Essentially Home Loans Weblog

What to do? Your credit has become damaged! Well, don’t stress yet, everyone’s credit needs help from time to time. If you want to build credit, it’s important to resolve credit trouble before it becomes a huge issue. Follow these steps to learn how to communicate with creditors and credit bureaus. So how does credit become damaged in the first place? Any time a debt is paid late (or fails to be paid) your creditor will attempt to collect the unpaid debt. Most people have several different creditors-which may make credit communications tricky. At some point during the collection process your creditor will most likely report the issue to one or more of the 3 major credit bureaus. All of the reports from creditors make up your credit report and help to determine your credit score. A negative credit report will result in damaged credit.

Results of some studies show that a considerable number of people spend nearly 10% more than what they earn every month, and this overspending often causes them to be in debt when they do it repeatedly each month. Soon the time comes when they have to face serious credit difficulties.

The term first party collections refers to any collections that are performed by the company to whom the debt is owed. You may not have realized it, but any time you call a client and ask them to pay up on a bill or send a reminder notice, you’re doing first party collections. Some large companies go as far as to open their own collection agency as a subsidiary to handle this.

Whether you do your own debt collection or hire it out to a third party collection agency or collections consultant, at some point collections issues will affect your business. If you know the steps in debt collection you can handle it quickly and efficiently regardless of whether you do it yourself or farm it out.

Sub-prime lenders are using heavy handed approaches in order to manage borrowers who are falling into arrears. This, coupled with bad advice from brokers as well as irresponsible lending decisions, is making things a lot harder for some borrowers. Many of the regulatory safety nets set up by the Financial Services Authority (FSA) are failing [...]

One of the UK’s leading charities has stated that sale-and-rent-back property schemes are a disaster waiting to happen and something needs to be done sooner rather than later. The claims come from the Citizens Advice Bureau who have called for more official regulation of firms involved in the scheme. Currently firms are simply buying the [...]

There have been increasingly strong signs that the property market is heading towards a slowdown. The first shock to hit the housing market last summer was the sub-prime lending crisis that resulted in banks tightening up lending criteria and following stricter conditions on extending bad credit loans to borrowers with poor credit history. The slowdown [...]

Abbey, Britain’s third biggest mortgage lender, has come under heavy criticism for adding to the nation’s personal debt problems by launching a new mortgage that is worth up to 125% of the sale price of the property. This is the biggest of its type loan to be offered by a UK bank and is secured [...]