Credit help service

Many people tend to be in the dark on how credit card debt actually affects your credit score. Some are under the impression that it’s 100 percent negative while others swear by it as the only way to build up their score. I can tell you that these types of revolving credit are a double-edged sword in that if maintained properly they can really help to build it, however letting your Visa or Mastercard get out of hand can really put a damper on your scoring.

The main things you want to avoid are the following:

1. Keep your available credit at 50% or more.

The more of your credited amount that you are using the more it will take away from your credit score. A good rule of thumb is to keep 50% or less on the card at any given time. The less obviously being the the better.

2. Never close a long standing credit card.

I know the first thing you may want to do after paying off a mountain of debt is to just cancel the account and be done with it. Think about this though before you do it. If it’s a long standing line of credit and you decide to close it, that history stops right there. This can impact your credit score almost immediately and will alter it for time to come.

If you can follow these two tips, you will be well on your way to driving up your score and keeping it at an extremely favorable range that will look attractive to many lenders.

I was sitting there minding my own business when this Credit Monster came running into the room and told me that the government was buying my mortgage from my bank and I had three days to get out of Dodge City, USA or they would be forced to confiscate the future of my children through excessive and unwarranted taxation.

How did things get this bad? I wasn’t doing anything to get myself into trouble. All I wanted was a big mansion of my own. So what if I couldn’t afford it. The bank told me that didn’t matter. So what if I didn’t have enough income to pay the interest on the mortgage. The real estate agent told me he would make up the numbers so no one would know, and no one cared anyway.

You can’t blame that on me, can you? You can’t say that I’m responsible. I have never been responsible for anything in my whole life. Now I have to live in my taxi because the Credit Monster is going to foreclose on my home.

It’s their fault. I mean the Credit Monsters. I need help. How could anyone expect me to know what that long contract I signed said? I can’t even read. I had to get a friend of mine to take my taxi and limousine test so I could get my chauffeurs license. How could they let a poor snook like me buy a big five-bedroom mansion with an Olympic size pool? I don’t even swim. Where I grew up there were no bodies of water, only dead bodies encased in concrete.

Now they tell me it is up to me to fund hundreds of billions in debt to save the Nation. They say it’s my patriotic duty. I can’t even fund my ex wife’s alimony payments for child support. I don’t think they are my kids anyway; at least not the two younger ones. Why don’t you tax them?

How could this be happening to me? I am drowning in a sea of debt that the government made me guarantee. They said if I didn’t it would be my fault that the economy collapsed. I repeat I don’t swim. I don’t want to drown in a sea of anything. I have already physically and mentally collapsed. What more do they want?

It’s not my debt I tell you. Is anyone listening? Can anyone hear me? What am I to do? I bet there are millions of people out there that feel the same way as I do. Who is going to protect us? Who is going to look after out interests? We need lobbyists to represent our interests. Our interests are special too, aren’t they? I just wish we could afford them. Then we would show this Credit Monster a thing or two.

Why should the rich Wall Street types have all the fun while we pay their debts when they screw up? I can mess things up just fine on my own like they have? Don’t tell me I don’t know how to screw up. Where is our government when we need it? Who is going to help us now and look after our interests? This isn’t fair. Who is going to take responsibility for all this bad mortgage debt?

Who can we turn to for help when our own government isn’t really on our side? I think it’s their fault. They created this Credit Monster, didn’t they? You can’t tax a government, can you? Some one is going to have to pay for this mess and it isn’t going to be us again, is it?

All these questions and no one appears to have the answers. What are we going to do? I’m talking about we the people. We are drowning in a sea of fiscal irresponsibility and emotional despair. And these are shark-infested waters. You know who the sharks are, don’t you? What are you going to do about it?

With the recent collapse of the XL travel company, several thousands of holiday makers have been left stranded and helpless. As many holidaymakers chose to organise their holidays, with independent travel operators, and without a travel agent; this choice, though cheaper, put them in a dangerous position.

The finances that they used to pay for the holidays abroad will be lost as they did not take out protection to safeguard them, if their holiday operator loses its own finances.

Simeon Linstead, head of personal finance, explains the position that many British holiday goers have seen themselves in. He said: “While those consumers who opted to purchase a package deal will benefit from Air Travel Organisers’ Licensing protection (ATOL), those who chose to book their own flights and bypass agents - at least 10,000 in the case of XL - will not benefit from this type of protection and could have lost their hard-earned cash.”

For those holidaymakers however, that used a credit card to pay for their travel tickets, protection is available and they will be able to get a refund, quite simply. Credit card purchases are protected by Section 75 of the Consumer Credit Act, which states that the credit card provider is partially responsible for the purchase and the credit card user has legal right to a refund.

Mr Linstead added people using a Visa debit card also have similar protection. In relation to this fact he said: “Some consumers may not be aware that should you be the owner of a Visa debit card you have similar rights to those with a credit card, in what is known as a chargeback scheme.”

He added: “Unlike the credit card protection there is no minimum or maximum limit on the purchase, however you must apply for compensation within 120 days of the date the goods were due to arrive.

“Unfortunately, those that paid by alternative debit cards may find they do not have any protection at all.”

The Association of British Travel Agents (ABTA) is now calling on the Government to provide protection for all the travelers involved.

Mark Tanzer, ABTA chief executive, said: “The failure of XL demonstrates the virtue of financial protection, and the hazards of travelling without it. We shall renew our call on government to address this issue as a matter of the utmost urgency.

“Until the situation is reformed and made consistent, we recommend that travelers buy package holidays from ABTA Members, as these provide full repatriation and refund protection.”

The number of British holiday makers being covered by ATOL has fallen in recent years due to the internet making it easier to book flights and accommodation. Estimations show that the number of those protected by ATOL has fallen from 98 per cent in 1998 to 61 per cent this year.

Mr Linstead concluded: “With this being the third collapse of an airline or holiday firm we have seen this month, consumers should think carefully about the way in which they purchase their holidays or any other big purchases if they want some form of protection.”

There are many people who, in the present economic climate, could be considered potential clients for a credit coach. This is for two main reasons: firstly, the current problems experienced with sub-prime mortgages and secondly, that it is now mandatory by law for a person considering filing for bankruptcy to apply for credit counseling.

Do you think that you would be a successful credit coach? The personal qualities for this job are similar to other types of coaching. You must have the ability to be positive at all times and be motivated enough to spur your clients on to improve their situation. Above all, you must possess empathy, that is, the ability to see the situation through your client’s eyes and be understanding and sympathetic to their needs. The ability to be a “go-between” for your client and their creditors and debt collection agencies is also vital, because this is going to be your main task and the one that it going to take all of your negotiation and diplomacy skills. The knowledge to improve things for your client needs no explanation.

It is possible to obtain information about repairing bad credit from a number of areas. You can access training manuals that give details about proven methods for “mending” a “broken” credit rating and there are some “home study” courses that will present you with a sound knowledge basis. Certainly, there is really nothing better than your own experience with bad credit to teach you - if you have been successful in solving your own credit problems, chances are you will be an ideal coach in this field. Even if your experience is not your own, but that of a friend or relative, after you have “practised” on them, you will be able to start your coaching “for real”.

A thorough knowledge of various state laws and other requirements relating to initiating a new business is vital. You may need to obtain a license and/or certificate of accreditation. It would be a wise move to seek membership in a professional organization or in financial programs similar to Chase Flexible Rewards program for credit coaches as it will help your profile.

Every successful business should have a business plan - a credit coaching business is no exception. In the plan, you should itemize your expenses and estimate your income. Some of the expenses would include such things as a new computer and peripherals, any necessary insurance premiums and advertising. With regards to fees charged, most companies will charge a “one-off” fee of around $100 followed by monthly fees upwards of around $40. With these figures, then, you would expect an annual income from one client of between $500 to $1,000. How many people can you assist? Multiply that amount by the income for one person and you will be able to gauge whether or not your business will be feasible.

The way that you deliver your services is a personal choice. You may decide to offer individual counseling or group sessions, or even a combination of both. The location is also a variable - your home, the client’s home, a restaurant or for larger groups perhaps a conference room. Remember to factor in these expenses in your plan.