts.

The account’s last date of activity may be different from the time of “past due” on your bill. Check your credit report to find the account’s last activity. Any activity on your account will restart the collection debt statute of limitations. Making a payment, or making a charge are all considered activities that would restart the time. Like restarting a stop watch, making any contributions or agreements concerning the account would reset the clock back to zero regardless of how much time had elapsed previously.

*What the Statute of Limitations Does Not Cover

There are some debts that the SoL does not apply to. Federal student loans, child support in some states and income taxes do not have a SoL on them. If you can prove that the SoL has expired, it prevents the collector from requesting payment from you. It must be remembered that it:

1) Does not prevent the collector from filing a lawsuit against you for the amount of the debt. It will help your case, and you can use it against them in court.

2) Does not erase the debt. You still owe the money.

3) Does not prevent the debt appearing on your credit report.

*The Purpose of the Statute of Limitations

The purpose of the statute is to provide some stability to consumers so they will not worry about being harassed for outstanding debts for the rest of their lives. Some debt collectors continue to pursue old debts in hopes that consumers are unaware of the statute and will pay up. Before settling an old debt, check the regulations for debt collection in your state before agreeing to any negotiations.

Matthew C. Walker is a debt specialist for FranklinDebt.Com, a debt relief company that works with consumers to resolve their past due credit card debt. If you are someone who is in need of debt reduction, go to FranklinDebt.Com today to find what credit card debt consolidation options you could benefit from!

The number one question that most people with bad credit usually ask would have to be is credit repair possible and can it work for me? The answer to that question is yes credit repair works and it can work for almost anyone, however everyone’s results will be different.

How Should I Fix My Credit Scores

The process of fixing your credit scores can be accomplished one of two ways. You can either pay a company to do it for you or you can perform do it yourself credit repair. both methods have positives and negatives associated with them as i will explain below.

Using a Paid Service

The only real advantage to having a service do your credit clean up is that it saves you time, the drawbacks however are numerous!The biggest drawback to paying a company to repair your credit is that it normally costs alot of money. How much you ask, well most credit improving companies charge a set up fee that can range from $25 up to $100. Then they also charge a monthly fee that averages about $75 per month. So if your credit report takes them 6 months to fix then i could cost you over $500.

Plus because they work on a monthly fee most credit clean up firms want the process to take a little longer then necessary in order to make more money. In addition their work is rarely backed by any significant guarantee. In fact almost all of the contracts will state that as long as they improve just one account they have done their job!

Fixing Your Own Credit Scores

This is probably the best way to get it done for most people as the methods behind fixing credit are pretty straight forward and the methods you will use are the same as a paid companies. It really just involves using a calculated plan of attack to use the credit laws to your advantage. Even if you have no clue how to clean up your report you can easily buy a good self credit repair course online. The average price is between $35 and $99. There is even software that can help you do the whole process right from your PC!

You will however have to invest some time and effort into the process but in realistic terms it can be done effectively in just a few hours a week, obviously the more you work on it the faster it will improve! So for under $100 you can fix your own credit the same way a paid service who is charging you 5 or 10 times that much would.

Where Can I Get More Information On Self Credit Repair Kits

You can read reviews of the top Self Credit repair Kits as well as get more FREE tips to help you fix your credit scores at http://www.creditfix123.info/blog

There’s a simple way to remove MEdclr from your credit report for good. It’ll take you about 10 minutes and can increase your credit score 10, 30, even 50 points.

In this article you’ll discover how this will easily dispute and remove MedClr from your credit report. They’re located at Warren Dedrick, Medclr, Inc. is located at 333 Glen St Ste 200 Glens Falls, NY 12801 in case you want to get in touch with them.

So the first step to disputing Medclr off your credit report is to first…

Step 1: Pull Your Credit Report

You’ll need your credit report to see exactly where Medclr is being reported at. It may come from Experian, Transunion, Equifax, or all three. You can get your credit report and credit score from either of those 3 sites or if you want to get it for free, you can goto AnnualCreditReport.com, but… they only give you the report, not the score.

Once you have your report, go ahead and fin Medclr and see the negative items it’s posting. It may be a late payment, past debt, a charge off, or even a judgement. Don’t worry, I’ll show you how to dispute it.

This moves us to…

Step 2: Create Your Dispute Letter

Most of these sites want you to dispute the item online, but honestly they just put you through the system and a human never looks at it. With an actual letter, a physical hand addressed letter, a human may look at it, which increases your chances of having the items “really” looked at.

So inside this letter you’ll basically want to say that you are disputing the Medclr Inc item for the following reasons.

“This debt is not mine.”

“This item has been paid in full.”

Or whatever reason you believe this is not correct.

If it is correct, they’re still is a way to have it removed for good, so don’t get discouraged. I’ll give you a free resource and book below to help you in just a minute.

And the last step…

Step 3: Send Your Letter

You’ll want to send this letter to the credit bureau(s) that are reporting the negative item. I recommend that you actually go to the post office and send it through there, getting a “return receipt” which will give you the status that they did receive it.

Now you’ll want to wait. The typical waiting period can range anywhere from 10 – 25 days, but they will respond with either saying they have deleting the item or the information has been verified as correct. Either way, you can now arm yourself with the correct tools.

I hope you gained some good knowledge form this article

You can get my “proven” MedClr credit repair letters and a free copy of my special report, “How to Get MedClr Off Your Back” for Free form my website.

http://www.37daystocleancredit.org/collections/medclr

Just how important is it to be credit worthy? If credit worthiness is defined as a debtor’s willingness to repay a debt, then apparently, it must be of utmost consideration to every debtor. Money lenders are in business because they want to make money, not to lose some. And no lender will take chances in giving loans to a person who does not seem to be credit worthy at all.

But how do these lenders or lending institutions weigh the credit worthiness of a person?

Your credit report will most likely contain the vital information needed by lending institutions to assess whether you are credit worthy or not. Truth be told, not everyone uses the same standards for assessment but at least there are common denominators in the assessment game. You can be assured that payment overdues, whether 30 days or 60 days or even longer, will leave a negative mark on your credit report and will almost certainly taint your record. Because if you are all the more willing to pay back the person or the institution which lent you money, then you should have given much thought about paying it on time.

Another parameter to consider is your monthly income. Most lenders have become quite dependent on this factor because of the simple logic that the person with a higher income has more money to repay his or her loans. Haven’t you noticed how the well-heeled can access more credit, apply for multiple credit cards, and breeze through mortgages? It might sound unintelligent because they are supposedly wealthy and they do not need to go through the process of availing loans because of their status. Someone with a lower monthly income needs it more than they do.

But of course, as the years pass, there have been specific guidelines to accommodate even laborers with meager salaries. There are actually instances that people who have lower income can access more loans compared to their more privileged counterparts. What specific instances are these? When people with more income have become delinquent borrowers and have built a disappointing credit history through the years, that is when creditors become wary of lending them once again.

Get your online credit report and credit score at Free-Credit-Report.com and improve credit scores in no time