Our Community Power Blog

Initially it was very difficult for me to understand the reason for all the credit denials. I consulted Dr. FCRA (Fair Credit Reporting Act) and found out what I could do legally to help myself out of the situation.

The minimum knowledge of the legal aspects do not cause any harm. I came to know that checking my credit file twice a year is the best way to keep my financial life in control and annually I am entitled to receive one free credit report from all the three credit bureaus.

I got my report and found incorrect information on my file. As per Dr. FCRA’s words I asked them for all the information (name, address, phone number) of the companies that tampered with my file and they furnished me with all. Then I wrote dispute letters to the CRA on the accounts and some personal information which were incorrect. Believe me within thirty days (which is by law) they investigated and the incorrect information were gone from my file.

Now my file is clean and happily I will give the HR my consent letter to see the report. They need it to check my credit file. Oh I forgot this is my first job.

As it had been long, I just took out my credit report from TransUnion yesterday. I saw some prescreened offers. I immediately called up my doctor and he asked me to call them up. As the toll-free numbers were given beside the offer statements I called them and removed myself from their list. I hope they won’t bother anymore.

I am satisfied with my rights. I know I can sue them in the state court or the Federal court if they violate the FCRA. Will keep you posted for any new information that I get.

Technorati tags:FCRA, Fair Credit Reporting Act, CRA

Does your granny prefer a walking stick to walk by the road or the park? Probably so because that gives her the support she needs when you’re not around. It’s a friend, a guide that protects her from getting hurt and gives her the strength that can make her walk. But what about the financial support that she may require? What if she had a dream and couldn’t get it fulfilled just because of

lack of funds or the regular responsibilities that prevented her from doing so?

If it was my granny, I would have tried to take out cash from my savings account and made her dream come true. But are you prepared to help your granny with the required funds to pay for her Medicaid bills, or the like? If you aren’t, don’t worry and don’t feel you’re unworthy of her love and affection. There’s a way out by which your granny can acquire funds even at her old age – it’s by way of a reverse mortgage..

What’s a reverse mortgage?

It’s a financing option which helps an aged person (62 and above) pull out the equity in his/her home either through monthly cash payments or through a credit line account.

Are you worried thinking, if your granny isn’t able to pay for the mortgage, she’ll be in trouble? No way, once the loan period is over, either you (or any of her heirs) pay off the entire loan or else the lender should sell your granny’s home and get back the cash he has invested for the loan. So, the most important thing is your granny need not pay instead the lender pays your granny. Isn’t it strange? It may be but that’s how a reverse mortgage works. It’s just like a walking stick giving one the financial support to give his/her home a new look, or purchase a big car and anything which one cannot easily afford with the social security income.

Interested to know more about Reverse Mortgages? Know in details from here.

Technorati tags:reverse mortgage, mortgage for senior, old age walking stick

Just after marriage as we first set out for our struggle I found myself in a soup. My husband was buried in deep debt. His debts comprised of unpaid student loan, credit card debts, car loan and what not. Yet he kept borrowing money to maintain his luxurious life. Being frugal by nature, I wondered “How could he be so indifferent to such a situation?” Probably it was the hip hop city culture that influenced his extravagant life style. He maintained such a laborious life style that in a way he seemed to be Mr. Spendthrift.

Thereby we started looking out for different ways to get out of these debts. Mrs. Davis my next door neighbor, now came as a guardian angel for us. Analyzing our condition she suggested “Why don’t you go for Credit Counseling?”. The very next morning we went to a credit counselor as suggested by her. There we came to know that to reduce our debt burden we would first require to determine our current finances. That was only possible he said by calculating our “DEBT TO INCOME RATIO”.

Immediately we calculated our Debt to Income Ratio by dividing our “Total Monthly Debt Payment” by “Gross Monthly Income.” Practically my total monthly debt payment comprised of house rent, credit card bills, other revolving credit balances, car payments, etc. However we did not include grocery, telephone, and utility bills or any debt that will be paid off in the next few months .Our gross monthly income included our total salary before any deductions made or tax imposed on it.

Soon, both I and Mr. Spendthrift came to an understanding. He promised to lessen his expenses and I assured to make savings out of it. We believed, this way we could reduce our debt burden. Somehow our plan did not work. Despite consistent effort he was not able to cut down on his expenses. So to come out of the situation he now assured to increase his income. Then on, though he did not lessen his expense, he did not increase it either. On my part I kept fighting to recover the crisis situation. I took up a job and started to earn so that I could save more.

Finally, by adding my savings and his excess income we managed to clear up all our debts. Today, at the end of five years of our marriage we are enjoying a healthy debt free life. Careful and regular monitoring of our debt to income ratio helped us to a great extent in every turn.

Technorati tags: debt to income ratio,gross monthly income,total monthly debt payment credit counseling

What if someone says “Your planets are not in a favorable position”? Would you ever mind giving a thought to it? Well, I wouldn’t have cared but with US financial market facing a credit crunch and the people going through financial hassles, it seems that indeed we are all under the influence of some planets…

It all started with the risky borrowers getting qualified for home loans…the rest of the story? Well, many of them have defaulted on their loans; as it is, they have been under the evil influence of the credit score planet (just kidding ), and added on to this, there has been a fall in the home prices also. So, homes are not easily selling in the market and as such homeowners not able to pay back their loans from the sale proceeds.

The result…mortgage companies like the American Home Mortgage who’ve never worked with people with shaky credit have now gone for filing bankruptcy… such is the effect of the planets. Adding to this, investors have stopped purchasing bonds and stocks from banks and the banks who’ve offered the funds for the loans, now want their money back from lenders. Therefore, lenders who have promised to make several dollars of loans have suddenly backed out of the deals.

So, that’s the entire story.. people are in financial trouble. Some blame it on planets saying their positions aren’t good enough for them..the rest is simply blaming it on lenders and cursing themselves for dreaming something big to do with the money they’ve received as credit.

Technorati tags:credit crunch, US financial market, american home mortgage

Hi!!!!!! I’m planet FDCPA, better known as The Fair Debt Collection Practices Act. I’m like a magic bullet that saves you from the annoying debt collectors. If you are one of those people who are behind on their bills and are trying hard to clear the mess ….but are intimidated by the bill collectors, then I’m your friend.

Debt collection industry has been historically obnoxious. They use ways of intimidation and harassment to coerce people into paying debts which they either don’t owe or can’t afford to pay. Amidst such circumstances, I the planet FDCPA, protect your rights. So, if you don’t want to get bullied by the debt collectors then you have to know me. Are you ready??? Settle in and sneak a peep!!

One of the common practices of debt collectors is to call you at all times of the day. But do you know, a collector can only contact you between 8 A.M. and 9 P.M., and not during the time that they know is inconvenient to you. If you do not want any kind of communication with them, then you can send them a cease and desist letter asking them to “stop contacting me”. After receiving the letter the collector can only contact you once to let you know about their future actions.

The collectors can call your friends, family, relatives and even employers for your contact information. But the condition is they can not indicate to anyone that you owe money to them. The collection agency cannot send you collection notices by postcard or letters with the word COLLECTION on the envelope.

A collector has to act in accordance to these guidelines to collect money. If he does, then it will be called sheer violation and I’m not at all OKAY with it. Do not forget my friends FTC and BBB!!! They will catch you….that’s my promise.