Credit verus Debt
Secured And Unsecured Debt. What's The Difference?
It’s easy to just think that debt is just debt, but in reality, there are different types of loans, and it’s important to know what which type you have.
You will need to understand the differences in order to be a good money manager, or, if the worse happens and you find yourself turning to credit or debt counseling, you’ll need to understand how different types of debt can be handled. Let’s take a look at two types of debt; secured and unsecured loans. Secured debt is a loan that has something attached of value attached to it—this is called collateral. The most common examples are car loans and mortgages.
Collateral can be cash or the item (or items) that you borrowed in order to get. (For example, your car.) With secured debt, if you fall behind on your payments, the collateral can be repossessed and the lender will sell it in order to collect the money that they are owed. But that doesn’t always put you in the clear, in reality, even if the collateral has been repossessed or foreclosed on and sold, you may still remain liable for any balance remaining until the entire amount of the loan is paid off. Additionally, with secured debt you cannot negotiate payments or any restructuring through credit counseling, and oftentimes you won’t be able to discharge the debt by filing for bankruptcy. On the other hand, unsecured debts act totally different. Most people associate unsecured debt with a credit card or a personal loan without collateral. But it can also be a commercial debt or a medical debt. Essentially, this type of loan is structured around a good credit history and a personal promise to re-pay the loan. There is no collateral on this type of debt, and the creditor has no assurance – other than your agreement to repay on pre-determined terms – that they will get paid. If you fall behind on one of these debts, a lender can send your account into collections and take legal action. More often, they will attempt to try and work out a reasonable debt settlement.These debts and loans can be discharged, or restructured in bankruptcy or through credit counseling. The bankruptcy laws are changing. Because of the lender’s risk factor, you will generally pay a higher interest rate on these types of loans.Most people have a mixture of both secured and unsecured debts, and both should be managed with the utmost care and concern. Many times, someone just starting to build their credit history will have to prove themselves with a few, small unsecured debt loans and re-payments in order to qualify to buy a home or a car (secured debt). But overall, the most important thing is to treat each one as it is; a potential good mark that will improve your credit rating.
Copyright 2005 Laurie Palmberg

Buying a new car
A new car is second only to a home as the most expensive purchase many consumers make. That’s why it’s important to know how to make a smart deal. Think about what car model and options you want and how much you’re willing to spend. Do some research. You’ll be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.
Plan to negotiate on price. Dealers may be willing to bargain on their profit margin. Usually, this is the difference between the manufacturer’s suggested retail price (MSRP) and the invoice price. Because the price is a factor in the dealer’s calculations regardless of whether you pay cash or finance your car — and also affects your monthly payments — negotiating the price can save you money.
Consider ordering your new car if you don’t see what you want on the dealer’s lot. This may involve a delay, but cars on the lot may have options you don’t want — and that can raise the price. However, dealers often want to sell their current inventory quickly, so you may be able to negotiate a good deal if an in-stock car meets your needs.
Be prepared to walk out of the door if yoou don't get the deal youy want.

Did you know you can get a free credit report every year?
Many people don't know what is on their credit report until they apply for credit, and are often denied due to inaccurate information on their reports. The 3 major credit bureaus now offer each person the opportunity to receive one free copy of their credit report each year.
Even if you think you have perfect credit, or don't use credit often, it is a good idea to review your credit report each year to make sure it is accurate.

go to: www.nothing-but-info.com for more information