Statepay.com — helpful resources for your immediate financial need

Tools to teach you how to stretch your dollar and make smart financial choices.

It's often said that if you fail to plan, then you plan to fail. This is why one of the best choices you can make is to develop a plan for your finances. Careful financial planning will help you keep track of and stretch your dollars, which makes it easier to stay out of debt and meet your financial obligations. While you may not know how to develop a financial plan, it is not difficult. All you need is the right tools (like a budget worksheet), an honest approach (such as recording ALL expenses and sources of income) and being able to set priorities on what to spend on and how to save.

So, where do you start? Well, it is good to remember the old saying: how do you eat an elephant? A bite at a time! Start by breaking down your financial plan into smaller chunks. For example, instead of trying to put together a financial plan for the year, break it down into quarters (90 day cycles) and then break that down even further into two months (60 day cycles) and then into a monthly financial plan (30 day cycles). This way you gain control over your expenses and are able to better plan for the next short financial cycle that you face. Remember, there are tools to help you do this, so don't feel you must go it alone!

Statepay.com is here to partner with you in your financial planning. We have some of the best resources available to help you think through, plan and prioritize your finances to create a short-term financial plan. Be sure to take a look at a some resource below as you go through the process. As always, Statepay is here to assist you as you regain your financial health, let us know how we can help, call us today at 1-800-998-5505.

Save Money by Consolidating Your Debt

If you are in debt, you are certainly not alone. According to the Federal Reserve Board, about 44% of all Americans are in debt. If you owe an amount that has three or more zeros attached to it, then you need to get help from a credit repair service in the form of debt consolidation and debt settlement. It's no shame to be in debt, especially these days. However, it is a shame if you don't try to get any help to get out of bad debt.

All Debt is Bad, Right?

This may sound very strange, but you need to separate good debt from bad debt. What exactly is good debt? Well, things like student loans, mortgages or business loans would fall under this category. Bad credit? You guessed it, credit card debt! You can use debt consolidation for both the so-called "good" as well as "bad" debt.

What is Debt Consolidation, Anyway?

It's not the principle (what you owe) that hurts in paying it back; it's the interest that your lenders or credit card companies charge for giving you that principle in the first place. You could wind up paying twice the amount of the original loan just because of interest. This is where debt consolidation best helps.

When you get a debt consolidation loan (known by a variety of names with "consolidation" somewhere), the credit repair service pays off all of your debts. Wait you're not off the hook yet. You now owe the credit repair service all of the money they paid off. However, you pay a lot less in interest since you debt consolidation.

If you have more than one company to pay back (say if you have multiple credit cards) then instead of having several payments a month (all with their high interest chains), once you decide on debt consolidation, you only need to worry about one payment a month to the credit repair service.

What About Debt Settlement?

Debt settlement is often a part of what non-profit credit repair services offer you. You can also try this on your own, but if you don't have experience as a banker or a schoolyard bully, let a professional do this. They call your creditors (like your credit card company) and hassle to bring down the cost of the loan, which they will then pay. Theoretically, if you owe $10,000, you could wind up now owing $5000. That $5000 is your debt settlement.

Why would places like banks and credit card companies go for debt settlements? Actually, they have a lot of incentive to do so. They would rather get at least some of their money back than none of their money back. Both debt consolidation and debt settlement are options which you should consider.

Urban Myths About Debt Settlement:

A lot of people who could be legally helped by debt settlements shy away from them because of some common urban myths about them. These include:

"The collectors will call me all the time!" Actually, the debt collectors will call LESS when you have a debt settlement. Your credit repair service notifies your creditors, which notify the debt collectors they employ.

"I'll get sued!" Having debt settlement proves that you are willing to pay something instead of running off to Mexico.

"The taxes will kill me!" The taxes aren't as bad as those killer interest rates, and you might not have to pay them this year. The IRS will make you pay a tax on anything over $600 in forgiven debt. You need to check with your credit repair service for the not-so-gory details.

"Better to go bankrupt." Now that will really kill your credit rating for seven to ten years. Bankruptcy should only be a last resort.

Both debt consolidation and debt settlement will allow you to get your debt under control and to start making responsible payments towards paying off your debt. To find out more if debt consolidation or debt settlement is right for you contact Statepay by calling 1-800-998-5505.

Mission Possible: Improving Your Credit Score

Few things in life are as far reaching and a measure of your financial health as your credit score. Whether you are applying for a job, trying to get a much needed loan, renting an apartment or buying a car or a home, no other factor has as much influence on the outcome as your credit history and credit score. So, what is YOUR credit score? Where do you go to find out? Do you know what the number means and how to improve your credit score?

A person's credit score and history are a record of his/her borrowing and repayment habits. Borrowing credit is not a problem. Being late with payments is. To have a good credit history, you'll want to demonstrate your ability to pay back debt in a timely manner, or your credit worthiness.

Your credit score tells the world your credit reputation, or credit worthiness. The first step to improving your credit reputation is to know your credit score.

As a consumer, it's your right to know what others see when they request your report. If there's anything to dispute, it's vital that you address it quickly and to remove it, when possible. The dispute can be over a mistaken charge for something you never purchased to activities associated with identity theft. Criminal activities such as identity theft are on the rise, so you need to be vigilant about your credit history and act fast to minimize any potential damages to your credit history.

Just the Facts!

As for your credit report, the data is collected by credit bureaus from a variety of sources, including businesses, utility companies, and debt collectors. In the United States, the three major credit bureaus are Experian, Equifax, and TransUnion, all of which have their own algorithm for calculating a credit score. Although it may be a headache, it's wise to obtain your credit score from each of them. Statepay can help you obtain and improve your credit score. Simply complete the form on this page and/or call 1-800-998-5505 to get started.

When to check a credit report?

It's advisable to check your credit report and credit score once or twice a year. However, there are special cases when you should research it immediately:

• Prior to applying for a major loan, such as a house, boat, etc.

• When there's a dispute over a charge and you need all the facts.

• When you're set to improve/repair your credit. You can't get to where you want to go if you don't know where you are with your score.

Also, if you're denied credit or are subject to a higher interest rate, you're entitled to review your credit report. You can request your report (for free) within 30 days of the decision. In truth, there really isn't a downside to checking your credit history and credit score often, but there could be one if not checked often enough.

What's in a credit report?

Your credit report will have an overview of your debt, purchases, and record of repayment. Did you miss any payments? Are you always on time? These are indicators that help lenders, renters, and potential employers assess your credit worthiness and any risk involved in doing business with you. Request your credit report today!

It's a Numbers Game

As for your FICO (Fair Isaac and Company) credit score, it can be anywhere between 300 and 850 points. On average, a consumer's is typically within the 600-700 range. Approximately 50% of us fall in this area, with 20% being between 745 and 780 and 20% excellent above 780. You'll want to aim for a credit score above 650, at least. If so, you'll likely be offered a fairly low interest rate on loans. Those who fall below 620 will likely pay the highest.

Though each credit bureau calculates its credit score differently, the main elements are the same:

• Your payment track record

• Your outstanding debt

• Your established credit

• Your record of new credit

• Your existing credit accounts

Ready, Set, Improve Your Credit Score!

If you wish to improve your credit score, begin by addressing the above points. The most important thing you can do as a consumer is to remember to repay your debt in a timely manner. Perhaps the biggest mark against any credit record is late payment.

Though it will definitely take time, it's indeed possible to right a poor credit score. You'll want to slowly, but with confidence, rebuild your history in to one that will demonstrate to creditors that you're on the right track. On-time payments, responsible use of credit cards, and a sustained lowering of debt owed are all clear signs that you're moving in a positive direction. Statepay can show you how, call 1-800-998-5505 or complete and submit the form on this page to get started on your path to improving your financial health.

Just remember that your credit history and score may reveal your past, but they also indicate your present and future. If your credit habits have improved over time, your credit report and score will reflect that. A 625 today may be a 675 this time next year. It's entirely possible, one step at a time!