We Handle Debts

Joe answers:

You need to ask them why they want more of a down payment. When you are a bad credit risk, lenders (even more so now) are very leery of loaning you any money.

Joe answers:

You’ve recognized you have a problem and that is always the first step. There are certain debt management companies who have been cited for fraud. Be careful who you choose. Look for any complaints filed with the BBB before paying for the services of debt management company. Debt management services can be expensive and may not produce the results you need.

Try the suggestions given at www.MoneyExposed.com. If you are committed to reducing your debt, you don’t have to spend thousands of dollars to do it.

Joe answers:

The problem relates to inter firm comparison.

Borrowing ratio is calculated as a percentage of total borrowings – short and long term – to equity
Long term debt to equity: Long term debts/ Long term debts + equity
EBIT is another term for operating profit. This is used to compare with turnover and also as a percentage of capital employed
Pre-tax margin:Profit before taxes/Turnover
Net Income per employee: Net Income/Number of employees
Gross Profit margin: Gross profit/turnover

I am not sure about cash turnover ratio, but I will get back to you later.

I would, however, suggest you to visit www.investopedia.com where you will find an excellent tutorial on financial ratios

Please do not forget to study the basic requirements for an inter firm comparison and the limitations of ratio analysis.

Joe answers:

You cant teach someone who doesnt know how to manage their money, to manage their money, by giving them a freebee. It was irresponsible to do so.

Joe answers:

There is only one company that can modify your loan, and that is your lender. They do not charge.

Joe answers:

Well you could always go to Google when looking for an affiliate program! Simply type the product in quotes with the words “affiliate program” in it like this:

“loan modification – affiliate program”

This particular search brings up 94,000 search results. You can be more broad for a more narrow responce… Best of luck to you!

Cheers,
Mike

Joe answers:

The standards for getting private student loans are very strict now. The economy and the situation with the banks are not taking any risks. Private student loans are not approved anymore without a cosigner … Period. And your Dad’s may not be a good cosigner because:

1. Does not have stellar credit, or
2. He has a high debt to income ratio or
3. He does not have a high income and a long stable employment history.

Your current student loan are not helping you, but like I said, no private loans are approved without a cosigner anymore.

Joe answers:

Don’t worry, your situation is super common, a lot of students end up with loans from more than one place. Most lenders will let you do debt consolidation, which you can learn more about here:

http://www.tuitionbids.com/student-loan-tools-and-advice/overview-of-student-loan-types.aspx

There are upsides and downsides: consolidation generally results in a lower monthly payment and an extended repayment term, but a higher interest rate and total cost of debt.

The company I represent, http://www.tuitionbids.com, lets you fill out one application that gets seen by up to six different lenders, so you increase your chances of getting good terms on your consolidation. You also won’t have to research a bunch of individual companies. It might be a good place to start for you. In any case, good luck paying everything off!

Joe answers:

Unfortunately, as a non-matriculate students you are not eligible for government grants until you become matriculated. Therefore, you will need to fund your education on your own.

Joe answers:

One this is to start getting a list of businesses that report to Experian. You will need your clients to get accounts with these businesses so they can be reported. Our company reports all of our web clients to Experian. Www.bitwavedesign.com

Joe answers:

I would say anyone can start a credit repair business as long as you know what you are doing. I would ask what you know about it. If you have experience repairing your own credit then you might be able to assist others who may need your services. You need some experience or background before attempting to tell others how to do it.

Joe answers:

How to Start a Credit Repair Business

Helping others fix their credit history and get a new head start in their life is rewarding in many senses. While it’s true that whatever you do could be done by the clients themselves, most people don’t want to deal with the aggravation of talking to the credit bureau to fight changes and correct mistakes. This is where you come in as a middle man.

Set up a Credit Repair Company in Five Easy Steps

Step1Get a copy of your own credit report to study. You are entitled to one free copy a year, and there are three major credit bureaus: Experian, Equifax and TransUnion.

Step2Learn as much as you can about the industry. You may be able to find free eBooks on the topic online or contact local banks for free workshops on how to repair credit. Also, consider talking to accountants and other experts that can guide you through the process as you start your business.

Step3Contact local credit bureaus and credit reporting agencies to learn how to request reports and access information.

Step4Understand your role in the process. Once you obtain the credit report, you can then work with the client to correct any mistakes, acting as the intermediate between them and the credit bureau.

Step5Consider a franchise. Companies such as Credit Repair Business offer you the chance to get started with no money down and receiving extras such as a laptop, a free website, a credit coach and clients (see Resources below). This is a good idea if you have no previous experience and want a guiding hand through the process.

Joe answers:

Yes, participating in a debt management plan through a credit counseling agency will hurt your credit, though likely not as much as some other alternatives. However, a debt management plan will take longer, cost you much more money, and may not significantly reduce your monthly payments or balances (but interest rates will probably be reduced). Generally, you’ll end up repaying 100% of what you owe, plus interest, but at a lower rate.

Whether it’s a good idea for you will depend largely on how much debt you have, your ability to afford the monthly payments, and how important your credit score is to you (and how much more you’re willing to pay to try to maintain it). Let me give you some examples:

Borrower #1 owes just $5,000 in unsecured debt. A debt management plan may be a good solution if he can afford the payments. He’ll end up paying back the full $5,000 balance plus interest, plus fees to the credit counselor- but his credit should not sustain as much damage as had a debt settlement company withheld payments from his creditors for months or years, hoping to force a settlement. In this borrower’s case, a debt settlement may have only reduced the balance by $1,000 – $3,000 dollars, which is a small consolation for having his credit score trashed. Plus, the fees to the debt settlement company would likely eat up a good portion of those savings. But let’s look at a different example…

Borrower #2 owes $70,000 in unsecured debt. Let’s say the DMP (debt management plan) is able to reduce her interest rate from 19.9% to just 5%. On a 60-month plan, her monthly payment (not including credit counseling fees) would be $1,321. That comes to a total of $79,260 (plus credit counseling fees) to pay off that debt at the reduced interest rate under the DMP. Her credit will be damaged while she’s in the program, but perhaps not as significantly as under a different type of debt reduction program. But what’s the cost? Let’s say another type of debt reduction program is able to resolve her debt for 45% of what she owes, with no additional interest accruing. That $70,000 debt is now able to be eliminated for just $31,500. And if she can manage to pay the $1,321 per month as she would under the DMP, her debt is eliminated in just 24 months (compared with 60 months in the DMP). So her credit is hurt for 2 years, but she’s now debt-free, and has 3 years to repair and rebuild it by making all her payments on time.

So let’s look where Borrower #2 would be at the end of 5 years under each option… With the DMP, she has just made her last payment (totalling $79,260 plus fees), is now debt-free and emerging from her damaged credit profile. Under the alternate program, her credit report shows that she WAS way behind on payments 3 years ago (which significantly impacted her credit score), but has been debt-free and making payments on time for the last 36 months (which has helped to rebuild her credit). Oh, and by the way, she saved about $50,000 by choosing this option over the DMP.

So you can see that it really depends on your individual situation whether a DMP through credit counseling is a good idea for you. If you only owe a small amount, it may be a good option. But if you have a significant amount of unsecured debt, you may want to weigh the additional cost of the DMP versus the savings that you can achieve through a debt resolution option.

However, I DO NOT RECOMMEND CHOOSING ANY DEBT SETTLEMENT COMPANY, but not for the reasons that most people suggest. I’ll advise you not choose a debt settlement company because – even if you do (somehow) find a high-integrity, ethical debt settlement company – there is a far superior alternative: DEBT RESOLUTION. The concepts are similar, but because Debt Resolution is an attorney-managed program (as opposed to a private comany), it provides invaluable benefits that debt settlement simply can not offer, and at a lower cost. There isn’t room to go over the differences here, but you can check out my answer to this question (copy & paste in a new browser window):

http://answers.yahoo.com/question/index;_ylt=AhQIdMaQHurT6MMwgtm9FM7ty6IX;_ylv=3?qid=20100301082225AAYrSCm&show=7#profile-info-s1OLajFVaa

To find out more about how you can reduce your unsecured debt by 55% (guaranteed) and reduce your monthly payments by 50% or more, and do so while avoiding harassing creditor calls, surprise tax bills, and exorbitant fees, visit www.BetterThanDebtSettlement.com

Joe answers:

Assuming you are in theUK, you will have been discharged 2 or 3 yrs after been declared bancrupt depending on how much you owed. I was declared bancrupt in 2000 and had to wait 3 yrs as i owed more than £20,000.
You should still be able to enter debt management but I would speak to the Citizens Advice Bureau first as they may have better alternatives for you.
For some people Bancruptcy a 2nd time around is an option. For others IVA or just contacting your creditors and making reasonable agreements with them.
In April there is hopefully a new alternative been introduced to Bankruptcy. It is called a Debt Relief Order.

Http://www.my-iva-adviser.co.uk/iva-what-is-a-debt-relief-order

Take a look at the link above that will help. This is apparently, like bancruptcy but a little less formal.

Good Luck

Joe answers:

If you are considering a debt management plan, make sure you use an NFCC member. These are legit, non-profit companies that offer debt management programs for a nominal fee. Http://www.nfcc.org/.

While in a debt management program, it is noted on your credit report and will adversely affect your credit. However, once you complete the program, that notation is removed and you will have decent credit.

Frankly, if your financial situation is so bad that you need a debt management program to deal with your debts, you are in no position to take on any new credit. Better to stop obsessing over your score and concentrate on ways to pay off the debt faster.