Month: August 2018

Insights

How Can Debt Settlement Affect Your Credit Score

Dealing with any kind of past due debts can prove to be difficult. If you cannot afford to pay the amount in full, you can always negotiate for a lower sum payment or debt settlement with the creditor. Debt settlement generally means you will get into an agreement with creditors for paying less than stated balance, to satisfy your debt. But, when you settle the debt that’s on credit report, it might affect the score a bit.

More about debt settlements:

As creditors are unwilling to settle debts, which are serviced with time payments, you are always better trying to work the deal with some past due older debt. It is somewhat, which has been turned over to the collections department. It is counter-intuitive, but score drops less when you want to be delinquent in payments.

  • You can always negotiate debt settlement arrangements directly with a lender or just seek the help of a debt settlement firm. Through either one of the route, you can always make an agreement to repay the only portion of the outstanding debt.
  • In case the lender agrees, your debt is then reported to credit bureaus as paid settled. Even though this is better for the report than charge off, it will not bear the same old meaning as the rating that indicates your debt has been paid as agreed.
  • In the best case practice, you have to negotiate with creditor way ahead of time to have this account of “paid in full.” This is not going to hurt the credit score as much as you want.

How debt settlement affects credit score:

Most of the loan obligations and credits are highly reported to credit bureaus each month. The account status you have will be reported to show the status of either “paid settled” or “settled.” While a settled status is a bit better than the unpaid one, any status other than “paid as agreed” or “in full” will hurt your credit score in the end.

It is mainly because you are not paying full balance as agreed. So, debt settlement seems to have a negative impact on credit score.  The credit is solely based on various different factors. So, the exact impact on credit is subject to vary, depending on other information on a current credit report. However, it is hard to state whether debt settlement will have a significant impact on credit score or not.

Things mentioned by FICO about settlement and credit score:

There are some credit scoring companies, which are not going to give specified details about ways in which credit scores will be calculated or the specified activities, which might affect the credit score of a person. But, there is one point you will know.

  • In the year 2009, FICO released score loss information, which is solely based on two of the hypothetical consumers with various credit scores. In one case, the person with around 680 credit score would lose between 45 and 65 points after a settlement is covered for one credit card.
  • Then you have another person with 780 credit score and without any late payments, which might lose between 140 and 160 points. Your credit score might drop if you have any of the credit profile like the mentioned cases and when you are settling a single debt. If you are settling on multiple accounts, the score will drop a bit more.
  • You can easily predict the impact of late payment on credit score, with the help of the FICO Score Simulator. It is available whenever you purchase the Score Watch from the authentic sources only.

Late payments before the debt settlement procedure:

Debt settlement will easily hurt credit score more if the cards you are settling for already is in good standing and when you are looking for ways to settle multiple card account. There are multiple debt settlement firms, which will advise you to fall purposely behind payments to force the creditors to accept settlement payment on a debt. Lenders, on the other hand, will only settle debts which are at risk of never getting repaid. If you end up following the debt company’s advice, it means you will miss several months of not paying the lenders. This step, in turn, will hurt credit score even before you get to settle a debt.

Debt settlement based information is designed to remain on credit report for 7 years. But, those will have less impact on credit score as the information gets older. It will also change with some positive information adding up to your report.

Some major points to consider:

If you really want to know how debt settlement can affect credit score rating, you might want to catch up with debt settlement reviews for some help. The information provided will help you find some answers, even though the majority of it is covered already. However, there are some important points, which you need to consider.

  • Remember that settling multiple accounts will hurt you even more than settling only one account.
  • As with debts, larger balances will have a proportionately larger impact on credit score. In case, you are settling smaller accounts then the impact will be rather negligible. It is applicable if you are currently dealing with bigger loans.
  • If you are dealing with debt as old as 3 years, then using debt settlement might reactivate debt and will show the service on credit report as a current collection. So, always be sure to get this matter straight with the creditor before even finalizing any agreement.
  • In credit history, the most important part is the payment history where current accounts will hold the highest impact. If you are currently working on other debts, you must keep the present one in proper shape. That will make rectification a lot easier.
  • Debt settlement will be on credit report for 7 years. If it took place over 7 years ago and still showing on the report, you have to contact the lender and credit bureau to change the record and remove settlement status.

Remember to keep these points in mind before working with debt settlement firms. Gaining some knowledge beforehand will work for your credit report.

Insights

Some Common Personal Finance Mistakes You Must Avoid for a Hassle-Free Life

Your future financial health is largely reliant on the kind of financial decisions you are taking today. Remember a personal finance mistake could have its own repercussions and impact your future financial health. Here are a few common personal finance mistakes, you must avoid in 2018 for a financially secure life.

Mistake No.1: Not Keeping Track of Your Credit Score on a Regular Basis

Not monitoring your credit score and not bothering to get your credit report on a regular basis is a major financial error that you could make. Most people do not appreciate the actual importance of examining their credit score from time to time at regular periodic intervals. You must realize that your credit report may show some wrong information as a result of some clerical mistakes by the bureau, or by your lender or because of certain fraudulent accounts or credit applications in your name.

Remember not to take this sort of misinformation lightly. Treat these errors seriously as any kind of wrong information may hamper your loan eligibility in the future. Keeping constant track of your credit score and appraising the credit report periodically could help you detect such mistakes. If you monitor your credit score on a regular basis, you could build it over a period of time effectively through responsible financial behaviour.

Mistake No.2: Waiting for the Best Opportunity to Invest

Many people with lower-rate of savings or low incomes tend to delay all their investments until they obtain a relatively higher salary or are able to build an impressive corpus. However, you must not postpone your investments and grasp all opportunities to invest and gain financially. Remember postponing investments could result in substantial opportunity cost because of the actual power of compounding. In this context, you must understand that with compounding the returns you get from your investments could start to generate returns culminating in a much greater corpus. So start investing at once and try to stay financially disciplined.

Mistake No.3: Maxing Credit Cards

Remember higher utilization of your credit card limit could prove to be detrimental to your overall financial health. This would be adversely impacting your precise credit score and that may, in turn, affect your loan eligibility in future. It is a good idea to restrict all your credit card spending to 30 percent of the credit limit available to you. When you notice that you are breaching this limit quite often, it is best to put in a request for extending your credit limit. You may alternatively apply for an additional one. If you have crossed the limits of your credit cards and are not able to make the repayments, it is best to get rid of your debts by seeking professional assistance.

Mistake No. 4: Excessive Spending

Avoid being frivolous. Remember even great fortunes could be lost little by little. You may not think twice while choosing a pack of cigarettes or a double-mocha cappuccino, or have dinner in an expensive restaurant, but all these insignificant expenses seem to add up. If you are going through a financial crisis, it is best to avoid this gross mistake. If you are heading towards a bankruptcy or foreclosure, it is best to spend every dollar more carefully.

Mistake No. 5: Indulging in Endless Payments

 

You must be cautious while spending. You must deliberate and ask yourself if you are doing the right thing by spending on items that may not be your top priority and end up paying for these, month after month, and year after year. You must understand that certain things such as music services, cable television or expensive gym memberships could compel you to make endless payments. Remember when cash flow is restricted, you must lead a leaner lifestyle to boost your savings and safeguard yourself from financial hardship.

Mistake No. 6: Living Constantly on Borrowed Finances

Using your credit cards for purchasing essentials may seem pretty normal but you must avoid doing that for financial health. Many people are more than willing to high-interest rates on groceries, gasoline, and a number of other things that are all used up before the bill is actually paid in full. Do not forget that credit card rate of interest would be making the price of any charged item a lot more expensive. If you constantly depend on your credit card, you are more likely to spend more.

Mistake No. 7: Paycheck to Paycheck Existence

As per fresh statistics, it is believed that in March 2018, the household personal rate of savings was only 3.1 percent in the U.S.A. as per the Federal Reserve Data. Numerous households are today leading a paycheck to paycheck existence. They must be told that any unforeseen issue could surely become a major disaster if you do not buck up well in time. The cumulative effect of excessive spending would be placing individuals in a really precarious state, where they would be requiring every penny they are earning and if in case there is even one paycheck missing, it could prove to be disastrous for them.

Often experienced financial planners advise you to open a separate account where you keep an amount equivalent to three months’ expenses so that you could have access to that emergency fund if you lose your job or certain drastic changes that take place in the economy. If you do not think in advance and keep spending all your salary and lead a paycheck to paycheck existence, all your savings could be drained in no time and you would be experiencing the vicious cycle of debts and repayments.

Mistake No. 8: Not Following Any Plan

Remember your financial security and future relies on your current behaviour and lifestyle. You tend to spend a great deal of your time scrolling through your social media feeds or watching television, but you do not bother to spend just a couple of hours every week for some solid financial planning and evaluation of your financial situation. You must chalk out an effective financial plan that needs to be adhered to. You must constantly examine your financial situation. It pays to know about your current financial scene and exactly where you seem to be heading to.

Conclusion

If you wish to stay away from financial insecurity and the actual dangers of overspending, you must monitor all your insignificant expenses that seem to add up fast. Then consider keeping track of your big expenses as well. Be cautious before thinking of applying for a loan and adding fresh debts to the already extensive list of payments. Savings must be made a monthly priority. Devote enough time and effort in chalking out a sound financial strategy.

InsightsMartech

4 Useful Visual Effects That Can Help Marketing Videos Stand Out

Visual effects can be a powerful tool – when used carefully. With the right approach, you can make use of visual effects to make your marketing videos stand out so that they draw more attention and keep viewers engaged.

However the trick to doing that is to use the right visual effects at the right time – and that starts by knowing some of the more useful visual effects for marketing videos:

– Video filters

Essential filters will process your video and enhance its colours by stylizing it in some way. Different filters can produce vastly different types of looks when you apply them to your marketing videos.

Generally, filters are a popular way to make marketing videos look more polished. That being said you should take care to check how a filter affects your entire video before deciding whether to use it.

By using the same filter across all your marketing videos you can create a consistent look that viewers will start to associate with your brand.

– Split screen

As its name implies, a split screen effect involves dividing the screen into two parts with different videos playing on either side. In marketing videos, this effect is often used as a way to display the similarities or differences between products.

Although learning how to make great split screen videos may sound complicated, most editors are able to produce this effect. For example, in Movavi Video Editor it will only take a few clicks to apply.

It is worth noting that the split screen effect can create other visual illusions such as ‘cloning’ the subject by playing two videos with the same subject and an identical background.

– Chroma key

The ‘Chroma key’ effect is more widely known as the ‘green screen’ effect and involves recording videos against a solid-coloured background that will be replaced later with a different video. It can be useful in marketing videos because it will give you full control over the background.

Sometimes this effect is used in product videos to record the product separately and then place it onto a different background later. In other cases, it is used for webinars to use the entire video background as a projection screen of sorts.

– Slow motion

Slowing down videos can help make any actions that are being performed more visible, and some marketing videos may benefit from that. For example in a how-to guide or product demonstration, it could be used to more clearly display actions that would otherwise be difficult for viewers to notice.

It should be noted that shooting slow motion videos has specific requirements – and if your video frame rate is too low in particular its quality will suffer.

Before you use any of the effects listed above in your marketing videos, think about what it is you’re trying to use them for. As a rule, you should only ever use effects in marketing videos with a goal in mind – so start by defining that goal and then figuring out how to use the effect to best achieve it.