Does debt consolidation hurt credit
Staying in debt has become a way of life. As long as our life is stuck with credit card, chances of falling in debt will always be there. If you are struggling with your credit card debt, you may think about debt consolidation to settle your debt issues. Now, the issue pops up what about the impact of it on your credit status. While credit card helps to build up your credit status, consolidation may wreck that status. But, still it is better if compared to Bankruptcy. Let’s see how and to what extent debt consolidation could do harm to your credit.
When you enroll in debt Settlement Company to seek a way to pay off your debt in less than you owe, this could cause harm to your score. Debt consolidation process may take place through negotiation between your creditor and Settlement Company. Your creditor may agree to compromise some of your debt. But, when this fact is reported to the credit bureaus, this will have a negative impact on your credit score. Credit score represents your credit worthiness. Bank or lending institution checks this score before offering you loan. Therefore, it is a vital aspect of your finances.
Debt consolidation is by far the most convenient way of paying your multiple debts. The process restructures a payment method by stipulating a new payment term and amount. But, if you fail to pay off the agreed debt after consolidation, this could drop your score rapidly down. Therefore, you should be alert of consolidation scam. There are consolidation companies who do not pay your creditors even after getting money from your account. But, this will bring severe consequence on your credit score.
Despite the loopholes, debt consolidation is far better than bankruptcy. Filing bankruptcy could decrease your score by 150 to 200 points. The word BK stays on credit report from 7 years to 10 years. During that time, the possibility of getting a new loan is slim to none. On the other hand, after consolidating your credit score you can fix up your credit status faster.
If you enjoyed this post click here to subscribe to a complete ad free feed.
Popularity: 1% [?]
Devaluing the U.S. dollar Rome style. Inflation and diluting a currency is nothing new.
Devaluation is nothing new and great empires like that of the Romans used in their ascent toward the bottom. Little by little the value of the Roman currency was diluted by putting less and less silver in their currency. Eventually the currency was so diluted that faith in the money was lost. It is never a smart idea to purposefully slam your own currency even though political expediency in the moment may suggest it is an easy and tempting path. But the road of good intentions is paved with silver.
Take a look at the devaluation of the Roman currency and let us then measure it with our purely fiat based U.S. dollar:
Source: Zero Hedge
And then for the U.S. dollar:
Not exactly the direction you want to be heading.
If you enjoyed this post click here to subscribe to a complete ad free feed.
Popularity: 2% [?]
Income distribution – To make it in the top .1 percent you have to make $750,000 individually or $3,000,000 as a married couple.
There is deep psychological fascination with wealth in the United States. This goes back to the days of the Vanderbilt family and our modern day tycoons. It also brings to light how wide the income divergence in our country has become and with economic challenges being faced by many this disparity only gets more heightened. To become wealthy in the United States today takes a lot of money and not only a handful of dollars. To make it into the top levels of wealth six figures no longer cuts it. How much does it take? $200,000? $400,000? Well it actually depends on whether you are filing as a single person or married.
Income for the top .1 percent:
Source: Urban-Brooking Tax Policy Institute
I find the above extremely fascinating. A single person can make it into the top .1 percent with $750,000 yet a married couple will need close to $3 million to make it to this level. No matter how you slice it to be rich in America today takes a lot of cash.
If you enjoyed this post click here to subscribe to a complete ad free feed.
Popularity: 3% [?]