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Credit Cards For Bad Debt – 5 Steps to Improve Your Situation

admin — Thu, 23 Sep 2010 09:46:03 +0000

With the world in financial meltdown, its important to ensure your finances are as good as you can make them. But what if you have a poor credit rating or a history of bad debt? It’s still possible to take positive action and improve your situation. If you do nothing then the situation will worsen – the credit card and loan companies structure their products this way. So doing nothing will not help. So here is what to do:

Step 1: Decide to take positive action. This is, for most people, the hardest step to take. They stumble along and hope that the situation will improve and that their creditors will take pity on them and wave a magic wand. It won’t happen. Financial products are designed with terms and conditions that continually penalise unless you take action and understand the rules.

Step 2: One major thing you have to keep in mind is your creditor is probably very willing to work with you. Its in their best interest to have you making some payment versus no payment at all. So the first step is to contact them – be polite but firm. Tell them about your situation and that you want to take positive action to improve the situation. Ask for a lower interest rate or a repayment plan. You may get a poor response but persevere and put your request in writing – it’s then a permanent record of your willingness to work with them to resolve the problem and its likely to get a better response.

Step 3: STOP using your credit cards. Do what you have to do, cut them up, bury them, freeze them, anything as long as it stops you using them. Any spend on credit (a socially acceptable word for debt) will make the matter worse and if you are already a bad risk because of previous situations then you are likely to be paying heavily for the right to spend money you don’t have – probably over 30% APR (Annual Percentage Rate) or even 40%. This will cost you huge amounts in interest.

Step 4: Decide to reduce your debt. Take a sheet of paper and list your debt in order of interest rate. Include all loans and credit cards, together with the APR being applied to each. Start paying the ones with the highest interest rate first and work down the list. Concentrate on those high interest rate cards by paying more than the minimum balance each month. If you pay the minimum it will take you years to clear the debt. It doesn’t matter how much you pay, just pay as much as you can possibly afford over the minimum required. Pay the minimum on the other cards and debts until the one with the highest interest is paid off, then start on the next highest.

Step 5: Keep going! Again, easier said than done but if you work consistently down the list you will eventually be debt free. Treasure that moment since you will be one of a tiny minority who have no debt. You can then spend your money on what makes you happy and start to build the life you want.

By: Colin Hardwick

Credit Card Debt Negotiation

admin — Wed, 21 Jul 2010 00:09:33 +0000

Struggling with your Credit Card Debts can leave you tired, frustrated and deeper in debt than you were to start with. If you have admitted to yourself that you are in debt then you are ready to start to move yourself into a more beneficial situation. This is where credit card debt negotiation comes into play.

The first thing you need to do is contact your credit card company, if you have been struggling with payments then they will probably be contacting you on a regular basis but do not wait for them to call you get on the phone and talk to them first. Many people are worried that when they call they will be told that there is no hope. This is not true it is within the Credit companies best interest to help you out of debt and put you in a better financial situation, that way they can try and get you to spend more on your card (Which you are not going to do once you are out of debt are you?).

When you call them tell them your situation and ask them what they can do for you, if they say nothing then you need to move onto the next stage which is to get credit counseling. A credit counselor will assist you in your credit card debt negotiation. They will help you create a budget as well as work with creditors to reduce your monthly payments, finance charges and late fees if you have accrued any.

A credit counselor will not only look at your credit card debt negotiation but also allow you to pay them one simple payment for them to distribute between your creditors. There is normally a one off fee but in many cases this is waived.

Do not continue to struggle on with your debts you will only end up deeper in than you are right now, your debts an also have an effect on your health and relationships. Credit Card Debt Negotiation is something that you need to do in order to live a more care free life.

By: Steven Turner

Learn How Credit Card Debt Settlement Can Work For You – Part I

admin — Tue, 20 Apr 2010 11:05:28 +0000

Credit card debt settlement is where you contact your credit card companies and negotiate to literally pay pennies on each dollar owed to them in one lump sum, hence the settlement. So how do you do so to your advantage?

In this case you may decide to sit down with a debt consolidator and go over the exact amount of money you have to work with and the amount of credit card debt you have to pay off. This may work well with a debt consolidator or a credit counselor as they can sometimes negotiate more of a deal for you.

However, if you decide to go it alone and try to work out the best deal for yourself then you want to make sure that you get the deal that you want. Remember that you do have an advantage here as you have what the creditor wants and that is money.

The main thing is not to give in when they give you the first no. Stay calm cool and collected and above all don’t get angry with them as this will get you no where. Make sure to try to do your negotiations in writing so you have a paper trial to back up what they have agreed to.

So how much do you offer?

Let’s take a look at how much the collection agencies really make off of your debt. For debts that have recently been charged off, they get 6 to 7 cents on the dollar. For accounts that are a bit older and have been at a few collection agencies, they get 1

Seeking Credit Card Debt Relief After the Holiday Season

admin — Sun, 17 Jan 2010 03:00:04 +0000

Many people find themselves seeking much needed credit card debt relief after the holiday season. Unfortunately the stores make everything look so tempting and often times the thrill of pulling out that Visa or MasterCard and charging it can get us in trouble. This article will look at some simple steps method you can use to avoid that credit card crunch.

The first step in seeking credit card debt relief is to make sure that you have enough funds each month to pay at least twice the minimum payment due. By doubling up this minimum payment you’re able to gain control of your principal much quicker.

If you find yourself reeling in debt, and it’s simply not possible for you to get control, and there are some things you can do. You need to make sure that you first make contact with your Credit Card Company and see if you can’t negotiate a settlement.

If your debt has piled up quite high it is not uncommon for the credit card company to relieve you of up to 50% of the total balance owed. They will often times be so gracious to even drop the interest owed in order to help you to get the credit paid off quicker.

If you’re not in desperate need of making a settlement with the credit card company there are some things you can do to make a little bit of extra money to help alleviate your debt. You may find it by just taking on a small extra job you can eliminate your debt very quickly.

Credit card debt is not a bad thing, as long as you do not allow it to pile up in control you. If you’re having a difficult time getting control of your credit card debt relief you may need to seek the help of a credit counseling specialist.

By: Tom Turner

Credit Card Debt: Coping Tips

admin — Thu, 13 Aug 2009 21:22:49 +0000

As interest rates rise and the economy slows down, many people find themselves in over their head, especially when it comes to their credit cards. Here are a few tips for coping with your credit card debt.

First, cut up your credit cards and don’t use them again until you’ve regained control of your situation! Then create a budget for yourself and your family. Be realistic and totally honest in your appraisal of what you really need to spend money on, and how much money you’re bringing in every month. Make trade-offs wherever you can to bring the income and expenditure columns into agreement. And don’t forget to include saving, if it’s at all possible.

If you’re already in deep, contact your creditors. They’ll actually appreciate your effort, since most folks turn and run scared when they begin experiencing financial difficulties. Tell your creditors what you can pay, but be honest and then stick to that proposal. You’ll find that they’re generally quite willing to make special arrangements to help you regain control of your financial life.

Try to work out repayment plans with your creditors before they turn your account over to a collection agency. That means they’ve given up on trying to get their money from you. If your account has gone to an agency, there are Federal regulations that prohibit them from bothering you excessively, threatening you, or making false assertions in order to collect your debt. Even when you’ve that far in arrears, you still have rights.

Regardless of where you are financially, it’s worthwhile to contact a credit counselor for help and suggestions on how to approach your problem creatively and responsibly. Many of them can help work out deals with your creditors that you might not have been able to accomplish on your own.

A word of caution about credit counselors: never pay a monthly fee to a counselor for their services, and never believe that someone can repair your bad credit in a simple, easy way. It can be dangerous, both for your pocketbook and from a legal standpoint, and the repercussions can be severe.

If you’re simply too far in debt to get back on your feet again, bankruptcy can help, but it should always be your last resort. A bankruptcy will stay on your credit report for seven years, and can affect your ability to get loans and credit cards for a long time to come.

Nearly everyone gets into financial trouble at one time or another, but if you face your own money problems head-on, you can regain control of your financial life.

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