Different Types of Mortgage Programs For First Time Home Buyers.

• Locking the best mortgage interest rate
• First Time Home Buyer Programs
• Down Payment Assistance or DPA
• HomePath Mortgage Program
• FHA loans, great for first time home buyers and buyers with low credit scores

Most Consumers Want to Know the Following about Credit Scores

• How to improve your fico score
• What factors impact your credit score
• How to recover from bankruptcy or foreclosure
• Credit Restoration

For more information about credit scores talk to your mortgage professional.

Will A Collection Agency Take Payments?

Most collection agencies will take payments when it comes to settling a debt.  You probably will not be able to negotiate with them about the principal balance however.  Just because you are making monthly payments to the collection agency does not mean that they are done with you.  You could stop making payments and they need to start chasing you down again.  You are probably better off to save up and try and make a lump sum payment to them.  A collection agency would rather just settle the debt in one step rather than stretching it out over a long period of time.

How Do I Make Sure A Creditor Will Remove Negative Items From My Credit Report?

If the creditor agrees to remove negative items on your credit report, you must get it in writing.  Creditors and collections agencies are notorious for not following through.  Your oral agreement will probably not hold up in court either.  You need to make sure that you get it in writing.  You best bet is to write the agreement on the back of the check that you are going to send in for payment.  You can just spell out that by depositing the check, the creditor agrees to remove any negative entries on your credit report and that they agree that the debt is satisfied and paid in full.  This will work great in the event that the creditor never gets you their written agreement back to you.  You check will be a back up for you.

Do Not Offer More Than You Can Afford To Pay To The Creditor

You may have good intentions of paying off a debt but do not risk your secured debts like your car and home just to pay off a collection agency.  Just pay or offer what you can afford.  It is not worth getting into more trouble just to satisfy a collection agency.

What is maxing out a credit card bad?

When you max out a credit card your fico score will suffer. Consolidating your credit cards onto one low rate credit card may help lower your credit card payments but it will most likely lower your credit score if you go above 50% of your available credit balance. Ideally you do not want to go over 30% of your available credit on your credit card. Once you start gobbling up available credit on your credit card, the credit bureaus take notice. All that activity is a cause for alarm and they lower your scores. They do not want you to get any more credit. Lowering your credit score will make it difficult to get any additional credit.

Talk to a loan officer before you do anything with your credit cards. You may be doing damage to your fico score and not even know it.

You have probably seen the TV commercials promising hope for those who are overwhelmed by their debts. CCCS or Consumer Credit Counseling services offer what seems to be the golden pathway to getting yourself out of financial trouble. It used to be that one of the debt consolidation companies in the industry was Ameridebt. This is the company that most people think of. They are not longer in existence any longer. They were forced out of the business by the government for misleading consumers into paying over $170 million in hidden fees. The FTC also charge that they were a non profit foundation and that they would teach consumers how to manage their finances. I was recently asked if these credit services were too good to be true. If it sounds too good to be true it usually is. You also need to understand that the industry has been plagued by fraud and mismanagement. There are good firms out there, but you really need to do your research and check around.

How do you know if a credit counseling company is good?

A good debt consolidation or CCCS company can help you get your finances back on track. A bad firm can disapprear in the middle of the night with all of your money and credit score. I would do a Google search on “rip off report” with the name of the company and see what query comes up with. This give you a lot of information. You can see if any consumers have any complaints The BBB or Better Business Bureau should also be able to give you information on the company as well.

Ten years ago the industry was dominated by the National Foundation for Credit Counseling who were referred to as Consumer Credit Counseling Services. Their role was to negotiate lower interest rates and monthly payment plans for people that were getting behind on their bills. In present day you can find CCCS service providers in just about every large city in the country.

Why is consumer credit counseling so competitive?

As you can imagine consumer credit counseling and debt consolidation have plenty of competition. A large rise in credit card debt in the 1990’s helped start hundreds of credit counseling rivals, many that have large dollar advertising budgets, sophisticated web sites and seductive names. Just because they are a non profit company does not mean they do it for nothing. Non profit businesses make money and charge fees. Do not think that it will be done for free. They are a business and they do make their money. There is a difference between a charitable organization and a non profit company. A few do a good job of negotiating for consumers however there a many companies that pay big salaries to their executives. If you are not behind on your payments be altert. Many of these companies will try to get you started on a program in hopes of lower interest rates. Often times you could just call your credit card company and negotiate a lower rate on your own. They know that consumers get frustrated with the high interest rates that their credit card companies are charging them and will do anything for relief. My advice is to try and do it yourself first before you hire one of these firms.

What do I ask if I am going to sign up for a debt consolidation program?

• huge up front fees. Consumer Credit Counseling Services will typically charge you a $10 set-up fee. There are hundreds of firms out there in the marketplace so do not be shy about shopping around.
• Are they accredited. A reputable firm will be a member the Better Business Bureau and the Association of Independent Consumer Credit Counseling Agencies.
• Delayed Payments, If they are taking your first months payment as a fee, your credit score will probably suffer. If your bills aren’t being paid and they go late your credit score will drop like a rock. Find out where your money is going before you sign the contract. Be sure to get it in writing.
• Big Promises, You know what they say, if it sounds too good to be true it probably is.

Just to be clear, if you are too far in debt a consumer credit counseling program may not be able to help you out. If you can’t make the payments that a consolidation program can negotiate, you may want to consider a bankruptcy.

How would you know if you need credit counseling?

• You cannot make the monthly minimum monthly payments.
• You are being hounded by collections agencies and creditors
• You are consistently behind and late on paying your bills each month
• You cannot reach reasonable repayment plans with your creditors.

How will my credit score be affected if I sign up for a CCCS or credit counseling program? Firstly it is not the same thing as a bankruptcy and it wont ruin your credit score. Creditors are very pleased with the results of their clients that enroll into a counseling program. The credit bureau has no negative association with credit counseling programs in relation to what your credit score is. In fact it is usually ignored.

The reality of debt is that it must be taken care of and should not be ignored. The reality of debt is that there are not to many great choices you can take once you have taken on too much debt. I Hope this information was useful to you. My advice is to not get into debt in the first place. I would rather have peace of mind any day versus worrying about making payments every month. Live by your needs and not your wants. You’ll be much happier in the long run.

This information is designed to be of general interest and should not be considered as legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser and or attorney.

For a free no hassle debt review call toll free 1-888-368-6668 or go to DebtNegotiationZone.com