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‘Octomom’ Latest Celebrity to File For Chapter 7 Bankruptcy

May 10, 2012 By Kyle

Nadya Suleman, more famously known as “Octomom”, has filed for Chapter 7 bankruptcy, according to ABC News.

Suleman became famous after giving birth to octuplets who were the result of an assisted reproductive technology procedure. She is a mother of a total of 14 children.

Suleman claims she owes creditors between $500,000 to $1 million. According to court documents she has less than $50,000 in assets.

Octomom’s most recent public payday was a highly publicized semi-nude feature for U.K magazine Closer in which she was reportedly compensated $10,000.

Creditors of Suleman’s include Verizon Wireless, Kaiser Permante, DirectTV, Sylvan Learning Center and the owner of her home that was recently the subject of news stories due to the poor living conditions the children were reportedly to be living in. According to CBS News, Octomom owes more than $30,000 to the owner of the four-bedroom home that she currently is renting in California.

Earlier this month Suleman reportedly received death threats after announcing that she had gone on state assisted food stamps in California, according to Reuters.

In an attempt to earn income to potentially pay off creditors, Suleman has recently announced that she will be performing in a pornography video. The amount she is to be compensated is over $10,000, according to Reuters. In recent years, pornography company Vivid Entertainment offered Octomom $1 million to star in an adult film.

Celeb Bankruptcy, A Cautionary Tale

Octomom joins the ranks of Allen Iverson, Dennis Rodman, Warren Sapp, Michael Vick, Gary Busey and many other celebrities that have filed for bankruptcy in the past year.

With Allen Iverson blowing $154 million in NBA earnings, it’s hard for the American public to fathom how these abundantly rich individuals go broke. The fact is, the economic situation the United States finds itself in is not just affecting the middle to lower class. Celebrities are not immune to bad business deals or foreclosures, just like the rest of us.

As hard as it is to feel bad for a celebrity who blows $154 million (that’s just his NBA salary throughout his career, lucrative endorsement deals and other business ventures are not included in that figure), we have to be cognizant of the fact that we’re all human beings and we all make mistakes. Bankruptcy is still bankruptcy, no matter what your previous life entailed.

It may seem like celebrities have it easy when it comes to filing for bankruptcy, and sometimes it is easier for celebrities to get themselves out of debt, but we must remember that everything is not what it seems. Celebrities face the same struggles as the American public does when it comes to debt and we can use these celebrity stories as important educational tools in which we can learn from.

Many Americans may not be able to land that role in a new reality television series or get signed to a professional sports contract after filing for bankruptcy, but Americans can take steps to enable a better future after bankruptcy.

Improve Your Credit Scores

May 10, 2012 By Steve Cypher

No less of an authority than the US Government has some words of wisdom for improving your FICO scores

Helping your auto credit

Here at Auto Credit Express we’ve spent a great deal of time over the past twenty years helping car shoppers with less than perfect credit find a dealer that understands these situations that can help get them approved auto loans. We even designed a website that contains a resource section on topics such as repossession and basic car loan requirements.

And while we also offer suggestions on how to repair credit, we recently came across an article from the U.S. Government’s web portal that seems to sum up perfectly the process of improving your personal credit.

This is what it had to say:

5 Steps to Help You Improve Your Credit Score

So what should you do if you want to improve or maintain a good credit score? The following tips might help.

1) Request a free credit report

You can request a free copy of your report every 12 months from each of the three main credit bureaus: Equifax, Experian and TransUnion.

The official website to get your free credit report is www.annualcreditreport.com.

2) Understand Your Credit Report

Understanding your credit report will help you make better decisions when it comes to your finances, because your credit score is based on your credit report. It includes personal information about you such as:

•   Your payment history.
•   How many loans you have and how much you owe.
•   If you have ever filed for bankruptcy.

3) Check Your Credit Report

Sometimes information on your credit report might be incorrect or incomplete. That’s why you should check it periodically.

If you do find a mistake, these agencies must:

•   Investigate the discrepancy usually within 30 days and correct it if necessary.
•   Notify the company that provided the incorrect information.
•   Provide you with a free copy of your credit report if changes are made.

The Federal Trade Commission has more detailed information on how to access free credit reports.

4) Pay Your Bills on Time

Paying your bills on time is an important factor in determining your credit score and showing your creditors that you are a responsible consumer. But there are other factors that might impact your credit score:

•   Be selective when you apply for credit as too many applications may negatively affect your score.
•   Don’t go over your credit limits. In fact, it is better to stay well below them.
•   Pay down your debt with regular payments.

5) Get Professional Help

A budget might help you pay your bills on time. If you owe too much or are unable to pay your bills, you might want to consider a credit counseling agency. They can help you to manage your finances or figure out a plan to pay off your debt.

Be careful when seeking out these services, they might charge excessive fees and that can put you deeper in debt. The Federal Trade Commission has more information about credit counseling agencies and how they can help you improve your credit score.

One more thing

In some instances, just raising your credit scores won’t qualify you for a traditional car loan.

If this happens, before you visit a tote the note dealer you should know that at Auto Credit Express we work with dealers that understand a broad range of credit issues and can offer you your best chance for approved auto loans.

So if you’re ready to establish your car credit, you can begin now by filling out our online car loans application.

Filed Under: Auto Loan Debt, Credit Repair, News Tagged With: auto loan debt and bankruptcy, auto loans, avoid bankruptcy, bad credit, Bankruptcy Attorney, bankruptcy lawer, car loan and bankruptcy, Court, file bankruptcy, forgive car loans

Where to Apply for Car Loans

May 9, 2012 By Steve Cypher

Having bad credit usually limits the number of ways you can apply for an auto loan

Where to begin

If you’re credit-challenged, how and where you apply can often mean the difference between driving that new car and being denied credit.

We’re very familiar with this issue here at Auto Credit Express because we just happen to have spent the last twenty years working with car buyers with poor credit. Our website is even designed so that car shoppers with low FICO scores can research such topics as repossession as well as today’s subject, the best way to apply for an auto loan especially for buyers with less than perfect credit.

With that, there are typically three ways car buyers, regardless of their credit standing, can apply for a loan.

The direct method

The first option is applying directly with a lender. Visiting a bank and applying with a lending officer or going online to the lender’s website are just two of the ways this can be done.

Both will work if you have good credit, but if your credit scores fall below a 640 FICO it’s not that simple.

Because nearly all subprime auto lenders have documentation requirements (employment and income to name just two) most lend only indirectly through franchised new car dealers. This being the case, applicants needing these types of loans will find that applying directly will not only be difficult, but with the limited choices they could end up with a much higher interest rate.

The indirect method

A second choice car buyers have is applying indirectly for a car loan at a dealership. This also works if you have good credit, since you compare the dealer’s rates with those offered by area banks and online.

If your credit scores aren’t that great, however, this can be a hit-or-miss situation since not all new car dealers are interested in helping customers with credit issues.

Targeted web site method

For buyers with credit problems, a third option is applying online at a specialized web site that caters to people with challenged credit. The chances of getting approved with this method depend upon the size of the site’s dealer network and its transparency.

The bigger the network, the better your chances are of finding a dealer.

Transparency, on the other hand, has to do with the website, itself. Is the online credit application secure? Does the company belong to the Better Business Bureau and, if so, what is its reputation? Is there a resource section where you can learn about the loan process along with finance calculators to help you determine if you even qualify for an auto loan?

Last but not least, is there a toll free number you can call where you can to speak to an in-house customer service representative and have your questions answered?

If it doesn’t have all these features, you might want to consider one that does before submitting your personal information.

When we can help

The Auto Credit Express web site will assist you in finding dealer for your best chance for an auto loan approval that can help rebuild your car credit.

So if you really want to get your auto credit on track, you can begin now by filling out our online application.

Filed Under: Auto Loan Debt, News Tagged With: auto loan debt and bankruptcy, auto loans, avoid bankruptcy, bad credit, Bankruptcy Attorney, bankruptcy lawer, car loan and bankruptcy, Court, file bankruptcy, forgive car loans

Foreclosure Scammers Posing As Homeowners Rent Bank-Owned Properties In Florida

May 9, 2012 By Foreclosure.com

Perception is not reality.

Randy Lutz learned that important lesson firsthand when he attempted to relocate his family, which includes a handicapped son, from a “crime-ridden” Rhode Island neighborhood to a seemingly more friendly Winter Park, Fla., community. Lutz, responding to a home-for-rent ad listing on CraigsList.com, had no idea that the lease he signed on a new place — and seemingly a new life — was a complete fraud.

That’s because two opportunist scammers, a local boyfriend-girlfriend tag-team, were lying in wait in the “Sunshine State.” The duplicitous pair had broken into the home, which was a vacant foreclosure, changed the locks and marketed it as if it was their own, according to the Palm Beach Post.

Greed was apparently their undoing when another couple who had also “rented” a a property from the imposters came to the Lutz-rented house looking for their landlords. From that point forward, with the help of a neighbor who knew the house was in foreclosure, the scheme unraveled.

In fact, the couple — who Lutz described as “fairly nice people” — were soon tracked down and arrested.

“There was no reason to think that they were anything but what they said they were,” Lutz was quoted as saying.

The good news is that the bank that truly did own the home that was illegally rented out to the Lutz family agreed to let them remain in the house. Clearly, a new — and legal — rental agreement was drawn up, providing a rare happy ending in an otherwise twisted foreclosure tale.

Filed Under: Foreclosure, News Tagged With: avoid bankruptcy, bankruptcy and foreclosure, Bankruptcy Attorney, bankruptcy lawer, Court, file bankruptcy

Stafford interest rates still in limbo

May 9, 2012 By Student Loan Guru

On Tuesday, the Senate voted on the future of Stafford Loan interest rates. The rates for subsidized loans are currently at 3.4%, but without action from the government, will jump to 6.8% come July 1, 2012. A majority of 60 votes were needed to pass the bill which would lower these rates, unfortunately, the votes were split 52/45.

Filed Under: News, Student Loan Debt Tagged With: avoid bankruptcy, bankruptcy and student loans, Bankruptcy Attorney, bankruptcy lawer, bankruptcy lawyer, Court, file bankruptcy, student loan bankruptcy, student loans

Credit Repair using Debt Settlement

May 8, 2012 By Steve Cypher

Debt settlement may not be the best way consumers with less than perfect credit try to turn themselves around

Credit repair

Quite often credit-challenged applicants want to know if there are quicker or easier ways to fix bad credit.

And while everyone’s credit situation is different, we know it usually takes time to do this because here at Auto Credit Express we’ve been working with car shoppers with less than perfect credit for the last two decades. It’s also why our website contains information on issues ranging from no credit auto loans to today’s topic, debt settlement.

Questions about debt settlement

But since we’re not experts on the topic, we’ll turn to those who are.

Not that long ago the Illinois CPA Society issued a press release dealing with this very topic. Here are some questions and answers it contained:

How Does Debt Settlement Work?

Simply stated, debt settlement is an approach to debt reduction in which the debtor and the creditor agree on a reduced balance that will be regarded as payment in full. A credit company must have a solid reason to believe that you are actually unable to pay them before entering into a debt settlement agreement. Unfortunately, you prove this by not paying them which is an instant black mark on your credit score that doesn’t go away for seven years. Once you’ve proven you can’t pay them, you must negotiate a balance you can pay. The debt doesn’t go away, it just gets lowered.

What are some of the Consequences of Debt Settlement?

In addition to having already hurt your credit score by non-payment, you must pay the negotiated balance immediately. Also, any debt that is forgiven is considered income – and you will have to pay taxes on that income.

Are There Alternative Solutions?

You can call your credit card companies and ask them to reduce your rate. Point out that you’ve been a loyal customer who’s paid on time in the past. If the first person you speak to isn’t authorized to lower your rate, ask to speak to a supervisor. Be persistent and assertive.

Also try to get rid of your payments faster by trying to pay more than the minimum; even $5 makes a difference.

How do you get on top of already large minimum payments?

Cut out extras to make it work and pay your credit balances down first – no more premium cable, expensive data packages on your phone or eating out too many lunches or dinners. What you save goes to paying your credit card. Also consider selling through consignment shops or eBay things you bought but aren’t using. Look at your budget and lifestyle carefully to see where you’re living outside of your means and identify where you can cut back.

The Bottom Line

As the Illinois CPA society puts it, “Debt settlement is a serious decision with serious repercussions. It’s important to think beyond your current situation. With debt settlement you’ll have a black mark on your credit report that could keep you from any number of new things you’d like in the future – a house, apartment, job or car.”

Also keep in mind that if you have auto credit issues and you’ve been turned down by a traditional lender, you have more choices than just a tote the note dealer.

That’s because here at Auto Credit Express we work with dealers that understand a broad range of credit issues and, even with poor credit, can offer you your best chance for approved auto loans.

So if you’re ready to establish your car credit, you can begin now by filling out our online car loan application.

Millennial Generation Shows Low Levels of Financial Literacy

May 8, 2012 By guest-writer

Today’s younger generations have a shockingly low level of financial literacy, and the trend has been growing worse over the past few years, according to a recent report in USA Today.

Sources say that the average person in his or her 20s has a total debt of $45,000, which includes common debts like credit card debt, student loans, and home mortgages.

With such remarkably high levels of debt, it’s little wonder that hundreds of thousands of young Americans choose to file for bankruptcy every year.

Low Levels of Financial Literacy Lead to Rising Debts

The financial picture for young Americans is pretty bleak, and sources suggest that this is a direct result of low financial literacy:

Financial literacy in high schools. According to the Treasury Department and the Department of Education, which teamed up to survey financial literacy in U.S. high schools, the future does not look bright. The average score on a financial literacy test administered last year was a 69 percent, which would barely qualify as a passing grade in most classes.
Education gap. Such low levels of financial literacy are no surprise, given the total lack of attention personal finance is given in American high schools. Fewer than half of all states require high school students to take an economics class, and fewer than 20 percent of states make their students take a personal finance class, according to a study from the Council for Economic Education.
Link between education and lower debt. Not surprisingly, the 13 states that do require their students to take a personal finance have much higher rates of financial literacy. And students who took these courses were much more likely to avoid credit card debt, according to sources.

Youth See Bleak Financial Picture

In addition to the low levels of financial literacy, a bleak economic outlook has also crippled younger Americans’ ability to secure jobs.

The unemployment rate among youth is higher than 12 percent, which is significantly higher than the unemployment rate for most Americans, which is currently hovering around 8 percent.

And this comes at a time when younger Americans desperately need income to pay their debt. The average student in the class of 2010 owes roughly $25,000 in student loan payments, according to The Project on Student Debt.

Moreover, the average person between the ages of 20 and 29 owes almost $2,000 in credit card debt. Many experts claim that poor financial literacy is directly linked to these disturbing levels of debt.

Rent to Own Auto Loans

May 7, 2012 By Steve Cypher

Consumers with less than perfect credit should not confuse rent to own auto loans with new car leasing or even loans that can establish their car credit

Credit repair

Credit-challenged car buyers needing a bad credit car should understand why a rent to own program won’t help their credit situation while some other finance programs will.

We understand their confusion here at Auto Credit Express because for over two decades we’ve been helping applicants with low FICO scores find a dealer that understands these credit situations. We even designed our website so that people with poor credit can review issues such as bankruptcy and income requirements as well as today’s topic, understanding the difference between the loans our dealers offer and those who advertise rent to own cars.

Car leasing

With traditional new car leasing, the payments are lower than retail auto financing because you’re only paying for the portion of the car that you use.

This means that for a 2 year lease, you’ll pay 24 months of interest charges plus the vehicle’s depreciation during that same period.

Since a typical new car lease doesn’t require a down payment, the person leasing the vehicle is usually “upside down” (the vehicle is worth less than the buyout) during the entire lease term. As a result, lenders consider leasing to be a higher risk than retail financing and usually offer this option only to the most qualified applicants – customers with very good to excellent credit.

Rent to own

Rent to own cars, on the other hand, are similar to a typical buy here pay here finance program. As such, loans taken out at a rent to own car lot require a down payment plus a fixed number of weekly or bi-weekly payments (with a small buy-out at the end of the contract). Like in-house financing programs, these payments are usually made in person at the lot where the car was rented.

Customers who fall behind in payments or who encounter other issues deal with the rental company regarding any payment arrangements. Failing to follow the terms of the rental contract will result in the rental company repossessing the car.

Like most tote the note dealers, the rental company has the option of whether or not to report loans and payments to the credit bureaus. Most do not. Not only that, but the vehicles available for rent are typically older used cars because most of these rental agencies are not franchised new car dealers.

The good and bad

Good:

•   Most rental vehicles are in the moderate to lower-price range and some people actually prefer to make payments on a weekly basis.
•   Rental payments are made face to face so you know your agent.
•   Many rental companies won’t run a credit check before renting you a car.

Bad:

•   Rent to own car companies typically won’t report loans or payments to the credit bureaus.
•   Because these rental vehicles are usually older, many are not that reliable. In addition, for many people, it’s usually not convenient to visit the rental agency every week to make a payment.
•   Rental terms typically range from 12 to 24 months, limiting the vehicle selection to lower-priced, older cars.

As we see it

Car buyers with poor credit scores shouldn’t confuse the term “rent to own” or dealers offering used car leasing with traditional new car leasing.

If you’re interested in cheap transportation without a credit check, then the rent to own cars dealer wins. But even with a credit score below a 640 FICO or a credit rejection from a traditional lender, you should only consider a rent to own or buy here pay here dealer after you’ve checked out another option.

We offer that option here at Auto Credit Express where we’ll help you locate a dealer for your best chance for an auto loan approval that can help rebuild your car credit.

So if you really want to get your auto credit on track, you can begin now by filling out our online auto loans application.

Woman Buys (And Renovates) ‘Wrong’ Mississippi Foreclosure Home

May 7, 2012 By Foreclosure.com

Just kidding!

First-time real estate investor Terry Jordan in Tate County, Mississippi, thought she scored a steal in Senatobia. Her husband recently lost his job, so the couple turned to the opportunity-rich distressed real estate market “to help them while they go through a tough time,” according to WREG.com.

They settled on a nearby fixer-upper that they hoped would generate quick cashflow. And by all accounts, did everything that most buyers are supposed to do, hiring a local agent, touring the property three times and then making an offer that was ultimately accepted.

There was just one problem: After sinking “thousands” of dollars into their newly-purchased investment property — new roof, electrical upgrades, etc. — the Jordan’s learned that they were sold “the wrong house.” Indeed, a post-sale property survey revealed that a nearby ‘pitiful’ home that is half the size and filled with mold, was actually the one that was legally purchased.

The agency that showed and sold her the “wrong” home has since explained that the mortgage company “gave them misinformation.” Nonetheless, at this moment in time, the Jordan’s are still without a resolution to the fiasco, owning a home they don’t want and having sunk thousands into another that isn’t legally theirs because of a very odd (and large) mistake.

And, in the process, giving new definitions to old familiar foreclosure expressions such as “buyer beware” and “as-is.”

Check out a video from the local news broadcast that details the sticky situation:

Filed Under: Foreclosure, News Tagged With: avoid bankruptcy, bankruptcy and foreclosure, Bankruptcy Attorney, bankruptcy lawer, Court, file bankruptcy

True Free Credit Scores

May 6, 2012 By Steve Cypher

There is at least one website where consumers can get a free credit score any time they want

The best things

Even credit-challenged car buyers might finish the above title with the words “in life are free.”

But we know this usually isn’t the case here at Auto Credit Express, where we’ve been involved in helping people qualify for bad credit auto loans through a nearby dealer for over 20 years. We even developed a web site so applicants understand aspects of the loan process including credit life insurance as well as today’s topic, how to get a free credit score.

Improving your karma

As far as free goes, you can probably count outdoor parks, the occasional art gallery and one credit report per year from each of the major bureaus. But practically everything else, including your FICO scores, requires that you cough up some bucks.

In the case of credit scores, that either means signing up for a trial version one of the services offered by either the credit bureaus or an outside company or making a one-time purchase at a cost of $14.95 (Experian) to $15.95 (Equifax) per month (try finding a price on the TransUnion site and good luck to you).

So this is what you were faced with. You were, that is, until San Francisco-based CreditKarma.com came onto the scene.

Here is how the company explained it in one of their initial press releases:

Credit Karma, a resource that helps empower consumers to actively manage their financial health, today (12/12/08) announced an agreement with TrueCredit.com, a leading provider of credit reports and consumer credit education, that will enable consumers to obtain their TransUnion credit scores at no cost. Both companies believe that it is more important than ever to provide consumers with the tools and information to better understand how lenders are evaluating them.

“Credit scores are being scrutinized more than ever before, so it is critical for consumers to know what their score is and how it’s likely to be viewed by a lender,” said Lucy Duni, vice president of Consumer Education at TrueCredit.com by TransUnion. “Since your credit score is derived from the data in your credit report, reviewing your report on a regular basis is also essential to gaining a truly holistic view of your overall finances.”

“We are proud to partner with TrueCredit.com to provide consumers with the chance to access their score for free,” said Kenneth Lin, founder and CEO of Credit Karma. “Credit scores are a window into one’s financial health, and Credit Karma remains committed to giving consumers free access to that score as well as educating them about the tools they can use to understand it.”

To obtain your free TransUnion score from Credit Karma, visit their web site at: http://www.creditkarma.com/

The catch

Since your free credit score comes from TransUnion, it’s important to remember that it can vary from bureau to bureau. This means the scores from both Equifax and Experian could be either higher or lower than the one you receive through Credit Karma.

One other thing that should be pointed out is that in order to receive your score from Credit Karma you have to endure marketing offers from various companies that are based on your credit score in order to view the results.

The flip side, however, is that by signing up you can also use the tools supplied by the web site to track your credit score as well as take advantage of the credit and finance information found on the site.

The Bottom Line

Even taking into consideration the marketing pitch hassles, one free credit score is better than none and it will give you a real idea of where you currently stand. From this perspective, maybe this does qualify as one of the best things in life.

Another thing that probably qualifies can be found at Auto Credit Express, where we forward your information to dealers that understand a wide spectrum of credit situations and can offer applicants their best chance for an auto loan approval.

So if you’re ready to reestablish your car credit, you can begin now by filling out our online car loans application.

Filed Under: Auto Loan Debt, Credit Repair, News Tagged With: auto loan debt and bankruptcy, avoid bankruptcy, bad credit, Bankruptcy Attorney, bankruptcy lawer, car loan and bankruptcy, Court, file bankruptcy, forgive car loans