1.    Get a reality check.  Most people when trying to get out of debt put blinders on by not looking at the actual dollars they are spending.  Go back 12 months and review your bank and credit card statements.  Total the amount of every dollar you charge and spend from your statements.  Divide the number by 12.  That will show you what you are accustomed to spending.

2.    Set a monthly budget.  Sound easy?  You have to have a workable monthly budget in order to see how much you have in excess to apply towards your debt.  Total your monthly income and expenses separately.  Subtract your expenses from your income?  Do you have excess money or are you negative each month?

3.    Do a monthly spending journal.  You can plug money leaks by writing down every nickel, dime and quarter you spend each day.  Divide into columns and categories.  Total each column at the end of the month.  Are you shocked?  How much did you spend monthly for your coffee, soda and fast food runs?  Just those three stops can ruin a budget.  Cut back your runs and apply the extra money to your get out of debt plan.

4.    Consult with an experienced credit expert.  By being accountable to an experienced credit expert, you will be able to not only devise a plan on how to get out of debt, but also have a nationally known credit expert review your budget and keep you on track.  An experienced credit expert can give you tips on improving your current financial situation and showing you how you can get out of debt and handle your money.

Our credit and budget counseling program can help individuals who are struggling to get their budget in order and out of debt.  Having a nationally recognized credit expert and team can help you make the process go smoother and be someone you can trust.

Contact Deborah McNaughton a national credit expert, author and President of Professional Credit Counselors, Inc., and her team to help you on the road of financial success.  Visit: www.financialvictory.com or call: 888-838-4768

Many of the people starting credit repair businesses are adding to the business they already have.  Mortgage companies, real estate companies, insurance companies, financial planning companies and other related finance companies are starting credit consulting businesses and credit repair businesses.  A credit repair and credit consulting business can provide more revenue to their current business.  It makes the business more diversified and not having to put all their eggs in one basket in case their business is off.

Not only are businesses adding credit repair and credit consulting businesses, but many individuals are independently starting a credit repair and credit consulting business on their own.

The missing pieces with most credit repair and credit counseling businesses are additional services that consumers need.  Most credit repair and credit counseling businesses are only focused on repairing credit reports, but not educating the consumer with their current situation such as budgeting, getting out of debt, and other financial needs.

Interesting enough, people who are having credit and financial problems and needing to repair their own credit reports are the one’s who are starting credit repair and credit consulting businesses.  Why?  It’s simple.  They are learning how to repair their own credit reports as well as how to help themselves first before helping others.  Who is a better mentor to others than someone who has learned the hard way on how to solve a problem?

Our Credit and Financial Strategies programs are perfect for individuals who want to start a Credit Repair and Credit Counseling business opportunity.  Thousands of people need your help.

Deborah McNaughton a nationally known credit expert, author and President of Professional Credit Counselors, Inc., will help you get started.  Visit: www.financialvictory.com or call: 888-838-4768

Your FICO credit score is nothing to be afraid of.  It is a numeric number that credit reporting agencies such as TransUnion, Experian and Equifax calculate based on the information in your credit report.  Each of the credit reporting agencies have different scores that can range from 300-850 points. The higher the credit score is, the better your chances are of getting a better deal.  For example if you are purchasing a house or car you may be able to get a lower interest rate by having a higher credit score.

The creditors who subscribe to the credit reporting agencies report your payment activity and history to these agencies. Not all of your creditors subsribe to all three credit reporting agencies and that is why each reporting agency may have a different credit score.  Some of the creditors report your activity monthly while other subscribers report less frequently.

The FICO credit score is broken into 5 scoring factors.  By knowing what these factors are you can improve your credit score or contact a credit expert to help analyize your credit reports.

1. Payment History:  35 percent of your credit score is based on how you pay your accounts.  Paying your accounts on time will increase your credit score. 
2. Amount Owed:  30 percent of your FICO score is based on how much you owe on each account.  To increase your score, keep your balances below 30 percent of what your credit limit is.
3. Length of Time:   15 percent of your score is based on how long you have had your accounts.  Older accounts will improve your FICO score.  If you decide to close any accounts, close the most recent accounts that have been opened.
4. Types of Credit:  10 percent of your credit score is based on the mix of credit you have.  For example, credit cards, installment loans, etc. 
5. New Credit:  10 percent of your FICO score is based on the amount of new accounts you have.  It is not a good idea to open a lot of new credit at one time.
    

For help increasing your FICO score, contact a nationally recognized credit expert in Southern California at Professional Credit Counselors at 888-838-4768 or http://www.financialvictory.com/.

Credit Counseling business opportunities and Credit Repair business opportunities are predicted to be in demand as people seek more help in getting their finances back on track.  More and more people need help with their credit reports and are seeking help from credit repair companies. Working with someone to help remove negative inaccurate information from a credit report may only be a temporary fix if old habits have not changed.

Being able to offer Credit Counseling in your business in addition to Credit Repair will set you aside from your competition.

There are Six Reasons why you should consider Starting Your Own Business in Credit Counseling and Credit Repair.

1. The demand is huge.  People who have had foreclosures, bankruptcies, charge offs, collection accounts and slow payments, that are being reported on their credit report inaccurately, need your help.
2. People who have not been able to manage their finances are looking for guidance from professionals to help them get on track with their finances, such as budgeting and ways to get out of debt.
3. Many people need help when dealing with their creditors.
4. Starting your own credit counseling business and credit repair business will allow you to make money while helping others.
5. If you already have a job or business, adding a Credit Counseling Business and Credit Repair Business to what you are currently doing will help add to your client base and add more revenue to your income.
6. Knowing that you are able to help others with their finances will not only make you money, but it also gives you an instant gratification knowing you are making a difference in someone’s life.

Our Credit and Financial Strategies programs is the perfect Credit Counseling and Credit Repair business opportunity for someone looking to start their own Credit Counseling and Credit Repair business.  Thousands of people need your help.

Deborah McNaughton a nationally renowned credit expert, author and President of Professional Credit Counselors will help you get started.  Visit: www.financialvictory.com or call: 888-838-4768.

1. Look up comparable home values in your neighborhood.  Make sure to get three comparable listings that have sold within one mile of your property and are not more than six months old (the newer the sales are the better).  This would include similar square footage, number of rooms and bathrooms etc. You can find this information online through many different websites or you can talk to your realtor or mortgage professional to obtain this information.
2. Get a new appraisal of your home. But, before you pay for that expense, ask your county assessor’s office if they have requirements surrounding appraisals.
3. Make sure you are taking advantage of any discounts like a senior or veteran’s reduction or even a homestead exemption.
4. Read your county’s instructions on how to submit your request. 
5. Make sure to complete the correct forms and send them along with your letter.  You can access your specific county’s forms on their website or by calling the assessor’s office.
6. Write a letter to your County Tax Assessor’s office with a request that the county re-assess your home value.  Include your name, address, and parcel number of your property. 
7. Send the letter as certified mail along with the correct forms and recent sales comparables, and/or appraisal.

If your County Tax Assessor’s office denies your request, you can file for an appeal. Read the appeal instructions carefully as there is probably a time deadline that you have to make this appeal.  

For help lowering your other household bills or for a budget consultation, contact National credit expert and financial author Deborah McNaughton at Professional Credit Counselors at 714-993-1171 or http://www.financialvictory.com/.

 Also, for more information please see my recent article in the OC Register here.

The biggest problem people make when trying to avoid foreclosure is waiting too long to get a plan together.  There may be other options that you may consider rather than just walking from your home or investment property.

Here are 4 alternatives to avoid losing your home to foreclosure.

1. Short Sale.  Of course you have considered a short sale.  That should be your first choice, but the down-side is that there are so many players in the mix.  First, you have to list the property with a Real Estate company.  If you get a buyer, you have to submit a hardship letter and your financials to the lender along with the offer to purchase your property at a price that is lower than your balance.  It may take the lender weeks or months to decide if they are willing to accept the offer.  By that time you may have lost your buyer. If you have not been making your mortgage payments the lender may foreclose on your property.
2. Short Refinance.  If your payments are not behind, contact a lender to see if you are eligible for a short refinance.  An appraisal on the property will be ordered.  If the appraisal is less than the balance you owe, the lender will tell you how much of a loan they will make. When you get a commitment letter and appraisal from the lender, submit it to your current lender requesting a reduction of your current balance. If they agree to a reduced pay-off, continue with the new lender and complete your new loan with a lower loan amount and hopefully better terms.
3. Lease Purchase Option.  Put your home or property on the market as a lease with an option to purchase.  A lease purchase allows a buyer to purchase your property for an agreed sales price and date to complete.  Ernest money is applied towards a down payment, and you would collect monthly payments.  Make sure you get enough down payment money to catch up any past due payments, and continue to make the mortgage payments until the sale is complete. 
4. Rental.  Renting your house out may also be an option for you.  If you get a renter that can cover your payments you can rent another place for less money.  When things get better and your finances loosen up you can always move back into your home.

If you would like to meet with a professional who can help you strategize and get a game plan together in order to avoid foreclosure, contact Deborah McNaughton, a national credit and financial expert, at Professional Credit Counselors at 714-993-1171 or http://financialvictory.com

Southern California was hit hard with a bad economy leaving many people without jobs.  No job means no money, which means you can’t pay your bills.  It doesn’t help when you are down and out and getting numerous phone calls from your creditors demanding payment. Thank goodness for caller ID allowing you to screen your calls from the annoying collection tactics. 

Why not ask the credit card company, or collection company to loan you the money to pay the bill? They were eager to give you the credit, so why not help you out?  

Did you know you have legal rights under the Fair Debt Collection Practice Act (FDCA)?  Many collection agencies and creditors are breaking the law.

Here are five key points for you to know about the Fair Debt Collection Act. 

1.  The collection company is not allowed to call before 8:00 a.m. or after 9:00 p.m.  Look at the time when you get the harassing call.
2. A collection agency may not threaten you or use abusive language.  Write down their conversation or better yet tape record them.
3. You have the right to verify the debt they claim you owe. 
4. A creditor or collection company may not call your work if you tell them you are not able to accept personal calls.
5. Collection agencies may not communicate with any individual other than you about your debt.

Request a copy of the Fair Debt Collection Practice Act from, http://www.ftc.gov/.

If you feel you need a plan to get out of debt and work with your creditors in Southern California or need accountability with your budget, you may want to seek the assistance of Orange County credit expert Deborah McNaughton at 714-993-1171 or http://www.financialvictory.com/.

In California, many people have turned to bankruptcy, foreclosure or debt settlement due to the housing market crash and the increasing unemployment rate.  If you are dealing with a bad credit report, you are not alone.

How Does a Foreclosure Affect My Credit Report?

If you had a foreclosure in Southern California it will appear on your credit report, and won’t fall off for 7 years from the date it was entered into public records and reported by your creditor. You can ask your mortgage company to remove the foreclosure; however, it is rare that they will comply with your request. But, it still doesn’t hurt to try.

How Does a BK Affect My Credit Report?

Depending upon what Chapter bankruptcy is filed, it can stay on your credit report up to 7 to 10 years.

How Will Settling Debt Affect My Credit Report?

When you get to a point of settling debt, you most likely have missed many monthly payments which have lowered your credit score.  However, once you settle the debt, your credit score will slowly increase as the account will show “paid, settled for less than amount owed.”  Before you pay the creditor, request that they report the item as paid, or ask them if they will delete the item in lieu of your payment, which would help your credit score. Make sure to get this in writing.

For help increasing your FICO score, contact a Southern California credit expert at Professional Credit Counselors at 714-993-1171 or www.financialvictory.com.

 Also, for more information please see my recent article in the OC Register.

If you are a victim of a stolen wallet or purse, it is a good idea to start contacting your bank and credit card companies to let them know.  Don’t just assume because you cancelled your credit card that the thief will throw this information out the window.  Imagine all the information that a thief can get from your wallet or purse.  Your driver’s license contains your legal name, birth date and California address, which is an identity thief’s dream. All the thief needs now is your social security card, which many people keep in their wallets. If the thief is fortunate, he or she will find your PIN number written down or maybe even your house key. 

Immediately file a police report if you know your purse or wallet was stolen.  This makes your interactions with the credit reporting agencies easier in getting a fraud alert on your credit report.  Contact all three credit reporting agencies:  Trans Union, Equifax, and Experian and let them know what happened.  They may ask to see your police report.  The reporting agencies will put a fraud alert on the credit report with instructions to contact you when any new inquiries for credit are made.

Identity theft in California and throughout the nation is a growing problem as thieves can get most of your information right out of your purse or wallet.  Protect yourself and remember these tips:

• Never carry your social security card in your wallet
• Keep your PIN numbers in separate files, not in your wallet
• If your house key is stolen, change the door locks
• Order a copy of your credit report from all three credit reporting agencies at least once a year to review for accuracy

If you would like to speak with someone regarding getting your credit report cleaned up, increasing your credit and FICO scores, contact Deborah McNaughton, a nationally recognized credit expert and financial author, at 714-993-1171 or www.financialvictory.com.

Setting up a budget is not easy, and sticking to it is definitely not easy.  It can be time consuming to set up a budget.  It may be hard to think of every bill off the top of your head, but there is an easy way to do this.  Simplify the process and review your past 12 months of credit cards statements, check statements and registers, and any other outgoing expenses.  Put each item and the amount spent into a category.  This will give you the exact amount of your bills for the year.

Remember Budget Busters! These are items such as California home repairs, property taxes, income tax, birthday and holiday presents, vacations, pets, child care, hobbies, auto maintenance, and California auto registration etc.

Next, review your paystubs and any other monthly income that you receive.  Once you get your exact income and expenses written down, it will be easier to set up a budget, track your money being spent and set your financial goals.

 If you need help setting up a budget in Southern California or accountability with your budget, you may want to seek the assistance of Orange County credit expert Deborah McNaughton at 714-993-1171 or www.financialvictory.com.