See Monkey Do

Today hundreds of thousands of families in the United Kingdom are in a financial mess. The present situation in Great Britain can mean that a period of illness or a minor error in budgeting will more often than not end up as destroying your credit score. When this happens, bank loans, credit cards, and an account may become awkward to get. Why should you suffer for 5 to 10 years for something which may have been unavoidable? Banks have now designed accounts specifically for people with a damaged credit score — in other words: there are some feasible alternative options. But what exactly are these accounts? And how do you get one?

Now it’s simple to get a checking account with no credit checks. Instead, you just need to prove you are at least 16 years old. Even when you have an Individual Voluntary Arrangement or if you are a declared bankrupt, you can nevertheless be accepted when you apply for a bad credit bank account just by applying in writing and providing the usual information. Higher bank fees are frequently associated with bad credit bank accounts. Fortunately, this simply is not true. A bad credit bank account from a respected bank won’t feature any hidden fees and in all likelihood won’t charge you anything if you remain within your agreed overdraft. Bank accounts for a damaged credit history are equally as uncomplicated to manage as any other. You don’t need to visit a bank any longer, as banking online gives you access to your money three hundred and sixty five days a year. Even if you are constantly traveling, it is so easy to get at your funds using a mobile telephone. Second chance current accounts can even have a variety of extra features that normal accounts just don’t offer. A single application form will usually get you a pre-paid MasterCard and a great bank account. Don’t presume that bad credit bank accounts are for “irresponsible” individuals — no, they are for individuals just like you and I who have been rejected for credit. You can eliminate any awkwardness by applying on the internet and receive a reply almost immediately. And so if you must sort out your finances, apply for a second chance bank account today.

The Bankruptcy Abuse and Consumer Protection Act, signed into law by President Bush last April, promises changes to Federal bankruptcy law that have been long sought by the lending industry. The bill promises sweeping changes to Federal law, and will make it much harder for the average consumer in financial trouble to have their debts wiped out by filing for bankruptcy. Recent trends suggest that those considering a bankruptcy filing should do so now, as the line to do so is already getting rather long.

The bill will make it harder for the average consumer to file under Chapter 7 of the Federal code, which allows the courts to wipe away consumer debt and give the debtor a fresh start. Filings after the October 15 deadline will be subject to a means test and those that pass a rather generous income gauge will have to file under the more strenuous Chapter 13, which requires a repayment plan and the assistance of an attorney. Indications are that with the deadline looming, bankruptcy filings are not only higher than they were last year, but they are also higher than anticipated. Nationwide, filings are 20-25% higher than last year, and some bankruptcy attorneys say that their business has nearly doubled.

Complicating matters is another law, passed in 2003, that requires credit card companies to establish a payment schedule that allows consumers to repay their debts in a “reasonable” amount of time. Since the beginning of this year, the major credit card companies have doubled their minimum payments from 2% of the balance to 4% of the balance. For the average household with $10,000 in credit card debt, this doubles the minimum monthly payment from $200 to $400, an increase that many consumers cannot afford.

The dramatic increase in bankruptcy filings has overwhelmed bankruptcy attorneys, who will face the additional burden of being liable for false information filed by their clients once the new law takes effect. This additional pending liability, combined with the additional workload, has prompted many attorneys to raise their fees by an average of nearly 20% over the same time last year.

What does this mean for those with problem debt? The deadline for filing under existing law remains October 14, 2005. After that, bankruptcy filings will be more complicated and expensive. The courts and law offices are already becoming clogged with bankruptcy cases. Anyone who may be considering filing for bankruptcy to overcome his or her problem debt should do so now. Waiting even another day could be too late.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity lending.

There are two alternatives for filing bankruptcy as a consumer, chapter 7 and chapter 13 bankruptcy. Chapter 7 is often called liquidation as all of your unexempted property is sold in order to pay off your debts that you claim in the bankruptcy. Exempt property is that property that the bankruptcy trustee allows you to keep in order to live your life normally, like a automobile, clothes, furniture, etc. Every state sets their bankruptcy exemptions, as well as Federal exemptions that can be used in some states.

In order to qualify to file a chapter 7 bankruptcy petition, cannot be a business or farm, must be an individual, you must complete a credit counseling course from an sanctioned agency inside the 180 days before filing for chapter 7 bankruptcy relief, and pass the means test which is completed with yor petition.

In a chapter 7 bankruptcy petition, you will have to file bankruptcy forms that list your debts, assets, earnings and living expenses. Copies of tax returns, pay stubs and credit counseling certificate will also have to be filed. Bankruptcy filers who are married must provide the spouses data even if they are not going to be filing bankruptcy together so the court can determine your ability to pay the debts.

When filling out your petition, you will have the option to continue paying and saving your property if you are able to, such as your house or car, by making a reaffirmation agreement with the company that holds the debt. By reaffirming the debt you are acknowledging that you intend to make payments. If the trustee grants your reaffirmation agreement, the creditor may be able to call you to collect the debt in the future.

When you file your ch 7 bankruptcy petition you will have to give a filing fee of $299. This fee can be paid in installments, up to 4 no later than 120 days after you file. Once the petition is filed, the bankruptcy stay is in effect, creditors cannot call, collect or file lawsuits. Each of your debts will be advised that you have filed bankruptcy and given a chance to answer. Within 20-40 days a 341 meeting will be called. During this meeting, the trustee and your creditors may ask questions about your petition.The trustee then rules on the presumption of abuse of your case. A presumption of abuse by the trustee can result in being forced into a chapter 13 bankruptcy.

The trustee then liquidates your assets if any are not exempt and gives the profits to creditors. Once liquidation is completed, you are granted a discharge wiping out your debts.

Eliminating credit card debt is a top concern among millions of
consumers. However, many people fail to outline a realistic strategy for
reducing debts. There are many approaches that will put you on the path
toward becoming debt free. Each person must assess his or her own situation
and create a plan. Here are three tips to help you become debt free
within a few years.

Recognize the Problem and Alter Spending Habits

Before you can take the necessary steps to reduce and eliminate credit
card debt, you must first acknowledge excessive spending and resolve to
change your lifestyle. Unfortunately, many people choose to live beyond
their means. Furthermore, many acquire excessive debts because of
trying to “keep up with the joneses.”

Credit cards serve a valuable purpose. They are great during
emergencies and when you are financially strapped. However, if you are charging
more than you can afford to pay, this creates a huge problem. As you
endeavor to eliminate debts, be determined to stop using credit cards. Do
not cancel credit accounts. However, you may consider cutting your
cards or storing them away.

Pay Double, or Triple the Minimum Payment

If you are hoping to reduce credit card debts, you must be willing to
pay more than the asking minimum payment. In fact, paying only the
minimum will make it practically impossible to become debt free. Instead,
attempt to double, even triple your monthly payments. If possible, make a
large payment toward reducing your balance. This method is most
effective.

Obtaining a lump sum of money is challenging. You may choose to use a
tax return or bonus money received from work. Getting a part-time job
may also provide you with the extra cash. If you own a home, take
advantage of your home’s equity. Home equity loans or cash-out refinancing
generally present homeowners with enough cash to payoff high interest
credit cards and other debts.

Use a Debt Management Company

If you need assistance with managing large debts, think about
contacting a debt management agency. Trained debt management specialists will
review your credit and outline a plan for reducing debts. Furthermore,
the company will contact creditors and negotiate a lower interest rate.
By doing so, a larger portion of your monthly payments will go toward
knocking down the principle balance. Thus, helping you achieve your
ultimate goal of eliminating credit card debt.

View our recommended
Debt Consolidators online.

Carrie Reeder owns ABC Loan Guide, an online resource with information about Bad Credit Debt Consolidation
and Debt Consolidation Mortgage loans.

Many people handle monetary shortfall at some point in their lives Because of this, outstanding debt will likely arise. A person can meet these crises because of job loss, divorce, sudden passing in the family or just simple poor personal cash supervision. Small companies on average confront difficulty within the first few years of business. To blame for a venture shutting down can range from greater competition, mistakes, loss of important accounts to distinguish a few. Whatever the origin, unrecoverable debt might lead to bankruptcy. But, there are alternatives to bankruptcy that might alleviate damage to your personal credit or your business credit.

Insolvency is described as a lack of ability of an organization or an individual to meet money owed to their creditors. If a company files, the guarantor is made to to surrender all unexempt possessions and real property for liquidation. While personal possessions are kept, you also subscribe a bound share of your earned revenue to the creditors based upon an agreed upon repayment program. Your credit bureau grading will be zero for a long time, which signifies that you won’t be in condition to acquire financing for any private or business establishment for a extended period of time.

The tenseness and head aches stimulated by these undischarged fiscal indebtedness can be oppressive, to state the least, especially when the thought of filing bankruptcy creeps in to your brain. Within these positions, it is primary to realize that you possess choices. It is of the essence to seek out the choices, such as a financial advisory who can create a debt liquidation plan for you.

If you are curious why a financier would wish to work with yourself to resolve the debt consider that resolution is an substitute for them too. In certain insolvancy judicial decisions a creditor holding unsecured paper may possibly obtain nothing. Even So, after their customer makes out a settlement they will at least recoup percentage, if perhaps not every bit, of the debt the creditors hold. Remember also that when added up the interest that you paid already along with the past due fees and over-the-limit charges they may have possibly billed, the financial institute could be money ahead even prior to the negotiation.

Debt settlement can be an exceedingly positive alternative when compared to insolvency for you, as an individual or a commercial enterprise proprietor. Especially when take the future into account. Insolvency should be avoided at all costs given the fact that finding credit will be almost unattainable for any individual or business concerns you might have later on down the line. There is not much of a fresh slate; insolvancy will follow you wherever you go. No matter what kind of debt you have incurred, initially look out for a debt negotiation plan as the initial choice for contemplating financial insolvency.

Are you looking for some inside information on structured settlement equity annuity? Here’s an article thattakes a closer look at the subject of structured settlement equity annuity.

Among your choices if you’re owed a settlement is to invest the money in a structured settlement equity annuity. Before you make this choice, there are some issues about which you should learn.

Structured settlements are long-term payments paid to injured parties by the offending party as a result of settling the case in lieu of (or sometimes as a result of) a trial. Once you’ve won and are due the settlement payout, you have choices to make about what to do with the money.

One attractive option is a structured settlement equity annuity. This provides the best balance between security of your principal (the settlement payout) and potential for growth. It pays you whichever is higher: a minimum guaranteed interest rate or stock market return. Equity refers to stocks, also called equities.

Another option when you get a structured settlement is to sell it and take a lump sum payment from a third party. While this may be an attractive option, depending on your financial situation, you stand to lose a lot compared to a structured settlement equity annuity.

People in retirement (or very near) are usually better off with the safety and guaranteed minimum returns an equity indexed annuity provides. Still, many people winning structured settlements opt for the lump sum payout, even knowing they are forfeiting a percentage of the settlement to the company that buys the settlement out.

Most of this information comes straight from the structured settlement equity annuity pros. Careful reading to the end virtually guarantees that you’ll know what they know.

Selling a structured settlement to get a large cash payout at one time is also fraught with negative tax effects. Not only will you lose a percentage to the buying company, but taxes will eat another percentage. With a structured settlement equity annuity, most or all of the money you get will be tax-free (or taxed very little).

If you decide to pursue a structured settlement equity annuity, take the time to research your choices thoroughly. Look for a long track record of successful returns and competent management. Don’t risk what you’ve won!

If your decision is to sell your structured settlement for one lump sum payment, it’s imperative to hire a lawyer to help you deal with companies and to advise you. Some unscrupulous companies are out there that will use slick sales approaches to convince you that taking only half (or even less) is somehow a good deal for you.

They prey on your desire to get a bunch of cash in hand as soon as possible. A skilled attorney can keep you from making poor decisions that are emotionally driven. He or she can also help you pick a structured settlement equity indexed annuity that will give you the best long-term results.

Whichever way you’re leaning, the smart play is to research all your options and hire a lawyer you trust to give you his or her wisdom and experience in the structured settlement equity area. It’s too important a decision to make on a whim.

Don’t limit yourself by refusing to learn the details about structured settlement equity annuity. The more you know, the easier it will be to focus on what’s important.

Ken Austin is the webmaster at Structured Settlement Tips
and Structured Settlements and Annuities.

We have all heard of the people who win the lottery and they are broke within a few years? It is amazing really how unfortunate this really is. In fact it is all too common. Did you know that this is the very reason for structured settlements in lawsuits to help the person awarded the settlement a payment over time, so they can exist without blowing all their money. Of course this may not be such a good idea if the person is trying to buy a house and cannot come up with the down payment or needs the money for an operation or medical care for their mother.

So often what appears to be a fair structured settlement for both a company, which does not want to write of a huge loss in one particular quarter and the fact that often people blow their money; turns out to be really problematic down the road. Luckily there are folks, which will give the recipient of the structured settlement money now in cash and receive the money as it comes in from the payee or company.

This can be good for many reasons including the ones mentioned above, the person giving the cash of course is doing so to also make money and they will give the person less money than the total settlement but accept the payments over a long period of time. But what if Structured Settlements did not exist? Well the awards would be less as few companies could afford to settle out of court, more companies might be bankrupt from lawsuits and people might spend all their money and be broke in a few years anyway. Think on this.

“Lance Winslow” - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

There are companies that purchase future payments. Personal injury settlements are often structured to pay out over time. As are a portion of lottery wins, paid via an annuity over a period of 20 or more years. There are companies, under the authority of state and federal regulations, that will accelerate future payments and pay out a lump sum of cash now.

But, it is not the best choice for everyone. If any of the below are true about you, avoid selling.

No pressing financial need or opportunity

Under the age of 18

Annuity is sole source of income

Live in North Carolina

Monthly payments less than $100

Lump sum payment more than 7 years away

Significant amounts owed in child support or back taxes

While this list isn’t comprehensive, it does cover many of the usual reasons cases are not accepted or approved. This court ordered process has strict state and federal guidelines. Numerous attorneys, yours, the insurance company’s, and the cash out company are involved and the entire transaction must be approved by a judge.

And as always, seek legal and financial counsel before making any significant decisions. There are several established companies with reputable service history and there are many more companies with less than clear intentions. Rule of thumb, avoid any company that tells you what you want to hear. This transaction will be expensive and closing times vary wildly by state and transaction.

Jason Rigler
“Settlement Advocate” and consultant for Prosperity Partners Customer Service Department.

Unless given a large lump sum of money, there is no easy way to quickly reduce excessive debts. Nonetheless, there are practical approaches to managing debts and gradually becoming debt free. One method involves credit counseling. Credit counseling has successfully helped millions of people realize their ultimate goal of living debt free. Here are a few ways on how you can benefit from credit counseling.

What is Credit Counseling?

Persons who seek help from a credit counseling company are likely bombarded with excessive debts, or are harassed by creditors on a daily basis. Fortunately, there is a solution. Credit counseling companies offer a range of debt management tools.

Each situation is different. Hence, a credit counselor will closely evaluate each client’s circumstances and determine the most effective plan of action. In some instances, debts can be significantly reduced through consolidation, whereas other situations justify filing bankruptcy.

Who Benefits from Credit Counseling?

If you are unable to keep up with monthly minimum payments, or can’t pay creditors, credit counseling may be the answer. Receiving daily harassing calls and letters from creditors and collection agencies is mentally taxing. Late fees and over-the-limit fees make it especially hard to reduce debts. Do not allow debts to get out of hand. Instead, seek the help of trained counselors.

For the most part, credit counseling agencies are able to offer assistance for unsecured debts. This includes credit cards, unsecured personal loans, student loans, medical bills, etc.

How Does Credit Counseling Work?

Credit counseling agencies offer a range of debt management options. Initially, a counselor may establish a monthly budget. This way, you can assess what’s coming in, verses what you are paying out.

Next, credit counselors will likely suggest a debt consolidation program. These programs are very effective because all existing creditors are lumped together, which allows clients to manage their debts and reduce balances fast. The counselor will discuss lowering interest rates and waiving late fees. If creditors agree to renegotiated terms, the credit counseling agency will receive all monthly payments, and pay creditors accordingly.

For more information, or if you would like Debt Counseling, feel free to access the lists available through ABC Loan Guide. They also have names of providers who can give a Free Debt Consolidation Quote.

Becoming debt free is one of the best things you can do to improve your life. Like most good things, achieving a debt free lifestyle isn’t easy, but is well worth the effort. Becoming debt free will bring greater peace to your life, will increase your prosperity and will grow your personal freedom.

Living debt free will bring greater peace to your life in many ways. Most domestic troubles can be traced back to stress over finances. Money is consistently listed as the number one source of complaint among troubled marriages. But don’t blame money if you struggle in this area - the real culprit isn’t money - the real problem is your attitude about money. Getting to a debt free, controlled, budgeted lifestyle involves major attitude changes for most people. You can’t spend more than you make. The credit cards have to go. Get free of your debt and the bank-advertised attitudes that got you there and peace will move in where fear once resided. Your spouse and your kids will notice and appreciate the greater calm in your life and theirs.

Becoming debt free can also increase your prosperity exponentially. That’s right. Why do you think so many banks and other companies focus so much time and energy on getting you to use their credit cards or to buy that new car (financing approval guaranteed) - because they’re nice and are looking out for your best interests? Could complete strangers really be that giving? Maybe - but don’t count on it. The only interests the banks are looking out for is the interest they’re charging you - compound interest. Have you ever made a major ‘on sale’ purchase on a credit card, and then lollygagged around not paying it off for years? Drag it out long enough and you can easily wind up paying double the original price! Banks know this. That’s why they bend over backwards wanting to lend you money. Don’t fall for their advertising that is usually some variation of ‘you deserve it.’ The problem is that the ‘it’ is really forking over your hard-earned cash to line their pockets with money that should be working for you in your investment portfolio. Put the power of compound interest to work for you. Start by getting rid of your debt, then focus on building wealth by setting aside at least 10% of your income into pre-tax retirement accounts. By becoming debt free, all that money that you would have been giving to the banks will stay in your pocket and can grow exponentially through the power of compound interest.

For example, say you are paying out $500 a month in interest to credit cards. Pay off the credit cards and start investing that $500 a month at 12.5% average annual interest. In just 20 years, you will have amassed over half a million dollars! Or, go ahead and keep carrying a balance on those cards and keep paying an average of 17% annual interest to the banks and give them over a million dollars in the same 20 year period!

Who do you want to enjoy prosperity from your income - the banks or you? The choice is yours. Become debt free so that it can be you that enjoys prosperity - you deserve it.

Finally, becoming debt free puts the ‘free’ in freedom - it allows you to focus on building your wealth rather than giving it away to money lenders. Becoming wealthy and financially independent will give you even greater freedom: freedom to live where you want, work where and how you want, and play whenever you want. So why not use the freedom of choice that you have right now and make a plan to free yourself from debt?

Brad Homer offers free-to-try budgeting software which can help you easily generate a plan to become debt free and more. At his website you can also find more personal finance articles like this one.

© 2006 Homerworks LLC. All rights reserved.