Much has been made on our credit repair services blog about the importance of staying on top of your personal finances.  I’ve also written about both good and bad debts in the past, and the important distinction between the two.

And yet, I keep hearing people say that all debts are bad, and anyone who owes any amount of money to another person is already standing on the precipice of total financial ruin.  Well, okay, maybe not quite that hyperbolic, but there are quite a number of people out there who view consumers with outstanding debt in almost the same light as smokers or people who text in a movie theater.

But those in the know are already aware that not all debts are created equal; there are some that can be used for good.  To help you discern the differences between good and bad debts, let’s look at 2 major debts that affect your credit report, and see if we can find the positives in them; at least from a credit clean-up perspective.

Credit card debt

Most people view any outstanding credit card debt as a bad thing, and usually they’re not too far off.  If you use your credit cards as your main source of payment, chances are your card falls into the “bad” category as you struggle to stay on top of the payments each month.

Of course, if you’re only using it to make a few light purchases each month – say, for groceries and a tank of gas – and pay the balance each month on time, any remaining balance you may carry over will be more manageable than say, breaking out the plastic for every penny you spend while on some extravagant Euro trip and leave you barely living paycheck to paycheck.

Home loans

Home loans are generally considered good debts (gotta have some place to hang your hat, right?) unless you start using your mortgage like another bank account.  Most people also buy a house in the hopes that it’ll be an appreciable asset as time goes by.  Of course, with the real estate market in the state it’s in now, there’s little chance of that happening.

If you’re currently barely able to tread water on your mortgage payments – to the point where the next major home repair emergency that pops up could leave you in serious financial trouble – it might be considered a bad debt.

Want help turning your bad debts around?  Give one of our specialists a call to make it happen, Cap’n.

For most disabled people in the UK, particularly those who are reliant on state benefits, the chance of owning their own home seems almost impossible, as lenders will simply not offer them any kind of home owner loan to help them with the purchase.

But now, the Ipswich Building Society, in connection with Suffolk County Council and a local housing association, have launched a new scheme which will offer loans to those individuals with life long disabilities, thereby allowing them to buy a property of their own.

The scheme is based on a shared ownership scheme, whereby the housing association would cover half the cost of the house and the rest of the property would be purchased by the borrower, with a secured loan from the Ipswich at a loan to value of 100 per cent.

The county council would then act as a guarantor for the home owner loan, which would be funded by the benefits agency. The loans will be taken out on an interest only basis.

Read more…

Question by shonagh c: I need a loan fast for business use have a poor credit score and no equity as i live in a semi commercial prop I NEED TO DO A REFIT FOR MT SHOP BUT CANT GET CREDIT DUE TO A POOR CREDIT SCORE AND NO EQUITY ALSO MY NOW EX HUSBAND RAN UP A LOT OF CREDIT AND LEFT ME TO PAY ANY ADVICE GRATEFUL

Best answer:

Answer by BrettHow big of a loan? If it is under $ 30k you can try Prosper – an online lending community…

http://www.prosper.com/join/lunyc

They are not some shady loan shop- and they have been featured in the New York Times, Money Magazine, etc.

I first read about them in Money magazine – pretty cool idea, people get together and combine their money as a community into making a single loan.

I have used them for a loan to start a small website (and pay down some high paying interest)- you will have a much better chance of getting a loan than with a bank – and probably at a much lower interest rate.

Read more…

Yesterday’s news report revealed that even accountants can be left bemused when it comes to working out their energy bills. With the experts struggling to make sense of our finances what can everyday workers do to avoid financial confusion? Here are a few tips.

As the research by Which? revealed, only one person out of thirty six people was able to generate the correct answer over their energy bill, leaving an accountant and thirty-four others baffled (read the full story).

To help you avoid a similar situation, here is how you can save money and keep on top of your finances:

• Seek advice over your finances and work out if there are areas where you could save money. Remember to check the different tariffs offered by energy providers and always read the terms and conditions thoroughly so that you know what you are paying for.

• Be savvy and think of ways you can reduce your spending. This can include anything from cutting down on spending to taking advantage of deals and promotions to get the best value for money.

• Think of ways to reduce your energy consumption in order to save you money. This do

Read more…