Credit card debt » Credit Counselor

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

Credit Card Debt: How To Control It

admin — Wed, 10 Mar 2010 14:59:13 +0000

A lot of people spend more money than they can afford to repay toward their credit card debts. To regain control over your finances and to manage your debt, here are some solutions you can try.

CREATE A SPENDING PLAN

In many cases, people design and then stick to a spending plan to get their debt under control. A spending plan is a guide for how much money you have and how much money you spend. Sticking to a realistic spending plan allows you to pay off your debts and save for the proverbial rainy day.

CREDIT COUNSELING

Many universities, military bases, credit unions and housing authorities operate nonprofit financial counseling programs. Even though some may be called non-profit, a fee may be charged for their services.

Creditors may be willing to accept reduced payments if you’re working with a reputable program to create a debt repayment plan. When you choose a credit counselor, be sure to ask about fees you will have to pay and what kind of counseling you’ll receive.

A credit counseling organization isn’t necessarily legitimate just because it says it’s nonprofit. You may want to check with the Better Business Bureau for any complaints against a counselor or counseling organization. DECLARING

BANKRUPTCY

Bankruptcy is considered as an extreme last resort credit solution. Unlike negative credit information that stays on a credit report for seven years, bankruptcies stay on a credit report for 10 years.

Bankruptcy can make it difficult to rent an apartment, buy a house or a condo, get some types of insurance, get additional credit, and, sometimes, get a job. In some cases, bankruptcy may not be an easily available option.

WHEN TO CONTACT CREDITORS

If you’re having trouble paying your bills, contact your creditors immediately. Tell them why it’s difficult for you, and try to work out a realistic modified plan that reduces your payments to a more manageable level.

Don’t wait until your accounts have been turned over to a debt collector. At this point, it may be too late. Take action immediately and keep a detailed record of your conversations and correspondence.

USE CAUTION WITH DEBT COUNSELING

Turning to a business that offers help in solving debt problems may seem like a reasonable solution when your bills become unmanageable.

Be cautious. Before you do business with any company, check it out with your local consumer protection agency or the Better Business Bureau in the company’s location. One rule to remember is that if a credit repair offer seems too easy or just too good to be true, it probably is too good to be true. And knowing your rights can help you steer clear of rip-offs.

As you try to take control of your credit card debt, be on the lookout for advertisements that offer quick fixes. While ads pitch the promise of debt relief, they rarely mention that this relief comes in the form of bankruptcy.

Because bankruptcy stays on your credit report for 10 years and hinders your ability to get credit, it’s important to ask for details before agreeing to any debt-relief services.It’s a good idea to check the information found in your credit report at least once a year.

Since credit reporting agencies don’t share files, you’ll need to contact each reporting agency to make sure the information about you is correct. The three major credit reporting agencies are: Equifax (1-800-685-1111); Experian (1-888-397-3742); TransUnion (1-800)-888-4213.

By: Jamie Madison

Worried About Getting Sued Over Credit Card Debt?

admin — Thu, 03 Sep 2009 06:00:54 +0000

Credit card debt can sneak up on you. You miss a payment or make a couple of late payments, and before you know it, your minimum monthly payments add up to several hundred dollars a month and your creditors are threatening to sue you over credit card debt.

Credit card holders who are afraid they are going to get sued over their credit card debt have at least three alternatives available to them: they can declare bankruptcy, they can use a credit counseling service, or they can reduce their credit card debt by cutting back on expenses and applying the savings to their balances.

Is Bankruptcy For You?

If your debt is overwhelming and your circumstances make it virtually impossible for you to repay it, bankruptcy may be an option for you. Consult with an attorney specializing in bankruptcy to find out if filing bankruptcy would reduce or eliminate you credit card debt. At a minimum, filing for bankruptcy may fend off a creditor who is threatening to sue you over credit card debt. Filing for bankruptcy may also buy you some additional time to pay off your credit card debt by allowing you to restructure all your debts and reestablishing the minimum amount you pay to each creditor.

Bankruptcy is a drastic step that can have a negative impact on your credit rating for many years to come. You should not consider declaring bankruptcy until you have consulted a bankruptcy attorney and carefully weighed all your other options. Explore all your options!

Is Credit Counseling For You?

If you are concerned that you may be sued over your debt, one alternative to bankruptcy is to consult a credit counseling service. A counseling service will assess your income and your debts and approach your creditors on your behalf to make alternative payment arrangements. You make one monthly payment to the credit counselor, and the credit counseling service pays your creditors for you, per the agreement they made for you.

Making payments through a counseling agency may mean that your credit report reflects late or delinquent payments; however, these ratings are not as detrimental to your credit and do not last as long as filing for bankruptcy.

Cutting Back On Expenses

Before you consult a bankruptcy attorney or a credit counseling service, make an honest assessment of your monthly expenses and see what you can cut back on. If you are making a car payment, consider whether you could do without a car for a year or so. By applying you monthly car payment and auto insurance premiums to your credit card bills, you can substantially reduce your debt in a relatively short period of time.

Communicate with your creditors. If they know you are serious about not getting sued over your debt, and that you are willing to sacrifice your personal convenience by giving up your car for a year to pay your credit cards off, they are more likely to work with you than to sue.

By: John Stevenson

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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