http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/how_debts_are_collected/ http://www.debts.org/11/index/how_debts_are_collected/#When:15:28:00Z The following is a typical timeline beginning from when a creditor awards the debt to the debt collection agency:If a debt has lapsed by 90 to 180 days the creditor will sell it to a debt collector. The debt collection firm will attempt to contact the debtor by mail or telephone. If mail or telephone proves unsuccessful they may use other methods. Debt collection agency may conduct Internet and database searches and a practice called “skip tracing.” Skip tracing is when a collector searches for anyone who may know of the debtor’s whereabouts, such as friends, family, neighbors or employers. According to ACA International, in 1995 only about 25% of debt collectors used the skip tracing technique. Today more than 90% skip trace because technological improvements have made searches more successful. Once a debtor is contacted, the collector will negotiate a payment plan. Monthly payment plans are generally the norm but collectors can be willing to reduce the debt owed if paid in lump sums. More....America’s economic slump has seen small business go under at an alarming rate, taking thousands of workers down with it. It’s not just small businesses that have felt the pinch, even the biggest of the big have fallen – think Lehman Brothers. As the economy has reeled from irresponsible lending on Wall Street, debt took hold of millions of homes. Outstanding consumer debt reached $2.59 trillion in September, an alarming increase of $6.9 billion over August.Debt collection companies – and there is over 6,000 of them across the US – have been booming. In 2007, when people were still buying and selling, borrowing and lending, debt collection companies contacted over 1 billion consumers. We wait with baited breath to see what the 2008 figures reveal.While debt collecting has become a growing industry, it has also become more profitable. There are two clear reasons why. Firstly the method of debt collection has been vastly improved. Creditors are packaging together consumer debts and handing them over to a secondary market where they are traded between debt collection firms. By doing it this way, old debts reappear and come back to haunt the consumer who had thought it long forgotten. Secondly, the 2005 bankruptcy law (see Bankruptcy Law Explained) made sweeping changes that benefited creditors. As a result, filing bankruptcy is no longer the soft touch it once was and debts cannot be made disappear by the magic bankruptcy wand. All of which is very good news for debt collecting agencies. The credit crisis has hit credit card companies and loan providers hard. At time such as this means increasing amounts of financial firms are turning to collection companies to retrieve old debts.Better Business Bureau president, David Polino, says: “Its going to take time to see a real spike in collections, but it’s obvious that we have a national economic crisis on our hands and that’s going to force those that are behind on their payments into collections.”Predictive Metrics president, Michael Banasiak, says debt collectors are using his company’s specialist software to recover debts. His computer models help collectors determine which accounts are recoverable. “We are telling collectors the probability of payment and what that amount is likely to be. We are helping consumers get rid of their debt, while helping collectors target those consumers who are more likely to pay.”Have something to say on our Forum? Click here. How Debts Are Collected 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/foreclosure_rescue_plan_streamline_modification_program/ http://www.debts.org/11/index/foreclosure_rescue_plan_streamline_modification_program/#When:13:51:00Z Fannie Mae and Freddie Mac have followed other major banks, such as JP Morgan and Citigroup by implementing mortgage modifications in a bid to prevent the market being flooded by foreclosures.In the fall of 2008, the Bush Administration bought out Fannie Mae and Freddie Mac who own 31 million mortgages to the tune of $5 trillion. The US government was forced to takeover portfolios form the two mortgage giants when they could no longer survive within a collapsing market. More.... What is the Streamline Modification Program?In November 08, President Bush announced a new initiative to modify mortgages with the objective of restoring health to the housing market. Step forward Fannie Mae and Freddie Mac. At the behest of the Government the two biggest mortgage providers are extending an olive branch to homeowners on the brink of foreclosing or who have already begun foreclosing procedures.If eligible, homeowners will have repayments lowered to no more than 38% of the household monthly income and some mortgage schedules could also be extended up to 40 years. Additionally, interest on mortgages can be lowered for five years before rising to a predetermined level.Who is eligible for the Streamline Modification Program?Eligibility for the program set to launch December 15th 2008, is dependant on the following factors: Mortgage payments must be a minimum of 90 days overdue Homeowners must owe at least 90% of their home’s current value Homeowners must live in the home purchased using the mortgage The homeowners must not have filed for bankruptcyNB: The home loans must be paid in full even if home is in negative equity.Industry officials who welcomed the move hope that every mortgage lender will implement mortgage modification on this scale. However, some have argued that negative equity may dissuade homeowners from participating in the program. “When they [homeowners] realize they owe $300,000 on a home worth $200,000, many will decide it’s just not worth it,” said Dean Baker, co-director of the Center for Economic and Policy Research.Fannie reported in November 08 that 1.7% of its mortgages are in a default condition by 90 or more days. With 18 million mortgages on Fannie Mae’s porfolio that percentage equates to roughly 300,000 mortgages that could benefit from the new program.At time of writing, Freddie Mac had yet to release third-quarter results, but at the end of the second quarter it had 115,000 mortgages in a default status, which equates to about 1% of its total portfolio. That number is likely to be significantly higher when the results for the third quarter come in.How does the Streamline Modification Program affect foreclosures?Mortgage providers operating within the Freddie Mac and Fanny Mae network have been instructed to stop any foreclosure proceedings between November 26th 2008 and January 9th 2009, in order to give the rescue bid a chance to work.“By delaying these foreclosure sales, the nation’s servicers will have the opportunity to work with more borrowers who could qualify for a modification under the new [program],” said Freddie Mac CEO David M. Moffett in a statement.Freddie has instructed its mortgage providers to contact the 6,000 borrowers whom have auction sales or evictions arranged over the period November 26th and January 9th.  All 6,000 homeowners will be informed that the sale of their property has been postponed. Fannie has estimated that 10,000 of its borrowers will be given a 11th hour reprieve. Both mortgage giants claim that very few of the homeowners facing foreclosure within this timeframe are Freddie or Fannie homeloans. Return to Debts homepage, click here Foreclosure Rescue Plan: Streamline Modification Program 2008-11-25T13:51:00+00:00 http://www.debts.org/11/index/business_structures_explained/ http://www.debts.org/11/index/business_structures_explained/#When:14:07:00Z Understanding Business Structures: LLP, LLC, S-corp and C-corpBamboozled by business terms and asking what is an LLP?  Wondering what’s the difference between an LLC and a corporation? Or what about S-corps and C-corps, what do they mean? This page answers all of those questions in plain English so you needn’t be confused by the legal jargon or the associated tax codes that define your business. More.... Did someone say tax? That’s right, when you understand structure terms you can choose the right code and take advantage of tax benefits for businesses. LLC or corporation?Unless you are planning on taking your business public there is no reason a small business should file as a corporation. Debts would advise that you instead file your company as a LLC (limited liability company).So, what’s the difference between an LLC and a corporation? There are two main differences, first: the decision making and second: taxation.Decision MakingCorporations have a board of directors which means there has to be a formal process in place on which decisions can be made. This can create problems as well as solve them, especially with numerous personalities thrown into the equation. Therefore, most corporations don’t have the flexibility that LLCs enjoy in terms of decision-making. The nature of a small business means it tends to lean towards an informal way of doing business, especially when it comes to making decisions.TaxIf your business is a LLC, you will benefit from “pass-through taxation.” This is a golden nugget for LLCs looking to take advantage of the best tax benefits for businesses because pass-through taxation means the company pays no tax on its profits. So effectively, your company doesn’t even exist for federal tax purposes. What’s more, if the LLC is a sole proprietorship, the company is not required to file for tax returns. LLCs that do have more than one owner must file a federal tax return, although the LLC itself is not subject to tax. Pass through taxation means earnings pass through to the business owners, who report the income on their own tax returns.A corporation is not eligible for this tax benefit and instead must pay federal taxes as an entity. Shareholders are also taxed on any dividends received from the company, which in simple terms means the company’s profits are taxed twice over. However, there is an exception for companies who file under Internal Revenue Code ‘S-corp’. Shareholders of a corporation can obtain subchapter S treatment by filing Form 2553 with the IRS within 75 days of starting operations. If this form is not filed, the corporation is taxed under subchapter C by default. Click here to download Form 2553 and file your business S-CorpS-corp or C-corp?S-corp and C-corp are both codes to describe a company’s tax status. The difference between S-corp and C-corp is that an S-Corp can enjoy the pass-through tax benefit just like a limited liability company (LLC) or a partnership.A C-corp, however, is required to pay tax on income generated by the business.While an S-corp status gives a business pass-through tax treatment, it does impose limitations. An S-corp can have only 100 shareholders, all of which must be individuals. As a small-business owner you will probably want to choose either an LLC or an S-corp to facilitate the pass through tax treatment and to avoid the double taxation whammy of a C-corp. What’s the difference between LLC and S-corp?LLC members can agree to share a company’s income and shoulder its losses disproportionately, whereas S-corp shareholders must share in the company’s income in direct proportion to the number of shares they hold. Even if an S-corp business is small and private it is still subject to corporate formalities. Such formalities include annual meetings and formal reports written to shareholders outlining matters of corporate significance eg, investment for growth. An LLC, however, does not need to get weighed down by these kinds of procedures and can operate with much more flexibility.Debts urges proprietors of small-businesses to consult advisors on any tax benefits available to companies who file as an S-corp. A tax benefit may make suffering an S-corp’s limitations worthwhile if the tax incentive is of particular value. As mentioned above, an S-corp business is limited to 100 shareholders.Business partnershipsWe have already covered LLCs and corporations but there are two other types of partnerships to consider: a general partnership and a limited partnership.Just to be clear, if you are the sole owner of the business you cannot call yourself a ‘partnership’ because as the name suggests, there must be more than one proprietor to make a partnership. If you are sole owner of the business, file as an LLC.You will most often hear the term ‘partnership’ in professions such as:lawyers architects accountants and doctors. General partnership and LLPsPartnerships are businesses where all owners have equal managerial rights within the company – irrespective of any share holdings. While this proportionate distribution of power is often a plus within a small business, it can have its drawbacks. For instance, if one owner becomes embroiled in a lawsuit or incurs debts, all members are equally liable. A Limited Liability Partnership (LLP) on the other hand, provides protection for individual partners within the business. If for example a doctor encounters debt problems, other doctors within the partnership cannot be held accountable.Limited partnership and LLLPThe business structure of a limited partnership does not give all partners the right to influence business management. Limited partners, as they are known, do not get involved in the daily running of the business, that is left to general partners fulfilling a more ‘hands on’ role.In cases where the business is liable for debts or a lawsuit, responsibility falls mainly at the feet of partners first, and then limited partners second. It is usually possible for limited partnership to obtain a LLLP (limited liability limited partnership) certificate. This certificate provides general partners with protection from lawsuits and other liabilities incurred by other business partners.Which Business Structure is Best?In the main, small businesses will find that an LLC is the way forward. As a business owner you will be looking for flexibility as well as liability protection. An LLC gives you both.If you have any additional information on business structures which may be of benefit to our visitors, please post a message on our Forum by clicking here. Business Structures Explained 2008-11-12T14:07:00+00:00 http://www.debts.org/11/index/how_to_get_a_business_loan/ http://www.debts.org/11/index/how_to_get_a_business_loan/#When:14:32:00Z If you need capital to expand your business in order to survive, then you must know how to get a business loan. Business loans were always a challenge - you needed a top-notch business plan, a healthy credit rating and sometimes collateral. Now you need all of those things plus a bank that isn’t in trouble.By their own admission, approximately 65% of banks have tightened their lending criteria for commercial and industrial loans to small businesses in 2008. A survey on Bank Lending Practices, released in August 2008 from the Federal Reserve System says that figure rose sharply from 50% in the first quarter of 2008. More.... If you have relationship with a bank that isn’t in trouble and you have a good credit history you can expect less of a problem getting a business loan. That’s not to say, however, that the bank will not want watertight evidence that you are a low risk. Banks must prove to regulators and investors that your business is not in danger but on the verge of further prosperity. Regulators and investors can then grant you the loan you need for your business and sleep soundly in their beds at night.Startup Business LoansThe most obvious challenge facing startup businesses is the lack of a track record. Without a proven credit history and performance record, banks are less likely to agree to a business loan.Tulsa-based business coach Bill Bartmann says it’s clear that banks are treating people differently. “They’ve changed their standards,” he said. “They want to see what value you can bring to the bank.”Keys to Getting a Business LoanSmall business owners must thoroughly vet the lenders ahead of making an application for a loan. Call the institution first and ask enough basics to gauge your chances of success. While there are few absolutes, banks use three primary criteria to assess if a prospective borrower represents a safe bet.1. Size of business loan Smaller financial institutions usually have capital constraints imposed by regulators. These constraints restrict the size of loans made available to businesses. Conversely, larger banks often stipulate a minimum lending amount that allows them to focus resources on fewer loans while still lending in significant volume. 2. Your industry sector Banks will be reluctant to lend to a business in an industry with which they have little experience. Look then for lenders in an area where your industry is more prevalent. 3. Location of business and borrower Lenders within the federal banking system receive Community Reinvestment Act credits lending within their geographical charter area and debits for lending outside it. The challenge of dealing with varied collection laws and other local regulations makes many regional banks unwilling to lend outside certain areas. Make The CallKeeping the above primary criteria in mind, pick up the phone and start assessing which lender is likely to give you the loan you need. It only takes a few minutes and will save you vast amounts of time. When you call a potential lender, clearly identify yourself and cover all three parameters in your query. Try adopting the following approach:“Hello, my name is John Doe and I am interested in borrowing (state your amount) for (state your type of business), located in (area). I was wondered if you would be prepared to meet with me about this?”In the time it takes to make this brief phone enquiry, you will know whether this loan provider is willing to discuss the finance you need. Or if they are even capable! If the answer is no, the only thing you have lost is time and even then not much of it. Simply pick up the phone and try again. If they say yes, then set an appointment to pitch your deal all the while boosted by the knowledge they are at least willing to hear what you have to say. The Business PlanA good pitch will only take you so far, so make sure your business plan is in great shape. Many credit officers at financial institutions will want to see financial projections prepared by an accountant. Remember to include rising costs for good and transportation. You should also ideally have three years of increasing revenues that prove you are a safe bet and capable of running a profitable business. Further to the above, the two most important aspects of your business plan is:1) Cash flow statements 2) Descriptions of managerial experienceJoe Harpster is chief credit officer for Heritage Bank in New York City, a new bank opening next month that will cater to small and mid-sized businesses. “When I meet with a business owner, I want to see a well-written plan and projections prepared by an accountant,” he says. How to Get a Business Loan 2008-11-11T14:32:00+00:00 http://www.debts.org/11/index/credit_cards_teens/ http://www.debts.org/11/index/credit_cards_teens/#When:13:36:00Z We should probably begin with exploding a common misconception among parents: ‘Giving a teenager a credit card will teach them to be responsible with money.’ The truth is quite the reverse. So much so that credit card companies spend millions of bucks every year targeting your teenager. Teens are notoriously poor at managing money and represent something of a soft touch for credit card companies. In their eyes, teenagers are golden geese. More.... Here’s a sobering fact: over 80% of college graduates have credit card debt. Debt they have no way of repaying until they find a job. Credit card marketing moguls have done a good job in convincing teens that adulthood and credit cards are synonymous. If your teenager is pressuring you for a credit card, chances are they won’t feel like an adult until they get one. It’s not their fault, they have just succumbed to very convincing advertising, but it is the fault of parents if they pass the plastic and in doing so endanger their son or daughter with debt.  Tragedy can often follow seemingly insurmountable debt problems. A reminder of this was the case in Oklahoma where two college students committed suicide with the bills lying on the bed beside them. Even when debt does not amount to a tragedy on this scale, it can be the cause of stress and resulting health problems.‘Emergency’ credit cardsJust about everybody at some stage has promised themselves they will only use the credit card ‘in cases of emergency’. Sophmore students are certainly no exception and often apply for credit cards in the event they need some extra money fast. Problem is, most students find themselves needing extra money on a weekly basis. Suddenly debt can climb to five figures leaving the student unable to meet repayments unless he leaves college for a job. An all too common scenario which must break the hearts of parents who have strived for years to put their kids through college.One last sobering fact for all parents out there: according to the American Bankruptcy Institute, 19% of bankruptcy applicants were college students in 2007. In real currency, that equates to 1 in 5 bankruptcy filings by very young people who have started their adult lives as financial failures. Credit Cards & Teens 2008-11-11T13:36:00+00:00 http://www.debts.org/11/index/business_loan_alternatives/ http://www.debts.org/11/index/business_loan_alternatives/#When:12:15:00Z Need a business loan? Getting a business loan has become more of a challenge now that banks have shied away from business loans, especially startup business loans.Small business finance is has been notoriously tough to obtain because of the Wall Street crisis that led to banks cutting back on their lending. The entrepreneurial spirit seemed to have given up the ghost, not because there was a lack of visionaries wanting to start a business but because there is no finance to support start-up initiatives. More.... We took a look at 8 alternative business loans sources, starting with:Credit Union Business LoansPros: The ordinary people’s bank has never lost its common touch. Having an account at a credit union means you effectively own a part of the institution and therefore you tend to get treated with the respect that may be lacking across the street. Knowing this makes your appeal for a business loan a lot less intimidating.Cons: Credit unions have a reputation for being fair lenders, but in actual fact their interest rates do vary considerably. It can also be argued that a credit union is likely to be just as cautious as a bank when it comes to lending you money. “Credit unions are relatively new in the corporate lending field,” says Tom Lowles, director of Portland Community College’s Small Business Development Center. “I don’t see them as a big player.”Business MicrolendersPros: Microlenders as the name suggests are small scale lenders which can prove to be a useful source of business funding for those with imperfect credit. Though most loan are less than $5,000 per person, some microlenders offer up to $25,000. Microlenders are typically more flexible with the loan terms and what they will accept as collateral. Cons: Microlenders aren’t widely available across the US and when you do find one, be prepared for disappointment – they don’t lend large amounts of moneyA microlender’s evaluation process is often just as lengthy as that at a bank. Prior to the economic crisis, the evaluation process took 15 to 30 days. Currently, however, a microlender can take 45 to 60 days to assess your business loan application.‘Social lending’ businesses are looking to fill the gap that over cautious microlenders have created by directly connecting potential borrowers with a financing proposal. Such services can bring in quick cash, but the riskier the loan, the higher the interest rate will be. Nearest & DearestFriends and family: the kind of people to turn to in times of need; be it for fun, laughter, or in this case, money.Pros: Fast, low cost and devoid of any lawyer fees (usually), tapping friends or family for a business loan has very obvious appeal. You don’t have to jump through hoops to appease the business manager at the bank or justify your less than perfect credit rating. “It’s usually a minimally documented transaction without any lawyer fees, says Eric Siegel, a lecturer with the Wharton Entrepreneurial Programs. “It’s a fast, low-cost benefactor relationship with Uncle Harry who has a lot of money and just wants to help you out.”Cons: If your business goes bust you may never be able to look Uncle Harry in the eye again. You are likely to feel much worse about losing a relative’s cash than a bank’s money.In order to prevent any unpleasant situations you could consider making the loan formal through a lawyer or other third party such as an accountant.Business FactoringFactoring takes the stress out of chasing down invoice payments. A factoring company will give you a percentage of your outstanding invoices and collect the full amount from your debtors at a later date.Factoring therefore frees up money you would otherwise have no access to until the invoice was paid, which is usually up to 30 or even 90 days later. Factoring firms profit from fees they charge for the services – which are typically 1.5% of your invoice value.However, take note, most factoring companies don’t insure against non-payment, which means if your customer defaults you have to repay the cash you were advanced. Pros: “Factoring gives you instant cash, thus stabilizing your cash flow while reducing overhead,” says business coach McKinley. “It also relieves your accounts receivables department from having to grant credit or risk larger invoices with clients.” The International Factoring Association (IFA) can help you find a factoring firm that meets your business needs. Cons: Unless you really find chasing invoices is a waste of valuable time and resources, you will find factoring an expensive way to do business. Many businesses use factoring out of laziness, when a more disciplined approach to account receivables would make more economic sense in the long run.Venture CapitalistsVenture capitalists are entrepreneurial types who are looking to invest in start-up businesses that hold a lot of promise.Pros: If you do your homework and find a venture capitalist in your industry sector, you can secure larger sums of money than a bank would not have been prepared to offer. Venture capitalists are not afraid of taking calculated risks and providing you offer all the correct assurances and provide a watertight business plan, a VC may take a gamble on you when others won’t. Venture capitalists are not interested in your credit rating, but will assess your credibility as a person and as a business.Cons: Scrutiny. That is what you will undergo should you appeal to VC for business funding. Furthermore, many VCs will look for partial ownership of your company should you secure funding and even if they don’t they are still an expensive prospect. Venture capitalists tend to take bigger risks than banks, therefore they expect, and deserve, a lucrative reward.Business AngelsPros: Most businesses begin on little more than a wing and a prayer, so it’s no surprise Angel investors can be divine help in your time of need. These angels, however are not the heavenly kind but wealthy individuals who invest in promising ventures at the very early stages. Typically, an angel is another business owner who can be a convenient source of expertise as well as a provider of much needed capital. You can contact various angel groups in the US through the Angel Capital Association.Cons: Some angels are considered wild cards because they operate to their own rules. Reason being, they are playing with their own money. Angels, much like VCs, will want a slice of the pie so if you seek a business loan through this channel, you must be prepared to sacrifice complete ownership of the business.Business Credit CardsPros: Credit cards allow flexible borrowing. For more information, visit credit card benefitsCons: Interest rates can be very high and if you rely on a business credit card for borrowing your run the risk of defaulting, which would ruin your credit rating. Credit cards are something of a last resort when borrowing for business. For more information on credit reports and how to avoid damaging your credit rating, click here. Business GrantsPros: The governments awards $2billion every year to struggling high-tech companies through the Small Business Innovation Research program. In addition to this the government has the Department of Housing and Urban Development, which help businesses if the venture falls within target development area. For information on grants and how they may be able to offer business funding, visit Grants.govCons: Most businesses do not qualify for grant aid because they do not fall within the grant provider’s very specific niche criteria. Business Loan Alternatives 2008-11-11T12:15:00+00:00 http://www.debts.org/11/index/business/ http://www.debts.org/11/index/business/#When:12:09:00Z Since the fall of 2008 business has been tough for virtually every industry sector. The stock markets have told their own story and nobody has been infallable, just ask the Lehman Brothers. If you need a business loan in order to expand or for investment just to stay afloat, then you will enjoy our page on How to Get a Business Loan. If you have already been to a bank and were refused a business loan don’t despair, there are other options. Our page on Business Loan Alternatives has a list of ideas which you can consider as a source of business finance.If you are starting a small business but don’t quite know your S-corp from your C-corp or LLC from your LLP, then don’t worry, we have business structures explained. Business 2008-11-11T12:09:00+00:00 http://www.debts.org/11/index/debt_settlement/ http://www.debts.org/11/index/debt_settlement/#When:10:06:00Z There are many debt settlement agencies who will create a debt settlement plan and repayment program for a fee. While they cannot do anything beyond what can be done by you, the consumer, you may wish to use a debt settlement company for the convenience of not having to organize all the repayments or contact the creditors yourself, plus a good agent will be able to negotiate with creditors on your behalf. If you consider yourself a weak negotiator, you may feel more confident using an agency to settle your debts on your behalf. Most settlement plans seek to payoff unsecured debts between 12 to 36 months.More.... There are, however, some warning signs which you should look out for when contacting a debt settlement company. The following will help you stay clear of the cowboys: Told to stop paying creditors?Debt help companies may instruct you to cancel your repayments until they process your information. Only if the company is forwarding payment to the creditors immediately, should you ever consider canceling repayments. If you cancel prematurely, creditors will start informing credit bureaus that your payments are late/missed, causing more damage to your credit status.‘Non-profit’ debt settlement companiesIf you have seen ads for debt settlement companies, you may have noticed many claim to be not-for-profit organizations. While some are legitimately non-profit companies set up to help consumers, many will simply use this as an excuse to charge higher fees.There are many debt settlement firms who charge low fees to help you get out of debt so do some homework first.Debt repayment uncertaintyIf your credit counselor or debt settlement firm are making payments on your behalf, make sure you have all the details nailed down. A warning sign that a debt settlement agency is on the make is when they are vague on the subject of who your repayments are going to, when and how much. Run for the hills should you have any doubt about the credibility of the debt agency, or better yet, take your business elsewhere.Get a contract in writingIt seems obvious but always study the terms and conditions of your contract with your debt settlement agency. If they are reluctant to offer a written agreement at the outset, chances are they will not run an honest business.Credit history repairA debt settlement company cannot legally repair your credit history without you getting a new social security number and committing fraud. Avoid jail and unscrupulous debt agencies that claim to be able to correct your credit report with a magic wand.Make yourself at home in our Forum and find out what everyone else thinks about debt settlement in America. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory. Debt Settlement 2008-08-19T10:06:00+00:00 http://www.debts.org/11/index/debt_help_us/ http://www.debts.org/11/index/debt_help_us/#When:07:09:00Z Debt help comes in different shapes and packages. This section shows you how to get out of debt using three of the most common solutions: bankruptcy, debt settlement and consumer credit counseling.Your circumstances and the depth of your debt problem will determine which option is best for you, but incase you need some help in understanding each of these debt solutions, we have explained each one simply and in plain English.You may find that some budgeting strategies are enough to get you out of the red, in which case don’t pass up some free debt advice – download our guide:Get Out and Stay Out of Debt. Debt Help US 2008-08-19T07:09:00+00:00 http://www.debts.org/11/index/first_time_buyer_mortgage/ http://www.debts.org/11/index/first_time_buyer_mortgage/#When:08:39:00Z The misconception surrounding first time buyer mortgages is that they are suitable for every new homeowner. First time buyer home loans do offer property newcomers some key benefits but going with another mortgage plan may make more sense if you do not have a low income. First time buyer mortgages are subsidized to help the most needy get on the property ladder and that is usually people who have low to moderate income levels. In addition, people who have been searching for a home for the last three years can also qualify for a first time buyer mortgage. More.... First time buyer mortgage – prosWhere you live will determine which of the following benefits are available to first time buyers. Typically, a first time mortgage can offer borrowers:GrantsReduced lending feesDeferred mortgage repaymentsSubsidized interest A modest down paymentFirst time buyer home loans not only aid families needing a home but they also serve the community as a whole. Neighborhoods tend to prosper collectively when there are a large proportion of homeowners living in the community – improving both home values and the environment.First time buyer mortgage – consFirst time buyer mortgages will have a limit to which you can borrow meaning the best properties in the nicest part of town may be off limits. The purpose of subsidized home loans is to provide housing to people on low to moderate incomes therefore the borrowing limit will reflect that demographic. You will also disqualify from a first time buyer mortgage if you intend to buy to rent.Other first time buyer mortgage pitfalls include:Early sale of your home may mean your forfeit some benefits. You could be liable to pay recapture tax for some of the benefits received.You may be restricted to certain mortgage plans, ie 30 year fixed rate mortgages. Make yourself at home in our Forum and find out what everyone else in America thinks about mortgages. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory. First Time Buyer Mortgage 2008-08-15T08:39:00+00:00