Do your comparison shopping and you find the company with the highest rates of interest. It would be a shame not to take on the business by saving cash, but you need to check your credit ratings first before signing a contract. This allows you to ensure each transaction is paid on time and adds to your credit rating.
Credit ratings are calculated by Fair, Isaac, the company that “cracks” credit applications from outside of the home. The company has strict guidelines to ensure that applications are accurate.
Once, the credit rating agency didn’t even recognize your payment history. Next, your credit records weren’t vetted.
The first time you applied for a loan you wanted your name on a list. The lender didn’t even recognize your name as a borrower.
If you don’t own or operate any business a lender or other authority figures are excluded for you. In 2003, two-thirds of all people obtained a credit report from a federal agency – part of the vast majority, just under 40%.
The Fair Debt Collection Practices Act ban such targeting, and the law was passed after a series of defeats in the U.S. Senate and President Bush’s administration.
It seems the only thing blocking the reform agenda is the Federal Reserve. Its Chairman Ben Bernanke was the first African-American to hold a major chair in the U.S. Congress.
This week the Federal Reserve has issued its final statement on the policy direction for the economy. Recent surveys of private market opinion have continued to highlight the strength of a strong U.S. dollar as an induceant to buyers of both credit cards and home equity loans. But the economy remains vulnerable to shocks and recession, and the economic recovery is mostly slow.
So there’s no shortage of policy options available to the United States economy recovering from severe recession:
(i) Fiscal consolidation
The U.S. Congress has approved a program to consolidate government revenue, including Social Security and Medicare, into single, separate accounts.
This would alleviate some of the burden on families. By reducing the number of tax deductions and the separation of income and wealth taxes, the principle gives tax collectors the right to focus on the tax filers most in need of savings.
(ii) Debt limit increase
Congress intended to raise the federal debt ceiling to prevent a “perfect storm” of credit card defaults. Forcing consumers to stay beyond their credit card debts and paying off their balances by late will only encourage them to make more borrowing.
The dramatic increase in consumer borrowing makes debt consolidation a must for both creditors and households. “Consumers can slash their credit cards and other debt” makes it easier to keep debt under control.
(iii) Debt settlement
Lawmakers in both houses of Congress approved a program to assist debtors and their discharged debtors with money management companies. Under this option, if an individual files a claim with a debt settlement company, the company will negotiate a settlement plan with the individual, whose debt becomes unmanageable, and with a debt settlement corporation.
The settlement company will pay the individual a small fee to join together with the individual, known as a co-defendant, in a non-profit organization. The nonprofit organization will pay for such a plan. In exchange for their services with a non-profit organization, the individual and his or her co-defendants will pay a fee of a small fee (the co-defendant can qualify for a set amount per month, but not free goods). Tax deductible items that the individual and co-defendants contribute will be deductible too, though in some cases, not all contributions are. An estimated 20% of all Americans contribute nothing to charity and some of that amount is donated by other Americans. So a small-fee plan can provide you with a significant amount of relief. A larger percentage (around 30% for the individual and co-defendants) will also assist you in getting better, lower interest rate credit cards.
A huge portion of the funds raised through the co-defendant debt settlement funds will go toward creating their dream, a better society. The money raised will go toward education and research related costs, as well as permanent supportive housing, health, and legal fees for the individual co-defendants, as well as hundreds of thousands of dollars to legal fees and hundreds of thousands more to the nonprofit.
Debt settlement, the social service program is an excellent way to start. These are programs you usually hear of when you think of debt settlement. In some cases, these programs are self-directed, with a short term goal of reducing debt and paying off existing debt. Others will work with a non-profit organization and help the person qualify for better financial assistance.
Debt settlement, the education and research program is a better option. Deceptive programs such as debt settlement or an educational counselor can teach a person how to deal with debt.