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I met an old friend John last week at a school mate gathering.  I have not seen John for the past five years after our last gathering.

John just been retrenched by his company beginning of year and without any income for the past 6 months.  The only financial resources that John has are couple of credit cards and it has been burst.  John cannot even remember how many bills have been outstanding.  He has thought of seeking help on a bill consolidation exercise but did not know how to start.

Remember I did write about bill consolidation exercise before and the best option to turn to is resources from Internet, such as secureloanconsolidation.com. All these companies are very helpful and knowledgeable.  Not only they advise you on the debts consolidation, they will also tailor made a complete package inclusive of refinancing, tax advice as well as bankruptcy procedure.

I hope John will take a bold move to face all this problems by engaging a professional company.  Once the debts consolidation exercise is done, you will have a clear visibility of your debts and it is always easier to deal with a single debts account.  Not only that, you might even get a lower interest rate in your new refinancing exercise, that means lower instalment and Interest payment.

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I mentioned about choosing the right credit card in my last post, now I would like to talk about credit card consolidation or restructure.

It all happens when I received an email from a friend about RMCN credit service that she engaged months ago.

From: xxx
Sent: Thursday, July 30, 2009 1:26 PM
To: xxx
Subject: I improve my credit rating

July 30, 2009

First of all let me say that I am ECSTATIC about my credit repair progress. Vicky has been great ALL THE WAY, extremely efficient in all her efforts. I starting working with RMCN around May 11th, 2009 and just received my second credit score update today, overall between all 3 credit bureaus I have increased my score 86 points………………………………………………………………..

All the while I have been very conscious with my spending especially credit card, so I do not have much problem with my credit card payment nor it affect my credit rating.  But after received the above email, I understand that a lot of people are in debts with credit because it is the most convenient way to spend money that you do not own, just a swipe with a signature and you are done, the problem will come at the end of the months when the payment due.

If you are having problem with your credit card payment and that’s affecting your credit score, you might want to have a look at various option that may help you to get back your good credit scoring so that you will not be penalized with higher interest rate in the future.  You may get more information at www.repairmycreditnow.com on how to get back your credit scoring.

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I received an invitation letter from a local bank offering me a “FREE” credit card. The credit card offer me interest free period up to 45 days, which is about 20 days more than a current credit card. Best of all, it is free, no annual charges at all.

It looks tempting to me as my current credit card charge me annual fees, even though I do not need to pay for it as my annual usage allowed me to waive the annual fees automatically.

Beside considering the free annual charges and longer interest free period, which does not sound attractive to me as both does not benefiting me, I am looking for more before I take up the offer.

I look through the offer letter and I notice that it did not mention about the amount that I need to responsible should I lost my card and report it within 24 hours. This is a grey area as credit card fraud case has been increasing daily as I do not wants to be a victim with tons of charges which I do not purchase anything at all.

I am very careful about using my credit card online, what I did was I had a credit card with maximum credit limit of $1000 specifically for Internet purchase. The is to assure that if there is any Internet credit card fraud happened case to me, my maximum lost is limit to $1000 only.

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My neighbour John’s son just graduate from high school and he can’t wait to get on his own wheel. I told John, that is the start of a nightmare, his son Jack don’t even know how to make money now but begging his father to get him a car, he don’t mind even a small little old junk, as long as it can move. I hope he is not infected by the transformer movie where the ugly old junk can become Bumblebee one day.

Let’s get back to the topic, buying a car is not expensive but maintaining it could cost you thousand of dollar in insurance alone each year.  Being a smart consumer, I told John to look for a car insurance comparison chart online so that he can get the best deal.

Auto insurance company usually offer 2 types of auto insurance, a minimum of 3rd party coverage or the comprehensive coverage.  The first type covers only the 3rd party should anything happened in an accident, that means you have to bear your own repair cost for your car. The 2nd type is comprehensive coverage where it covers everything related to the accidents.

After deciding which type of insurance you are going to purchase, you have to look at a few items that possibly reduce your car insurance rate.   The first company you should check is your existing insurance company, they usually offer discount for their existing customer, be it life insurance or household insurance.  Secondly, please look at other optional items such as wind shield coverage, natural disaster coverage etc, reducing those option coverage will significantly reduce your car insurance rate.

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Have you ever wonder what is your credit health ?

Have you ever wonder getting a free annual credit report so that you understand your financial health status ?

It is very important to understand your credit rating as it is one of the most important factor deciding if you can get a loan from a finance institution.

If you have a good credit rating, then you will not having any problem getting a loan from a bank. Not only that, you will also able to enjoy much lower interest rate.

Likewise, if your credit rating is bad, you will be penalised by paying high interest rate, higher instalment and your loan amount will be lower compare to those who hold better rating.

Before you approach a bank for a loan, it is always better to get a credit report about your financial health.  Some times you may overlook some of the credit card payment and that indirectly affect your credit rating.

A credit report contains confidential information such as your personal information like employment history, assets and property, social security number, your payment history of all your credit card, debts, loan or mortgage.

The most important detail to look into the credit report is the debts that you have such as house mortgage, car loan, personal loan and credit card.  Please confirm you are the rightfully owner of the account, if there is a dispute, please report to the authority immediately as someone else could have been using your identity without your knowledge.

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