ACR Grads

Archive for June, 2011

A study by Australia’s biggest credit report provider has shown many Australian consumers are worried about their ability to pay the bills.

The Veda Advantage study has indicated that making repayments is a major cause of concern for three quarters of Aussies in debt.

Rising prices, with some commentators expecting inflation to reach 4.6 per cent in 2008, is causing more than half of those questioned in the study the greatest concern about their ability to meet their bills. This was followed closely by rising interest rates, which is making it harder for many Australians to repay their mortgages.

Other factors giving Australians a headache when it comes to repaying their bills are increased transport and petrol prices, the cost of food, and health costs.

The study, carried out for Veda Advantage by pollsters Galaxy Research, also found the level of new debt taken on by consumers had dropped slightly to 15 per cent. But rising mortgage payments, due to higher interest rates, was given as a reason by a quarter of consumers who owed more money. Buying a car, a property or an unexpectedly large bill was also given as a key reason for being further in debt by many of those who found they were deeper in debt.

A Veda Advantage spokesperson said that while 62 per cent of Aussies had said they could still meet their repayments, despite being worried, 16 per cent admitted debts took up most of their budget. A staggering 91,000 people said they were unsure how they were going to pay their next bill.

A separate survey carried out by credit ratings firm, Dun and Bradstreet has shown a growing number of Aussies expect to face financial hardship. The survey, conducted by Newspoll, showed one in five people expect to pay for something they can’t afford on their credit card.

Young people are the most likely to turn to their plastic to cover costs, with women between the age of 18 and 24 being the most likely to resort to this tactic. Mature people, the-over-50s, are less likely than any other group to use their credit card to cover expenses they cannot afford, according to the study.

Debt problems are not confined to those on low incomes. Aussies who earn $30,000 to $70,000 expect to face problems with credit card use, with one-in-four in this band expecting to use their credit card to pay for items they cannot afford, the study said.

The Veda Advantage debt study has backed up Dun and Bradstreet findings, which showed that 1 in 4 Australians expect to be in more debt.

Worryingly, 1 in 5 low income Aussies said they didn’t expect to pay more than the required minimum monthly repayment on their credit cards, which is double the national average. Eighty per cent of those earning more than $70,000, on the other hand, believed they would make payments greater than the required minimum.

Credit file provider, Veda Advantage, has renewed its call for the government to act to protect Australians from becoming further debt stressed, by changing the law to allow more credit information to be shared.

Now is the time when families are in desperate need for refinancing. Mortgages and interest rates are impossible to afford during this worldwide economic hardship. Families are looking for a break and that break could easily come with refinancing.  But if you have low credit scores is there a way for you to refinance your home mortgage?  Can you do a Poor Credit Refinance?

However, due to the economic crisis, most families have credit scores lower than they’ve ever been before. This is where Poor Credit Refinance comes into play. There are advantages to using this type of service, especially for those who have looked everywhere for answers and have still found nothing.

Foreclosure is devastating yet it’s still a threat to many homes. Avoiding foreclosure is difficult. If you are unable to make your mortgage payments you will be happy to know that there is an alternative option.

If you are fortunate to have a FHA Mortgage Loan than you may be able to take advantage of a FHA Streamline Refinance Mortgage.  The advantage of a FHA Streamline Refinance Mortgage is it is a lot easier and faster than the traditional conventional loan.  There are lower costs and less paperwork than conventional refinance loans.

You can get more information on FHA Streamline Refinance Mortgage by clicking the links at the bottom of this article.  There are certain requirements to do this type of Poor Credit Refinance.

When you first purchase your home you were probably eager to settle for whatever interest rate they were willing to give you. Years later, after dedicated payment and a long term history of steady employment, you deserve to have a lower interest rate.

It’s important to refinance before your credit score is affected by nonpayment or late payments of your mortgage but it’s these events that make you realize what actions need to be taken.

Even if you realize it a bit too late and your credit score has been negatively affected, you still can do a Poor Credit Refinance. You can keep the home you’ve worked so hard for.

What this refinance process does is take the equity in your home and use it to give you lower monthly payments that you can afford. If you’ve paid a significant amount towards your mortgage you might have equity that you can use to even out the debt of your home purchase and give you some breathing room in you budget. This will cause you to add on years of payment but you will not be in jeopardy of losing your home.

The money you gain from Poor Mortgage Refinance can also be used for so many different purposes.

Use the money for home improvements, use the money to pay off credit cards or use the money for whatever it is that you need it for. Regardless of your credit score, the companies that offer these types of refinancing solutions evaluate more than your credit score, they evaluate you as a person and your needs.

Luckily today you can do most of your research on the Internet to get a general knowledge on the different options available for you to refinance your home.  You will find even though you may be able to do a Poor Credit Refinance closing costs may be higher than conventional refinance loans.

If you are have trouble paying your monthly mortgage payment you need to consider if a Poor Credit Refinance will help you to survive this economic downturn and get you back on track to not only save your home from foreclosure but it may help you to improve your credit scores.

How can you tell a good debt consolidation company from a scam company? There are certain tell tale signs that you can look for. Research is the best option to find out about a debt consolidation company. You may further take a look at the following tips:

• Research is the best way to find out. When you have narrowed chosen a company then check if the company is legitimate or not. You may check with your State Attorney General’s Office (AGO) as well as the Federal Trade Commission. You may also check with the Better Business Bureau to find out if there is any complaint against the company you have chosen.  Even if you have looked for online debt consolidation make sure you have enough information about the company.

• The debt insurance company would only ask for your creditor’s name(s), balances and interest rate. If the company is asking for your social security number or any other personal information, beware!

• All debt consolidation program would offer the same rate because they receive the same deal from the credit companies. If you get to pay lower monthly payments, it might be because your creditor is charging a higher rate of interest.

• Look out for any hidden charges. Many debt consolidation companies might suddenly ask you to pay a service charge in the middle of their service. So beware of extra fees since these companies charge you usually 10% more than what they send to your creditors and in many cases they also get a discount back from them.

• Do not sign a debt consolidation program immediately after hearing one. Take your time (not too much) to decide on a program. Think over it and then go back to sign on the documents if you want to.