Debt Consolidation Blog

Archive for October, 2011

Debt settlement is a very attractive option for those faced with more debt than they can reasonably repay. However it is important to understand that choosing to settle your debts instead of paying the full amount will be reflected on your credit score. Understanding how your settlement affects your credit can assist you in determining if this is the best option for your financial situation.

With debt settlement, an individual can pay the balance owed on their accounts for less than the full amount due. Most creditors who choose to settle will require a lump sum payment upfront. However there are situations where you can make installment payments on your settled account. Regardless of the repayment method, debt settlement will have an impact on your credit score. In most cases, it may temporarily lower your score as you are going through the debt repayment process. This is because, during the settlement process, you may have to stop making payments to your creditors until your contract with the debt settlement company is established. In addition your account will reflect that your debt was paid for less than the full balance. This can reduce your credit score by as much as fifty points.

There are various factors that may impact your credit score throughout the debt settlement process. These factors include how many settled accounts there are on your credit, the age of your accounts, the history of late and missed payments on the settled accounts as well as the number of accounts on your report that reflect positive activity. The combination of each of these factors may impact your credit score in different ways. If your account has been charged off and sent to collections, it can remain on your account for up to seven years and will show up on your account as ‘charged off.’ Once you have made the entire payment, you can request that the account be reflected as ‘paid charge off.’

Settling your debts may appear futile if the end result will be a marred credit report. However there are steps you can take during the settlement process to prevent a damaged report. For starters, when negotiating a settlement, request that your creditor reflect the account as paid in full and that it be removed once payment has been remitted. Request that this be in writing before agreeing to make your first payment.

Although debt settlement can have a negative impact on your credit score, there are steps you can take to make improvements. The most important thing is to have your creditors put the terms of your agreement in writing; primarily that they will remove the negative listing once all payments have been made. Additionally, continue to make payments on your other debts in a timely and consistent manner. These combined measures will guarantee that your credit score improves for the better after a debt settlement.

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.

If you owe tax debt, it may be tempting to try to rid yourself of them through a bankruptcy filing. However, it may not be that simple as there are many stipulations regarding eliminating tax debt with a bankruptcy filing. To find out what the best course of action is, it is best to become familiar with the rules and regulations of tax debt when considering a bankruptcy.

Although it is possible to eliminate some tax debt during a bankruptcy filing, there are many restrictions that apply. The first thing to note is that the only tax that can be wiped clean is income tax. Other tax debt such as self employment tax must be repaid. In addition, the type of filing affects whether or not this tax debt is eliminated. In most cases, you must file a Chapter seven bankruptcy for your tax debt to be forgiven. In some instances a Chapter thirteen filing may allow you to eliminate some of your income tax debt but this may vary depending on the individual’s situation.

Another consideration to note is that if there has been any tax fraud in association with your social security number, the chances of having your income tax debt forgiven is slim to none. This would be the case even if you attempted to file your taxes using another social security number.

In order for your tax debt to be eliminated through bankruptcy, the debt must be processed 240 days prior to the filing taking place. This means that if you are considering including recent income tax debt into your bankruptcy filing case, you must do so after it has already been processed. Your request for eliminating your tax debt may cause your bankruptcy case me be dismissed entirely if you fail to adhere to this stipulation. In the case of a Chapter 13 filing, you must have the tax debt on record for at least four years in order for it to be considered during your bankruptcy hearing.

If you are facing an unbearable tax burden and bankruptcy seems to be the only way out, then it is best to consult with a bankruptcy lawyer to find out if the process will yield the results you are hoping for. There are alternatives to bankruptcy which may work just as well for you. One such alternative is to arrange a payment plan with the IRS. This payment plan will allow you to make monthly installment payments that will eliminate your tax burden over time. A point of consideration is that a payment plan with the IRS will have interest attached and you should budget for this accordingly.

Ultimately, there is a very small chance of having your tax debt eliminated through a bankruptcy filing. There are time restrictions on filing taxes in order for them to be included in the bankruptcy. In addition the type of bankruptcy you file will have an effect on whether your tax debt is eliminated or not. The best approach is to deal directly with the Internal Revenue Service and discuss making payment arrangements.

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The State of OH has recently launched a campaign to attract major businesses and corporations. The efforts have so far cost the state millions of dollars and raised questions as to the effectiveness of this approach. But with Ohio’s population declining as unemployment continues to rise, this may leave Ohio no choice but to spend money in the hopes of making more.

Ohio has long had many established businesses in the manufacturing and automotive industries. However towns that were once home to major industrial and manufacturing plants have slowly become vacant. These towns include Zanesville, Van Wert, Newark, Mansfield, Defiance, Coshocton and Akron. Over time businesses have moved elsewhere and over the last ten years, Ohio has seen a loss of over 500,000 jobs. In addition, the recent Census of 2010 has provided data that shows a decline in Ohio’s overall population with a specific loss in the younger age group. This decline resulted in a loss of two of Ohio’s U.S. house seats.

To counteract its faltering economic state, Ohio has taken some drastic measures. Governor Bob Taft began enacting reform over ten years ago through a stimulus program meant to increase state revenue. Taft stated: “we had to do something in a dramatic way  …it’s a long term strategy, not an overnight attitude, its how states like Ohio transform themselves. We don’t have any other choice.”

Ohio has begun state funded projects by creating sites and advertising heavily in the hopes of luring in big businesses. One such site was created in Van Wert, Ohio and to date has received over ten million in state funding. The 1,600 acre site is replete with gas lines, a rail line and land acquisition options. The state hopes that building these ready made sites will attract manufacturing companies who will in turn stimulate the State’s economy. However the plan is nothing short of a very expensive gamble as there are as yet no prospects lined up to occupy the $10 million dollar state funded site.

Another such state funded site is located in Wapakoneta, Ohio and will contain an industrial park that is close to five hundred acres. The population in the small town is a measly 9,867 but hopefully that number will increase if an industrial plant chooses to build their site here and provide local residents with much needed jobs.

Although state officials feel that making Ohio state attractive to big businesses and industrial mega plants is the only way to stimulate their economy, critics worry that the plan may not be effective or practical.  A USA Today review of two of Ohio’s state funded projects saw many warning flags including projects that were behind schedule or still lacking investors. There is in fact, no guarantee that the investors will ever come but as Governor Taft stated, when faced with such a bleak economic outlook “[Ohio doesn’t] have any other choice.”

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When arranging your own debt settlement directly with your creditor, it is very important to get a debt settlement offer letter. This letter puts into writing everything you discussed with your creditor over the phone. Without this letter, your creditor can renege on their original offer and leave you paying more than you bargained for.

Settling your debt without the aid of a debt settlement company requires that you take measures to protect yourself and your finances. Third party collection companies have been known to be unscrupulous and may agree to one thing over the phone while still holding you accountable for your entire debt. To avoid such a scenario, it is best to request that your settlement agreement and payment installment amounts be placed in an offer letter from the lending company.

There is some basic information that your settlement letter should contain. This includes the exact amount of your debt and the amount that they are willing to accept in your settlement. Your settlement offer letter should also include your account number or social security number and your name to verify that this account belongs to you. Your offer letter should spell out the amount of your payment installments if any and the date by which they are due. When negotiating your settlement, request that the delinquent account be removed from your credit report or be reported as ‘paid in full.’ If your lender has agreed to these terms, this should also be included in your letter. For added security, your letter should be on company letterhead and should be dated accurately.

Once you have received your settlement letter and ensured that all the details are accurate, make sure to keep it in a safe place should you need to dispute the details of the account at a later date. You should begin making your payments accordingly as stipulated by the terms of your agreement. Once the account has been paid in full, you can then verify that your lender has kept their end of the bargain. Do this by checking your credit report to see what the status of the account is. You may have to allow thirty days after the last payment has been made for the new changes to reflect on your account. If after that time the account is still showing up as a delinquent account with a balance owed, you can dispute the listing using your offer letter as proof.

Settling your own debt can be done as long as protective measures are taken. Securing an offer letter before making your first payment will guarantee that you are covered should there be any confusion with your creditor. Finally, after all payments have been made, make sure your creditor has kept their word by double checking your credit report after thirty days. Use your offer letter to your advantage and keep it on file should you run into any difficulties with your account 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

The foreclosure rate in WY has reached new highs according to reports from the month of May. The rates of default on home mortgages have been so high that it has registered an increase of 53 percent since April. Economists are wondering what the cause is behind the rapid rise in foreclosures as the unemployment rate appears to be decreasing.

As of May, reports by Realty Trac show that the state of Wyoming has been experiencing a record amount of foreclosure filings, default notices, auctions and repossessions. Over 107 Wyoming properties were included in these reports. The report shows that one out of every 2,331 homes were in some stage of bank repossession.

Wyoming Counties most affected

The Wyoming counties that have been most affected were Lincoln County, Natrona County and Laramie County. Lincoln County appears to have the top foreclosure rate with one out of every 856 houses entering into the foreclosure process. Natrona was not far behind with one out of every 1,007 households receiving notice of intent to file foreclosure from their lending institutions. Coming in at third was Laramie County which saw one in every 1,063 houses receiving a foreclosure filing, 2.2 times the overall national average. Laramie County had the most amounts of foreclosures for the month of May with a report of 36 homes entering into the process.

Relative to the nation

In relation to the rest of the nation, the state of Wyoming appears to have higher rates of foreclosures than other states throughout the country. The foreclosures reported throughout the state made up for less than 1% of those nationwide. For the entire United States, one in every 605 households received a filing of foreclosure for the month of May. The total amount of foreclosures for the nation had gone down by almost 2% in April and by almost 33% in May.

Although the foreclosures in Wyoming have increased, those throughout the nation have decreased while the inventory of bank repossessed homes continues to remain high. At the present time, supply exceeds demand for housing throughout the nation. James J. Saccacio, the chief executive officer of Realty Trac stated “The weak demand from buyers {makes} it tough for lenders to unload their REO inventory. Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”

Despite the rise in bank home repossessions in Wyoming, the unemployment rate has gone down. The rate decreased from 7.2 percent down to 6 percent since April a positive sign for the state. Experts hope that the increase in jobs will translate to lower foreclosure rates overtime.

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Washington State has continued to expand economically with a growth of 3.6%. There have been improvements in employment opportunities and overall, the growth of the state seems to be relatively consistent.

Washington economy grows

Like many other states, Washington has begun to demonstrate signs of growth. Its gross domestic product market grew significantly in 2010 reaching a total of $425.2 billion dollars. WA has become one of the highest ranking states economically coming in third overall nationwide for fastest growth and fourth for having the largest economy in the nation. This steady growth portends well for the state and demonstrates a positive trend for the rest of the nation.

Washington has several strong sectors that contribute to its overall economic health. The largest part of its economic strength lies in the business, services and communication industries. Washington is the headquarter of the largest software development company in the nation. In addition, its professional services which include law firms, engineering and computer programming continue to remain strong. Second overall in contributions to the state’s economy is the real estate and finance industries. Washington houses a major banking as well as insurance company. In regards to crops and agriculture, Washington generates the highest revenues in apple crops than any other state and produces 64% of the nation’s apples.

Washington is also very strong in manufacturing with leading products in the space and aircraft areas. Other heavily manufactured products include computer parts such as microchips, and also medical and navigational equipment.

Some challenges remain

The economic struggles that plague many states has not completely escaped Washington however as its unemployment rate has remained at 9.1% consistently over a two year period. In addition, the natural disasters that ransacked Japan have had its effects on Washington State in the form of revenue loss. The tsunami has affected the amount of goods available for purchase which has decreased consumer spending as well as affecting the manufacturing industries as well. The hope is that as Japan rebuilds its economy it will again begin purchasing from Washington State, which has a large manufacturing industry.

Washington has also not avoided the foreclosure craze that has affected the rest of the country. New constructions have declined and the foreclosure rate remains high.

Positive signs

Despite the high unemployment rate that has been steady in Washington State for some time, there are positive signs of future improvement in the employment section of the economy, It seems that aerospace and software have begun expanding again with new hires totaling over 4,300.

Conclusion

Washington remains one of the national leaders in economic growth and even its high unemployment rate is showing signs of turning around soon. With increasing jobs in the aerospace and software division the economy of the state should soon be improving.

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Many businesses rely heavily on credit cards to assist in making purchases for their commercial needs. It is not uncommon for several high ranking employees to have access to company credit through the use of a company credit card. However with so many different people as card holders, the business can become liable to business card credit fraud. It is imperative for business owners and all card holders to take the appropriate measures to prevent fraudulent credit card usage.

How does business credit card fraud happen?

Business credit card fraud can occur in a variety of ways. In a business with multiple employees as business credit card holders, the risk to the company increases exponentially. Fraud can occur when either these employees or the business owner themselves make online purchases on unsecured servers or with merchants who are not well established. Fraud can also occur if sensitive data is left easily accessible within the office setting. Banking and credit card statements pertaining to the business should be locked away in a secured location for safekeeping. Ideally, utilizing the option to receive an electronic statement is best. If this is not offered by the credit card company then scanning the statements in as a PDF and securing them in a password protected file is an excellent alternative. Afterwards, the statement and any other documents containing the credit card account numbers should be shredded.

Another way that business credit card fraud occurs is through the use of saved passwords. When using the same computer, it can be simple and easy to save passwords to credit card account logins. Although this simplifies having to remember the password each time you visit the site, it is an extremely risky practice especially in an office setting. Passwords to accounts and files containing account information should never be saved onto an office computer or even a laptop which could be misplaced. If a password has been saved in error, clearing the cookies on the desktop should easily remove it.

What to do in the event of fraud

If your business has been subject to credit card fraud, it is important to file a police report as soon as possible. Documenting the incident can help provide liability protections for the business owner. Many business credit cards do not provide personal loss protection for the card holder. In this case, it is best for the business owner to purchase separate credit card insurance for added protection. Employing the services of a lawyer can aid in absolving the card holder of all payment responsibilities in the event fraudulent purchases have been made. If a credit card is missing and it may have been misplaced, it is best to report the card lost immediately and request a new one.

Summary

The best way to avoid business credit card fraud is prevention, safeguard all sensitive account information that others may have access to. Avoid having instant logins that eliminate the need to enter a password. Although it is ideal to feel that all employees can be trusted, it isn’t worth the risk to have sensitive company data accessible to anyone who enters the office space. Keeping all data safe and reporting missing cards right away can help prevent credit card fraud which can be costly and time consuming to rectify.

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Virginia’s airports have been bringing employment as well as profits and have bolstered the state’s economy. In light of economic struggles throughout the nation, Virginia has demonstrated a strong stance primarily through its transportation sector, more specifically in respect to its airports. The increased revenue and employment opportunities that these airports provide bode well for the future of Virginia’s economic climate.

Airports prove to be an economic goldmine

A recent study has shown that Virginia’s airports have provided the state’s residents with hundreds of jobs and has contributed billions in revenue. The study was conducted by the Virginia Department of Aviation and analyzed the airport’s impact on the state’s economy. It took into account the 57 general airports as well as the 9 commercial airports which the state of Virginia has. The study showed that the general airports have contributed over $728 billion in revenue and provided Virginia with close to 5,200 jobs. The public use airports have similarly impressive statistics and were shown to provide $28.8 billion in economic activity and a supply of close to 259,000 jobs. This study was conducted by surveying airport managers, vendors at the airports as well as analyzing U.S. government data.

The steadfastness of the airport sector has helped to bolster the economy of Virginia in a major way. The owner of the Williamsburg Jamestown airport, Larry Trip said “The airport is doing more than people think. We’re pleased they did the study, it proves what we’ve been talking about.” The airport sees a lot of traffic with more than 69,000 people boarding the planes daily and over 6,000 aircrafts taking off. This hub has been a center for commercial profit for the businesses who call the airport their home. Providing small businesses with a profitable source of revenue has further added value to the airports already useful service in the community.

Virginia economy strong overall

Airports have proven themselves to be a profitable part of Virginia’s economy. Luckily for this state, the rest of its business sectors continue to perform well. Just recently in 2009, Virginia sold an excess of $15 billion in products in rapidly expanding international markets. Additionally, companies have increased their exports significantly by 56 percent.

Virginia has long been one of the strongest states in the nation with a heavy governmental sector particularly in Northern Virginia. Other strong industries include software, defense contracting, communications and consulting. VA has long been one of the wealthiest states in the U.S. and ties with Colorado for having the most counties ranking in the top 100 based on per capita income.

Summary

Virginia’s economy has been holding up well in compariosn to the rest of the nation. Strong industries providing billions in profit have helped the state to maintain a strong economic climate. By far one of the highest contributors to the economic wellbeing of the state is its airport industry. With the strength of its economy, Virginia contiues to withstand the harsh economic downfall that has afflicted other, less fortunate states.

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Pay day loan advertisements can be found all around the internet and often in spam emails as well. It can be difficult to resist the lure of easy money and fall prey to the easy pay day loan. However pay day loans come with exorbitant interest rates that can often be in excess of 300% and even 400%. Taking out more than one pay day loan can quickly send your debt spiraling out of control. One remedy that can be of great assistance in this situation is a pay day loan consolidation. A pay day loan consolidation can help make your debt more manageable and put your finances back in your control.

Understanding pay day loans

Pay day loans have become a very profitable business for the lenders that offer them. These lenders capitalize on their customer’s heavy financial need and offer loans that are simple and easy to qualify for. Traditional loans start at $100 and can even go up to $1500. Credit checks are usually not required and the only prerequisite is proof of employment. This can give great accessibility to funds that would otherwise require a lengthy qualification process. The ease of obtaining these personal loans often leads to multiple loans being borrowed at once which can make repayment very difficult.

Pay day loan consolidation

A smart and efficient way to pay off mounting debt from pay day loans is to take out a pay day consolidation loan. Although it may seem counter intuitive to take out a loan simply to repay a previous loan, it is actually a very smart move. Pay day loans carry with them extremely high interest rates that can cause your balance owed to quickly surpass the original amount. It is not uncommon to end up paying interest rates in excess of 300%. Pay day consolidation loans will combine all your payments into one simple payment at an interest rate that is manageable for you.

When choosing to do a loan consolidation, you have the option to get the loan on your own or with the help of a consolidation firm. Acquiring the loan on your own can help avoid some of the fees and costs associated with utilizing a debt consolidation firm. However a debt consolidation firm also has its own advantages. They are able to negotiate directly with your pay day loan creditors on your behalf to help eliminate some of the fees and late payment penalties associated with your account. A pay day loan consolidation firm can also make payments on your behalf and serve as an intermediary between you and your creditors. Once your pay day loans have been consolidated, you can begin making one monthly payment towards your total debt.

Choosing a consolidation company

When deciding to use a debt consolidation company to assist in paying off your pay day loans, there are a few things to be aware of. You should make sure that the loan company of your choice has experience working with pay day loan creditors. They should have a case history of past successes with other clients requiring pay day loan repayment assistance. In addition, the company you select should be accredited with the Better Business Bureau and should have a positive customer rating.

Conclusion

Deciding to use a payday loan for short term emergencies can prove to be costly in the long run. Before applying for a payday loan, explore all the other financing options available. Lastly, if your pay day loans have become unmanageable, seek the assistance of a debt consolidation loan company that can help in getting your finances under control.

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Recent tax legislation signed in by state officials may help to bring positive changes to the state’s economy. Many MT residents who were affected by the high unemployment rate that has plagued the nation hope that the current tax legislation will help existing businesses to remain in operation for a much longer time.

Montana’s tax changes affect small businesses

The recent tax legislature that was signed into place has a direct effect on Montana’s small businesses. One of the main points of note was the high cost of worker’s compensation insurance throughout the state. For many small businesses this tax represented a heavy burden that affected their ability to remain in business. Montana had the highest worker’s compensation costs in the nation and the new legislation was a much needed breath of fresh air. House Bill 334 that helped to lower these costs was sponsored by Rep. Scott Reichner and was signed into place by the governor. The state is already seeing a positive sign of change after the legislature was passed. Insurance companies have responded to the new laws by lowering their rates for both new and existing businesses.

The new tax legislature issue which was addressed by the new laws was the use of marijuana in the workplace for medical purposes. Apparently business owners feared lawsuits from injured workers who may have been under the influence of medically used marijuana. They feared that their operating capacity would be severely impacted if they were required to pay personal damages to an injured worker who was under marijuana’s influence. The new legislation addressed these concerns in House Bill 43 where the law is clarified and now allows business owners to make decisions in respect to employee’s use of medical marijuana.

Another concern which was included in the new legislature was Montana’s tax on production tools. Montana was one of the few U.S. states which imposed a tax for tools used by companies for product creation. The senate bill 372 offered businesses some much needed relief on this business equipment tax. The new laws will decrease the amount of taxes by one third on the first $2 million of equipment. More tax decreases may be in the works for future years. For now, Montana businesses in the manufacturing, oil and gas, timber, and agriculture sectors are grateful for this reduction in equipment taxation.

Legislation will help Montana economy

The new changes put into place by Montana elected state officials have given local businesses helpful tax breaks and legislation changes. The state will directly benefit from these new laws by offering businesses the protections they needed from potential lawsuits made by employees. In addition, the business equipment tax relief will free up revenue for businesses to bring in new hires which will increase job availability for Montana residents. The new legislation offers positive changes that will ultimately work to benefit the entire state of Montana’s economic output.

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