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Bad Credit Can Kill You!

We all know how hard it can be to qualify for new loan agreements. But not everyone has the same options. How do you know which of the conditions you qualify for? How do you make sure that you are able to meet your obligations? Here are three things you absolutely SHOULD check on before you make any kind of formal offer to achieve your financial goals.

* You can’t make any loan request unless you are on a plan to cancel your credit.

The list of conditions you have to meet on your new loan agreement is definitely long. You know the pressures that go along with getting new credit. But what can you do if you are already paying several rates? A missed payment that is damaging your credit? That bad decision not knowing the consequences can leave you with a bad credit as well.

* Debtors like your paying off credit cards.

One of the most essential differences between credit cards and other forms of loans is the manner in which debts are financed. Credit cards are so much the opposite. The interest credit card is literally used to pay off the principal of the loan after deducting interest charges. In this way, the credit card company pushes through the loan on an unsecured basis.

* Bankruptcy isn’t always a good idea if it doesn’t meet the conditions on your new loan.

Most people who default on their loans don’t get a chance to build back their credit. This is why, when it comes to paying off your debts, it’s highly recommended that you choose a bankruptcy as the best option as far as you creditors are concerned.

In case, however, you decide to file for bankruptcy, all the following conditions will be met:

* You have to have been automaticallyul of your own account for at least 6 months after you default on your credit card

* You must have had a high-paying job in the past 6 months,

* You have been approved by the company in the past 7 years

* You must have a current high school and/or graduate school records,

* You have to have lived in the same house in the interim for at least 6 consecutive months,

* You must be at least 18 years of age.

To get the most out of any loan your creditors will require that you deliver some kind of paper to your creditors and pay off the principal of the loan (after deducting the interest charges). In these cases, however, the pre-bankruptcy conditions are not met.

* You have to have a recent bankruptcy or other form of debt involving the creditor.

The caveat to all of these conditions is that you must be able to pay off all of your debt within one year. With the caveat of not being trapped in a cycle of late and/or missed payments, this means that you have the legal chance to pay off your debt from all three income streams simultaneously.

Let us take a look at this scenario. For the average person who has over $200,000 income, it would take about 6 years to pay off $10,000 of debt. But the loan would cost you $15,000 while the total cost of the debt (even assuming you paid off all the entire loan in time) is almost 30% of that amount. With a credit card, you will be charged 5 years and an interest of about 1.5%. In other words, if you make less than $5,000 of a $20,000 loan and you have a credit card, you will pay just 5 years – even with a much higher interest rate.

These figures are based on the assumption that you “do whatever it takes”. So what? Your financial head is aching itself! Every step to fail. Yet you also accept the reality that failure can sometimes mean even worse financial misery than being pampered and drugged with the same worthless credit card you have purchased. No wonder some credit card companies prefer you to give them away with the idea of extending a loan.

But how does one even go about doing this? The main issue is not the amount but the sequence of events that happened to you in that time span. After you are approved for a new credit card, there’s a good chance that the company will “fix” your credit. The “fixes” they will offer just can consist of adding more charges on your account. After that, they may wipe out the credit card interest without you even knowing it. So be logical. You can have the luxury of being smart.

One of the most important steps you can take towards building back your good credit is to be aware of how the issuers of your “fixes” are actually working that you can remedy the situation yourself.

A lot of issuers offer an interest rate ranging from 18% to 24% after you’ve paid off the debt completely.