Cost of carrying a credit card keeps getting higher - KOMO

The cost of carrying a credit card in your wallet keep getting higher. That's the overall conclusion of a new survey out today.The survey by Consumer Action, a California consumer group, looked at more than 80 cards from 20 banks, Including the 10 top credit card issuers.And here is some of what they found:Interest rates are up. The average interest rate for all the cards surveyed was 14.53 percent. That's up two percentage points from Consumer Action's 2005 survey.The average fixed rate card had a rate of 11.34 percent and the variable cards averaged 15.25 percent. It's clear that the higher prime rate is driving up credit card rates.The Consumer Action survey also found that penalty rates are up, especially the late fee. Make a late payment even one time, even by one day, and you can get hit with a large late fee -- and see your interest rate skyrocket.The average late fee is now $28, up from $13 back in 1995. But some banks charge a lot more. Consumer Action found late fees as high as $39 per incident.What about that penalty interest rate? The average is 24.51 percent. But with some credit card issuers, the penalty interest rate is 32.24 percent. And Consumer Action says there are lots of zero-percent interest balance transfer offers available now. These zero-percent deals can last from three to 12 months.Zero percent sounds like free money, but many banks now charge a transfer free to move your debt from another card to their card. That transfer fee can be as high as three percent. If you transfer a $10,000 balance you could pay as much as $300. So be sure to read the fine print before you take advantage of any zero balance transfer offer.The survey showed a continuing trend for card issuers to do away with annual fees. But many airline and high-end cards still have the fee, which the survey found are getting higher. If the bank wants to change something in your credit card agreement such as the interest rate or grace period, Federal law requires 15 days notice if the issuer is going to make a "material change" in the terms of the use. However, they are not required to give you any advance notice for the change is based on something you supposedly did wrong, such as paying late, going over your limit, or bouncing a check.

Getting A Good Deal On A Home Equity Line Of Credit

A home equity line of credit is a great manner for the smart homeowner to get the finances he or she needs to do home improvements and repairs, wage for college costs and many other reasons. The low interest rates of the last few years, combined with ever increasing home values, have combined to make a great environment for home equity lines of credit, and they stay a favourite with all sorts of homeowners. As with any other type of loan, however, it is of import to get the best possible deal on that home equity line of credit.

The home equity line of credit differs from a traditional home equity loan in that the finances can be tapped as needed, instead of being paid as one lump sump loan amount. This do the home equity line of credit an first-class vehicle for paying recurring bills, such as as as tuition costs, and for paying costs that are hard to predict, such as home repairs or improvements.

Another advantage of a home equity line of credit is that the interest rate is generally lower than other types of loans. It is of import to remember, however that a home equity line of credit is secured by the home itself. This of course of study intends that failure to refund the line of credit could set your home at risk.

This is an of import thing to remember, particularly when using a home equity loan or home equity line of credit to pay off unsecured loans such as as credit cards. While it may be alluring to retire those high interest credit card debts, it is of import to get your credit, and your spending, under control before doing so.

While getting quit of those high interest credit cards is a worthy goal, putting your home at hazard to make it is not always deserving the risk, particularly if you believe you may be tempted to rack up for debt in the future.

Find out more than at http://sosdebt.org/

Escape the Credit Card Death Spiral

You’re burdened with crushing debt and at the end of your rope. There’s got to be a manner out. You travel to the door every day, expecting bad news. Your minimum credit card payments are eating up most of your paycheck every two weeks. You can’t travel to dinner, travel on a trip, or salvage for your kid’s education, and it just maintains getting worse. You’re using your credit cards for life disbursals now. This really sucks!

Many people are finding themselves in this situation; the “Credit Card Death Spiral”. As the nation’s credit card load goes on to climb, the number of people facing this credit incubus is increasing at a frightening rate. It haps for many grounds and is blue and debilitating. Credit card companies have got relaxed the initial demands to get a card in the last few years. The change is allowing people with edge credit scores to get a number of credit cards. In addition, many of these cards have got higher credit bounds than in the past. This combination have encouraged many consumers to take on much higher degrees of debt than in the past.

In improver to the relaxation of credit card requirements, lenders are changing the manner they make business once a consumer have the card. In the past banks and other credit card issuers would not allow you charge over your credit limit. This have changed. Now, many financial establishments will accept a charge even if it sets the account over the credit limit. When the account travels over the limit, they charge a brawny fee, rise the card holder's rate, or both. Many credit card issuers are doing this and it can raise
rates on a credit card to over 40%!

Here’s 1 common scenario. You have got a card with a 12% rate and a $5,000.00 credit limit. Your card’s current balance is $4,475.00 and you're picking up some clothing and school stores at a dorsum to school sale. You see a few supplies and pick up some items. Like most people, you don't have got your exact account balance memorized. Your last purchase takes you a just few dollars over your limit. The charge is approved anyway.

Imagine your surprise when you get your adjacent credit card statement. Your interest rate have been raised to 30% and your minimum payment, which had been $88.00, is now $168.00.

To really pour salt in your wounds, the bank have added a $39.95 charge for exceeding your credit limit. It gets much worse. Not only makes the 29% interest rate apply to the purchases you just made, it uses to your credit card's full balance!

This type of scenario happens 100s of modern times every day. If left unchecked, you’ll come in the “Credit Card Death Spiral” that many modern times stops in bankruptcy or, at least, a atrocious credit picture. There are ways to get away this concatenation of events. One pick for many is through a debt consolidation loan.

A consolidation loan consolidates the borrower’s debts by paying off the smaller loans with one larger loan. This type of loan typically utilizes equity in the borrower’s home as collateral for the loan. Having a secured loan enables the interest rate to be much, much lower than the unsecured credit card loan. The lower rate makes one payment that is substantially lower than the sum of the former credit card payments.

Credit Card Purgatory - A 7 Step Comprehensive Plan to Get and Stay out of Credit Card Hell

Does this Sound like You? There are 100 shopping Days left until Christmas and your Credit Card Balance is Higher now then it was in the beginning of the year. You may have thought of using your home and getting a debt consolidation loan, A Debt Consolidation Loan without a solid Long Term financial plan is a Recipe for Disaster. A One way ticket to Credit Card Purgatory

The Debt Consolidation Loan

Most credit cards require a Minimum Monthly payment of 3% to 5% of the Outstanding Balance. On a 10,000 Balance that is $300 to $500 Monthly. On a $20,000 Balance that is $600 - $1,000 Monthly. The Interest on your Credit card payments would not be Tax Deductible,

If you Refinance your House and Consolidate your Bills even at an interest rate of 6% you would only pay $60 a Month for $10,000 or $120 a Month for $20,000 (For many homeowners this would be tax deductible)Your Monthly Savings will be between $240 and $880 a Month. The Key to a Good Financial plan is to use this extra $240 to $880 a Month to build a Failsafe, your Economic Life Preserver. (If you don't own a home and still have fairly decent credit you might be able to get a signature loan from your bank or credit union.)

If you currently have a mortgage paymet based on an interest rate of 3% or Higher you may want to look at refinancing your House using a Loan where the payments are fixed for 5 Years based on a 1.95% interest rate. On a 200,000 Loan this can often mean an additional $400 a month or more in savings.

Let's Assume you save $700 a Month with a Combination of the above 2 Methods.

1 - Emergency Savings

You would want to keep at least 2 Months worth of Bills (3 Months would be Better) in a Savings or Money Market Account. Bills would include Rent or Mortgage, Utilities, Medicine, Food and Insurance Premiums. You need to make this account a Priority. Place at least $300 a Month into this account until you have reached your Goal of 2 Months Worth of Bills or $5,000 whichever is Higher. After you Reach Your Goal Continue to place $50 - $100 in this Account until you have reached Double your Goal.
(4 Months worth of Bills or $10,000 whichever is higher) Once you have reached Double your Goal you no longer need to place money in this account.

Some People will just Borrow an Extra $5,000 and place it directly in there Emergency Account.

2 - The Debit Card

After you have established your Emergency Savings you will want to establish a Debit Card Account. Open a Bank account and get a Debit Card. Deposit $100 or More Monthly into this account until your balance reaches $1500. Now If you have an Emergency car Repair, Home Repair, Dr Bill or any other type of unexpected expense use your Debit card rather then a Credit card. Your Goal should be to maintain this account at $1,500 to $3,000

3 - The Credit Card

Most people don't need to rip up all there credit cards they just need to manage them better. Cancel all but 1 or 2 of your credit card accounts. Credit Cards are an Important Part of Life, An unexpected car repair or Dr. Bill can be handled very easily with a credit card (If you don't have enough money in your debit card account). With the exception of an Emergency never charge more in any month then you can Pay in full when the bill comes. Pay off all new Charges in full within a week of getting the Bill.

4 - Insurance Needs

Insurance needs would be things like Life insurance, Health Insurance and Long Term Care Insurance. Contact an Insurance professional to discuss your needs. If you don't have any Life or health insurance look into low cost options like term Life and Discount health care until you have extra funds to go for the higher cost options (After your emergency account is established) Life insurance can often be combined with retirement planning see step 5.

5 - Retirement Savings

Use at least half your savings from your bill consolation loan to fund an IRA for you and your Spouse. Speak with your Accountant to see your IRA Funding Limits. In 2005 people who qualify could place up to $4,000 a Year into an IRA or Roth IRA. People over 50 who qualify can place up to $4,500 in an IRA or Roth IRA.
For more information and phase out rules you can view the IRS publication here http://www.irs.gov/publications/p590/. If you don't qualify for an IRA or you already have it funded look into other options like Universal Life and annuities.

6 - Some Girls (or Guys) Just Need to Have Fun

Everyone Needs and Enjoys to have a good time. Don't get so hung up on getting that emergency fund or building a retirement nest egg that you don't have fun. Budget something fun a few times monthly. Movies, Bowling, The Zoo a trip to the water park, a Nice dinner whatever it is. Even if it is only $10 or $20 a Month in the beginning when things are tight. You can always add $50 a month for a vacation fund later.

7 - The Budget Review

Once or twice a year review your budget. See how your Emergency and Retirement funds are doing. Look over your credit cards and make sure you are paying those bills in full.

If your situation changes for better or worse. You would want to do a review. Things that may trigger a review. A Salary increase or Decrease. An Added Expense like a Car Payment. A Major change to an expense, Much higher Gas Bill or Mortgage. Car Payment is Paid in Full. A child starting college or private school.

By combining a Bill Consolidation loan with the above 7 Step Financial plan you are taking the required actions to help insure you won't find yourself in credit card Hell Again.

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit Counseling Service?

Are you in a "debt hell"? If you are unsure, inquire yourself these questions:

Do you have got measure aggregators calling you and home and at work, leaving bothersome messages?

Are you afraid to open up the door in the morning time because you are afraid that the Sheriff's office have left a tribunal dainty for you?

When the phone rings, make you get butterflies in your stomach?

If you answer the phone and it's a measure collector, when they inquire for you, make you reply "He/She's not in right now", or even just pick up the phone and then hang it up without saying who is on the other end?

Do you travel for years on end without checking the mail because there are lone measures there?

When you finally make get the mail, make you just throw it in some random location for hebdomads or even calendar months without ever opening it?

Are you paying one credit card company's measure with another credit card?

Are your credit cards riddled with over the credit bounds and late fees?

Do you only have high interest credit card offers?

Have you applied for credit cards or car loans and been told that you had been denied because of bad credit?

Does your credit report show a batch of late payments, charge-offs, bad debt, 30 60 90 or 120 years late entries listed?

Does filing bankruptcy look like your only manner out?
If you related to at least two of those items, opportunities are you would profit from a consumer credit counseling service.

Believe me, I cognize what you are going through. I was in this situation. I had recently moved from a large metropolitan country with nice pay, to a smaller country where the cost of life was almost just as high, and had to take almost a $20K paycut. On top of that, I just had a babe and was a single-mom to boot.

I had to “live”, and with a $20K cut, it didn’t leave of absence me with a pick (or so I thought) other than to not pay measures and get the things I needed (baby formula, diapers, etc.). Let me state you, I was depressed. I didn’t unfastened my measures for calendar months at a time. The phone would peal every morning time staring from 8 am and continued until 9 Prime Minister at night. Bill aggregators would name me at work and go forth messages with their “800” numbers with co-workers if I wasn’t there. It was so embarrassing. I went on like this for about a twelvemonth before I finally decided to happen that I had to make something.

I had seen advertisements on television for debt consolidation and consumer credit counsellor services “CCCS” offering freedom from financial concerns and the chance to derive your life and self-respect back, but for some reason, didn’t take the plunge. One twenty-four hours I was talking with a friend and they told me how they had joined Consumer Credit Counseling Services (CCCS) and they were very relieved and financially emphasize free. CCCS was able to reach all of the creditors that they had credit card balances with and was able to either reduce their credit card interest to interest rates that were one figure and in some cases down to 0% interest! Consumer Credit Counseling Services was also able to eliminate most of their late fees and over the credit bounds fees so that when they made payments, it went directly to their credit card balances and helped them pay it off their debt quicker.

All of this information was exciting and sounded very promising to me, and now I had person that I knew telling me how it worked for them, so it became much more than realistic. I searched the yellow pages for the credit counseling agencies and the establish my local subdivision of Consumer Credit Counseling Services. I called them up, made an appointment and went in. I was assigned a counsellor and met with her for about an hour. When I walked out, I had a huge sense of relief. I was apparatus with a program of action for how my debt was going to be blasted away. I was assured that the bothersome and harassing debt aggregation phone phone calls were going to cease. I was only going to have got to concern myself with making one payment to my local CCCS office, and they would take care of the fuss of sending all of the credit card payments out to my other creditors. In two years, I was going to be debt free.

If you are in a similar situation, I urge you to look into consumer credit counseling services. They can get you back on track, reduce your stress, better life for you and your household and change your life overall for the better.

Keeping Your Mortgage Interest to a Minimum

When it comes to buying a home and taking out a mortgage, the fact is that the interest you pay will likely be your biggest expense. The interest on a mortgage can be quite significant, especially when looked at over a 15 or 30 year period. All that interest can really add up, and is important to keep your interest rate as low as possible.

One obvious way to keep your interest expense as low as possible is to get the lowest interest rate you can. This may be obvious, but it is easier said than done. Banks typically reserve their lowest interest rates for those with the very best credit scores and credit histories, and it is important to understand what goes into your credit score.

Obviously things like missed payments or late payments will have a significant negative effect on your credit score, but there are other things you may not have thought of. Before applying for a loan, many people close credit card accounts they are not using. While this may seem like a good strategy, in reality it can be counterproductive.

That is because a large part of your credit score consists of the age of your credit accounts, so closing long standing credit accounts could make you look like a newer, and riskier, borrower.

Another important way to keep your interest expenses as low as possible is to make as large a down payment as you can. There are many reasons to make a large down payment, even if it is a struggle to come up with the money you need. For one thing, a higher down payment will mean a lower monthly mortgage payment, and that will make it easier to make ends meet down the road.

For another thing, a higher down payment may qualify you for a more favorable mortgage, and a lower interest rate. Since even a small difference in the interest rate can have a significant effect on your mortgage expense, it can mean a significant savings for you.

Another reason for making at least a 20% down payment on the home you buy is to avoid buying the costly and unnecessary private mortgage insurance. This type of insurance is designed to protect the lender in case of a default on the mortgage, and it is typically required if the down payment is less than 20%.

Using these strategies to keep interest rates and interest expenses low is a good way to get the home you have always wanted at a price you can afford.

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FICO Scores: Are They So Important for Getting a Mortgage?

During the last few decades, we moved many modern times from topographic point to place, buying and merchandising houses and other property. To my knowledge, not even the most respectable bank that carried our mortgage ever had anything to make with any FICO score. I first heard “FICO score” mentioned, about six or seven old age ago, when one of my children worked for a mortgage company, and I establish out from him that FICO score have been around since the 1950s, after Fair, Isaac and Co. (therefore the acronym FICO) developed a certain method to determine the credit hazards of borrowers.

FICO scores range from 300 to 850, the higher the better. The bulk of scores are in the degrees of 600-700. The desirable 1s are 720 and higher. FICO scores are designed to mensurate the hazard of delinquency by considering respective past times and present issues, such as as the length of credit history, promptness of payment, current debt including tax liens and money owed as a consequence of a tribunal judgment, recent searches by the consumer to obtain credit, and the amount of credit received up to date. The exact expression for obtaining the FICO scores, however, is held secret and--it beats out me, but--this behavior is accepted by the Federal Soldier Trade Commission.

Three nationwide companies, Experian, Equifax, and TransUnion, usage the FICO scores for credit reporting. All three of these companies are required by law to supply the consumer—you—with A free credit report every twelve months.

You might ask: “If we have got got the FICO scores, then why make we have a credit report? Aren’t FICO scores enough?” Type A credit report is more than than a FICO score. A credit report gives extra information on you, as to where you dwell and have got lived, whether you had a run-in with the law, and if you were sued or filed for bankruptcy. The FICO score, as a general rule, is attached to the end of a credit report.

Your credit report is important. The information in it have to be up to day of the month and correct, because it will be used not only for the purchases you make, but also when you are applying for a job. You need to get your credit score and take measurements if the information in it is not rectify or have go stale. Consumer reporting companies are required by law to rectify anything incorrect or inconsistent after they look into your claims.

To obtain your free credit report, you might see authorship to each 1 of the three companies (Experian, Equifax, and TransUnion) and getting a separate credit report from each one. Don’t be surprised if you happen small differences among these reports because each company makes its ain calculating in its ain way. Getting all three reports is especially necessary if you happen something inconsistent in your credit history and you need to rectify it with all three of them.

If you experience your credit history is good, the best manner to get your free credit report is getting a word form from Annual Credit Report Request Service (http://ftc.gov/credit), and filling and sending it to P.O. Box 105281, Atlanta, gallium 30348-5281; or if you wish, you can get it online from annualcreditreport.com.

Do not, at any time, believe in the companies or online land sites that promise to get you your free credit report. Most of them eventually inquire for fees and start charging your credit cards, because you have got got accepted their services and they have your information in their hands.

Does every lender wage attention to the FICO score? Luckily, not all; although most may. Inch the beginning, FICO scores had small or nil to make with mortgage lending. About five or six old age ago, however, mortgage lenders realized that there was a certain connexion between the negligent behaviours of borrowers and their credit scores.

After a couple of old age of heavily relying on the FICO scores, mortgage companies are beginning to change their attitudes on the topic again. Lenders like Fannie Mae and some private mortgage companies make their ain probes as well as taking into account your credit report as a whole.

A few tips before applying for a mortgage:

* Bash not go forth or change your job, especially if you have got worked there for some clip and you are not replacing it with a more than secure and better paying job.

* Brand certain your credit cards are not charged to the max.

* Bash not ever be late in paying your existent mortgage. At least, don’t be late for more than than a month.

* Discuss and deal with small lenders (Dept. Stores etc.), businesses, and aggregation agencies to take any late payments.

* If you have got a federal student loan, seek to take “default” Oregon “collection” labels from the loan’s history.

* Get into the wont of paying your measures on time.

Cash Advance Credit Cards

Cash advance credit cards have got been developed to assist people who happen themselves in need of quick loans from clip to time, but don't desire to pay the extortionate interest rates and fees that credit cards charge for cash withdrawals. In simple terms, cash advance credit cards, are like pre-approved payday loans that are accessible by withdrawing from an standard atmosphere or payday loan location.

If you have got ever used a payday loan establishment, you cognize the how easy it is to obtain a fast, two-week loan, even if your credit is less than perfect. If you've got a steady job, an constituted checking account and verifiable contact information, you are usually in. A cash advance credit card combines this easiness with the safety and convenience of a credit card. Visit easy-approval-credit-cards.com to learn more than about cash advance credit cards. Here is how it works. You travel through the usual procedure of obtaining a payday loan and are approved. But instead of receiving your loan immediately, you are issued a card that allows you retreat cash up to your sanctioned amount. You can utilize this any time, and your countdown to your loan repayment day of the month makes not begin until you actually take the cash out. This offers a couple of advantages to the consumer. In the first place, you have got the peace of head of knowing you've got a cash loan ready for you when you need it, without actually having the cash in your hand. Secondly, because this is a single, short term loan the rates are lower than a typical credit card cash advance, which usually have got high fees and particular terms. Brand your life easier with a cash advance credit card today! -------------------------
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Debt and Financial Optimism in the UK Continue

With £1.3 trillion pounds worth of debt in the UK, Scotland’s Citizens Advice Bureau has welcomed a new Bill to regulate lenders and protect borrowers from creating un-repayable levels of personal debt.

Chief executive Kaliani Lyle said: "For years, Citizens Advice Bureaux have been dealing with case after case of ordinary people who have been enticed into unsustainable debt.”

"The existing legislation - the 1974 Consumer Credit Act - is simply too antiquated to deal with the explosion in aggressively marketed credit that has taken place over the past decade or so.”

The Consumer Credit Act is set up to outlaw “extortionate” interest rates, however it has proved to be ineffective as it doesn’t actually define what is regarded as extortionate.

This coincides with an investigation being carried out by banking watchdogs, into suspected mis-selling of personal loans and credit cards at bank branch levels. Following on from the BBC’s Real Story programme which revealed banks are offering large staff bonuses to encourage sales of expensive loans, credit cards and other financial products. Staff at Lloyds TSB were shown to have encouraged customers to accept sums of money they could not afford to repay.

"Which?" said it believed it was time the industry had a proper debate over sales incentive structures.

The BBC also criticised the expensive cost of the bank’s payment protection insurance and how credit cards were pushed onto customers.

Graeme Millar, of the Scottish Consumer Council, said: “Consumers themselves need to act responsibly and ensure they are not asking for money they cannot afford to repay."

Tougher codes of practice imposing stricter standards on the way products are sold, and the use of financial information qualified financial advisers and from comparison web sites like Moneynet can help to gain consumers the best deals, and reduce the risks of mis-selling.

Independent financial adviser, Alan Steele commented, “Debt has always been a problem for a minority of people. One of the current problems is the willingness of bank managers to hand out loans and credit cards, which means this minority has increased, but the majority are coping with their debt.”

It remains to be seen whether the nation’s optimistic mood, recently reflected in a Mori survey carried out for the Prudential, in its ability to cope with levels of personal debt is long or short term. The report showed consumers are still failing to save, with one in five people saying they had no plans to increase the amount they put away.

Jackie Ronson, of the Prudential, said that many people are viewing their disposable income as decreasing, and yet they are happy to maintain their current level of debt, "add to that the continued concern about pensions in the UK, and we are looking at people who are likely to seriously struggle in retirement."

Additional Resources
The Scotsman
BBC

SimpleTuition Expands Offering to Include More Than 100 Student Loan Products from Dozens of Top Lenders

NEWTON, Mass.--(BUSINESS WIRE)--With tremendous scrutiny on the student loan industry, SimpleTuition,
Inc. is making it easier than ever for parents and students to make
informed education borrowing decisions. Starting today, SimpleTuition
has significantly expanded the list of lenders and loans available for
consideration via its student loan comparison web site,
SimpleTuition.com.

“The lesson from the recent student loan
scandals should be that borrowers owe it to themselves to shop around,”
explained Kevin Walker, co-founder and CEO of SimpleTuition. “We
want SimpleTuition to be part of a borrower’s
larger quest for college financing. Whether you select a loan via
SimpleTuition or from another source, this is an important decision and
you should do your homework.”

SimpleTuition is on its way to becoming the industry standard for
evaluating student loan options. At SimpleTuition.com, parents and
students can research more than 100 loan products from nearly 50 leading
lenders. Borrowers can compare loan options on an ‘apples
to apples’ basis, manipulate numbers, change
assumptions, sort by loan attributes – all in
real-time. To access the expanded list of loans, site visitors simply
select “Expanded List”
in the “View Loans From”
feature at the top of the loan results page.

“For more than two years, SimpleTuition has
been pioneering interactive tools to aid students and parents in
understanding their student loan options,”
added Walker. “We are proud of our mission to
be an independent and comprehensive source of student loan data –
and with the addition of dozens of new loan products, we can add ‘comprehensive’
to that list of descriptors.”

SimpleTuition is not a lender, and unlike other online student loan
resources, SimpleTuition is not sponsored or owned by a single lender or
financial services company. Similar to other comparison shopping and
search sites, the company may receive a transaction or referral fee if
any of its many Partner products is selected. SimpleTuition clearly
discloses Partner products, and its expanded model includes dozens of
non-partners for a wider choice. The service is free to users.

Colleges and universities can also work with SimpleTuition to present
compliant and arm’s-length loan information
to their families. Whether a school wants to present three loan options
or two hundred and three, SimpleTuition can help.

Loan results can be sorted by monthly payment, total cost of loan,
number of payments, first payment due date and APR –
and results contain detailed information about loan pricing, borrower
benefits and other attributes.

About SimpleTuition, Inc.

Founded in 2005, SimpleTuition is dedicated to helping students and
parents make sense of education financing options. Recently featured as
one of Fast Company’s Top 12 Web 2.0
sites, SimpleTuition offers the leading independent and interactive
solution for researching and comparing private, PLUS, Stafford, GradPLUS
and Federal Consolidation loans. SimpleTuition is headquartered in
Newton, Massachusetts and is funded by Atlas Venture, IDG Ventures
Boston and North Hill Ventures. For more information, visit .

Help and hope for the mortgage weary

Until recently the debts that threw many Floridians into credit counseling were the familiar ones: Big cars with big sticker prices, a fondness for designer labels and exotic vacations and unpaid college loans.

But Tampa Bay area credit-counseling agencies say another sort of client is turning up more often at their doors: Homeowners who can't afford their homes.

Easy credit enticed people to trade up to bigger homes. Now they're shelling out hundreds of dollars more a month to keep up with their adjustable rate mortgages. Higher insurance premiums and property taxes also lay in ambush.

Pinellas County bankruptcy lawyer Jay Weller runs affiliated credit-counseling agencies in Clearwater, Tampa and Port Richey. After handling close to 30,000 cases in his career, he insists home debt has never loomed so large.

"I've never had that many people walk away from their houses before," Weller said. "Real estate is playing a larger role in bankruptcy than in the 15 years I've been doing this."

Angel and Myranda Acosta are among the house owners desperate for financial advice. They moved to Pasco County from Oklahoma in 2004 near the height of the housing boom and paid $139,000 for a three-bedroom, two-bath house in the Moon Lake Estates neighborhood.

Angel made good money as a Verizon salesman but had bad credit. Myranda made less as an office receptionist but had good credit. They felt lucky to get a loan from Fremont Investment & Loan: 100 percent financing with an adjustable rate mortgage starting at 10 percent.

The $1,810-per-month payment is already a struggle for the 30-something couple and it's set to "bloom out" next year by an undetermined amount. Their income and credit preclude them from refinancing.

"No theme parks for us. We pretty much stay around the house. At least the weather's nice," Myranda Acosta said.

Two homeowning friends recently walked away from their mortgage and moved into apartments. Not the Acostas. They haven't missed a payment, but worry about what will happen next year.

Seeking counsel, the Acostas turned up at a recent workshop in Tampa hosted by the Neighborhood Assistance Corp. of America. The nonprofit offers refinancing to subprime borrowers facing foreclosure.

"This is our last hope," Myranda Acosta said.

They're far from alone. The national firm RealtyTrac lists 17,147 troubled properties in Pinellas, Hillsborough, Pasco and Hernando counties. They're properties in preforeclosure, scheduled for auction or seized by the bank.

Many have turned to Consumer Credit Counseling Services of Central Florida. Cities and counties outsource work to the nonprofit agency. Services are free for many people in Clearwater, Largo, Tampa and Pasco.

Making monster house payments on modest salaries has become a Florida ritual. Throw in piles of credit card debt and you have a recipe for financial misery, said CCCS vice president Linda Pichler. Fueled by the housing downturn, Consumer Credit Counseling served a record 8, 000 people last year, mostly in the Tampa Bay area and Orlando.

Most people wait too long - until their home is on the brink of foreclosure - before approaching a counselor, many of whom cut their teeth in banking, Pichler said. One of the biggest mistakes she sees: People who strain to pay off their credit cards but blow off the home loan.

"The mortgage companies are not yelling, so they often get paid last," Pichler said. "Maybe people are still current on their credit card but they're losing their homes."

Horace Morgan, in addition to his realty and mortgage business in Brandon, also dispenses credit counseling for free. Morgan notes that rising home values masked a variety of financial sins. Now falling home values have stripped off the mask.

Four potential clients who called last week all had the same problem: They used their home equity as an ATM and now are almost broke.

"All four owed more money than their homes were worth and all four were behind on their mortgages," Morgan said.

Morgan counsels lifestyle changes: dump the designer clothes and shoes, stop leasing the expensive car, trim foreign travel and eating out each weekend.

"They have to be retrained and change their lifestyle," he said.

Desperate people are vulnerable people, and credit counselors warn of vultures who prey on that weakness. Some sham credit counselors collect money only to damage clients' credit further or else scam people out of their homes.

Last month, a federal jury found five Tampa residents guilty of cheating homeowners into selling their homes to avoid foreclosure, then siphoning off more than $2-million in home equity.

In addition to its "credit rebuilding workshops," CCCS is holding a seminar Thursday in Tampa called the "ABCs of avoiding foreclosure."

"We plan on having these on a pretty regular basis," Pichler said.

Often, consumers can be their own worst enemy. Playing with easy credit can be habit-forming.

"I have people who move their credit score from a 500 to 700 and the first thing they do is buy a new car, " Morgan said. "They make the same mistakes all over again."

James Thorner can be reached at or 813 226-3313.

[Last modified May 13, 2007, 00:54:24]

Keep Your Eye Focused On Treasury Bond Rates To Adjust Your Current Mortgage Rates

Mortgage rates typically are based off the current rates of exchequer bonds. Most lenders put their long term mortgage rates in line with 10 and 30-year treasury rates. The ground that they make this is quite simple. Treasury rates are the rates that are used as an index to stand for what the hereafter value of money will be by the secondary market and investors. The Federal Soldier Modesty Bank will publish these chemical bonds along with an interest rate that it will pay to holder of the chemical bond once it matures. The market, in reflecting economical and inflationary predictions, sets the yields. Mortgage rates are then put according to the yields. If the market anticipates that thing in the hereafter are going to be good with low rising prices then the mortgage rates will be lower. If the market prognoses higher rising prices then the mortgage interest rates will also rise.

This is something that is very of import to look upon by consumers because it will directly impact their bank account. In most cases, a home is the single largest purchase that person will do in their lifetime. Home loans are usually very high in their term, sometimes as long as 30 years. The amount of interest paid over the the life of the loan can be staggering even for lower cost homes. For example, if you finance a $100,000 home for a term of 30 old age at an 8% interest rate, the amount of money you will pass on interest alone will be $164,153.60 giving you a monthly payment of $733.76. If you could lower the interest on your mortgage by just 1% you would salvage $24,645.60 over the term of the loan and would pay $665.30 economy you $68.46 each month. As mortgage rates rise you desire to lock in your interest rate to protect you against future additions however if the rates are falling then you may see refinancing to salvage you more than money.

Some people inquire when is the best clip to refinance your home because there is a cost to refinancing. Typical costs include assessment fees, written document readying fees and up front points to pay. It is not always in your best interest to refinance for small rate changes. So the inquiry is how much more than volition the market go on to travel lower and what would be the best clip to see refinancing? This travels back to keeping an oculus on exchequer chemical bond rates. When you see long term exchequer chemical bond rates begin to take a honkytonk after long clip periods of being high then it’s time to get focused on the current mortgage rates. Once the halt diving event then you may see refinancing to lock in a better rate for your mortgage allowing you to set more than money back in to your pocket!

Alliance Turning Towards the Financial Dark Side

Following in the footfalls of many of its high street competitors, Alliance and Leicester have announced that it will no longer accept new clients onto its Online Rescuer and Direct ISA accounts. The interest rate for the Online Savers account is also being cut from 5.35% to a consecutive 5%.

Richard Brown of the financial comparison website Moneynet believes that Alliance and Leicester (A&L), inch common with its high street competitors, have seen its costs rise as a consequence of recent regulation changes covering things like the manner mortgages and general insurance are policed. He added, “Unfortunately it’s the consumer who shoulders much of this further burden”

It looks to many of their loyal clients that A&L is indeed determined to do their clients pay in an attempt to purge costs and encouragement their profits. These cuts are only the up-to-the-minute of a series of changes that A&L have got made during recent months. First to travel was the cashback strategy on their Moneyback credit card. The Moneyfacts financial information website pointed out in February, that A&L had increased the APR on their credit cards for all purchases up to 16.9%; arsenic well as increasing punishment fees, and introducing punitory new clauses to current accounts. Other charges have got got been introduced to their mortgage products, balance transfer fees on credit cards, reductions in children’s nest egg accounts, whilst The Guardian have revealed some suspect changes that have been implemented to their systems to increase the number of clients who breach their overdraft agreements, triggering punishment charges.

A&L have said that there is no concealed agenda, and that it still leads the manner compared with its banking rivals.

A&L however, are not the lone financial grouping to be feeling the pinch. Barclays, HBOS and Royal Bank of Scotland have got all warned about credit arrears. An proclamation concerning occupation losings at Scots Widows, came alongside admittances from their proprietors LLOYDS TSB that there was, “An addition in the number of clients experiencing repayment difficulties” with their credit card debts and unsecured personal loans. According to Lloyds' Head Executive, Eric Daniels, we are currently experiencing, "a slowing consumer environment".

Recent proclamations by the Treasury delivered the worst monthly populace borrowing figs since records began in 1993, re-igniting fearfulnesses over a possible rise in taxes.

Consumers are reducing the amount they borrow on credit cards and analysts foretell mortgage lending in the United Kingdom will plump by 10 per cent over the adjacent three years, as the out of control growing in house terms finally stalls.

Independent market analyst Datamonitor claims, lenders who have got been enjoying a roar in recent years, will fighting to keep the impulse and be forced to work harder to secure market share.

Investor Connections, a grouping of independent financial advisers, have called for an accurate appraisal of the UK's current economical position, after statistics showed the three chief plus classes, shares, chemical bonds and property are all experiencing downward trends.

This downswing should spell good intelligence for borrowers and homeowners, as the mortgage and credit industries fight for clients and sharpen up on their competitiveness; however the grounds of Lloyds TSB’s actions looks to contradict this. With HBOS forced to criticise the other credit card companies for failing to supply clients with adequate merchandise information, despite perennial petitions to make so from consumer anteroom groupings and guard dogs on the Treasury Select Committee, it looks like the bulk of finance companies are currently out to protect themselves and their share-holders, with small respect for their customers.

At a clip when United Kingdom consumers are proportionately saving less than one-half of what they were 25 old age ago, you might be forgiven for thought that competition in the banking human race would be becoming increasingly cut-throat in order to derive customers’ business, but it looks that the large establishments are instead looking to travel down the path of cost reduction to protect their profits. There are nest egg are out there to be made, but they are nest egg in costs to be made by the finance companies, at the disbursal of the consumer, rather than good nest egg for the customer.

Learn How to Improve Your Credit Score

Having a detrimental credit record can ache you in many ways. It may forbid you from making an of import purchase such as as a home, car, computing machine or vacation. Without a healthy credit report you are severely limiting yourself from possible lenders. If you make happen a lender you will undoubtedly be charge extortionate interest rates far exceeding what receivers would have if their credit history is in good standing. So how can you repair your credit score if you’ve been less than diligent with repayments to creditors? Well reverse to what many advertisement cozenages will state you, you can’t hole your credit overnight. In most cases it takes 7 old age for a payment misdemeanor to be deleted from your credit report. If you were to register bankruptcy it would take 10 years. Obviously fixing the problem before taking such as drastic measurements is desired. Bankruptcy must be used only as a last lawsuit scenario and the deductions must be fully understood before legal proceeding with such as terrible measure. Besides bankruptcy staying on your credit history for 10 old age and posing large problems if you make up one's mind to seek out a financial lender, it can also impact other countries of your life. For case you may be rejected from certain jobs, prohibited from taking on certain duties and places within your ain company if you are a business proprietor and you will still be in the bad books of the people who you may necessitate to impart you money.

There is no manner to repair your credit nightlong no matter what the ads claim. The underside line is that if you are faced with hard financial state of affairs you must first look to repair the problem yourself through using basic budgeting guidelines. If you are not good at this, you may be able to engage a professional personal money manager to make this for you. Next you must calculate out what your rights are and seek to amend problems before they arise. In most cases, creditors would be wiling to work with you and come up up with some repayment options rather than sending your delinquent account to a aggregation agency. If it have got gotten so bad that you have creditors calling your house all the time, you must research what your rights are. Collection agencies are heavily restricted by laws but that doesn’t halt some agencies from taking advantage of some less informed individuals. For instance, aggregation agencies are only allowed to name during certain modern times of the twenty-four hours and in most cases must discontinue all phone calls if you bespeak them to make so in writing.

If you are experiencing financial problems the best thing to make is get informed. Learn the laws and research your options.

Written by Credit Renovator
http://www.zizzoo.com/guides/badcredit

Stop Using Your Credit Cards

The average household now carries an average of between $6,000 and $10,000 in consumer credit card debt. But there an unfortunate number of people who have got more than than $100,000 in debt from using multiple credit cards. Consumers trust on credit cards more than than ever before and may pay interest rates of more than twenty percent. Added to annual reclamation fees, rank fees, and other expenses, the cost of using a credit card, not to advert making minimum monthly payments on the balance, can take a ample bite from most people’s budgets.

If you are having problem using credit responsibly and would wish to halt using credit cards as much as you currently do, or perhaps for good, start by following a few basic stairway to halt being so dependent on plastic money.

1. Cut up all credit cards but one. If you can’t usage it, you can’t tally up more than debt. Some consumers maintain a single card for emergency purchases only, and they hive away the card in the bag of water ice that corset in the freezer so that the card must first be defrosted, thus heading off urge shopping. If your budget will allow you utilize cash only, cut up the last card, too, and don’t unfastened any new accounts.

2. Brand out a monthly household budget and follow it. Include mortgage and public utility costs, medical deductibles or insurance premiums, nutrient and gasoline, car payments and credit card accounts, clothes, pets, haircuts, subsidiary disbursals like the newspaper subscription, entertainment, and anything else that your household utilizes on a regular basis. Don’t forget about car insurance and car maintenance, even if you don’t wage these each calendar month but usage a six-month or annual payment plan, instead. It’s also a good thought to open up a nest egg account for emergencies, even if you can afford to lodge just $25 or so each month.

3. Use an envelope system. A popular program that many people utilize is to set cash in monthly envelopes marked for specific purposes, although some measure payments may automatically be deducted from the paycheck first. For example, set $300 in an envelope for groceries, $50 for medical deductibles, and perhaps $100 for clothes. Whatever you don’t usage in a given calendar month can be added to the adjacent month’s amount and used for larger purchases.

4. Don’t even unfastened credit offers that come up in the mail or email. Discard or cancel them immediately so you won’t be tempted.

5. Carry just adequate cash to cover planned purchases. Bringing more than may allure you to pass for things that aren’t inch the budget. But if you carry too little, you may stop up getting tempted to open up a charge account at one of the supplies where you shop.

6. Get an accountability partner. Ask person you trust, like a partner or stopping point friend, to throw you accountable for credit management. Perhaps you can go that person’s confidante for an country of particular need in his or her life. Brand a weekly or monthly report to allow your advisor cognize how you’re doing. Just knowing that person is watching may assist you remain on track.

Pay off small balances first, and then add those payment amounts to larger credit card payments to eliminate those, too. Before long, you will be debt free and enjoying your newfound sense of self-control and economical freedom.

Credit Cards Are Like Loans

Credit cards! If you're wish most people, you probably love them some modern modern times and hatred them other times. They can be a great manner to manage your finances and they can be a awful measure to get every month.

But credit cards aren't all bad. If we could dwell our lives without them, we would. But we can't. The human race is simply not built that manner anymore. More and more than often, companies necessitate credit cards as the best manner to have payment or security, rather than cash or checks.

But a credit card is just a loan. Few people recognize it as such, but that's all it is: Simply a loan that you can utilize if you want, but you don't always use. A credit card is like a changeless line of credit that is represented by the piece of plastic you carry in your wallet or purse. It states to the store proprietor that person have checked you out and deemed you worthy to have a certain amount of credit line in order purchase the merchandise offered for sale.

Used wisely, a credit card is an first-class financial tool. The first advantage a credit card offers is the ability to manage your finances. This agency that you can purchase things you desire or need and postpone payment until you choose.

If you have got a credit card that supplies you with reward points or price reductions or price reduction opportunities, an advantage that credit card offers is to assist you leverage your current purchases by edifice up points or generating discounts on the money you spend.

The 3rd advantage a credit card can offer you is the further layer of purchase protection. Some credit cards come up with an extra insurance package so that purchases you do it any retail merchant are also covered by the credit card.

The 4th advantage a credit card can offer you depends on the credit card you get. Some credit cards offer travel insurance, car rental insurance, and even concierge services for a small fee. Depending on how busy your life is, or how often you travel or rent a car, having these advantages built into your credit card may be a wise financial determination for you.

A credit card is just an in progress loan to you represented by a piece of plastic. But used wisely, this loan can offer you much more than than other types of loans. Credit cards are not always bad. See whether you should add a couple to your financial portfolio.

10 Ways To Boost Your Credit Score

1. Deleting Errors in 48 Hours

This is the absolute fastest way to correct errors on your credit
report and raise your credit score. However, it can only be done
through a mortgage company or a bank. If you apply for a home
loan and find errors on your credit report, request the loan
officer to conduct a Rapid Rescore. But don't mistake it for the
credit clinic tactic of multiple dispute letters.

The Rapid Rescore strategy requires proper paperwork. You need
proof that the item is incorrect. It must come from the creditor
directly. For example, a letter stating the account is not your
account, a letter stating the account was paid satisfactorily,
a release of lien, a satisfaction of judgment, a bankruptcy
discharge, a letter for deletion of collection account or any
relevant evidence.

This is the same documentation a bank or mortgage company would
require for the credit accounts anyways. The difference is, now
you can improve your credit score and receive a lower interest
rate. The results are not guaranteed and will run you about $50
per account.

2. Deleting Negative Credit

This is the infamous area where you've heard of all the scams.
Credit repair clinics charge "an arm and a leg" and promise a
clean credit report. Sometimes even a new credit profile! People
spending hundreds, or even thousands, of dollars for something
they can do themselves.

Removing errors is simple. Deleting negative credit that is
accurate requires advanced methods. But that is not the scope
of this report. So I'll focus on the deleting the negative
errors.

Credit report errors easily disappear by using a simple dispute
letter. If you have the paperwork proving the error as mentioned
above in Rapid Rescore, send copies of that along with the
dispute letter. This will make the credit bureau's job easier and
you will get faster results.

If you don't have the documentation to prove the error(s), send
the dispute letter anyway. According to federal law, the credit
bureau's have a "reasonable time" to validate your claim. They
will contact the creditor for verification of your dispute. Then
the account will be reported accurately - or deleted. It has been
generally accepted the "reasonable time" to complete this task is
30 days.

If you're not the do-it-yourself kind of person. Or don't have
the time. You could hire someone who is very economical.

3. PiggyBack Someone's Credit

This is a fast and great little credit score booster. But it
requires a very trusting relationship. Simply put, someone else
adds you to their credit account. For example, when applying for
a credit card, you may have seen the section to add a card holder.
If your trusting person adds you, their payment history is now
reported on your credit report too. If they have perfect credit,
now you have a perfect account.

To make this more effective, use an aged account. Imagine if your
trusted person has a 10 year old credit card account with a
perfect payment history and a balance of only 50% of the credit
limit. Wouldn't you love to have this on your credit report? The
easy part is your trusted person just calls the credit card
company and requests a form to add a cardholder. Once completed
and activated, their entire account history and future is now
firmly planted on your account. Imagine if you secured 3-5 of
these accounts - especially installment accounts. Your credit
score could sky-rocket!

The challenging part? Finding the trusted person. Since you already
have a low credit score and bad credit, how eager will someone be
to make you a cardholder? Even your parents don't want you to
damage their credit. But, no one says you need to possess the card!
In other words, your trusted person could add you as a card holder
and never give you the card or PIN or any information. Since the
bills and all account information is still mailed to the trusted
person's address, you won't know anything about the account. This
scenario could land you many trusted persons. And you still benefit
with a higher credit score.

4. Playing Round Robin

This strategy is one of the oldest credit building techniques
around. It used to be accomplished with secured savings accounts.
But now, it's much easier with secured credit cards. In fact,
I've used this method myself.

Here's how it works: Take ,000 (or what you can afford) and get
a secured credit card. Once received, get a cash advance of 70%
of your credit limit. Get a second secured credit card. Once
received, get a cash advance of 70% of your credit limit. Get a
third secured credit card. Once received, get a cash advance of
70% of your credit limit.

Open a new checking account with the final cash advance. Use this
account only for making payments on your three new credit cards.
If you make your payments on time every month, your credit score
will increase because you now have three new perfect payment
credit cards. (Initially, your credit score might drop a few
points due to the rapid, multiple accounts being opened. However,
be patient because within 4 months of no new accounts or any
delinquencies of any account, you will see your credit score
increase. Mine increased 60 points in 60 days!!)

5. Pay on Time

This one is quite obvious. But after 12.5 years in the mortgage
business, I discovered it still needs repeating. Your creditors
were gracious enough to loan you money. Now pay your damn bills!
If you don't, your credit score decreases. EVEN IF ONLY 30 DAYS
LATE!

That's right folks. For some reason people think, "I'm only a
few weeks late. What's the big deal?" Well, for the loan company,
if you pay late but consistent, they make a lot more money with
late fees and more interest (if a simple interest loan). For you,
your credit score is damaged. If you think long-term and credit
score, I'm certain you would not have a cavalier attitude.

6. Pay Down Debts

This seems like an obvious method, doesn't it? But it is not as
transparent as you might think. Remember, we're playing with
high-level statistics and probabilities which evaluates and
forecasts trends in your behavior. Here's what you do...

Never pay off your revolving debt in it's entirety! Isn't that a
surprise? Think about it. Your credit score is a reflection of
your ability to manage your credit. Paying off your debt is not
managing your debt. If you have a zero balance, how can you manage
it? You don't. It no longer exists. And you cannot manage what
does not exist, right? Therefore, in terms of credit score, you
have demonstrated your ability to swiftly pay off accounts to
avoid managing them. Thus, slightly decreasing your credit score.

One exception, of course, is if you're over extended to begin
with. Pay off what's necessary to make your credit profile look
great. Then manage the remaining credit.

7. Don't Close Accounts

Even if you pay off revolving debts, do not close the account.
The longer an account is open with no negative reports, the
better it reflects in your overall credit score. This is due to
the weighted-average in the credit score formula. Many credit
experts suggest a balance of 30% of your credit limit. That's
ideal. But you can go as high as 70% and still maintain a
healthy credit score.

8. No New Credit

You must be vigilant in your credit behavior if you want the best
credit score. Therefore, do not get any new credit unless it is
absolutely necessary. Each time you apply for credit, an inquiry
is added to your report. This usually drops your credit score
slightly. When you have fresh credit, there is no track record
how you will manage (or pay) this account. Therefore, it's a
higher risk which results in a minor drop in your credit score.
Remember, your credit score is about risk assessment.

Here's what you do: obtain credit for your housing, transportation,
college or continued education and 3-5 credit cards. That's really
all you need for personal credit. If you want more credit, request
a credit limit increase on your current cards rather than apply
for new ones.

9. Maintain A Mix of Credit Types

If you show you can handle different types of credit at the same
time, you are rewarded with a great credit score. In other words,
get installment loans like vehicle, personal loan or mortgage.
Get revolving credit like credit cards: Visa, Mastercard, Sears,
Sunoco Gas, Costco. By mixing it up, you demonstrate you can
manage your credit because you will have short term and long term
credit with a fixed payment. As well as a "variable" monthly
payment on your credit cards.

Keep these accounts open with a balance of 70% or less and paid
on time and you will witness your credit score climb to great
heights.

10. Don't File Bankruptcy or Foreclosure

Here's the most obvious advice: Don't file for bankruptcy or
foreclosure. These stay on your credit report for 10 years and
always decrease your credit score. The older the bankruptcy or
foreclosure account becomes, coupled with re-built credit
history, the less of an impact they play on your credit score.

Contrary to popular beliefs, you can legally delete a bankruptcy
and foreclosure. It's not easy. But it's possible. See the
advanced methods for that solution.

To quickly rebuild your credit history after a bankruptcy or
foreclosure, use the Round Robin strategy above and get secured
credit cards. Now you can even get a car loan or mortgage right
after bankruptcy.

© 2004 David Czach.

-------- Editor's Note ----------

Dave Czach has 12 years experience in the mortgage business and
a Bachelor's Degree in Real Estate. He can be reached at
http://myLoanHero.com/go.cgi/daveczach.

This article may be reprinted without compensation provided
there are no changes whatsoever to the article, the copyright
notice and the complete Editor's Note. Any reprinting or
duplication without these conditions is copyright infringement.

-------- Editor's Note ----------

New Century Shuts Lending Unit as No Buyers Emerge (Update2)

New Century Financial Corp., the
biggest subprime mortgage company to declare bankruptcy, will
close its home-lending unit and fire about 2,000 people after
failing to find a buyer.

Chief Executive Officer Brad Morrice informed employees in a
conference call today, said Dan Gagnier, a spokesman for the
Irvine, California-based company. A court-administered auction
continues for the servicing business, which mails out monthly
statements and handles collections, Gagnier said. Separately, New
Century said KPMG LLP quit as the company's auditor.

New Century stopped taking applications in early March as
defaults by borrowers surged and bankers cut off its credit. The
company also faced state and federal probes of its lending
practices. It filed for bankruptcy April 2 and started trying to
sell the origination unit even as rival subprime lenders were
already seeking buyers.

``There's a lot of platforms available, and the New Century
platform hadn't originated any loans in 60 days,'' said Ron
Greenspan, a senior managing director at FTI Consulting Inc. who
is acting as financial adviser to New Century's unsecured
creditors. ``They were at a competitive disadvantage.''

New Century made about $60 billion in loans last year, and
employed 7,200 people at the end of 2005. It announced 3,200
dismissals when it filed for bankruptcy.

Housing Boom

The company rode the U.S. housing boom to become the largest
independent mortgage lender to subprime borrowers, only to
collapse as interest rates rose and home prices fell. Like rival
firms, the company lowered its lending standards to keep business
flowing after demand slumped.

The lending business consisted of a network of 57,000
independent mortgage brokers who locate borrowers and the
employee loan officers who handle applications and approvals.

The platform also included computer software and equipment
used to analyze applications, as well as 262 retail branches and
34 regional operations centers in 20 states.

``It is very expensive maintaining that platform,'' FTI's
Greenspan said. ``All the employees were still being paid and you
have rents, and if there was not a forthcoming bidder, the
committee did not feel it was a worthwhile expenditure to
continue to support it.''

The deadline to submit bids for the lending unit was
yesterday, and the job cuts take effect tomorrow, Gagnier said.

Carrington Capital Management LLC has agreed to bid at least
$139 million for the mortgage-servicing business.

Auditor Resigns

U.S. prosecutors opened a criminal probe of accounting
errors and trading in securities at New Century, the company said
March 2 in a filing with the U.S. Securities and Exchange
Commission. Since then, more than a dozen states have told the
company to halt operations, citing complaints from borrowers that
their loans weren't being funded.

New Century said in a regulatory filing today that KPMG had
resigned as the independent auditor on April 27, citing an
internal investigation of the company's accounting. New Century
said that since it's in liquidation, it doesn't expect to name a
replacement.

The company's shares fell 2.5 cents to 80.5 cents in over-
the-counter trading today. In May, 2006, they sold for as much as
$51.45.

Subprime Loans

Subprime mortgages are made to people with blemished credit
records or heavy debts, which make them among the riskiest for
lenders. The loans typically charge 2 to 3 percentage points more
than those to people with stronger credit profiles, and often
carry adjustable interest rates that can cause payments to jump
in later years, making defaults even more likely.

Subprime loans accounted for 86 percent of all New Century
loans last year, the company said in court filings.

New Century was founded in 1995 by a trio of former managers
at Option One Mortgage -- now a unit of H&R Block Inc. --
including current Chief Executive Officer Brad Morrice. In the
late 1990s the company survived an industry shakeout that led to
the bankruptcies of bigger rivals including United Cos.

Late payments on U.S. subprime mortgages reached a four-year
high in last year's final quarter, the Mortgage Bankers
Association reported. At least 50 mortgage companies have halted
operations or sought buyers since the start of 2006, according to
Bloomberg data.

Seeking Buyers

The surge in defaults forced Kansas City, Missouri-based
NovaStar Financial Inc. to hire Deutsche Bank AG last month to
advise on ``a range of strategic alternatives,'' including a
sale. H&R Block Inc. last month agreed to sell its subprime
mortgage unit, Option One, for 40 percent less than originally
sought. Fremont General Corp. said April 16 that it had agreed to
sell its mortgage business to an unidentified buyer.

Bose George, an analyst at Keefe Bruyette & Woods in New
York, said it's ``not all that surprising that capacity has to
get pulled out of the industry.'' He's forecasting that new
subprime mortgages will decline by 30 percent to 50 percent over
the next 12 to 18 months.

``Given the amount of excess capacity, you're going to have
to shut a lot of these platforms or pare a lot of them down
significantly,'' George said.

To contact the reporter on this story:
Bradley Keoun in New York at
.

Nigeria: Skye Bank Releases Naira Credit Card

Frances OviaLagos

Skye Bank Plc has introduced a new credit card denominated in naira, into the banking industry for customers. The primary objective is to offer a differentiated card payment value propositions to the discerning target market that would address the specific needs of each market taking into cognizance its peculiarities. The scheme developed by e-Channels Group of the bank is targeted at customers and non-customers of the bank who have verifiable and regular sources of income.

The new product has two variants of Classic and Premium. The Skyecard credit Classic is targeted at the low income earners who form a sizable number of the bank's current customer base, it renders benefits derivable from carrying a debit card while Premium is targeted at a wide market, differentiated by income bracket and credit profile such as income, employment structure, credit history and so on. It provides both secured and unsecured finance for customers and non-customers of the bank. Mr. Adesola Akinfemiwa, Managing Director, Skye Bank who expressed delight at the acceptance rate and transaction volume of debit cards, which the bank has been a leading promoter in the banking industry, said the new credit card would be very useful to customers as it would save them stress of carrying cash around at the risk of armed robbery attack. He said the intention of the bank is to put the cards in the hands of people who want cash before their next pay day.

General Manager, Retail Banking, Skye Bank, Mr. Dotun Adeniyi, explained that the new credit card introduction is in furtherance of the bank's marke leadership in card business. "As we launch these two credit cards, those who buy into it will enjoy the good things that are happening here and we will continue to maintain market leadership," he said.

Mr. Chuma Ezirim, Assistant General Manager, e-Channels Group, Skye Bank said the card process comprising issuance, operations and management is fully automated and runs on a robust credit card management system and that credit scoring and assessment module makes it possible for applications to be processed on-the-spot while there are no restrictions on usage.






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He said the size of the market is very large but very challenging and this i formed the bank's reason taking its time to offer to the market a credit card scheme that runs on a well tested, best in class and robust credit card management system. He said the scheme is expected to receive the required support from the government and Central Bank as it will complement various federal government initiatives towards the promotion of customer credit policy as incorporated in the National Economic Empowerment Development Strategy (NEEDS).

Ezirim who explained the features of the credit card said it is an electronic local card payment scheme which will be used to avail credit lines to individuals that has interest fee period of up to 30 days, interest rate of 18 per cent per annum on utilized credit only, flexible limit-based on income of cardholder; free internet and mobile banking services; SMS alerts on all transactions and two years validity period for the card, among others.

"A large proportion of Nigerians need extra cash outside monthly income to meet personal financial commitments, which they cannot easily obtain from friends and family members, and would like to pay back inn a convenient manner. "Skyecard credit avails the average Nigerian this opportunity," he added.

Five Hot Tips To Get Out Of Debt Forever

The financial and psychological load of being in debt causes us and our households uninterrupted emotional stress. That emphasis eats away at the quality of our lives and go forths us feeling powerless, angry, down and helpless.

But there is a manner out – in fact, there are five simple and straightforward ways out of debt - and if you apply this five point program to your life today you will have got got taken the first measure on your personal route to debt free life for life.

1) Acquire No New Debt.

You have to do the committedness to yourself and your household that together you will take on no new word forms of debt TODAY. Agree from this point forward that you will not take out a loan for a new car, you will not re-mortgage and cash in your equity to afford home improvements, you will forbear from filling in new credit or shop card application word forms and you will destruct all those credit and shop cards you already have.

Break the pattern of life beyond your agency TODAY.

2) Begin To Path Your Money.

Starting right now travel and get the paper work for all of your regular bills, any loans, debts, credit card statements etc. and also the inside information of any income you have each calendar month from your job, any benefits you get or nest egg income - and set all of the paperwork on the tabular array in presence of you.

Step by measure travel through each one. List on a piece of paper what you have got got got coming in each calendar calendar month and then listing what you have going out each month – for this 1 make it in two separate columns…column 1 should be your indispensable measures for every twenty-four hours life including your mortgage, electric, water, gas etc., and column two should be the amount of debt you have. Write down all of the money owed on each credit card, any loan amounts you have got got got got got outstanding and also item the minimum and required monthly amounts for each one.

Now you cognize exactly how much you have to dwell on, how much you have to pay out each calendar calendar calendar calendar calendar calendar month to dwell and exactly how much you have to happen each month to pay debts.

Every month travel through the same procedure – once you have this whole five point program in topographic point you will detect that the amounts you owe will reduce each month and you will happen it easier to afford your month to month indispensable life expenses. If you don’t maintain a path of what you pass it have got got been proven that you will pass up to 10% More than you can actually afford each calendar calendar month so your debt will turn and turn and turn exponentially forever unless you interrupt the pattern TODAY.

3) Negotiate Better Interest Rates And Better Payment Terms.

Step 2 should’ve highlighted the amount you have in debt and the amount you have to pay out each month for each debt. Taking each debt at a clip – and include your mortgage in this – expression at the amount of interest you are paying on every single debt you have got and also read contract small black and white to happen out about any punishments you may incur if you pay back loans early.

Find out whether you can re-mortgage (for the same amount NOT to let go of equity) and take advantage of a lower interest rate and also the ability to pay off lump sums of money of your mortgage each year. Look at transferring credit cards to those offering lower interest rates and even 0% interest on balance transfers for a fixed period. bash NOT addition your credit limit, bash NOT usage this as an alibi to add another credit card to your list! If you make happen a company willing to take on your balance transfers call off all other credit cards immediately you have got paid them back. Now happen out whether there are any LEGITIMATE loan companies offering lower interest rates than the companies you are already with and see consolidating these other loans under one with a lower interest rate. Again, bash NOT usage this as an alibi to take out yet another loan!

Once you have got looked into any of the above ways for reducing your interest load on your debt, if you are left with a number of credit cards or other debts that cannot be moved and thereby reduced, see authorship to your credit card company or loan company and asking about renegotiating the terms. If you don’t inquire you don’t get! There is no warrant that they will hold to lowering interest rates for you for a fixed time period or hold to accepting a lower monthly amount if that is all you have got got got worked out you can afford, but if you explicate the state of affairs you’re inch and the action you’re taking they may be willing to help.

4) Create Your Debt Payment System.

Now you will have a complete image of what have to be paid and to whom each calendar month and exactly how much money you have to pay them. List each debt with the highest interest incurring one at the top all the manner down to the lowest interest incurring one at the bottom. List the minimum amount you have got got to pay each calendar calendar month for each debt and guarantee you pay it on clip every month….without fail.

Any trim money you have left at the end of the month usage it to pay off an extra piece of debt number one. When that is paid off move on to debt number two and so on and so forth until, in clip you will have got got got got paid off every single debt you ever had!!!

5) Continue The Pattern For Life

Once you have paid off every single debt you ever had and you have resisted the urge to take on any new debts take the extra amount you have left over each calendar month after paying off your life costs and set it away…put it in an interest bearing account and for the first clip turn your money. Get a financial safety network behind you that volition protect you for life from ever having to get into debt again as the consequence of a rainy day, an indispensable new car or a much deserved holiday. And get into the pattern of enjoying every single debt free day…forever.

Start on the route to debt free life today – return control back!

Pay your debts

Whatever the level of your credit issues, it's a necessary part of credit repair that all your debts are repaid. It's easy to give up at that point and say, "Well, if I had the money to pay the debts,If you have one of these characteristics you will need credit card debt consolidation sooner or later