Donkey God

People file bankruptcy for many different reasons. Very few people file bankruptcy when they can pay their bills. The new bankruptcy laws protect this from going on. These are the five biggest reasons people think about filing bankruptcy:

Medical Bills
An accident or medical illness can impact family finances quickly. Especially if no health insurance is accessible. Add in the fact that an illness means one earning family member or more can miss work, and income is drastically diminished. Which takes us to the next popular reason people file bankruptcy.

Job Loss
Job loss and layoffs can put people in a financial disaster quickly, particularly if they were living paycheck to paycheck while employed. Unemployment is usually just a fraction of previous income levels, and only lasts so long.

Stop Foreclosure
A chapter 13 bankruptcy can create a payment plan to catch up on late mortgage payments and stop foreclosure. Filers can include overdue mortgage payments and legal fees into the bankruptcy repayment plan, allowing them to keep their home and stop the foreclosure process.

Stop Wage Garnishments and Repossessions
Garnishments can be stopped by filing a ch 7 bankruptcy. , including the overdue payments in a ch 13 can stop repossessions and even get your property returned after repossession if filed in time.

Stop Creditor Harassment
Once a bankruptcy is filed, the “bankruptcy stay” is put in place stopping creditors from contacting you in any way. Creditor calls and mail will stop once you file, allowing you to relax and get back on your feet.

Unlike in the past, there is no stigma attached with filing bankruptcy. Unfortunately with todays rising unemployment rates, even more Americans will be filing bankruptcy for financial relief.

Guest Article Provided By: BankruptcyFormProcessing.com where you can find more information on filing bankruptcy and DoItYourSelfBankruptcyForms.com where you can find free bankruptcy forms.

If you have ever been in a bind for cash you know the stress, the weight of not being able to pay your bills. In these desperate times, desperate measures are often taken. Expensive loans, overused credit cards, and a snowball of events quickly complicate your financial position. Once the collectors begin their relentless pursuit of your sanity, the road to financial prosperity seems a million miles away. On the scene arrives your hero, the “Cash Now” guy.

The “Cash Now” guy says he can buy your lawsuit settlement and give you a lump sum for it. Of course, you have to have a structured settlement; you have to be receiving annuity payments, on top of a myriad of other qualifications. So if you are a lawsuit winner with an annuity settlement, is it really as good as it seems? Can cash now ease your financial woes? Maybe, but maybe not, it all depends on your situation.

The formula is simple. Does solving your money problems today outweigh the price you pay to get an advance on your future annuity payments? For example, paying what equates to a one time 25% interest fee on $30,000 might be worth the price to save your home and avoid bankruptcy. If you are behind on credit cards, which charge you a ridiculous 24% interest rate, does it make sense then to take a lump sum option? The credit card rate is better than the discount you would pay. What if you had to give up $30,000 of your $75,000 lump sum due in 8 years? Will the $45,000 you get today make up for the 30k throw away?

Annuities and structured settlement suits were created and scheduled to meet the future needs of a recipient. The fee for accelerating those payments is exorbitant. Researching alternative options is a must, and at the end of the day, it is your sanity that makes the final argument. Is cash now an answer to your prayers? Probably not but, it is a choice on your list. And it’s time to get started on that list before your bills get the better of you.

Jason M. Rigler
National Marketing Director and Guru
JasonR@ppicash.com
Prosperity Partners
www.ppicash.com

Structured settlement loans are given against plaintiffs’ periodic claim settlements. Court judgments where a structured settlement is awarded are called periodic payment judgments. If a claimant has been awarded a financial resolution in which he or she will receive periodic payments instead of a lump sum, a loan may be extended against the value of the settlement.

Such loans are offered by many financial organizations specializing in legal funding. The practice is not held in very high esteem, since the laws concerning structured settlements are designed to protect the recipient from exploitation. However, the fact remains that funds received through a structured settlement represent a form of income, and loans against any sort of regular income are always available.

Availing of such a loan is often the only recourse open to a claimant for obtaining a substantial amount of money. A structured settlement is treated as a special income tax category and cannot be traded in for a lump sum settlement.

The laws surrounding structured settlements are rather specific, and obtaining a loan against them is not as easy as it may sound. Financiers who claim otherwise are usually not reliable. In legal terms, using a structured settlement as collateral for anything at all, including a loan of any kind may void the whole deal. Availing of such a loan is a matter best left to a knowledgeable attorney or law-savvy accountant.

In cases where loans are taken against a structured settlement, the purpose is usually not to obtain hard cash but to buy a house or some other asset. In such cases, the money coming from the settlement may be used to pay regular installments and would not represent a loan in the classic sense of the word.

Settlement Loans provides detailed information on Settlement Loans, Lawsuit Cash Advance Loans, Lawsuit Settlement Loans, Pre-Settlement Loans and more. Settlement Loans is affiliated with Lawsuit Loan Companies.

A Senior Settlement Company is an establishment that buys unwanted policies from senior citizens and sells them off to other interested parties. The company becomes liable for all further premiums on the policy and its benefits, once the policy is bought by it from the original policyholder. The responsibilities of Senior Settlement Companies include buying the policy from the senior policyholder, customizing it according to present-day requirements, introducing it to interested parties and inviting bids, selling it to the highest bidder and compensating the original policyholder a lump sum amount in cash. These companies also maintain the current funds of the policyholder in an escrow account till such time as the policy is sold to someone else.

Senior Settlement Companies need to be licensed by the Departments of Insurance in their operating states. This license is for a fixed amount of years, after which it is to be renewed. Acquiring a license means that the company will abide by the rules of the National Association of Insurance Commissioners and its Viatical Settlement Act of 2001. Though the act concerns viatical settlements, several of its clauses can be projected into the Senior Settlement Company scenario.

People feel safer when they deal with licensed Senior Settlement Companies. There is almost no chance of fraud, which can occur when the policy is sold to some other party but there is cheating in the payment of the lump sum amount. The license requirements have become stricter in the wake of senior settlement scams that have cropped up in the last decade.

Licensed companies all over the country adopt uniformity in their modus operandi. Their calculations conform to national standards and approximations. Hence, there doesn’t arise any question of negotiations. Also, licensed companies have contacts with more serious buyers, which make more genuine bids available to the policyholder.

Yet there are several unlicensed companies operating within the state. Policyholders are advised to deal with them at their own risk. Several unlicensed companies close shop when their business dwindles, leaving their senior clients in the lurch. Hence, it is very important to ascertain whether the settlement company has a license from the Department of Insurance before approaching it with policy settlement problems.

Senior Settlements provides detailed information about senior settlements, senior life settlements, senior life settlement providers, licensed senior settlement company and more. Senior Settlements is the sister site of Cash For Annuities Info.

Birth injury refers to any kind of physical injury to a newborn during or right after birth. They are highly probable if the infant is bigger than normal or is premature. Bigger babies are hurt when they get caught in the mother’s birth canal, or by the physician’s efforts to pull out a baby with forceps. The injuries are caused by delay in treatment, miscalculation in timing, wrong medication and medical negligence.

Another birth injury that can occur is Erb’s Palsy that causes nerve damage in a baby’s arm due to pressure put on the nerves during birth. Similarly, cerebral palsy is caused by injury to the baby’s head during birth. Bruising and fractures during birth resulting from negligence and or miscalculation are also common.

The doctor’s liability needs to be established in order to sue. Medical practitioners and a personal injury attorney need to be involved. Because death or injury during birth causes trauma to the parents of the child, these cases are handled with great sensitivity by lawyers experienced in cases of birth injury lawsuits.

The settlement amounts for birth injuries tend to be large, sometimes going up to millions of dollars. This is because the settlements need to cover a lifetime of medical and other expenditures for an injured and possibly disabled child. The highest settlement awarded in the United States for a birth injury was $120 million. In another case, a woman died during labor, and her baby was born severely handicapped due to the administration of the wrong drug. Her family was awarded $20 million in a lawsuit against the faulting nursing home.

Birth injuries are traumatic for the family, as well as the injured child. A fair settlement helps them to partly overcome their trauma through proper medical care, therapy and counseling. It ensures a secure future for a child who may have to lead a physically or mentally impaired life.

Injury Settlements provides detailed information about injury settlements, burn injury settlements, hydrocodone injury settlements and more. Injury Settlements is affiliated with Debt Settlements.

What is an IVA?

There is an alternative to bankruptcy called an “Individual Voluntary Arrangement” (IVA). This is a formal arrangement through the county court to pay an agreed amount off your debts over a shorter period. This usually means paying a high monthly instalment over 3 to 5 years. The rest of the debts are written off. Some IVAs are set up on the basis of using a lump sum to make offers to the creditors rather than make monthly payments. Some IVAs are a mixture of both.

Is an IVA suitable for me?

An IVA is not suitable for everyone. It is usually only worth looking at if you have a lot of money to spare every month to pay your creditors and/or you have a lump sum or assets that can be included.

What is the procedure for an IVA?

An IVA has to be set up by an insolvency practitioner (IP). An insolvency practitioner is usually an accountant or solicitor who is authorised to set up IVAs. Once an IP has agreed to make an IVA proposal for you, they can apply to the county court for an “Interim Order”.

This stops your creditors from starting bankruptcy proceedings against you. It also stops any other enforcement action without the court’s permission whilst the Interim Order is in force.

From 01/01/03 you can put forward an IVA proposal without applying for an Interim Order first. This may reduce your costs but means your creditors can still take enforcement action against you until the IVA is agreed.

You can ask for an IVA even after you have gone bankrupt. See the section on “Fast Track IVAs’. There are no rules on how much debt you have to be in before you can ask for an IVA.

The IP sends the IVA proposal to your creditors and arranges a formal meeting called a “Creditors Meeting”, giving the creditors at least 14 days notice. Check with your IP and make sure that all your creditors have been contacted. If creditors have no notice of the meeting they do not have to stick to the terms of the IVA and can pursue you for their debt separately.

At the meeting creditors have to vote on whether to accept the IVA. Often creditors send their vote to the IP and don’t actually come to the meeting. If 75% of your creditors “by value” who actually vote agree to the IVA, then the rest are bound by the IVA even if they voted against it or did not vote at all. “By value” means the creditors to whom you owe 75% worth of debt not the number of creditors you have.

So if the creditors to whom you owe the highest amount vote against the proposal then the IVA may not go through. Sometimes creditors will haggle about the terms of the IVA and ask you to agree to pay more every month or include assets you do not want to lose. They may ask you to make payments over a longer period.

Once the IVA is agreed your IP will supervise the arrangement and make sure you make the payments. If a creditor comes to light after the IVA has been agreed, they can claim the amount they would have received as if they had been included in the IVA at the start.

If the IVA does not go through then you are back to the same position as you were in before the Interim Order and you have to negotiate with your creditors separately. You have to wait 12 months before you can apply for another Interim Order.

How do I find an Insolvency Practitioner?

Your local county court may be able to give you a list of insolvency practitioners.
You can also ask your local Official Receiver’s office for list. If you cannot find your local Official
Receiver’s office contact The Insolvency Service Central Enquiry Line on 020 7291 6895.
Check out the Yellow Pages or telephone directory.

WARNING: Be careful of companies who suggest they can put you in touch with an IP if you pay them a fee. These are known as “ambulance chasers”. You can contact an IP directly without going through another company.

A list of IP’s can also be obtained from:

The Association of Business Recovery Professionals

4th Floor Halton House

20-23 Holborn

London

EC1N 2JD

020 7831 6563

www.r3.org.uk

The Insolvency Practitioners Association

52 - 54 Gracechurch Street

London

EC3V 0EH

020 7623 5108

www.insolvency-practitioners.org.uk

The Insolvency Practitioners Policy Section

The Insolvency Service

PO Box 203

5th Floor

21 Bloomsbury Street

London

WC1B 3QW

020 7637 1110

www.insolvency.gov.uk

There is an Insolvency Service publication called “The Directory of Authorised Insolvency Practitioners”. This is kept in local reference libraries. It lists IPs by area and who regulates them. If they are not licensed then you should not use their services.
We can also give you details of some IPs but are not in a position to actually recommend any companies listed.

Fees

All IPs will charge fees for setting up and supervising an IVA. It is very important that you shop around to make sure you are getting the best deal. Typical fees are over £4,000 and sometimes a great deal higher. Many IPs will offer an initial free meeting to look at whether an IVA is suitable in your situation. Some IPs will only accept payment of their fees up front. Other IPs will allow you to pay the fees as part of the monthly payments over the term of the IVA.

What if I can’t pay the IVA once it is agreed?

You may not be able to keep to the monthly payments under the terms of the IVA. This might be because your circumstances have changed or because the payments were set unrealistically high in the first place.

It is very important that you talk to the IP supervising your IVA.

The IP can ask the creditors to agree to a lower amount. You may be charged another fee for doing this. If you can’t agree a new or “modified” IVA then the IP can terminate the old IVA if you cannot make the agreed payments. It is then possible for the IP to apply to make you bankrupt.

If the IP decides it is not worth doing this then your creditors can take action against you instead. You will need to try to negotiate payment arrangements with each of your creditors separately to stop this happening.

What are the advantages of an IVA?

You may well be running a small business which would be difficult to keep going if you were bankrupt.

You may be a profession where you could lose your job if you go bankrupt such as accountancy/police/
armed forces.

You may have access to a large lump sum and want a formal arrangement with your creditors to accept the lump sum and write off the rest of the debts.

You may have a very high monthly available income to make payments.

You will not automatically lose your house or other assets which can be kept out of the IVA with the agreement of the IP and your creditors, although the creditors will usually want most of the equity in your house. See the section on “Disadvantages of an IVA”.

You will not have the same restrictions on you as you would if you went bankrupt, e.g. you can still use your bank account without saying you have an IVA.

What are the disadvantages of an IVA?

If you do not keep to the terms of the IVA then the IP or your creditors can make you bankrupt.

If creditors do not accept the IVA proposal you are back to square one. You cannot make another IVA
proposal for 12 months.

If you paid an up-front fee for your IVA and it is not accepted, then you will have lost the fee and be in a worse position than when you started.

If you own your house the IP and creditors may make you agree to sell your house as part of the IVA. It is standard for IVA agreements to include a clause that you will get your house valued after a set number of years with a view to giving most of the value or “equity” in your house to the creditors.

You may be able to pay instalments for an extra year to cover the amount of equity in your home. However it could mean selling your house if you cannot raise the money. Your options may include
you or a partner taking out a new loan and even securing it on your house. This may be difficult as your credit rating may not be good enough to get a loan through a reputable lender and you would be putting your house at risk.

There is a risk that the IVA is agreed on the basis of monthly payments that you cannot afford long term. You must be very careful that the payments are set at a realistic amount in the first place.

If your circumstances change and you can no longer afford the payments your IVA may end if the IP
cannot persuade the creditors to accept a new agreement.

Fast track IVA

From April 2004, under the Enterprise Act, there are new rules on how to get an IVA after you are made bankrupt. You can apply for a Fast Track IVA by putting a proposal to the Official Receiver even after you are bankrupt. The Official Receiver may agree to act as supervisor of the IVA if they feel it will produce a better deal for your creditors than they would receive through bankruptcy.

There are set fees for this process so costs are reduced.

There is no formal creditors meeting.

The proposal is sent by post and creditors can either take it or leave it.

The IVA proposal cannot be modified.

If the IVA is agreed, the Official Receiver will annul your bankruptcy order.

If your IVA fails the creditors could make you bankrupt again but the Official Receiver will not take any further action.

Where will details be kept about my IVA?

Public Register
Records of IVAs are kept on a public register. To find out if someone has an IVA, records can be searched by anybody including members of the public either in person, by post or by fax. A copy of the search form can be printed from the website below or you can ask the Insolvency Service to send you a form. Your IVA will remain on the register until it is completed or terminated.

The Individual Insolvency Register

The Insolvency Service

5th Floor, West Wing

45-46 Stephenson Street

Birmingham

B2 4UP

Tel: 0121 698 4000

Fax: 0121 698 4406

www.insolvency.gov.uk

You can also search the register in person by visiting your local Official Receivers Office.

Credit Reference Agency Files

Records of IVAs are held for six years on credit reference agency files. The IVA is marked “complete” by the credit reference agency when they are informed of this by the IP supervising the IVA. Make sure you send a copy of the letter from your IP to the 3 credit reference agencies so that your credit file is up-dated. We have a factsheet on credit reference agencies that you may find useful. Phone us for advice

Complaints about insolvency practitioners

To complain about an insolvency practitioner you need to find out which authorising body they are registered with. This should be given to you by your IP. You should first make your complaint in writing to your IP. If you are still not happy then write to the authorising body for your IP. There is a useful leaflet called “How to make a complaint against an Insolvency Practitioner”. You can get this from the Insolvency Service or Phone us for advice

The Law Society

113 Chancery Lane

London

WC2A 1PL

Tel: 020 7242 1222

Tel: 0870 606 2500 (national rate)

www.lawsociety.org.uk

The Competent Authority

The Secretary of State for Trade and Industry (SoS) Insolvency Practitioner Section

The Insolvency Service

P O Box 203, 21 Bloomsbury Street

London

WC1B 3QW

Tel: 020 7291 6772

www.insolvency.gov.uk

The Institute of Chartered Accountants (ICAEW)

Gloucester House

399 Silbury Boulevard Central Milton Keynes MK9 2HL

Tel: 01908 248 100

www.icaew.co.uk

The Association of Chartered Certified Accountants (ACCA)

29 Lincoln’s Inn Fields

London

WC2A 3EE

Tel: 020 7396 5700

www.accaglobal.com

The Insolvency Practitioners Association

52-54 Gracechurch Street

London

EC3V 0EH

Tel: 020 7623 5108

www.insolvency-practitioners.org.uk

If the Insolvency Practitioner is acting as a Trustee in Bankruptcy you need to complain to the Official
Receiver first, followed by the Insolvency Service.

For details of company liquidations or company disqualifications contact:

The Registrar of Companies

Companies House Crown Way Cardiff

CF14 3UZ

Tel: 02920 388 588

www.companieshouse.gov.uk

The author, Michael Sherriff, has been writting articles for the past five years relating to credit repair and money matters. His UK top selling ebook “UK Credit Secrets” has blown away the myths surrounding the credit industry and has been called the UK Credit Repair Bible since being released to the general public.

More details can be seen at UK Credit Secrets

If you are looking for information about how to repair your credit, you may see suggestions about debt settlement. Some may recommend that you repair credit with debt settlement negotiation. This is an option that may work or may hurt. Here are the facts.

If you are trying to learn how to repair your credit, there is much to learn. It is advisable to learn as much as you can before you try anything, unless you contact an attorney to do it for you. Trying to improve or repair credit with debt settlement may be risky on your own, particularly if you have no experience with it.

Suppose you owe a creditor a large amount of money. This may be a debt that was turned over to a collection agency. If you have problems like these and you are trying to learn how to repair your credit, then you need to proceed carefully. Companies which advertise that they can repair credit with debt settlement are not being completely honest. A debt settlement generally means that a collection agency or creditor agrees to accept a smaller amount than you actually owe. Some companies advertise that they can settle past due taxes in this way as well. What you should be aware of, if you are trying to learn how to repair your credit, is that these companies charge you a fee. If you owe a very large amount on taxes or some other unsecured debt, then you may save money by hiring a company to help you, but generally it is wise to talk to your creditors yourself, before the debt becomes excessive due to late fees or interest.

The only credit repair with debt settlement that you can hope to achieve is that the negative information will be removed from your credit report. This does not mean that the debt will be listed as “paid as agreed”, but simply removed. If you have the money to pay the debt, go ahead and call the creditor. Ask them if they will remove the negative information from your credit report, if you pay the debt. Ask them if they will accept a lesser amount. If you think that you would be uncomfortable talking to the creditor, write them a letter. If you are trying to learn how to repair your credit on your own, you are going to need to learn to communicate with people like this, either on the phone or in writing.

The internet offers an overwhelming number of debt management companies and
choosing between them can be frightening. Many people simply do not know what
things signal a potentially predatory debt management company. This article is
meant to help people recognize what to watch out for when choosing an online
debt management company.

Companies That Charge For an Initial Consultation
You should never be charged for an initial consultation with any debt services
company. In an initial consultation, you simply learn what services the company
provides and determine whether or not their services fit your needs. Just as you
wouldn’t pay to look at a home before buying it, you shouldn’t be charged for
browsing services before receiving them. What this initial meeting is, most of
all, is a chance for the company to prove to you why you should choose to
utilize their services. This is a benefit for them, not a service they are
providing you.

Companies That Do Not Provide Credit Counseling
The most important thing to remember when getting help from any debt service
company is that it is not an excuse to quit taking responsibility for your own
debts. Though a debt management company will help you manage your debts until
your credit is cleaned up, they should also teach you how to stay out of debt in
the future. Without credit counseling, you are just as likely to end up in the
same position again. Debt management companies that do not provide credit
counseling are just hoping for continued business from you, leading to more
profit for them.

Companies That Do Not Provide In-Person Consultations
Even if it’s just over the phone, any reputable debt management company will
allow you access to real people when you have questions or concerns. In fact,
credit counseling is just not as effective when it’s not performed through
conversation. The best situation would allow you to choose a debt management
company close to your home so that you could go and meet with someone in person.
Additionally, you should work with one individual counselor. The process will be
much less effective if you are forced to explain your situation over and over to
whatever new customer service representative answers the phone when you call.

As they stare down at a teetering pile of bills, so many consumers wonder how they racked up such a large debt. The answer boils down to simple mathematics.

“On a basic, fundamental level, the problem is created by spending more than you make,” says Brad Stroh, co-CEO of the San Mateo, California-based Freedom Financial Network, LLC, a company that specializes in debt resolution services.

The reasons for doing so, he notes, are varied:

• Spending addictions

• Lack of budgeting (mistaking the amount of money coming in and going out)

• Loss of income (reduced hours, layoffs, forced to leave the workforce)

• Increased costs (health-related expenses, fuel and other basic living expenses)

• A personal hardship (divorce, medical illness, loss of a loved one or other major changes in a person’s life)

You can, however, get out of debtbut it takes commitment. Here are 5 steps to accomplishing your goal.

1. Start Planningand Saving

“The only way to guarantee solid financial footing is through proper planningand that’s where most consumers go wrong,” Stroh says. “Proper planning means monthly budgeting of cash flow, combined with saving for long-term security.”

Stroh recommends saving at least 5% of your income to ensure long-term financial security.

“Of course, this percent will vary by age group and the individual’s financial goals and objectives,” he says. “Younger people can expect to spend their early years saving less of their income, paying off student loans and debts incurred during periods of lower income. Older individuals should be planning for retirement and saving a larger share of income.”

2. Seek Professional Help

If you are facing financial hardship, do not procrastinate when it comes to seeking professional advice.

“People often wait too long,” Stroh says. “If someone is living paycheck to paycheck, is behind on any revolving financial obligations (including credit cards), is using credit cards to pay for necessities, or is facing collection, he should consider getting immediate advice from a professional debt management firm or financial advisor.”

3. Stop Spending

If you continue to spend money, despite your ever-growing debt, you likely have a bona fide addiction that requires psychological intervention.

“Debt problems are frequently symptomatic of more fundamental personal issues, such as reticence to address difficult financial problems,” Stroh says. “Spending addictions can have many causes, including lack of personal confidence and fulfillment. Similar to many other addictions, a spending addiction can fill a void in an individual’s lifealbeit with a fleeting source of satisfaction. People with spending addictions constantly strive for the ‘high’ that they receive from buying clothes, cars and other goods. This leads to a long-term problem when they cannot meet the consequent financial turmoil that comes when the bills arrive. For anyone who may think he has a serious spending addiction, we advise seeking professional counseling or therapy to resolve the fundamental sources of this addiction.”

4. Start Communicating

If you’re like many consumers with outstanding debts, the last person you think about speaking with is the creditorthe company you’ve been avoiding at all costs.

“Not contacting your debt creditors to discuss and develop a plan for paying, settling or reducing the principal amount and/or interest on the debt” is one of the worst mistakes you can make, says financial expert Ivan Gelfand, president and CEO of Pepper Pike, Ohio-based Ivan Gelfand, Inc., and author of “Your Money, Your Future” (to be published in April).

He also recommends contacting relatives or friends for temporary assistance in reducing debt and making payments, which will lower your outstanding debts’ interest rate.

5. Conquer DenialToday!

Many consumers who recognizeand even accept the factthat they have a spending addiction refuse to address their problems, according to Stroh.

“Budgeting is not fun,” he says, “but dealing with creditors is even less fun. Many people will therefore bury their heads in the sand, hoping their problems will go away. Unfortunately, outside of winning the lottery or getting a windfall inheritance from a long-lost uncle, budgeting and consulting with a professional counselor are the only ways to successfully resolve financial problems.”

——–

Fox Symes assists all Australians discover the truth about their debts and how they can rapidly reduce them. There are methods available to the Australian public and you can discover how to use these to assist you in reducing your debt with a free phone consultation from Fox Symes. Visit http://www.foxsymes.com.au or contact them directly on 1300 361 204.

Our credit scores determine much about how we live our lives. We buy practically everything on credit. When applying for a loan, our good credit scores help us receive reasonable interest rates. In fact, from landlords, to insurance companies, to utilities, everyone looks at our credit scores, as they are a reflection of our financial health. A healthy credit score may determine what various agencies will charge for their services. Today, even employers check personal credit scores before offering a job.

Knowing more about our credit scores and the factors affecting them may help us build a positive credit history. But first, let’s look at how they are maintained by the various credit reporting agencies.

Three major credit bureaus - Equifax, Experian, and TransUnion - calculate credit scores. Though they use the same methods and formula to calculate scores, they sometimes come up with a different rating for various reasons. One agency may have more updated information about an individual. A creditor may have shared information with one agency only, but not with the others. Creditors, while checking on our scores, take the average of the three scores from these three agencies.

Credit scores range between 300 and 850. A score of 680 and above is excellent for obtaining mortgage financing at low interest rates. A credit score of 621 to 679 is an average score and you would have to pay a slightly higher rate of interest. A credit score of below 600 makes us potentially unreliable and harder to obtain credit. When a credit score falls below 600, credit repair steps should be taken immediately.

The following are factors affecting credit scores and basic steps to take to maintain an accurate credit score rating with the credit bureaus:

1. Routinely check payment history and the current credit debt held.

2. Credit history length is a determining score factor. Naturally, the longer a ‘good’ credit history, the better.

3. Do not close old or paid off accounts. These show the credit history length and contribute to higher credit scores.

4. Pay off debts to improve credit scores.

5. On-time payments. Delayed payments appear on credit reports and adversely affect it.

6. An individual’s race, sex, age, level of education, or marital status has no bearing on a credit score, nor does the fact that an application for credit was previously turned down.

Taking care to maintain a high credit rating enables us to receive credit and loans at good rates. Our credit score is a reflection of how we manage our finances and a determining factor for many aspects of our lives. Knowing early on how to have a healthy credit history is the best way to avoid bad credit and limited loan options in the future.

About the Author: Sherry Frewerd publishes ‘How to Consolidate Credit Debt’ http://howtoconsolidatecreditdebt.com where you can find free information to help you repair and improve your credit history and reduce credit debt.