We are now looking at what credit reform 2010 is all about, some of it is positive and some of it is not as positive as we would like as consumers.

1. Restoration of lower annual percentage rate.
If you are late over 60 days and are able to catch back up with your delinquent payments, the new law requires restoration of previous lower interest rates. This is good except that you may have ended up making payments including your catch up amount that equals about 90% of your payments going directly to interest and payments.

2. Payments actually go towards the highest interest rates first.
Many families have been angered and complained about the high interest rate traps that were in place prior to the new law. Families complained that the payments were going towards the lowest interest rates first. We at Financial Crossroads in California feel this is a huge positive; especially for folks that are able to make more than a minimum payment as they are more likely resolve their debt issue on their own.

3. Increased protection on gift credit cards
I am not sure how you feel about giving a gift to a family member or receiving a gift credit card, only to find out that your $100 gift credit card has become worthless or that fees have eaten into the card to make it worth $50 because you only wanted to use it in an emergency. Financial Crossroads is enthusiastic about this new gift card protection as the non-use penalties do not start until after a full 12 month period. In addition to the 12 month protection; one of the other complaints of gift credit card expirations now has increased to 5 years before it becomes void.

The complaints that most families have against the credit card companies is not that they did not spend the money.

The complaint is that even with the new credit card reform laws the credit card companies have an unfair advantage on how they can change payment and interest rate terms without even one missed payment. This sometimes forces families that would like to resolve debts by a normal payment process into situations that force them into bankruptcy, consumer credit counseling and sometimes debt settlement. Although it may be uncomfortable, working with a legitimate debt settlement company like Financial Crossroads in California may be the answer to resolve their debt situation in an ethical and efficient way.

Although Financial Crossroads has looked at the statistics on complaints by industry and notes that credit card companies have the highest complaints of any industry some of the recent reforms are positive.

Here is a recent comment:

“You all have been a big help and were very kind and considerate every time I called in. I feel very relieved that I don’t have any credit card debt anymore.”

- Joan W.

If you would like clarity on options call a counselor at Financial Crossroads in Santa Ana California at (888) 382-2439

Financial Crossroads CA comments on Mann Bracken Collection Firm Receivership and Axiant BK

PR Log (Press Release) – Mar 02, 2010 –

Mann Bracken has just thrown the overloaded courts another curveball by shutting its doors last month and is now in receivership. How will that affect your account if you have an open issue with them?
Mann Bracken has just been put into receivership with the Montgomery County Circuit Court as an alternative to going bankrupt.
Financial Crossroads LA notes that what has happened to Mann Bracken is the same type of thing that has happened to many of our families and friends, to many expenses and not enough income. If you give us a call in regardsto your credit card debt situations that is currently with Mann Bracken; or any other collection agency we may be able to assist and resolve these issues for less than the current request.
According to Jamie Smith Hopkins at the Baltimore Sun, the firm’s attorney, James M. Hoffman said a receiver had been appointed as an alternative to bankruptcy. In some cases Financial Crossroads has been able to obtain complete dismissals due to the overburdened court system and using the correct tactics.
Mann Bracken indicates that the main problem is due to the collapse of a spinoff Company. The collection firm Axiant filed for bankruptcy protection in November and is being liquidated.
Financial Crossroads notes that with one of the nation’s largest collection law firms being shut down that our Debt Settlement options will likely be more beneficial to both consumers and original creditors in the near foreseeable future.
To talk to someone about your situation please call (888) 382-2439

Grab a piece of paper or open up a word document, this way you can take this project on as your own. What we are going to do is show a clear picture of spending habits that cover daily, weekly and monthly expenses, by putting these items in front of yourself it will help you decrease spending habits when needed.

1)      Just because you got yourself into a debt situation does not mean you should continually beat yourself up for past financial indiscretions.  I am not sure Tiger Woods actually came clean with his situation, I advise you do especially with your finances so you don’t need extensive therapy later.

2)      Stick to a plan just a few trips to the grocery store per week; anything that will help your expenses does include gas.  In this day in age it cost more for you to leave your home than it does to get your groceries.

3)      Make changes to you’re your habits and your home to help reduce your expenses, for example a programmable thermostat can stop the AC from running all the time, and this will lower your utility bill a good amount.

4)      Another option that you have is to get a second job to help pay off your debt.  If you happen to be married this should be the person who would be able to generate the most income.  I suggest at least initially to looking at those skills that you know will bring in immediate cash while focusing on resolving your debt.

5)      If you are single person and you happen to be off on weekends then get a job on the weekends and take the money that you make and put towards the debt that you have.

6)      Having a home phone and a cell phone are typically not necessary anymore, look to cutting the cord at home so that you can save a little and make your family a nice dinner at home with the money you have saved.

7)      Be logical when spending money on your kids, for example a nine month old child does not need brand name clothes.  Get into a mothers group and see about swapping clothing, your child needs to be clothed but not with expensive clothing.

      Do you really need to get your hair, nails, and your eyelashes done every week? I know it is nice but that is money that you can be saving for your future and your kids future.  If you have a big event to go to and you need to get your hair done, can you find a less flashy quality place to go? Initially it might sound boring and prudish to be more tightly fisted with your money, and it will be worth it.

9)      Taking care of your car is necessary and in many area’s you are not allowed to wash your car at home, however it is not to difficult to wax your car if you follow simple directions and enjoy music while you are burning a few calories with a juvenile smile on your face.

10)   Don’t go out as much, eat at home or have your friends over for burgers and hot dogs.  You would be surprised how far chicken and vegetables go using your crock pot for an easy no hassle meal. Going to the movies can be expensive, you would spend $20 for two people, and I would rather see you put that money into your kid’s clothes or even better invest it into your debt.

11)   Add the amount of money that you throw away in a vending machine and I bet you it is a lot of money, putting tighter healthy snacks from home is better for your waistline.  It is also whole lot cheaper that way.

There has to be some discipline during these hard economical times.  However, this does not mean that you cannot have fun in life.

If these ideas are not enough or you are willing to take a more aggressive approach to resolving your credit card or personal debt; give Financial Crossroads a call at (888) 382-2439

Financial Crossroads

Santa Ana, Ca. 92705

www.financialcrossroads.com

info@financialcrossroads.com

http://www.financialcrossroads.com/blog/

Financial Crossroads California LA weighs in on Capital One Default Rate

According to Reuters Capital One has indicated what all but the blind deaf and dumb realize, times are tough and in fact Capital One said the annualized net charge off rate that it expects never to collect on has become a whopping 10.41 percent.

Capital One shows accounts at least 30 days delinquent — an indicator of future loan losses — were up marginally to 5.80 percent from 5.78 percent.

Capital One is the third-largest U.S. issuer of Visa (NYSE:V - News) branded credit cards, and the fifth-largest issuer of MasterCard (NYSE:MA - News) branded credit cards, Unless you are in the stone age you have either viewed one of the many clever advertisements or been part of their credit card clan or mailing list.

We at Financial Crossroads hope you have not got into the credit card trap in over your head.

In addition to the credit card losses the U.S. auto loans, Capital One’s charge-off rate was 4.27 percent in January, down from 5.68 percent in December, and the delinquency rate fell to 9.61 percent from 10.03 percent.

What does this all tell us?

Many of us have gotten in over our head and may need some assistance.

1.      A credit card company legally only has to give you 15 days notice when changing all of the terms that deal with the credit card. Can anybody say license to steal?

2.      We get relaxed with credit card companies changing our interest rate by as much as ¼%, but do you have any idea that they can alter the terms of your credit card for any reason at all.  If you are late on a payment or miss a payment you can be charged double if not triple.

3.      A purchase that you made long time after you bought it can be changed by the credit card companies.

4.        Any of those discount offers that you accept, they are only good it you can keep up with the payments.

5.       Your credit card interest rate can increase if you miss a mortgage payment; the credit card company can even take another look at your credit and adjust your interest rate to the way that they see fit.

6.       You are helping credit card companies make record profits at this very moment.

7.      If you don’t pay off your credit cards each and every month then they profit heavily off of the interest rates.

If you would like to get a free assessment of your situation you can get a no hassle consultation by calling (888) 382-2439

Financial Crossroads

Santa Ana, Ca. 92705

www.financialcrossroads.com

info@financialcrossroads.com

http://www.financialcrossroads.com/blog/

The average adult American carries around $20,000 in unsecured credit card debt. The trend of making just the minimum payments is in fact disturbing following this path the credit card companies will bleed your family dry.

Financial Crossroads of Santa Ana recommends that a new focus on resolving your debt should be a family priority. The structure of paying the minimal monthly payments does not resolve your credit card debt. Pay very close attention to the numbers below, they will reveal to you just how long you’ll end up running on the treadmill. Having charged up now $20,000 in credit card debt if you were to make the standard monthly minimum payments at an 8% interest rate it would take you 259 months to pay off your debt. This is equivalent to 21.5 years, and you would have paid back $7,194 in interest.

Wow! That’s a very long time, but look what happens if you were to stumble once while on the credit treadmill, the picture looks over 10 times worse. Let’s say you make just one little slip up and miss a payment or two, the credit card company suddenly jacks your interest up to a default rate in the high 20 to 30% range many of Financial Crossroads clients have indicated that those rates are worse than the mafia! Using 28% as an example, the same structured monthly minimum payments for $20,000 of debt you were carrying now will take 2,463 months, which is 205 years, and you will pay back $275,117 dollars in interest. The Credit Card Companies do not want you to realize this.

A staggering number of credit card companies are drastically increasing the size of their pockets by padding their credit cards with all sorts of traps and tricks. This has been a premeditated and a systematic assault on the consumer as noted on the link on www.financialcrossroads website that talks about the secrets of the credit card industry. Once you have taken the bait and mistaken those inviting traps, such as zero interest, you then are caught in their web. The credit card companies are like a spider that waits patiently for its prey. The struggle begins when you try to become free of the stranglehold of the financial death trap. Most people become confused when looking for the exit. After that, it becomes next to impossible to escape. If you need help call one of our counselors at Financial Crossroads in California at (888) 382-2439 for a free consult

Once you’re in their web, then you are financially drained with high interest charges, over-limit fees, late fees, disappearing grace periods, double cycle billing, and every other possible way in which to keep running your bill up. So you end up continuously paying and paying and paying. Not to mention the ongoing harassment over the phone, which make you quiver and dive for cover every time the phone rings. This is known as the “credit treadmill”.

The major credit card companies are slowly bleeding Americans’ wallets to death over the course of their lives. Last year the credit card industry made a mind boggling $17.1 billion in controversial penalty fees alone. This is a ten fold rise in these types of fees over the past decade. In 1980, Americans rang up credit card debt to a staggering $69 billion a year. Now in the past year 2006, American credit card debt is at $1.8 trillion a year, and there is no sign of slowing down.

Every year millions of Americans end up naively jumping on the credit treadmill. In the beginning, you feel good to have all this credit and think, “it’s no problem because I won’t let this get out of hand.” How could you know what was going to happen though?

Even if you read the very tiny fine print on the credit agreement, it is so deceptively written that even a Harvard graduate would have a hard time deciphering its meaning.

If you would like clarity on options call a counselor at Financial Crossroads in Santa Ana California at (888) 382-2439

According to Careweb.com, most American families are carrying about $9000 worth of unsecured debt. Is it the American dream or is it becoming the American nightmare? What we are currently experiencing is the Instant Everything Mentality. Exceeding your credit limit in moderation is not uncommon and may be ok; however, you should be sure that before its interest is compounded you get those credit cards paid. Your family’s financial health is in danger if you let the credit card companies charge you the typical compounded interest most consumers are paying.

Pay Your Obligations at the earliest Possible Time

When you get your bill pay it immediately, you should not wait for the due date to start paying your bills. You need to bear in mind that the longer it takes for you to pay your loan, the higher interest accrues. For example, the money that you are paying for the interest could have been allotted for other much important things. The Cambridge Consumer Credit Index believes that most Americans have credit card debts on which they pay more on the interest. Because of this, those who are not paying the full amount of unpaid balance are in fact just paying only the minimum. Sadly, among those who have outstanding balances, only a few are able to pay half of the balances.

How to Be Discharged from Indebtedness

Careful planning, control and restraint may help you get away from your debt-dilemma. Here are 7 things you can do to achieve a debt-free life:

1. Remember your credit cards should be used for emergencies only. Upon making a larger purchase, be sure that you pay it within 30 to 90 days. This will prevent the interest from accruing significantly, this way the increase of your debt isn’t going to be too much for you to handle. You don’t want to be paying off the same obligation for several years. If this occurs it is amazing how much you really pay for that pizza you purchased 3 years ago.

2. If you are already have significant unsecured debt, you would be wise to refrain from using your credit card to avoid acquiring more debt. It is best to carry just a few credit cards because too many of these credit cards just tempt you to use them more often than you should. If you happen to be applying for the best credit card, go with the credit card company that is offering best terms. It is important to note that you must weigh this with the effect that it may have on your credit score. You should know that you will lose your available credit; and this is a factor that is considered in computing for your credit score. In fact keeping balances under 35% of your credit limit is ideal.

3. Listen to advice coming from credit firms or organizations. Be knowledgeable of the different courses of action that you may file, such as paying down the highest interest rate cards first and if you become overwhelmed due to a personal hardship look at what options will be best for your family.

4. Create your own plan that will help you take care of your obligations. Consider all factors such as your income and assets. From here, you should be able to balance your spending habits and debts with your income and assets.

5. Find ways to reduce your semi luxury expenses. Be practical and resourceful enough so that you can save more money on more useful things. Stay away from bad habits such as eating out frequently. You can find more important things to invest on other than those bad habits of yours.

6. Try to increase your income, Sell some underused items on Craig’s List or have a garage sale. This will help you sustain a better flow of funds.

7. Try your best to create an envelope fund, regardless of how much it is.

Financial Crossroads

Santa Ana, Ca. 92705

For a free consult call (888) 382-2439

www.financialcrossroads.com

info@financialcrossroads.com

5 Strategies to Help You Stay Out of Debt

Debt is a big gaping pothole in the smooth highway of your life. Save yourself and the people around you from the grief and heartache that debt brings. With these 5 strategies as your guide, you can keep your life’s road trip fun and carefree.  

Strategy #1: Focus on Needs, Not Wants

The next time you get the urge to buy something, stop for a minute. Exactly what are you going to use the item for? Score it from one to ten, with one being something you could live without and ten being essential. Don’t buy it if it scores low. Think about all the stuff in your closet or garage at home that you don’t use and is just sitting there. If you have an urge to buy another fabulous blouse, count the ones you already have. Does having another one really make sense. A good mantra to follow is never buy something the minute the urge hits you. Come back after 24 hours so that you have time to consider the merits of that purchase. Instead of getting a new paperback, why not take advantage of a nearby public library, or look for free copies online?

Strategy #2: Keep a Money Diary

We tend to forget small expenses if we don’t write them down. The $15 you spend on snacks every day add up to around $5000 a year! If you abstained from snacking, you could save up for a new laptop or something you truly need to have. By making a daily money diary, you can see exactly where your money is going. You can identify frivolous spending. Forget brand names and commercials; learn how to identify quality goods by comparing them with each other. That way you can pinpoint real bargains and save tons of money without scrimping on value.

Strategy #3: Create and Stick to a Budget

Create a budget by calculating from your monthly income. Determine your maximum allowable expenditures for each category and follow it religiously. Budgets encourage imaginative spending and give you insight on how to save more. You can keep food costs down by brown-bagging instead of buying lunch. If something is too expensive, then you are obligated hold off until you can afford it. Most people tend to miscalculate their spending power. You should never spend more than you earn. Base calculations on actual money and discount credit.

Strategy #4: Be a Responsible Credit Card User

Credit can be a curse if abused, but used wisely, it can be a true blessing. Never let yourself be tempted to break your budget with credit. Minimize credit card debt by paying at least the minimum amount, more if you can possibly afford it. If you have incurred significant credit card debt, then you need to completely abstain and stick to paying with cash until you pay them off. Consolidate your debt by moving to credit companies with lower interest rates. Once you get back on your feet, limit yourself to two credit cards at most.

Strategy #5:  Save, Save, Save

You need to set aside funds both for planned and unplanned expenditures. An example of foreseeable expenses is the inevitable holiday season. A contingency fund amounting to three to six times your monthly salary should always be ready in case you get fired or need medical treatment. Watch out for fraudulent credit offers which seem to good to be true. 

Avoiding debt is not an impossible dream, but you need to take responsibility for your actions. Never spend more than you earn, and remember to set some aside for savings and unexpected expenditures. Financial contracts and terminology may seem difficult, but it is essential to understand them if you are to avoid costly mistakes. Learn how to manage your finances, and you will never have to worry about breaking down in the middle of your life’s journey.

Many people have found themselves with a large amount of credit card debt and are now struggling to keep up with that debt. Here are steps to help people who are hurting themselves with a high volume of debt and large number of bills

1.       Look at your spending for the last month or two.  Take a look at reducing on little luxuries like eating out for dinner at work, see about taking a sandwich to work and save that eight dollars.  Create a meal on Saturday or Sunday that is good for several meals throughout the week.  It is amazing at how much you can save each month just with these little changes.  These savings can be applied to any small debts that you may have or any large debt if you are able to save enough

2)    Keep an eye on what kind of expenses are coming out and what money you are bringing in.  When you tackle one debt at a time you can see results. Find out just how much debt you have to income so you can put all your spare money to the debt that you owe.

3)   Consolidating your debts is always a good consideration, by consolidating your smaller debts with a larger loan; you can decrease the number of payments that you will have to make each month.  This will also decrease the amount of interest and the amount that you pay every month.  A secured loan can be a very good solution if you lower your interest rates and payments and attack aggressively your debt.

4)   Clear your overdraft (Sttp) Sooner than Physically Possible. The overdraft fees add up to a considerable amount of money when you take a close look at what your are really paying.  One little transaction is all it takes to set you on the wrong course.  Then you will have hefty bank charges to go along with the rest of your debt.  Keep track of your bank account this could break you if you let it.

5)   If your intentions are to take out another loan, then this should be by way of consolidation not another added finance.  Consolidating will help your credit but adding another loan will hurt your credit.  It may be obvious that taking out a new loan would not be the wisest thing to do because you may find yourself finding it difficult to support another loan.

If you need further assistance as this is not enough to realistically resolve your unsecured debt you may need to look at other options.

Financial Crossroads

Santa Ana, Ca. 92705

For a free consult call (888) 382-2439

www.financialcrossroads.com

info@financialcrossroads.com

Getting into debt these days is a lot like falling from a tall, steep mountain. The first stumbling steps are the unpremeditated use of readily available credit, which can quickly snowball into a full blown avalanche. Most times you don’t even realize that you are starting to slide down until it is too late to stop.

Sometimes, you see debt coming and can plan for it, like when you are buying a house or a car. Then there are times when your finances take a sudden blow, like when you lose your job, or need to spend for an unforeseen and very expensive medical treatment. Although you can’t really predict these events, you can still prepare for them. The mean debt of families in the United States is about a few thousand dollars, so if you don’t want to be a victim, you need spend smart, and you need to start now.

Modern life is complex and cutthroat, and aging does not help you maintain your edge. Many individuals, unaware of the danger of certain behavior, can fall into debt in the time in takes to make a bad decision. Avoid these common spending sins and stay away from debt.

1. Not knowing your total debt. You need to add up all your payables and get the big picture immediately. Once you know the extent of your problem, you will find that decisions about money become obvious and elementary.

2. Counting credit as income. Mounting credit card bills only worsen debt. Learn not to spend more than your monthly income, and you will find that managing debt is not as hard as it seems. It really is much better when you have control.

3. Charging with a loaded credit card. You need to get that credit card debt down to zero before you use it. Otherwise you are just digging your own grave. Formulate a sensible strategy for completely paying off your bills. Try to do it sooner rather than later, as certain companies reward people who pay early. This also means you will be out of debt sooner and have extra money earlier.

4. Sticking to minimum monthly credit card payments. This only extends the time you spend in debt, and does not help you pay off the principal. Do not fall into this trap, or you will only have indefinite debt. Lawmakers are increasing minimums in order to discourage this type of activity and to ensure timelier loan payments.

5. Tardy payments. Not paying on time will only result in additional fees, as much as $40 per infraction. In addition, the default rate increases the finance charges to your original debt, so your minimum will increase. If you are having trouble budgeting your income, seek assistance from a financial expert.

6. Having nothing saved. If an emergency expense pops up, like an unforeseen illness or the car breaks down, then you will be forced to use your credit card. This only magnifies your expenditure. Cash is a smarter option, so remember to set something aside for rainy days

7. Plundering your retirement fund. As you age, your earning potential will only decrease. If you have nothing set aside, what will you use when you are forcibly retired?

So if you find yourself in a situation that has gotten out of hand we can help.

Financial Crossroads

Santa Ana, Ca. 92705

888-912-3328

For many Americans debt is just a way of life for them.  We owe money on just about everything that we own, if not everything.  We owe money on our cars, our houses; on our schooling even our clothes.  Too many Americans are so shocked by the debt that they have built up that they forget what caused the debt in the first place. In many cases it is an impulse item that may very well be in our closet or garage collecting dust.

There is some debt that is actually good for you; an example is you can use what you owe on your home as a nice way to balance out your income tax.  Making regular payments to various creditors is not a bad thing either, this helps build your credit score.  This makes it easier to get loans when you want them and even get them at nice rates.  But the truth is simply that too many Americans owe more than a little debt and are close to financial distress already. When we are in debt for truly important goals may be only a short term issue.

When you find yourself owing a good deal of money, don’t worry it is not the end of the road for you.  There are four steps that can help you get out of debt.

First you must take out the high cost debts which most likely will include credit cards. If your have available funds pay off the cards that have the highest interest rates before the other ones with lower interest rates.   However continue making your minimum payment to all the other credit cards. 

Then the second thing you will want to do is get in touch with your creditors.  If is a temporary situation and you are getting behind on your payments don’t be afraid to call your creditors and let them know what is going on(Unfortunately if your have any credit line available they very well may reduce or eliminate the credit line).  Even if you can make your payments on time you can still call your creditors and see if they can help you with any other alternatives that you may be able to consider.

The third thing you can do is consolidate your debt as much as you can, for example if you have a credit union that has a very low interest rate on a personal loan you may consider this option if it within your real budget tom manage and resolve this debt.

The fourth thing to do is borrow against your retirement funds at a lower interest rate which allows you to save for your retirement while getting free from debt.  However don’t use the money that you have saved for retirement, there is no need for that and if your take funds form your account tax consequences very well may be an issue.

Even though the American way seems to be in debt and have what you want, it is also a burden on ones shoulders.  Use these four steps and just take a little off the top or cut it all down, either way improve your life by freeing your debt.