Debt Consolidation Blog

Archive for September, 2011

Many people turn to debt consolidation companies to help lower their monthly payments and for much needed assistance managing their finances. However there is a common concern that working with a debt consolidation company may cause your credit score to become compromised. Some worry that their credit record will now be viewed as a bankruptcy since they are undergoing credit restructuring. Knowing exactly how working with a debt consolidation firm affects your credit can help answer your questions and offer peace of mind.

Debt consolidation and your credit score

When working with a debt consolidation company, your debts and loans are organized into one lump sum payment. Creditor phone calls and letters cease and your debt consolidation company acts as a intermediary between you and your creditors. Depending on the company you select, you will be required to sign a contract which lasts for a period of three to five years during which time your debt is being repaid. While in contract with your debt consolidation company, your credit report will reflect that you are working with a debt consolidation company. This is not as detrimental as it seems. Most lenders will only look at your credit score to make a determination for an extension of credit. Your credit score will not be any lower simply because you are working with a debt relief firm. When FICO calculates your score, they do not calculate a lower score simply because you are working with a debt relief firm. In fact Craig watts, the public affairs senior manager for FICO says “Frankly, we think consumers who participate in credit counseling shouldn’t be punished in their FICO scores.

New Credit Affected

Although participating in a debt consolidation plan does not lower your credit score, it may affect your ability to receive new lines of credit. Lenders who look at your score as well as your credit report will note that you are working with a debt consolidation company. They may look at this as a sign that you may not be able to handle additional debt. In fact most debt relief agencies do not allow you to take out new lines of credit during the time that you are undergoing financial assistance with them. In this situation, there should be little to no concern over the need for new lines of credit. Maxine Sweet, vice president for consumer affairs at Experian says “A typical creditor uses the scoring model. They don’t look at the comment. They look at the scoring.”

Be Proactive

Although participating in a debt relief firm does not affect your credit negatively, it is still necessary to be proactive and ensure that the company is making your payments on time. One of the main ways your credit score becomes negatively affected is through late payments. If a debt consolidation firm is not careful and does not submit your payments on time, you could end up suffering. Perform detailed research for any company you are considering and find out what other costumer’s experiences were. In addition, if you are working with a debt consolidation company and they fail to make your payments in a timely manner, they should be reported to your state attorney general’s office.

Conclusion

The truth is that your credit is solely your responsibility. Although a debt consolidation company is working for you, it is still necessary to stay abreast of the process and ensure that they are making timely payments. If your company is making timely payments on your behalf, then you have no need for concern regarding your credit score. Your credit score will remain the same and will in fact improve over time with the assistance of an efficient, well established debt consolidation company.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.  Additional note: Anytime you do not repay debt according to an agreement, your credit score may be negatively affected.

Despite the economic devastation that has been ransacking the nation, the state of Arkansas has maintained an established economy that has continued to remain stable. The economy of AR has not seen the rise in unemployment rates that has affected the rest of the country and in fact, their unemployment rate remains well below the national average. This stable economic climate makes Arkansas an ideal state for relocation.

Signs of Stability

Arkansas has managed to avoid the dramatic job loss that has caused residents of other U.S. states to experience foreclosure and difficult economic times. In fact, there has been a recent expansion in the job market that has caused more people to become employed and has created financial stability for thousands of families. Central Arkansas has a steady supplier of jobs from the healthcare and education sector. In addition, the solar and wind energy sectors have been adding new jobs to the region. Windmill blade manufacturers such as LM Glasfiber and Polymarian Composites have recently opened up in Arkansas providing the state with over 1,500 jobs.

In the technological sector, the HP Company has opened up a customer service department in Conway, Arkansas that will employ over 1,200 people. The proliferation of new companies opening in the Arkansas region has helped provide stability to countless families in the area. Other companies that have opened their doors include Welspun, a creator of steel pipes and Caterpillar which plans to locate its New North American facility in Little Rock Arkansas providing over 600 jobs.

Housing market climate also stable

The housing market in Arkansas has not experienced the dramatic highs and lows of other states such as Florida. Instead, the market has demonstrated signs of stability with housing prices demonstrating an overall increase of 1%. Because housing prices were never inflated well above their values, the real estate sector has not been hit as hard as that of other U.S. states. Jim Younquist, director of The Institute for Economic Advancement in Little Rock Arkansas says “Arkansas never experienced extreme highs or extreme lows.”  This steady rate has caused the state to come out virtually unscathed in the housing market. Director of regional services at IHS, an economic analysis firm was quoted as saying quite a few states “did not participate in the housing market boom and bust, and households have not seen their wealth evaporate.”

Not completely immune

Arkansas has perpetually remained above the other states in their economic performance. With an unemployment rate of 4.9%, their economy has demonstrated signs of growth despite other adversity. However the state has not been completely immune to the economic meltdown occurring nationwide. Arkansas Governor Mike Bebe stated “We’re gratified that we’ve kind of withstood it…but we’re not immune from it.” LM Glasfiber, the Danish windmill manufacturer announced a plan to schedule cutbacks of over 150 jobs at their Arkansas plant. Hopefully the trend will not continue and the state of Arkansas will maintain its stable economic climate.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

When seeking debt consolidation, it can be confusing to know where to turn. There has been an upsurge in the mount of credit counseling and debt relief agencies online who are all claiming to have the answers to mounting debt problems. When turning to one of these companies for help, it is important to make sure the company is legitimate. Avoiding scams and poor quality companies is vital when attempting to get the best debt relief help available.

Verifying a Company

Before signing a contract with a debt relief company, it is important to verify that they are a legitimate establishment that is able to live up to its claims. One method of verifying a company is to find out if it is registered with the Better Business Bureau. Although registration is not required, it is a good sign that a business takes itself seriously and is willing to provide the best customer service available. In addition to checking that they are registered, you can also view the grade they have received from the Better Business Bureau which will describe the speediness of their responses to customer complaints and whether those claims were resolved.

Another method of verifying a business is to confirm that the law firm, debt consolidation, or credit counseling company has the correct licenses for operation. This will ensure that they are operating a legitimate establishment. In addition, before signing with a company it is helpful to review past customer experiences with them you can do this by performing a simple Google search of the company name and noting any forums or blogs which mention customer experiences.

Preventative Steps

Once you have chosen a company to sign with, it is still necessary to take preventative steps to ensure that you do not encounter any problems in the future. One of the ways to do this is to keep records of all transactions and dealings with your debt consolidation company. Maintain copies of payment receipts in the event that your creditors claim not to have received payment. In addition, have your contract reviewed by a legal professional to ensure that it is fair and easily understood. Besides reviewing your contract and maintaining payment records, be wary of companies which require upfront fees before assessing your situation. Taking these basic preventative steps can help you to steer clear of unreliable companies.

Conclusion

The truth is that unscrupulous debt relief companies and scams do exist. Taking the necessary steps to verify that a company is legitimate and has a high rate of customer satisfaction is imperative to avoiding scams. In addition taking preventative steps to document all payments will go a long way in protecting you should any problems arise in the future.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Economic projections have reported that the state of Alabama is slated to see economic growth of 4% for the coming year. The growth mirrors that of many other states as the recession draws to an end. The steady pattern of growth portends well for the rest of the nation and AL residents look towards the coming year for an increase in employment opportunities and financial advancement.

The unemployment rate for the year 2010 for the state of Alabama has seen some extreme highs that have only recently begun to recover.  With the rate of hiring slowly beginning to increase, 2011 has seen a much lower unemployment rate that shows positive signs of recovery for the economic climate in Alabama. However the going has been slow as new workers enter the labor force and demand exceeds supply. The University of Alabama predicts that the payrolls will increase by a miniscule 0.7 percent.

What’s behind the projections?

The economic forecasters at the University of Alabama have projected that the state of Alabama should see an increased growth of 4% for the remainder of 2011. The predictions are some of the most optimistic to date and arrive on the heels of recent tax legislature. The tax cuts enacted by congress bode well for the coming year and have increased the projected rate of growth from 3.4% to 4%.

Another factor behind the optimistic predictions is the projected increase in automobile sales. According to University of Alabama, sales for car and light trucks are expected to exceed 13 million vehicles for the coming year. This will boost revenues for the auto industry as well as stimulating the economic growth of the state overall.

State tax revenue is also expected to rise by 1.2 percent for the coming year. Although this is an increase that has not been seen for the last two years, it still remains well below the 5 percent average of pre-recession decades. Still, economists remain hopeful that the rise in state tax revenue will continue in an upwards trend for the year 2012.

National projections also positive

The upwards rate of growth is similar to that of other states in the rest of the nation. David Altig, director of Research at the National Reserve Bank of Atlanta says “I think the economy is actually on pretty stable footing…It’s still likely to be a painful and slow road forward but its still a road forward.”

Conclusion

Economic forecasts appear positive for the remainder of 2011 going into 2012.However the rate of growth may be very slow. The rate of hiring remains low and new jobs are not yet plentiful. However with the projected increase in revenue from sales of automobiles, the economy of Alabama is exhibiting positive signs of growth that are being echoed throughout the nation.

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Few states charge as high a tax on personal finances than Wisconsin. However in this particular state, the tax burden falls mostly on the shoulders of the middle class. Although every state distributes their fees uniquely, Wisconsin has a high rate of dissatisfaction among its residents for the amount of taxes paid out to the state each year. With the economy slowly recovering, critics worry whether this will bring new residents to the state to help stimulate its economy or instead will push long time residents away.

Wisconsin has been one of the highest taxing states in the past but now that has begun to change. They have managed to balance their deficit through the use of smart accounting and borrowed funds. However in their effort to restructure their method of taxing, the middle class has been hit with the highest tax burden in the state. For residents of Wisconsin making 88,000 or less, the amount of taxes and fees paid to the state are extremely high. The two main taxes are property taxes and income taxes. For the people of Wisconsin, this amount is 25% higher than the national average. According to Todd Berry, the president of the Tax payers alliance” The two [taxes] are noticeable and they are memorable…that’s what the middle class sees.” The overall tax burden for the middle class amounts to almost 10% of their income, a significant amount.

Many worry that the state’s attempt at easing their financial burden by raising taxes will only end up hurting their economic growth. For one thing, personal income in Wisconsin is lagging behind in comparison to other states. Many critics of Wisconsin’s tax structure say that it is inadequate to promote statewide growth and fund basic needs such as education. Whether the tax structure will work in the long run is yet to be determined.

One positive step for Wisconsin is that the amount of taxes they have charged overall is on the decline. After years of being classified as one of the nation’s top 5 worst taxing states. This past year saw a generous dip in taxes and fees in the state of Wisconsin. This past year, the state’s spending fell below the national median and ranked 26^th in the nation. It’s tax ranking came in at 14. However the state relies less on fees such as tolls, garbage collection fees and the like. Instead, the majority of its funds are gleaned from income taxes and property taxes. Of which the middle class ends up paying the majority.

Many of Wisconsin’s residents are feeling the strain on their income from the tax burden that has fallen on their shoulders. It is a difficult situation, but someone must end up paying for the state’s spending needs. Each state has its own responsibility for structuring their funding and Wisconsin has chosen this method. Although the tax burden on the middle class is high, Wisconsin has managed to lower their overall tax amount and the distribution method has some critics worried. Whether the tax burden falling on the median population of the middle class will hurt the state’s potential for economic growth in the long run remains to be seen.

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Vermont, a beautiful state with a high tourist pull has been showing excellent economic progress in the last few years. Its creative atmosphere and burgeoning community has created a continued interest in the state. Beautiful farmlands and charming towns make this city one of the most visited in the United States. Recent news has shown that Vermont is ranked one of the ten best cities for the coming decade.

Kiplinger has reported Vermont as one of the top ten best cities for the coming decade, a grandiose statement indeed. However with a magnetic energy full of creative artists and writers, the atmosphere In Burlington, Vermont is a bustling and vibrant one. Kiplinger states that “Burlington’s local-food movement perhaps best tells the story of how environmentalism drives much of the city’s economic growth .” The consciousness towards cultivating local crops that are then sold to the local community is what is at the heart of Vermont’s steady economic growth.

During the past eight years, Vermont has been growing at a rate that is faster than the national average. Its rate of growth was reported at 2.5% while the national average is a few points behind at 2.1%. In addition its economic output has been consistently high, Its output in 2008 was 25 billion dollars. In nominal terms, the state of Vermont grew at an annual rate of 4.6% according to data from the United States department of Commerce.

A large part of Vermont’s burgeoning economy stems from its farmland and natural foods. Apples, maple syrup, cheese, greenhouse and nursery products all make up a significant source of farmland revenue. In the past, dairy farming was also a large source of income but that has since tapered off. The textile industry which was once on the upswing has been replaced by the production of electronics, computer parts, and pulp, paper and food products. Small cottage industries have always thrived in the Vermont area with the majority of them producing products such as knitwear and ice cream.

Manufacturing makes up a significant part of the Vermont economy as well. It made a contribution of 2.9 billion to the state’s economy, making up roughly 11.4% of its economic output. Retail sales made up for about $2.1 million of the state’s economy while health care accounted for roughly $2.6 billion. The most substantial contributors to the economy of Vermont are government funds and their real estate market.

By far the most appealing aspect of life in Vermont is their overwhelming commitment to local food sourcing. As Bruce Seifer, of Burlington’s Community and Economic Development Office says, “We’re 30 years ahead of the country with the local-food movement.”This combined with the state’s magnetic charm and zestful creative energy makes it a state that receives many visitors at all times of year and has an economy that will continue to thrive.

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Pennsylvania has had an increase in mortgage delinquencies according to a recent report released by the Mortgage Bankers’ Association. With foreclosures still high around the nation, the housing crisis which began in 2009 has yet to show signs of tapering off. For Pennsylvania residents seeking relief from foreclosure and looking for a way to remain in their homes, there may be some options available.

The housing market in Pennsylvania remains depressed as many homes in the state have mortgages in some state of delinquency. The recent report released by the Mortgage Bankers’ Association found that mortgage delinquencies were at 8.24 percent which was an increase of 62 basis points from the first quarter in 2011. The state ranked 19^th in mortgage delinquencies in comparison to the rest of the nation. Although mortgage payments were behind, it seems that the amount of homes entering into the foreclosure process itself was on the decline. According to the report, the amount of homes entering into foreclosure dropped 8 basis points to 0.63 percent. These may be demonstrative of homeowner’s efforts to rectify their delinquencies in order to prevent their homes from entering into the foreclosure process.

Traditional remedies for the foreclosure process have been refinancing when possible as well as short sales. However there may be additional help available from the state of Pennsylvania for those who qualify. Earlier in the month of August at the commissioners meeting, Pennsylvania’s Foreclosure Prevention act of 1983 was discussed. The Act had been established to help homeowners remain in their homes by protecting those unable to make their mortgage payments and helping to prevent foreclosure. However this program was closed down due to a shortage of funding. Taking its place is a new program called Emergency Homeowners’ Loan Program. This program allows homeowners the same type of assistance as the previous plan but is only available through September 30^th of this year. To qualify for assistance, homeowners must be at least three payments delinquent on their mortgage due to either illness or job loss.

Although not a permanent solution, the new program enacted can provide relief for many homeowners who have no other available options. The plan gives homeowners up to $50,000 in loans or 24 months of mortgage payment assistance. Those applying for the loan must be able to resume making payments on their own within two years time. The program will hopefully be extended past the end of next month to provide assistance to a larger amount of Pennsylvania residents.

With the steady amount of delinquencies in mortgage payments, assistance from the state provides much needed reprieve for residents with no other options. With the tapering off of federal stimulus funds, states must come up with creative options to fund programs such as the Emergency Homeowner’s Loan Program. This is a trend that will hopefully spread to other states as state officials realize that helping their residents will also prosper the overall economy of the state in the long run.

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The Southeastern states serviced by the Federal Trade Reserve Bank of Atlanta have shown positive increases in their economic status. Manufacturing orders from these states have been on the rise signaling a boost in the economy. The states serviced by the bank include Alabama, Georgia, Florida, Tennessee, Mississippi and some portions of Louisiana.

In the Southeastern region, it appears that things are beginning to pick up on all fronts. Tourism has seen more revenue coming in for the fiscal year of 2011 with hotels reporting more bookings and tourist shops in the area receiving an increase in revenue. Leisure and business travel have shown a positive increase for the year in comparison to 2010. Florida especially has demonstrated a boost in tourism with the international visitor count showing an increase. Florida has also experienced a large increase in sales for hotel bookings and conventions. Restaurant sales have also increased in all areas of the Southeastern states.

In addition to tourism showing positive signs of improvement, there has also been upward movement in the area of manufacturing. A major part of the southeastern states’ revenue, this is a positive sign for many. According to reports provided by the Federal Reserve Bank of Atlanta, manufacturers are experiencing an influx of new orders and plan to increase production for the remainder of the year. This increase in new orders has been steady since December of 2010.

The areas showing no improvement included real estate and agriculture. The real estate market is relatively the same nationwide and the southeastern states showed no marked improvements as well. Home sales were low in both January and February of this year and there was less buyer interest in homes than at the end of 2010. For the farming industry, drought and cold weather affected crops negatively. In Florida many vegetable crops suffered due to the cold weather.  However despite this, the high demand for certain crops such as soybeans, poultry and cotton have offset the loss incurred by poor weather. The southeastern states have been able to charge more for these in demand crops to cover their losses.

Another area with substantial growth is their transportation sector. Trucking firms have seen an increase in orders and the industry is showing good demand. The same is true for railroad companies who have reported an increase in shipments for coal, auto parts and container imports. The only disadvantage is that rising fuel prices have offset some of the gains in revenue. The railroad industry has been able to account for this by increasing the fares charged to their customers.

The positive reports from the Federal Trade Reserve Bank bode well for the rest of the nation. With all industries save for housing seeing an increase in sales, the real estate market won’t be far behind.

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If you are like many Americans, the recent decline in the economy may be causing you to seek a home elsewhere. Americans looking for affordable housing options have found themselves having to relocate to other states. However although cost of living may be less elsewhere, property taxes are a consideration to keep in mind when relocating. Texas is one such state with high property taxes. In fact it has the highest property taxes in the nation with no potential decrease sited in the near future.

In the state of TX, local taxes have skyrocketed in recent years. According to recent statistics, property taxes are 3.53 percent of personal income in Texas making the state 12^th highest in the nation. In addition property taxes equate to 1.82 percent of the home value which makes Texas the second highest for this category in the nation. The only state to supersede Texas in this area is WI.

One of the reasons for the high property tax rate s in Texas is the lack of personal income tax. The state must make its revenue somehow and property taxes are the way they are making up for this loss. As such the causes are not so much political as they are economic. Many Texas residents are aware of this discrepancy and are seeking solutions.  In fact, citizens have imposed a tax and spending limit on their local government.  The Texas residents are also demanding that property tax appraisals be more closely monitored in an effort to lower property taxes overall.

In past years, Texas has been considered a state with a low tax burden allowing for major economic growth in the more populated areas. However, in recent years, that tax burden has become heavier and in turn has put a strain on the state’s economic growth.  There has been a direct correlation between Texas’ tax increases and the tapering off of their economic growth. This is because the increase in taxes has seen a major surge in local revenue and spending in Texas. Because of this, local revenue has increased more than personal income.

A resolution to this problem for Texas residents would be new legislature which would impose spending limits at the local as well as state level. Temporary property tax relief is simply not sufficient to provide a solution to this problem. There may be the possibility for new legislature being passed as Texas residents continue to put pressure on elected officials to help bring these necessary changes to pass.

There are many areas of Texas that continue to flourish. Houston a city with many major businesses continues to provide employment for many Texas residents. However when considering relocating or buying a first home, the high property tax rate and its effect on the local economic growth should be a major consideration.

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The recent New York census reported no significant increase in the population. The numbers reported correlate to findings in other states throughout the nation. There are  many potential causes for the low numbers cited, however the majority opinion is that the effects of the economy that have affected many other areas of the country have also affected New York State.

Mayor Michael Bloomberg railed against the recent census reports which showed no significant increase in the New York population since the year 2000. The mayor argued that the numbers reported simply don’t add up. The amounts of vacant apartment buildings were not located in the areas which had a decrease in population. This would signify that there is more housing space available than there are actual vacant apartments. One theory is that many illegal immigrants afraid to come forward have skewered the census findings and caused the low numbers which were reported.

According to the census, the city has grown by a percentage of 2.1% over the last ten years. Down from the 9% reported in the year 2000. It has reported that the number of Black New Yorkers has declined by 5 percent since the year 2000. Non- Hispanic whites showed a 3 percent decline, while the Asian population increased 32 percent. The Hispanic sector of the population also grew by 8 percent.

New York officials unwilling to accept the lack of population growth have cited many potential reasons for the low count. One such reasoning is that the census of 2000 overestimated the population causing the recent census to appear significantly lower than normal. The other reasons offered are the possibility of a miscount and the popular theory of illegal immigrants living in overcrowded apartments not calculated into the census. The mayor claimed that the census shortchanged the city by at least 225,000 people. He was quoted as saying it was “inconceivable” that the county of Queens only grew by 1,343 people since the year 2000.

The mayor and city officials may very well be unwilling to consider the fact that the effect of the 9/11 terrorist attacks coupled with the recent economic downturn could be the real cause for the lack of population growth. The cost of living in New York has always remained significantly higher than other states and many people are trying to save money any way they can. Moving to more affordable areas of the country is an obvious choice for many New Yorkers looking to maintain their standards of living.

The census bureau director Robert M. Groves responded to Mayor Bloomberg’s suspicions of a skewered report by stating “This is the time when many mayors receive counts that disappoint.” A low population reflects badly on the mayor and typically signifies a lackluster economy. For the time being, New Yorker’s should enjoy the lack of additional overcrowding and look forward to a boost in the economy for the near future.

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