Britons dependant upon credit cards for Christmas cost

According to a recent survey, four out of every ten Britons had to rely on their credit cards to meet the cost of Christmas last year and a fifth of them are still paying the left dues.

Around 41 percent people used their credit cards to buy gifts and food items in 2006. But only 29 percent of them were able to clear the debt when they got their bills in Jan 2006. According to a recent price comparison made by website savebuckets, approx. 17 percent of people who used their credit cards for purchasing on last Christmas, still have not cleared their debts.

People who have lower income are most likely still be paying their last Christmas bills. 43 percent of people who used their credit card have yearly earning less than £35,000, 19 of them are still paying their bills.

Credit card fraud on the rise

According to Abbie Milton from Absa Bank's card merchant services, fake credit card transactions have cost SA business between R25-million and R40-million in the past 18 months - and that is only what has been reported so far.

Milton said 90 percent of the fraudulent cases Absa encountered were from mail order transactions when a customer's card details were faxed.

With SA, credit card fraud is on the rise in Indian as well. The Commercial Street police here arrested Morris D’Souza), the mastermind of one of the biggest credit card rackets in recent times, with three of his associates in Bangalore. The police recovered 90 credit cards of different nationalised and private banks, four vehicles, telephones, mobile handsets, SIM cards, cash and gold ornaments from him (Via The Times Of India).

Though the estimates put the loss at Rs 6 crore, the police suspect it could be double that. "We've sent letters to leading banks. A clear picture will emerge once they produce their statements," the police said.

In Chennai another metro city in India, The Central Crime Brach (CCB) police arrested a courier company employee with his four associates, who misused credit cards to be dispatched to customers and purchased electronic goods and jewellery (Via The Hindu).

Credit crunch bigger blog on world economy next year

According to International Monetary Fund Managing Director Rodrigo Rato, credit crunch will have bigger blow on world economy next year compared to the current year.

Fallout of the credit crisis, triggered in July by a meltdown in U.S. mortgages, would felt most in the United States and Europe and lead to a "mild" slowdown in the global economy, Rato told reporters in the Saudi port city of Jeddah. The consequences of the crisis are "manageable," he said.

Credit cards allowed to everyone especially students?

The biggest mistake the students make is opens a credit card account and also do properly understand the meaning of having one credit card.

Most of the students are being targeted by credit card companies at the age of 18 or so. The biggest mistake the students make is missing out the scheduled payments. When they miss payments, it goes to the credit bureau and it makes it harder after college when you want to apply for a loan for a house or a car.

Justin a junior sports management major, who is having a credit card with him, is predetermined that he will never go into debt. This is the approach we need to adopt.

Credit is not cash because if we don't have it in our bank account; how do we expect to pay it off? Credit cards trick you into believing you have all these great benefits and bonus points to your account but one mistake can take all of that away.

Having credit card does not mean that you have more money in your account. When we have a credit card account, that brings a lot of responsibilities and we need to use that in a careful manner with understanding of our current financial status.

Bank Of America to cut 3000 jobs due to credit crunch

Bank Of America is cutting 3000 jobs in its investment banking sector due to credit crunch. The announcement comes less than a week after the second-largest U.S. bank posted a 32 percent slide in profits due to trading losses and write-downs on bad loans.

Bank Of America is planning to leave wholesale-mortgage business which will help them in cutting 700 jobs. According to the bank, employees exaggerated by the downsizing are qualified to apply for open positions at other Bank Of America units. A cut of headcount by 3,000 represents 2 percent of the bank's work force.

Most of the layoffs will come from Bank Of America’s global corporate and investment banking, which took a hard hit from disruptions in the credit market. The Charlotte-based bank's net income dropped $100 million, a decline of 93 percent from a year-ago figure of $1.43 billion.

Birth of the Credit Card

UK Financial options blog has written an interesting post about the birth of credit card. Here is how he does..

Almost a half century ago, the UK experienced the birth of one of the most influential pieces of plastic in existence today. Yes, it’s true, that slim piece of plastic, which is found in almost everyone’s pocket, the credit card, began way back in the 1960’s. It’s amazing the revolutions that have occurred in less than 50 years. Today, most of us can not survive without our credit cards. They have become that much of an ingrained part of ourselves.

Did you realise that in the UK, our credit card ‘history’ was borne via the Barclaycard? At that time, the Barclaycard was little more than a charge card, meaning that the entire balance had to be paid, 100% every single month. Today, people would scoff at it’s measly maximum limit of £100. These days, you can find a credit card with absolutely no limit, though these ’super’ cards, are limited to only the very wealthy!

Our credit cards of today, can be found with a credit limit, and applicable requirements, for people from all walks of life. Regardless of whether you’re Mr. Or Mrs. Beckham, or a low income fish and chips worker. There are well over 1400 different credit cards available in the UK today. Certainly there is a card for almost anyone.

Via - Link

Credit default swaps

A study of credit derivatives, in the FRM, begins with the default swap. More specifically, a single-name credit default swap (CDS). A single-name CDS protects against a single asset (e.g., a bond); a basket CDS gives protection against several assets. The CDS is like a credit insurance agreement between two parties. The investor (the protection buyer) may own a bond asset and seek to "insure" its default risk.

The investor pays the spread (akin to periodic insurance premiums) to the protection seller. If the loan never defaults, the protection buyer has lost the stream of spread payments over the swap's tenor. We could liken this to an investor (the protection buyer) purchasing a put on the reference asset; without a default, the put goes unexercised and the investor loses the put premium.

If the reference asset (the bond) does default, the CDS seller pays cash to the buyer. The cash paid will be either net of recovery or the full par value of the asset:

* If the CDS is cash-settled, the seller pays the difference between the par value of the reference asset and the recovery (market value of the defaulted bond).
* If the CDS is physically-settled, the CDS buyer delivers the defaulted asset to the CDS seller and the CDS seller pays the full par value in cash

The CDS buyer does not need to own the reference asset! Note that if the CDS buyer does not own the asset, he/she assumes additional risk with physical settlement: the CDS buyer will need to retrieve the asset for delivery to the CDS seller (Via Bionic Turtle).

The credit crunch that never ends

One analyst calls this the summer that will never end. All view this as the continuation of debt emergence, against the backdrop of short-term turmoil and economic downturn.

Libor spreads in Europe's interbank market jumped to 64 basis points, roughly the level that set off the credit crisis last summer and prompted a liquidity rescue by the European Central Bank. The iTraxx Crossover index that measures spreads on corporate bonds has jumped 100 basis since last week to 364 yesterday.

"It's the summer that won't end," said Peter Berezin, a strategist at Goldman Sachs.

He said investors were shaken by last week's drop in US home-builder sentiment to an all-time low and by fresh falls in the ABX index for sub-prime debt. "We continue to learn that it pays to respect the sell-offs in ABX and housing-related credit. This has elements of the February and August sell-offs, where credit markets signalled problems," he said.

This is the volatile activity against which warning signals about the British economy are winking amber. More and more economists are questioning the foundations of the British economy, pointing to the high debt burden, public sector splurge, poor infrastructure and low skills.

An economic downturn may be further exacerbated by inflation creeping in. Food prices have increased and families are paying more for staples: a development that hits the poor worse:

Economists have been warning for some time that the crisis in some key commodity markets – especially the dairy market – would eventually hit shoppers in the UK. David Lang, a food analyst at Investec, said: "It's only starting to filter through to consumers now. But it will go on for some months to come. Prices will have to be raised again."

Sean Carter, at the Rural Shops Alliance, said: "Supermarkets keep their prices very sharp on certain items, and claim there is a continual price war going on. But, in actual fact, their profit margins never seem to fall. You can be sure that if they cut the prices on some items, they are increasing prices on other items."

The gloss is beginning to come off Brown's custodianship of the economy. It is clear that he did not tackle any longterm problems and relied on state spending to mask this lack of policy.

Link - Via The Bewilderness

Parcells credit for bargain grocery shopping

It's easy to point out Bill Parcells' early-round draft whiffs during his Valley Ranch tenure. CB Terence Newman and OLB DeMarcus Ware are the only first- or second-round picks from the Tuna's four draft classes producing like high picks.

You have to give Parcells credit, however, for stocking this roster with mid- and late-round steals.

Eleven current Cowboys were picked by Parcells in the third round or later. Follow the jump for a look at each one.

TE Jason Witten (third round, 2003): You can make a strong argument that Witten is the best all-around tight end in the league. San Diego's Antonio Gates is the only TE with more yards and catches than Witten (42-540). Indy's Dallas Clark and New England's Ben Watson are the only ones with more than Witten's four touchdowns. Witten is a better blocker than all those dudes.

ILB Bradie James (fourth round, 2003): Dallas defense's emotional leader and leading tackler. Per the stats from the coaches' film study, he had 59 tackles entering the last game, 11 more than any teammate. Limited in pass coverage but not asked to cover downfield as much in Phillips' system.

CB Nate Jones (seventh round, 2004): Can be overmatched physically and athletically, but he's a smart player who doesn't blow assignments. One of team's top special teams players.

WR Patrick Crayton (seventh round, 2004): Established himself as an excellent No. 3 receiver last season and is proving he can be a decent No. 2. Ranks 31st in the league with 400 receiving yards on 26 catches, including four touchdowns. Challenging T.O. for status as Cowboys' best quote machine.

CB Jacques Reeves (seventh round, 2004): Leads team with 11 pass deflections, in part because opponents have tried to pick on him. Has been adequate as a fill-in starter.

RB Marion "The Barbarian" Barber (fourth round, 2005): Doesn't start, but he's established himself as one of the NFC's premier backs. Adrian Peterson is the only 50-carry back in the league who averages more than Barber's 5.7 yards per carry. His five rushing TDs rank behind only LaDainian Tomlinson. Has scored 22 TDs since start of 2006 season, more than any player other than Tomlinson.

DE Chris Canty (fourth round, 2005): Major reason the Cowboys rank seventh in the NFL against the run. Described by Wade Phillips as a "disruptive force." Leads Cowboys DL with 17 tackles. Blocked field goal vs. Vikings was biggest play of game.

DL Jay Ratliff (seventh round, 2005): Natural DE has done excellent job filling in for injured NT Jason Ferguson. Established himself as solid pass rusher last season. Proved in last seven games that he can hold up against the run.

DE Jason Hatcher (third round, 2006): Pushing 2005 first-rounder Marcus Spears for playing time. Has been playmaking machine this month, with a sack, two tackles for losses, fumble return for TD and forced fumble in three games.

FS Pat Watkins (fifth round, 2006): Struggled when pushed into starting duty as rookie, but he's been steady in the dime package this season. Leads Cowboys with 12 special teams tackles and returned blocked field goal 68 yards for TD vs. Vikings.

OL Pat McQuistan (seventh round, 2006): Valuable reserve whose versatility allows Cowboys to carry only seven offensive linemen on 45-man active roster. Could develop into starter at tackle or guard.

Link Via - cowboys.beloblog.com

Tech school partners with Lakes Learning

Making transition easier. That’s what Lakes Learning and the Minnesota State Community and Technical College’s new partnership is all about.

When entering MSCTC, students take an Accuplacer Assessment test to determine what math, reading and writing level class they should enter.

Some students who take that test may come up with a score a bit lower than they had hoped — right on the edge of one class and a higher level.

Rather than needing a course, maybe all the student needed was a refresher course before the test. Enter Lakes Learning.

“The college felt the need for math, reading and writing but not to exhaust financial needs,” Helene Hedlund, MSCTC dean of Academic and Student Affairs.

So without making the student take a lower level class than actually needed, Lakes Learning Instructor Amy Fish will tutor students in the desired field. The student can then test a second time and hopefully earn a better score.

“That way they’re not paying for unnecessary three credits,” Hedlund added.

Two afternoons a week — which will change to include evenings at Lakes Learning, located in the Lincoln Education Center — Fish tutors students at the college.

“This is what they do; it’s their expertise,” Hedlund said about having Lakes Learning on board. “It’s a great partnership, such a benefit. It’s a benefit to anyone in post secondary because financial is always important.”

Even further, Hedlund said she hopes to form a partnership with the English as a Second Language program to bring a more diverse population to the college.

“Our hope is for students to improve their skills and go to college. The transition is nice,” Fish said.

Another form of transition Lakes Learning has to offer is a pre-certified nursing assistant class at the college. The class lays the groundwork for the CNA program at MSCTC by going over medical vocabulary and skills. And Lakes Learning classes are free.

Also at Lakes Learning are Instructor Patti DeGroat — resident math expert — and Lead Instructor Kathy Simison.

Lakes Learning and GED serves as a “safety net” for students who have tried high school or ALC and neither worked.

Known for offering the GED — General Education Development — that isn’t necessarily what Lakes Learning is all about. For example, DeGroat worked with the employees at TEAM Industries who had to take and pass a machinist test to keep their jobs.

As much as the instructors can cover, they can’t always cover every subject needed.

“Volunteers are absolutely essential,” Fish said.

Lakes Learning is a part of the Detroit Lakes Public School system, and because of that, funds are limited. Therefore, volunteers are a big part of those helping at Lakes Learning.

“We’ve grown steadily throughout the years,” Simison said.

Those volunteers are “giving back to the community,” she added.

“We complement each other real well,” DeGroat said of the instructors and volunteers involved in Lakes Learning.

Wednesdays, DeGroat offers a math phobia class, and Thursdays she offers a basic Ojibwa and history of White Earth class. They are open to anyone. Simison pointed out that most of the people in the White Earth class are actually people from the Detroit Lakes community wanting to learn more about the reservation.

Hedlund commended Lakes Learning’s teamwork strategy.

“That’s why students are so successful,” she said. “There are tons of success stories. You can see the enthusiasm in the faces of the graduates.”

And now MSCTC can join in on that teamwork.

“We’re happy with the way it’s working out and moving forward,” Simison of the partnership.

Lakes Learning is open Mondays and Wednesdays from 8 a.m. to 5 p.m. and Tuesdays and Thursdays from 8 a.m. to 7 p.m.

Link Via - DL-Online

7 On Your Side: Credit Card Farm

The owner of White Egret Farms in far east Austin is charged with stealing from her customers.

59-year-old farmer Lee Dexter's turned herself into authorities last week.

The Travis County Sheriff's Office said Dexter received orders via the Internet, then ran her customers credit card numbers at a nearby feed store.

According to the warrant, several customers claimed they were overcharged.

"We're very sorry if that indeed did occur and we will refund those moneys if that did indeed occur," Dexter said.

The owner of the feed store told 7 On Your Side he received charge-backs because of this. He said he's out $10,000.

"Our recent bill with them is more like $3000 and so we'll certainly apologize to the business and make it right with them in the future," Dexter said.

The Better Business Bureau received more than 100 complaints about Dexter's farm in the past year and a half.

Customer David Rice filed a complaint with the BBB. Rice said he goes out of his way to support local markets and farms. However, he said he paid White Egret Farms for an order and never received it.

"We got absolutely no response back and ultimately the Better Business Bureau let us know that they didn't get any response from them, either," Rice said.

7 On Your Side asked Dexter about David Rice's case.

"We understand they are due a steak and we will either deliver that to the customer or invite the customer to come to the farm and pick it up," Dexter said.

What about the other complaints?

"We thought being mentioned in a book that hit the New York Times Bestseller List would be a boom and instead it turned out to be a nightmare," Dexter said.

Dexter said her farm was bombarded with orders in the summer of 2004 and she's still filing some of those orders.

The Office of the Attorney General said it's received almost thirty complaints about the White Egret Farms.

Meantime, Dexter said her farm is still in operation and she plans to fight the theft charge.

Dexter said in some cases, the overcharging may have come from customers asking for next day delivery.

An OAG spokesperson urges consumers to scrutinize credit card statements to make sure a business is not overcharging.

If you feel you've been overcharged, you can file a complaint with the OAG by
CLICKING HERE

Link - Via myfoxaustin.com

Credit Crunch Claims Another Bank

Bank of America Corp. posted a 32% drop in third-quarter net income amid a dismal performance by its investment bank and higher reserves to cover potential bad loans.

The combination of more than $1.4 billion in trading losses in its investment bank and about $2 billion in provisions for credit losses pushed the Charlotte-based bank's third-quarter profits down to $3.7 billion, or 82 cents a share, from $5.42 billion, or $1.18 a share, a year earlier. Revenue fell 12% to $16.3 billion. It was the first time since late 2005 that Bank of America has failed to boost its year-over-year profits.

While other banks have been struggling with the fallout from this summer's credit crunch, and analysts were bracing for a bad quarter, Bank of America's results fell far short of Wall Street's expectations of earnings of $1.06 a share on revenue of $18.3 billion.

THis is more troubling news from the financial sector. The WSJ has a "cheat sheet" of the credit crunch/mortgage impact on earnings from a variety of companies. It's not a pretty sight. Merrill, IBM, UBS, Citigroup, WAMU are all on the list as are some of the other largest companies on the exchange.

The bottom line is the impact has been sweeping and wide. And with another 12-18 months of ARMS resets to go, we're just getting started with the problems in earnings.

Link - Via - Bonddad blog

Credit card commercial song

Overdraft agreements are financial life that are associated with your educational expenses. You are also required to put up your property like home as collateral with the lender. As the success of funding a loan the way often rubs off on the ones that follow. The interest rate is the borrowing capital . The long way of lower interest rate and earlier credit score is well met when you opt for online secured personal loan.

Thus, though an overdraft agreement may not provide you with all the money you need for online secured personal loans away. The huge amounts of funds and finding you an other benefits, the approval comes soon. As long as the interests do not push the bad credit, you do not need to worry. This provides flexibility which is very useful for those who have just gone through an account beyond the credit limit and they are starting to rebuild their most entrepreneurs. You have an access to the reasonable period of time and if credit history is good and you have revolving credit accounts, then credit bureaus is possible to achieve. Once the decision to invest in a franchise is taken, unless the entrepreneur has access to his yet- to- become franchisee, the options to find capital to fund his venture is one of the money the way decide on the success of his franchise. After your credit gets better by using this tool you can resort to improving financial health to continue increasing your credit score.

Debt versus Credit Worthiness

Most consumers have heard of the credit score and the various credit reports that are available. Many consumers understand that these files are based on a person’s level of debt and the manner in which that debt was repaid to the lenders. There are other issues, though, that are less obvious to most consumers, yet they can have a profound effect on what is known as creditworthiness. This article explores some of the lesser known variables that affect a person’s creditworthiness.

It is important for consumers to understand that debt is the fuel that runs the credit reporting machinery. If there were no debt there would be no need for repayments, and without repayment there would be no need for reporting. Every credit report is basically a log of debts incurred and the history of how those obligations were repaid. It reflects whether or not a particular loan was paid on time or if it was late. It details the consumer’s income as compared to his or her outstanding loans. It contains personal information as well as any legal actions that may have occurred during the course of the report.

As you can see, debt is the catalyst. Debt and how it is handled during the course of any particular loan and all loans, in general, make up the factors that are used to determine a person’s creditworthiness.

Of particular importance is the issue of timely payments. Failing to pay bills on time or not paying them at all can be one of the most detrimental entries into a credit report. In many cases, these late payments can stay in the credit report for up to seven years, and during that time, lenders will take their inclusion into the report as red flags and warnings.

Another issue that is used to determine a person’s current creditworthiness is the amount of debt that a person has as it compares to income. It goes without saying that the more income a person has the more debt that person is believed to be able to carry. The same is true conversely: the less income a person has the less debt he or she should be taking on. The debt-to-income ratio can vary, however, and there is no one set limit that governs loans at all times. Generally, the tighter the credit market is (meaning lenders are willing to take fewer risks) the lower the number will need to be in order to secure a new loan.

One of the best ways to improve creditworthiness overall is to pay off loans on time. This not only shows lenders that you are financially able to make your payments but it also lowers the amount of current debt that you have on file. This decrease in your overall debt will lower your debt-to-income ratio, which is a good thing.

Creditworthiness can also be improved by communications with the lender when things begin to go wrong. Consumers are allowed to include written statements of excuse for those occasions when they may have been in financial straits. Lenders do not have to give these statements any weight but many will do so especially if supporting documentation is included with the consumer’s statement.

Article Source: ABC Article Directory
The Author: Peter Kenny is a writer for The Thrifty Scot

Best way to understand your credit report

READING YOUR CREDIT REPORT

Credit scoring is complicated to say the least. When you are born you probably had a credit score of (450) The highest credit scores we have seen exceed (800) In the lending arena and the Federal Government Home Loan Guaranty process, we know that a credit score of (620) or higher can get you a mortgage approval. Now, if your credit scores are lower than that, yep, you can get approved, but guess what? At a much higher rate. So knowing that credit scores affect the amount of your payments is important.

What we are going to tell you now about your credit report is SHOCKING. The single most item that will lower your credit scores is a RECENT LATE PAYMENT. We have seen credit scores plummet from (690) down to (590) in one day because an account was recently (30) days late. It does not matter the amount of money. Even if the account was for $50.00 and you were recently late, your credit scores plummet drastically. Credit scores are NOT determined by the dollar amount of the entry but by the record of payments.

This is perhaps one of the most important documents that you will come across in your lifetime. It is more important than a, marriage license, drivers license, social security card, paycheck, bank statement or any other documents. This document determines how much you are going to pay in interest when you want to buy something. If you do not care nor understand anything about your credit report, okay, just keep paying high interest.

A little bit about interest. Lets say that two twin brothers live across the street from each other. Both work for the local power company. Both have worked there for (25) years. Lets call one Bob and the other Fred. Now, Bob decides to go to the local dealer and buy a new pickup truck. He comes home one Saturday morning driving that new pick-up and wow Fred is really curious. He asks, Bob how much he paid for the shiny new pickup truck. Bob says I paid 27,550 for it.

Fred goes inside and his wife is also more than curious, she is antsy. She says to Fred, If your brother can buy a new pickup and drive it home, only to show off, we can do the same. So, Fred and his little wife (Mary) drive down to the local dealer and even though, Bob has a red one, Fred and Mary pick out a white pickup truck. They make a deal and drive it home. They pull up into Bobs driveway and honk the horn. Bob comes out and, Mary says See, we can also drive a new pickup truck. Bob asks his brother, How much did you pay for the truck? Fred says I paid $27,550 for it. Now here is where the elephants are separated from the giraffes.

Bobs monthly payment is $475.00 and his brother Fred has a monthly payment of $675.00. WHY? Because, Bob has better credit than Fred. Same price but different interest rates. Fred will pay over $200.00 per month or $ 2,400 per year more for the use of money. Multiply that times (6) years and Fred is paying $ 14,400 MORE for his white truck than his brother. Is this fair? Sorry, but that is the system and that is a perfect example as to WHY you should understand your credit report. There are many stories like this and virtually millions of Americans that do not understand their credit reports.

Lets get into what is a credit report. It is a history of how you pay your bills. Are credit reports accurate? Congress has always known that over 70% of credit reports have some type of an error. After all, the credit reporting agencies only report the information that is reported to them from the creditors. Pay attention here, because we will later refer to creditors as furnishers of information.

How you pay your bills is data entry into a computer by the HUMAN ELEMENT. Do humans make mistakes? You answer that one. Credit Reporting Agencies do not care about your credit. They, are supported by merchants that pay a small fee to find out about your bill paying history. Lets just say that out of three hundred million people, everyday over one million credit reports are provided. Now, multiply that times $12.00 and you have Twelve million bucks to divide between THREE major companies daily. If that doesnt wake you up, nothing will.

When something is wrong on your credit report and you get frustrated attempting to get it taken off or corrected, you usually give up. After all, there are NO CREDIT COPS. Sure, we have the Federal Trade Commission to look after us. But they are a bureaucracy and if you believe in BIG BROTHER looking out for you, you need to get your thinking readjusted.

In order to understand how to understand your credit report you MUST READ ALL of the information on the report. Do not just glance at it. It contains many codes that are very confusing to say the least. I have talked to Bank Officers, Attorneys, Mortgage Lenders, CPAs, Brokers, Realtors, Underwriters and just about every expert in the credit field. I can say this from a personal experience. Over (90%) of the so called experts that I talk to are NOT aware of Federal Laws and how they affect how much you will pay for the cost of borrowing money.

Lets get started:

Look at your entries on your credit report and look very close at the little lettering above which says DATE OPENED. This is always the single most cause of high credit scores and we want you to become an expert in knowing when an account was opened. Why? Well, the Fair Credit Reporting Act, Section 623(a)(5) says the period of reporting derogatory information in a credit report is for (7) years. That means YOU are in credit prison for (7) years for being late on a payment or having one charged off or placed for collection.

How would you feel IF, someone came into your credit prison and added (5) years to your credit prison sentence and you did not even know it? Well, friend, it happens EVERY SINGLE DAY. That is called AGING and is a violation of Federal Law. How would you know this, if you did not know where to look and what to look for?

Here is how it works. Lets say that you bought a refrigerator from Honest Harry and for whatever reason it stopped working and decided you were not going to pay for it until Harry fixed it. He wouldnt fix it, so now he reports it to your credit bureau that you quit paying in June of 2003. Remember, your (7) year period of being in so called credit prison starts in June of 2003. BUT, here it is 2006 and Harry decides to turn your account over to Happy Landings Collection Agency.

When did they get the account? Well they got the account in June of 2006. So, they report to the credit bureau that this account was OPENED with them in June of 2006. My new friend/s GUESS WHAT has just happened? Happy Landings Collection Agency has just added (3) years to your credit prison sentence and this derogatory item is now on your credit report for (10) years. Fair? NOT AT ALL. What can be done? Without any knowledge or what to do about it, or how to find it, NOTHING. BUT, if you understand everything that you have read so far, you can notify the credit bureaus and the furnisher of information that the account is AGED and Federal Law prohibits that.

Do creditors react to this? It all depends on the knowledge that you have and how you communicate with them.

Now, since we understand aging and how long an item can remain on your credit report, lets look into another item or entry. Federal Law says that a furnisher of information MUST report the date in which an account was first late and that triggers the commencement of the initial delinquency. There is a National bill collection agency by the name of NCO. In the summer of 2004 they were found guilty by the Federal Trade Commission of this violation and fined $ 1,500,000. Thats right! I said ONE POINT FIVE MILLION SMACKEROOS. Is that heavy? You bet your brother Freds new white pickup truck that is heavy.

Why would they intentionally do this? Guess? With all of the millions of folks that are in their files, they can use this phony date to scare the daylights out of people. They can even turn the files over to the legal profession and they in turn scare you into paying..

Look at the far right column. It has a 30,60 and a 90 day paying history. This is supposed to let you know how often you were 30,60 or 90 days late. This is an area of constant errors. Look at your own credit report now. Some times it will report a consumer being 90 days late (4) times and 60 days late (2) times. Now, lets use some common sense. How can you be 90 days late before you are 60 days late? Not possible. So, in order to be 90 days late (4) times, it is numerically impossible if you were not 60 days late at least (5) times. Sorry, cannot get to third base without passing second base.

You will also find that the majority of bill collectors do NOT report the opening date of an account. WHY? Because they do not know it. If they report the date that they received the account as we described earlier, than they are aging the account. This is to your advantage because the law says they MUST provide 100% accuracy.

Another entry that we want you to be aware of on your credit reports are items that truly do not belong to you. There are many cases where the same name or similar names cause information to be entered into the wrong files. Sometimes this can be disastrous when applying for a loan. The underwriter, banker or lender ONLY has the information that is front of them.

Here is a favorite trick of collectors/creditors in entering the same account but with a different account number. Now you might owe someone $1,500 and they turn it over for collection. Well, the collection agency simply puts their in-house account number on it and that is what they report. For example: Lets say you had a credit card with Capital One. The account is turned over for collection and you cannot figure out why you have two accounts with virtually the same amount. Guess what? Neither, can most mortgage brokers, realtors or counselors understand this. Most of all, they do not know how to figure this mess out.

Again, its the law. The account number of the original account and the 1st time that you were late AND NEVER GOT CAUGHT up is the determining factor. If pressed, the creditors always respond. Sorry to say, but they only respond when you have knowledge and press your point. The greatest weapon to get their attention is through Small Claims Courts. Do not believe this garbage that IF you make a partial payment it will help your credit. That is absolutely wrong and is a favorite old ploy by bill collectors. This does NOT restart the seven year clock. The ONLY way that the seven year clock is re-started is IF YOU BECOME CURRENT. That means paying off all of the late dates. That is your choice. We do not advocate not paying your bills. We simple teach your rights under the law.

Most entries in any credit report have information that is not accurate or information that is critical for you is missing. Be very aware, as I mentioned earlier about the opening date of an account and when you were first late.

Now that you have learned the most important parts of your credit report, just remember, getting a better credit report is not like putting a new coat of pain on a room. It is not easy but with a little practice you can understand your credit reports better than most people today.

Remember your rights under the Fair Credit Reporting Act. All information MUST be 100% accurate. If you attempt to dispute with the Credit Reporting Agencies, be very careful that you do not write frivolous letters. (means letters that dont mean anything). If you have documentation to back up your claim or you have a copy of your credit report and you underline those items that you know are not accurate, you stand a very good chance of getting your credit straightened out.

As we mentioned earlier, if bankers, attorneys, mortgage lenders do not understand the law, how do expect anyone else to help you. There are NO credit counselors out there that can help you to understand your legal rights.

They are wonderful people that get paid (by you) to teach you how to budget your paycheck. They then make deals with creditors to take payments. IF THAT is knowledge, than I am the Eiffel Tower in France.

The last thing that we want you to pay close attention to is the reporting of the late dates. Now we talked about paying history earlier. Now lets talk about reporting of late dates. The law is specific. A furnisher of information MUST report the commencement of the initial delinquency that led to the action (charge off or collection). Without this critical data, no one can determine how long an entry will remain in your files. Look closely at the reporting of late dates. This is a common practice. Late dates: (120) June (120) May, (120) April, (120) March. Now is this accurate reporting? NOT AT ALL. Where is the commencement of the initial delinquency? When was this account first late? This is powerful stuff.

We have personally assisted folks just like yourself to attain higher credit scores, once they understood their credit reports. We have a number of clients that came to us with credit scores below 550. Within (6) months and a lot of work, we have seen their credit scores jump up to 650 and higher.

Finally, there is a major industry that has brewed in the past couple of years and you are a part of it, whether you want to be or not. When credit cards can no longer be legally collected many law firms and private investors have gotten together and purchased these (debt barred) accounts for .02 -.05 cents on the dollar. Now, when they send you that nasty letter and you get intimidated because it is from an Attorneys office you fall down, ask for forgiveness and pay as they tell you to. Folks, you cannot believe the profits these bottom feeding characters are making. After all, if they bought a product for .02 cents and sold it for .50 cents, would you think that is unfair? Well when they buy your TIME BARRED DEBT and collect on it through intimidation, they win BIG PROFITS and you are the victims. Even bank robbers have the benefit of the Statute of Limitations. Another reason to keep listening.

LK Gardai warns public of credit card scam

Gardai in Letterkenny are warning the public to be extremely vigilant when it comes to using a debit or credit card abroad.

The warning comes after a number of people filed reports to the Gardai in Letterkenny over their cards being cloned while abroad.

Sergeant Christy Galligan says significants amounts of money are been withdrawn in some cases before the scam is detected.

He is appealing not to let your guard down either at home or abroad.

Credit squeeze to hit Serbia

Some financial trouble may lie ahead for Serbia.

The outgoing IMF chief, Rodrigo Rato, says that the ongoing credit squeeze will force governments worldwide to make substantial changes to their budget plans. Rato says that countries with large current account deficits would be much more vulnerable to the tightening of availability of credit than those in a “more balanced situation”.

Rato warned of the coming financial panic in the credit markets back in February of this year.

Meanwhile, EBRDs chief economist, Erik Berglof, singles out five countries with high current account deficits that will “come under pressure at some point”. These countries are Latvia, Hungary, Bulgaria, Romania and Serbia.

Serbian Trade Deficit 1997-2000. Source: Serbian Central Bank

“Bulgaria, Romania and Serbia have also enjoyed very rapid growth and credit expansion and have benefited from large inflows of foreign direct investment (FDI). The main effect of the crisis in the West will be the reduced appetite for risks in emerging markets, which means that countries representing a higher level of risk or which have large external financing needs will be the most affected,” says Berglof.

In other words, countries with large trade deficits, like Serbia, have a net outflow of money out of their country and their foreign purchases are paid for with foreign direct investment which will likely decrease as the cost of borrowing increases.

Link Via - serbianna.com

7 ways to save some money

If you always stick to your budget and save a few dollars a day, then you are on your way to a debt free life.

Keeping a budget log where you jot down your expenses would help you in saving more money.

Take a look at your monthly expenses. Mark the things that you spend less money on and find a way to cut down on them even more. After doing so, make your way up the list and do the same thing.

A few dollar savings can effectively help you save big in the long run. For instance, if you normally buy a large coffee switch to a small coffee and you will be surprised on how much you can save over time. Just imagine how much you can save if you cut down on the more expensive things that you usually purchase. If you want to add more funds to your savings account, try these tips today:

* Always categorize your purchase. Does it fall under wants or needs? Prioritize buying what you need more than what you want. Needs are necessities like food, clothing and household stuff, among others. Wants are the things that you enjoy and enhance your being.

* Do not be an impulsive buyer. Before doing the groceries, list the things that you need to buy and stick to the list as much as you can. When shopping, try clothes or shoes on before you buy it. Make sure that you spend money on the things that you would use for a number of times. Be a budget shopper. Go for discounts and sales. If you are meaning to buy something expensive, give yourself the entire day to think about it.

* Avoid late fees as much as you can. You can save big if you can avoid late fees and penalties on your credit cards, loans, mortgages and other monthly bills. You can always change the due date of your credit card bills so you can pay them at the same time you pay your monthly bills.

* If you have some loose change in your pocket, save it! It will pile up and before you know it, you already have created funds for emergency use.

* If you are taking prescription medicine, ask your doctor if he can prescribe to you generic drugs. Buying generic drugs can help you save hundreds of dollars every month. You can buy store brands over commercially advertised brands that can cost you so much more.

* Avoid bounced checks and save about $30 a month. Use a debit card instead of credit cards if you do not have enough cash with you. Avoid using your ATM from other banks that would charge you a certain amount for withdrawal.

* Shop for the cheapest gas around your area. Make sure that you maintain a good engine so that you do not spend more on gas. If you have to commute, try using public transportation instead of taking a cab. If you have to fly out of town or outside the country, book in advance so you can get the cheapest rate.

Link - via My New Choice

Taking a peak at our credit reports

I have pulled my wifes and I's credit reports off of freeannualreport.com. We will have to send out a written request for one of the reports because our bank placed a fraud alert on our behalf a couple months ago when our credit card information was spoofed/stolen.

I didn't have time to carefully evaluate the information contained with the reports, but from past experiences know that there will be errors, and issues that I will need to address.

Unfortunately, I did notice that my wife has to public records of ~$500 each on her reports. These are a result of medical bills that should have been paid by insurance that were denied for whatever reason. We did not have the ability or resources to pay the bills and are paying them now. It is unfortunate, but we hope to make it water under the bridge some day.

I feel better after obtaining the reports and realize that it brings us one step closer to our ultimate goal of being debt free and credit worthy at the same time.

I will spend some time this weekend reviewing the information contained in the reports we have and develop a plan of attack in polishing the reports. I have worked on repairing our reports in the past and it is has proven to be about a 12-18 month venture. If we approach this task concurrently with our debt reduction it will be only a minor inconvenience.

I am aware of some great resources on the internet and will begin posting them soon. I am still drafting different writing series, and should begin that soon. Tomorrow I will post another confession, and how I deal with it (Via - Debt Liberty blog).

How to Dispute Your Credit Report

Consumer reporting agencies, also known as credit bureaus, collect financial information from you from any lending institutions with which you have a relationship. This financial information is compiled into a credit report. If you’ve ever had a credit card, any type of loan, or a collection account, chances are you have a credit report.

Whenever you apply for a credit card, a mortgage, or any other type of loan from a lending institution, the lenders and creditors will use your credit report to determine whether or not they should extend credit to you. They base this decision upon how you pay your bills. This information is found in your credit report. If the information contained in your credit report is incomplete or inaccurate, you could be turned down for credit.

In the case that your credit report indeed has information that is not correct, you are permitted to dispute this information. The Fair Credit Reporting Act provides you with the advantage of having the information provider confirm or update information that you consider to be incorrect or inaccurate.

When you find inaccurate information on your credit report, the first thing you should do is to immediately contact the credit bureau that you recieved the report from. Send a letter to the bureau outlining the information that you think is not correct. Include copies of any documentation you have to back up your claim and ask that the inaccurate information be removed from the report. It is recommended that you also include a copy of the credit report highlighting the information that is questionable.

WHen they receive your letter, the credit bureau will look into your claim and forward any details you provide about the claim to the institiution or lender who provided the initial information. The creditor then has 30 days to provide proof supporting the information on your credit report. If the lender determines that the information you are disputing is indeed wrong, it is required to make a correction and to update the account with all three credit bureaus.

Once the investigation has been finished, the credit bureau is required to inform you of the results. If there were any changes to your credit report because of the dispute, you must be given a free copy of your updated credit report. You can also request that the credit bureau send a notice of the changes made to any party that has received your credit report in the last six months.

It is good practice to send disputes via certified postal mail so you have proof that the dispute was sent.

Included below are the addresses for each of the credit bureaus:

TransUnion
P.O. Box 1000
Chester, PA 19022
1-800-888-4213

Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
1-800-997-2493

Experian
P.O. Box 2104
Allen, TX 75013-2104
1-888-397-3742

Detecting criminal activity from your credit report

If we look at our credit report in a careful manner, we can stop many of frauds resulting from identity theft. But now we need to know what exactly we have to care when reading our credit report and how to find something really unusual:

• Checking your address - Every credit report has a personal information section that contains your personal information like your address. You have to look for any suspicious change of address; since criminals often change your address and specify another one to be able to receive the things they buy delivered right to their door, or the door of an innocent neighbor. If you detect any false change of address, then you should immediately place an alarm with the credit agency that provided you with it.


• Keeping an eye on the inquiries - The main goal of a criminal is, ultimately, get your money. And what better way of getting your money than making you pay for the stuff they buy and the cash they borrow? The “Inquiries” section of your credit report contains information about all the creditors that have requested your credit file in order to accept or reject a credit application made in your name. Sometimes it will be easy to detect abnormalities (like for instance if you have been on vacation in New York and the report shows that you applied for credit in Texas or some other place where you obviously haven’t been recently), and sometimes it will be more difficult (there are thieves that are indeed very good at covering their tracks); but if there is something going on, it will appear here. Keep an eye open and never overlook a thing.


• Watching your public records - The “public records” section of all credit reports features information about any legal matter that you were involved in. While some of these records will not be indication of criminal activity (like a divorce, for instance), you should set a red flag on your report if you see legal issues you have no knowledge about. For instance, if your report shows that “you” were arrested, then there is another person using your name out there. Immediately call all three credit agencies and report this issue, and then call the police and explain this to them too. This way you will be protected in case the identity thieve commits a major crime.

Well, those are basically the three points you should look out for. Requesting credit reports regularly may be the best thing you can do to stop these kinds of activities and bring the criminals into justice. And it can be done easily, quickly and effortlessly right from your desktop.

Mutual Fund Opens a Subprime Window

The annual report filed yesterday for the Regions Morgan Keegan Select High Income Fund offers a rare window into how mutual-fund firms are reporting and valuing their holdings in the wake of this summer's subprime-mortgage crisis.

Few funds have been hit harder than the High Income Fund since troubles surfaced with subprime mortgages a few months ago. The fund focuses on junk-rated issues and makes investments in areas like corporate bonds, mortgage-backed securities and other structured finance vehicles. Its big stake in lower-rated home-equity and mortgage-related asset-backed securities came under particular stress this summer as bond markets were roiled with ...