Question: Can I get a home equity loan while in a debt management program?

I just entered a debt management program to get control over my credit card debts. I have done this separate from my husband so that only my credit is affected.

Just after I entered into the program, my husband started showing interest in a home equity loan to consolidate his credit card debts and vehicle loans, and do home improvements.

In our marriage I am responsible for my own debts, but I am wondering if being in the DMP will affect the chances of us obtaining the home equity loan.

Serious educated replies will be very much appreciated.

According to a recent survey done by global payment firm Visa, cost of living, salary changes and personal debt are the top 3 financial concerns for Malaysians.

In the survey conducted between Aug 21 and Sept 23 last year, 69% of Malaysians said they were extremely concerned about the cost of living expenses while 62% and 59% were worried about salary changes and personal debt respectively.

“Malaysians were less worried about the value of their retirement fund and portfolio, and fluctuating interest rates,” the company said in a statement here yesterday.

However, 25% of those surveyed also said they were more confident about their personal financial situation compared to six months earlier although 52% felt there would be no change.

Only 23% indicated they were less confident than earlier.

Sixty-six per cent of Malaysians also said they were more concerned about the impact of the global financial crisis on the local economy.

The survey involved 5,520 respondents aged between 18 and 65 years, of whom 500 were from Malaysia.

The rest were from Australia, China, Hong Kong, India, Indonesia, Japan, Korea, New Zealand, Singapore and Taiwan.

Visa country manager Stuart Tomlinson said Malaysians were being practical during the current economic climate by focusing on managing their concerns, providing themselves with a level of security and peace of mind.

“For Malaysians, potential changes in salary levels are also of concern,” he said, adding that across the region, consumers were looking to see how they could manage their expenses, savings and job security, rather than macro-economic conditions such as exchange and interest rates.

As a credit-card-debt woman who has been in AKPK debt management program since October 2008, I no longer need to worry about my credit card and loan debts. Phew, no more harassing phone calls and legal notices from banks!

What happens when you can no longer pay your credit card debts or credit card payments? Well, you have the option of a debt management program to help bring you back to right financial track.

Debt management program, also known as debt management plan, is individually designed to consolidate all your multiple credit card payments into one lower payment.

The debt management repayment is often made affordable to you so that you can pay all your credit card payments.

Of course, a debt management plan is NOT an option for you if you are already at advanced litigation process or involved in bankruptcy.

If you find that a debt management program is right for you after a credit counselling session, your credit counsellor will start negotiating with your creditors to lower the credit card monthly payments, reduce the interest rates, and waive late payments and over-the-limit charges.

Often times, your creditors or banks will agree to the affordable repayment plan just so they can receive any amount of payment towards the balance you owe them.

As a credit card debt woman who is now in a free debt management program, I must admit that it is a great solution for helping me get rid of my credit card debts.

The DMP not only allows me to pay ONE lower repayment every month, it also stops the wave of annoying or even threatening phone calls or warning letters from the banks and credit card companies.

Signing up for a debt management program is easy; it’s a matter of finding a credit counseling and debt management company you feel comfortable with that is difficult.

Make sure you find a credit counselling and debt management agency that will work best for you. Remember, you want the right debt management program to put an end to your pestering debt problem, not creating more debt.

After the recent 6D 5N trip in the city, I must admit that I am blown away by the way my sisters and other family members spend their money.

Don’t get me wrong. They don’t spend their money with credit cards. No. Instead, they use cash all the time.

They spend their money as if they have lots of cash, as if it’s easy to make money, as if the bad economy has not affected them at all, as if …

Well, they don’t act as if. The truth is they really do have lots of cash; they don’t have the habits of swiping credit cards.

To them, making money is easy; their hardware stores and motor shops are still making good profits despite bad economy.

Their way of spending money makes me realize the power of using cash and the goodness of not being in credit card debts or other debts.

Serve me right! I only realize the power of cash after getting in deep debt trouble and being in AKPK debt management program (DMP).

Since in the DMP, I have come to love using cash and saving some extra cash by following easy money-saving changes.

If you are also on tight budget and would like to save some extra cash, try out some of these easy money-saving changes; they are actually minor changes to the way you use products and items in your everyday life.

1. Buy the Cheapest Hand Soap. Always buy the cheapest hand soap you can find. The quality doesn’t necessarily go up with the price and you can use it in place of bath soap.

2. Fully Use the Whole Product. Ask any thrifty mom you know and you’ll surely hear this money saving tip of turning bottles upside down and draining to get the last bit from them.

Others are tearing open sugar and flour packets to get everything; squeezing or cutting open tubes to use up all before opening new ones. You’ll be amazed at how much there really is left!

3. Never Use More Than You Need. Just because it is stated on the box that you need a full cup of detergent, it doesn’t mean that you really pour a full cup.

As hubby and I don’t sweat a lot, there is really no need to use a full cup as what the manufacturer says. Instead, half a measure of laundry detergent is usually enough.

4. Use Some of the Things in Your House Creatively. Instead of spending money on the fancy floor cleaners, try using ammonia that also does a great job. Use plain water in between times.

If your furniture needs some polishing, mix equal parts of white vinegar and vegetable oil and rub on the furniture. Buff with a cloth until it shines.

Sure, they are minor changes, but they do add up in the long run and put some extra cash into your pocket throughout the year!

Congratulations if you are able to keep your credit card debts at reasonable and manageable levels. Unlike you, my credit card debts ended up incurring exorbitant interest charges, late payments fess and over-limit charges until I no longer was able to make next month’s payments and had to resort to a free debt management program.

If you ever find yourself having problems with paying off your credit card debts, the first course of action is to take a look at the budget. Finding ways to cut back on unnecessary expenses can help you pay down debts and keep monthly bills current.

But what if you can’t settle your debt problems with budgeting? Well, seek assistance from debt help relief options to help gain control over your debts so that your credit rating will not suffer badly.

Debt Consolidation. You may turn to debt consolidation as an answer to your debt problems. Debt consolidation enables you to transfer all your high-interest credit card debts to a lower interest credit card, or you put up the equity in your home to get the money to pay off your debts.

While both unsecured and secured debt consolidation options provide lower payments, they are with some drawbacks. Closing numerous credit card accounts and putting all of your debts into one account can negatively impact your ratio of debt to available credit, lowering your credit score.

And if you use your home equity to secure the money needed to pay off debts, you’re putting your home at an unnecessary risk. You face the risk of losing your home if you fail to make payments.

Credit Counseling. Another popular debt relief option is credit counseling. Credit counseling agencies, non-profit or for-profit, offer help with budgeting, and if it is determined that budgeting is not enough to solve your debt problems, they will sign you up with a debt management program.

A debt management program, also known as debt management plan, involves negotiation with creditors to reduce interest rates, eliminate late payment fees or over the limit charges, and lower payments.

You make one monthly affordable payment to the credit counseling agency’s collection account, and the agent forwards payments to each of your creditors.

A DMP can help you get out of debt faster, but it can also have negative impact on your credit score. As a note is added to your credit report stating that you are in a debt management plan, you no longer can get a new credit card or loan. However, the notation is removed once you’ve settled your debts.

Either you decide to enroll in debt consolidation or a debt management plan, it’s important to make sure you’re dealing with a reputable credit counseling agency that is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA) or the National Foundation of Credit Counseling (NFCC).

As AICCCA and NFCC regulate and monitor member agencies to make sure that they operate legally and ethically, you save yourself from being scammed by unscrupulous credit counseling agencies that charge high fees or fail to make payments to creditors on time.

To prevent yourself from facing undue stress caused by spiraling debts and damaging credit score, it’s wise to seek help at the first sign of trouble.

Are you drowning in multiple debts? Are your earnings for the month not enough to cover the monthly repayments required? Is your mail box stuffed with warning letters and legal notices from credit card companies? Are there times when you just want to run away from your credit card debts and creditors?

I used to be like you too – I was drowning in heaps of secured and unsecured debts; my monthly income was always not enough to pay the minimum payments; the mail box was filled with warning notices and legal letters from credit card companies and there were many times that I just wanted to run to another country to start a new life.

However, you can get out of this terrible debt situation by signing up a free debt management program.

Debt management programs, both non-profit and for profit, are programs designed to help those who can no longer make payments on their cards, and are used as a last step toward bankruptcy.

When you enroll into a free debt management program, a credit counselor will speak to creditors on behalf of you to make negotiations about your outstanding debts, interest rates, and late payment fees or over-limit fees.

A good debt management counselor who is in charge of negotiating with your creditors to reduce your monthly payments to match your ability to pay can help you reduce your monthly repayments to your creditors up to 75%.

The credit counseling agency that takes one monthly sum from you will be in charge of redistributing the funds to all your creditors.

Once you are in the debt management program, your creditors will not contact you to demand you to pay your debts.

Debt management plan tends to have less impact on your credit score, as compared to bankruptcy, but requires that you have sufficient income to cover your living expenses, plus the plan payment.

As a conclusion, debt management program enables you to easily reduce your debts and make single monthly payment to one credit counseling agency on one date.

Hi, I need money to pay off my credit card debt.

During tough economy times, who doesn’t want money to pay off credit card debts?

The weakening economy and looming recession have no doubt impacted many credit card holders; there is an increasing number of credit card users who have found it hard to settle their credit card bills at one lump sum or make even the minimum payments.

Like you, I want money to pay down my credit card debt. But I am not as desperate as I used to be when it comes to paying off credit card debt fast.

The reason? Well, I am now under a free debt management program that allows me to pay a lower monthly repayment to the debt management agency before the 30th every month.

I am no longer chased by 6 banks for 15 credit card payments.

I do need money to settle my credit card debt but not as urgent as I need it for my emergency fund. I need money to hit my goal of $1,000 emergency fund.

Once I have the initial $1,000 (RM3,550) as emergency fund, I can start paying off credit card fast.

Managing credit card debt is not that easy to do especially when you have to worry about other thing such as your family. It can take a toll on you and force you to just declare bankruptcy just to clear your debt.

Here are 4 tips you can use to make credit card debt elimination easier:

1. Transfer to a Lower Interest Rate Credit Card. Transfer your balance to a credit card with lower interest rate. This way you can save a lot of money.

You just ask different credit card companies so that you can compare their interest rates. If not you can ask a friend or a relative if they know a company where you can transfer your balance.

2. Always Pay on Time. This is the main reason why people have credit card debts because they ignore paying their bills on time.

The credit card bill gets accumulated after several months until it reaches a point where you are not able to manage it. If possible, pay more than the amount stated on the bill.

3. Budget Your Money. If you are already aware that you are in debt, try to budget your money.

This takes a lot of discipline but will save you from more headaches. Do not solve your problem with another problem.

It is very important that you are aware of your spending habits so that you will know the things that you need to cut back from your budget.

4. Seek Help From Credit Card Debt Counseling. Credit card debt elimination can be done through credit card debt counseling.

Credit counselors immediately review your debts and income so that they know where to start. After that, they will provide a plan on how you can manage your debt.

Always seek credit card debt help relief first before you think of clearing your debt by declaring bankruptcy.

After reading and hearing news about layoffs almost every day, my sister has started fearing of the possibility of being laid off by her lady boss.

I know my sister is not the most efficient staff in the company, but one thing for sure, she is the most hardworking staff. She does every job given by the boss and sometimes is willing to be taken granted of by her colleagues.

I am praying that she won’t be axed by her lady boss. If worst comes to worst, just cut her salary.

Like me, my sister is also burdened by credit card debts, personal loans, household expenses, children’s school and private tuition fees, and home and car loan installments, . Wow, 2 car loans!

If you are one of the Americans in $900 billion credit card debt, I think it’s time to get back to reality and use credit card debt help tips to manage your debt.

Let’s face it, tonnes of credit card debts, accumulating personal loans, overdue home and car loan installments, increasing food and grocery expenses, looming recession times and possible layoffs are awaiting you and me after Christmas and New Year holidays and the inauguration day of President Barack Obama.

Managing credit card debt is never an easy task, especially when it involves a huge amount of money and a lengthy history.

Here are a few credit card debt help tips you need to remember so you can manage your debt and clear it on time.

1. Keep Close Contact with Credit Card Companies. If the credit card companies contact you then you should be willing to accommodate them, because the last thing you want them to do is to block your account. The companies will keep you updated on the status of your account. This way you will be aware of how much you owe the company.

2. Pay the Amount You Can Afford. If you are really in a tight budget then just pay the amount that you can and also advise the company regarding your payment. This way the company still knows that you did not forget your obligations to them.

3. Make An Effort to Take on An Extra Job. It will require a lot of work but at least you will not be in debt for a long time. Once you have already paid off your debt and earned extra money then by that time you will be able to rest.

4. Always Budget Your Money. If you have cash then use cash, use only your credit card during emergencies. One good practice when going to the grocery is to write down all the things you need. This will avoid you from spending your money from unnecessary things.

Credit card debt help is truly required these days because it seems almost everyone is in debt.