Our Community has come up with a new section called “41 Ways to compare and contrast major debt relief options” for the community members. The main idea behind this section is to help the community members to compare and contrast the 4 major debt relief options – debt settlement, interest rate arbitration, debt management and bankruptcy, and choose the one which suits their financial condition. Have a look at the article to know more about it.

DebtCC helps you compare the debt relief options

The new section has been introduced in the Community to help the members evaluate the 4 debt relief options correctly. They can conduct an in depth analysis of the major debt repayment plans and choose the one which suits them best.

The new section covers 41 possible questions on debt settlement, interest rate arbitration, debt management and bankruptcy. These are the questions which are frequently asked by the people in the Forums. The community members can glance through these questions and understand the subtle differences between the debt relief options.

Special symbols have been used in the chart to make it interactive. These are (a) X,
(b) √ (c) May be (d) N.A.

√ - Yes

X – No

May be – Probably

N.A – Not Applicable.

Comments have been inserted in certain questions to explain them more clearly to the community members. This has been specifically incorporated in the questions where we have felt necessary.

The most exciting feature of debt relief comparison chart is that it helps to solve all your queries on the debt repayment plans. It helps to clear your mind off the most common myths and misconceptions surrounding debt settlement, management, interest arbitration and bankruptcy.

For example, one of the most common myths regarding debt settlement is regarding taxable income. A lot of people have complained about receiving 1099 form from IRS after settling their debts with the creditors. Half of them don’t know that IRS considers the amount saved by the consumers through settlement as taxable income. We have tried to clear this and other related myths through this chart.

Some of the most important questions regarding debt relief options covered in the chart are given below:

• Does interest rate get reduced?
• Can you still be sued?
• Do you have to pay any professional fee?
• Does it stop foreclosure?

To know more about the other questions, click here.

Finally, if you are going through a debt crisis, make sure you glance through the chart once. You need to understand the salient features of all the debt relief options before choosing one. If you still have any query regarding debt relief options, then you can post your questions in our Social Answers. The community experts will give a suitable answer to your question and clear your doubts.

Please note: The DebtCC Community is currently working on preparing another comparison chart specifically on debt settlement and consolidation. Hopefully, the chart will be beneficial for the community members too. Keep visiting the blog for the latest news and updates on the Community.

Check out the 5 financial tips for the last week of June 2011:

Tip no 1 – Do not give easy-to-guess passwords while banking online

When you create accounts in several bank websites, make sure you give strong passwords. This is because the scammers/identity thieves can easily crack the easy passwords. Thereafter, they can get access to your account easily and drain all the money.

For example, don’t include your name, birth date, phone number, spouse’s name, etc. in your password. People can easily guess these kinds of passwords. You can use a popular proverb or a phrase as your password. To make it more strong, you can capitalize the third or fifth letter of the password. Your password should be of minimum 8 characters.

Tip no 2 – Get contact information of all witnesses following a car accident

After a car accident, you should always take contact details of all witnesses so that they can narrate the actual incident to your insurance company. It can be said that these witnesses can help you claim the required coverage amount from your insurance company. If the accident was not due to your fault, these witnesses can even narrate that to the claims representative, who’ll interview the witnesses to know exactly what happened. It is advisable that you note down the contact details of the witnesses who’re willing to co-operate with you so that you get the required coverage amount from your insurer.

Tip No 3 – Hide your credit card PIN while swapping it

It is better to hide the credit card PIN while swapping it in the ATMs. This is because hidden cameras are often installed by the scammers in the ATMs. Once the scammers get hold of the card PIN, they will use it for their financial benefit. You should check the ATM carefully. Find out whether or not there is anything odd in the ATM. If the wires of the ATM are coming loose, then it is better to not use that processor. You should also avoid using those ATMs which are located in the desolate places.

Tip no 4 – In order to control your finance first understand where you are

You need to evaluate your financial situation carefully to know where you stand. Otherwise, it will be impossible to solve your financial problems. You need to locate the main cause of the problem and work on it. You can do that by checking your credit report. Go through your credit report to find out find out the negative items on it. If there are too many delinquent accounts on your credit report, then start making payments on your debts. If there is any mistake on your credit report, then you should contact the credit bureaus and let them know about it.

Tip no 5 – Stop to shop, when your budget drops

If you’re unable to stay within your budget because of your overspending habits, then you need to restrict your shopping endeavors. In case, you have to re-schedule your budget to meet your necessary expenditures, then you’ll have to limit your shopping endeavors. Buy only those products which you really need. Avoid purchasing branded items or luxury items.

For example, if you need to attend a dinner party next Friday, then there is no need to purchase a brand new designer dress. You can borrow a dress from a close friend of yours easily. Your friend will surely not mind. You can wear that dress in the party and look gorgeous.

There is no point in denying the fact that foreclosure is an emotionally exhaustive and stressful process. It can be a pain on your neck. But this does not necessarily mean that you’ll have to lose your sleep due to foreclosure. An efficient foreclosure attorney can help to make foreclosure less painful for you. He/she can also help to lessen its financial impact on your family. Glance through the article to get acquainted with 5 tips that can make foreclosure less stressful for you.

Tips to deal with foreclosure competently

Here are the 5 tips that can make foreclosure less stressful and some what bearable for you:

1. Don’t go on a guilt trip: There is not a single person on this earth who will want his home to be foreclosed by the lender. You might not have ever thought that your home would be foreclosed by your lender. But life can be brutal. You are facing foreclosure and you have to deal with it. There is no point in blaming yourself for this situation.

2. Consult a foreclosure attorney: You can ask your friends or relatives to recommend an experienced and competent foreclosure attorney to you. A good attorney can tell you about your rights and the options left for you. Lenders will not give any kind of counseling to you. They are least interested in counseling the depressed homeowners. But an experienced attorney can give you the right advice to deal with foreclosure. This may help you sleep peacefully at night.

3. Gather knowledge on foreclosure: You can take several steps to halt a foreclosure. For instance, if you live in Florida, then you’ll have around 2 years time before eviction. In the mean time, you can sit with your attorney and chalk out a plan to stall foreclosure. You can save money and negotiate with your lender for a loan modification in this time period.

4. Try to save money: You need to save money in the midst of a foreclosure process. You need to sort your income and expenses and try to save money on your bills. Create a suitable budget and allocate money to your necessary expenses. A proper budget will let you know whether or not you are wasting any money. You can’t possibly afford to waste any money in the midst of a foreclosure. This is the time to accumulate money and repair your financial house.

5. Make long term planning: If you don’t have equity in your home, then it will be very difficult for you to build it again. Instead of trying to build equity in your home, you can talk with your attorney regarding the available options for you. You can discuss with your attorney and decide whether or not it is better to give up your house and start looking for a home which may have some equity in it.

Excessive financial stress can ruin your marital and social life. So, after you have analyzed all the aspects of foreclosure in detail, you should allow the system work. Foreclosure is a time consuming process. You won’t be evicted from your house just after receiving the foreclosure notice from your lender. You’ll have plenty of time to get your finances back in order and leave the stress of negotiating with the lender to your attorney.

Have a look at the below given financial tips for the 4th week of June 2011

Tip no 1 – Check your insurance coverage so that you don’t pay for what you don’t need

It is crucial to check your insurance coverage to avoid making unnecessary expenses. For example, if you keep your car in the garage for a considerable period of time, then you can opt for comprehensive coverage only. There is no point in opting for collision or liability coverage. Your car is less likely to get involved in an accident as it will be stored in the garage for most of the time.

If you already opted for full coverage auto insurance, then you can contact your insurance agent and request for a drop in coverage. The same thing is applicable for the other insurance polices.

Tip no 2 – Distinguish between needs and wants and learn to prioritize your needs

One of the best ways to avoid getting into debt problems is to spend according to your needs. Human beings are greedy by nature. They have a never ending wish list. They want more and more. This explains why maximum people incur debts in their life time.

You may wish to purchase all the items when you go to the supermarket. But you need to decide about the items which you really need. Try to avoid purchasing the items which you can easily do without.

Plan a suitable budget and follow it. This will help you locate the areas where you can save money. You can use that money to purchase one of your favorite items. But don’t make it a habit.

Tip no 3 – Consider refinancing your mortgage loan if you’re paying more than the current market interest rate

Refinancing helps you manage your mortgage debts comfortably. It helps you cut back the interest rates on your existing mortgage. This in turn can help you reduce the monthly payments. The money you save on your mortgage can be used to repay unsecured debts. You can use the money to make extra payments on your other debts. This will help you get rid of debts sooner.

However, if you don’t have sufficient equity in your home or have low income and credit score, then you may not qualify for refinancing. So, make sure you have decent credit score and low debt-to-income ratio.

Tip no 4 – Contribute to a Retirement Plan – 401k or IRA

If you want to secure the golden years of your life, then you need to make contribution to the retirement accounts regularly. You should start contributing to the retirements accounts in your 20’s. This is because you can make maximum contribution to the retirement accounts during this time period. Try to avoid withdrawing money from the retirement accounts even when there is a financial emergency.

Try to accumulate as much money as possible in your retirement account. This will help you meet your expenses post retirement. You can lead a happy financial life without needing financial help from your children or family members.

Tip no 5 – Try to pay off your debts and save money at the same time

You should always try to repay your bills and save money simultaneously. You should keep aside a sizeable portion of your wage each month. Contribute that money to the emergency fund. Create and follow a suitable budget. Budgeting will show you the areas where you can potentially save money. If you are not able to create a budget on your own, then you can use personal budgeting software.

Make sure you pay your debts on time. If you have the habit of forgetting dates, then you can opt for online payments. You can also mark the payment dates on your calendar.

Have you found the special person with whom you wish to spend the rest of your life? Have you decided to get married to the person whom you love most in this world? If yes, then there are few monetary questions which you should ask to your future life partner now. As per the modern concept of marriage, it is the union of 2 souls and money. A lot of marriages have ended in divorces due to financial disputes. This is why it is much better to start your married life with total knowledge of the financial situation of your future life partner. Read on to know about the 6 money questions to ask your fiancée before marriage.

Monetary questions you need to ask before your wedding

Here are the 6 monetary questions you need to ask your fiancée before taking the wedding vows:

Q. What is his net worth?

A. This is a very important question. You’ll need to ask your spouse about his total savings, income, debt-to-income ratio, etc. This will enable you know whether or not he can support you financially. You need to know what kind of life you will have after marriage.

Q. Does he have any debt?

A. You must ask your fiancée about his debts. Does he have a lot of secured and unsecured debts? Ask him how he plans to pay off his debts? Most importantly, does he have any inclination to clear his dues? If you live in a community property state, then you’ll be legally liable for his debts post marriage. So, ask yourself as to whether you are fine with it. If you’re not interested to handle his debts, then you need to think seriously about this marriage.

Q. Does he use lots of credit cards?

A. Ask your spouse about the number of credit cards he uses. If he uses multiple credit cards for making his purchases, then this means that he has a spending problem. Check out his credit-utilization ratio. If his credit-utilization ratio is very high, then it implies that he can’t manage his finances well. He may get into financial problems in the near future, which may trash his credit score. Your spouse may not qualify for a loan in future, which will be bad for both of you.

Q. What is his source of income?

A. It is extremely vital to know about the occupation of your spouse. You obviously would not want to get married to a thief or a scammer. Gather knowledge on the company in which works. Will his current job help him turn his financial dreams into reality? If not, then does he intend to switch to another company soon? You’ll be able to shape your financial life after knowing the answer to the question.

Q. What is his credit score?

A. You must be knowing that credit score reflects the credit worthiness of a person. It lets you know whether or not a person is a responsible borrower or not. So, ask your future life partner about his credit score. Credit score typically ranges between 350 and 800. So, if your future husband’s credit score is 550, then you’ll know that he is not a credit worthy person.

Q. What about his monetary goal?

A. Have a frank discussion with your fiancée regarding your financial dreams and goals. Ask your fiancée about his long term plan? Does he want to have his own house at some point in life? Does he want to take you to a world tour within a few years of marriage? You should also reveal your own dream to your fiancée. If you want start your own boutique post marriage, then tell him so. This way, you can both work to achieve financial goals together.

Finally, you should ask your fiancée as to whether both of you are going to work. This will help you evaluate the total family income and create a budget accordingly. You can know how much you need to earn when you plan to have kids. If both of you decide to work actively after marriage, then determine how much each of you will contribute towards household expenditures. Most importantly, ask him whether or not both of you will maintain separate checking accounts. This may help you avoid unnecessary money disputes with your spouse.