Credit card debt » Creditors

Effectively Eliminate Credit Card Debt

admin — Sat, 25 Dec 2010 08:46:28 +0000

First and the foremost thing that hovers around in our minds, when we are in a tight debt situation is how to completely eliminate credit card debt. Harassing collection calls, mounting liabilities, and bad credit score is enough to drive anyone crazy. To avoid such a harrowing situation, it is wise to go in for consolidation solution and legally eliminate your dues forever.

Credit Card Companies On A High

Seeing the data of the profits earned by the credit card companies, one can well imagine the huge interest earned by these companies in short span of time. In 2006, credit card companies earned USD 90.1 billion in profit from interest charged to customers on their cards. Not only this, they also earned USD 55.2 billion by charging various fees to the customers, in addition to the heavy interest.

If you are late, only by a day in paying the minimum amount, the credit card companies impose heavy penalty and charge almost double as interest. This actually amounts to extortion and burdens the consumers, even more for those already deep in crisis. These companies specialize in exploiting your debt burden.

To get rid of the financial mess, you have to look at various options, if you finally intend to pay off the entire debt amount and breathe easy for the rest of your life. An easy option to achieve it is credit card debt consolidation.

Easy Installments Is The Key

To legally eliminate pending dues, it is always wise to go in for credit card consolidation, by getting a loan from the bank for the entire amount to be paid. Later, one can pay off the loan in easy monthly installments, according to your own convenience and pace.

You might also qualify for a home equity loan or line of credit, if you have a moderate credit. This way, you can reduce the interest amount that you need to pay up. Thereby, reducing the number of creditors and gradually eliminate credit card debt. Just a single monthly installment is all that is required from your side. Pay religiously and see that you will shortly meet all your financial goals.

Practicing credit card consolidation can surely rid you of all your woes and completely eliminate pending amount. So, spend wisely and do not be obsessive-compulsive buyer, this way, you will be saved from the vicious cycle of debt.

By: Asheesh Mani

Credit Card Debt Elimination

admin — Mon, 11 Oct 2010 19:13:55 +0000

Sure, you’ve heard of people talking about eliminating credit card debt with a consolidation loan, but does it really work?. The answer is YES, it is a useful tool that can help if you are in a situation with your credit card debt that you can’t handle alone.

If you are in credit card debt and have recently received an interest rate hike due to making a late payment, or even if you just wish to eliminate your credit card debt, a credit card consolidation loan may be just what you need. Credit counselors are available to discuss your individual situation too see if you might qualify for one of their credit card debt consolidation programs.

Credit card consolidation has it’s advantages and by qualifying for one you will receive a lower interest rate than what you are currently paying now. If you have been late on your payments and your creditor bumped up your interest rate as a result, you will save money just from the lower interest rate right from the start. With a credit card consolidation loan you may also find that your creditors will waive your previous late fees and other fees for exceeding your credit limit, and this alone could save you a lot of money.

One of the best benefits of debt consolidation is that your payments are now all combined into one manageable payment for you to make every month. Most times the amount required to pay back a credit card consolidation loan is less monthly than the amounts you were paying before you entered the program. This will help you to drive your debt down faster and allow you to pay off more of the balance each month. Qualified participants discover that they can wipe out their credit card debt in five years or less, where before it seemed like you would be paying them off until the day you die.

By: Zach Ford

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

The "Credit Card Debt Termination" Scam

admin — Sat, 18 Sep 2010 12:40:39 +0000

“Legally terminate credit card debt! You can be debt-free in 4-6 months!” Advertisements like this are for a new type of program that has spread via the Internet over the past few years. It’s called “Credit Card Debt Termination,” and victims are paying $1,000s for this bogus service. One victim I spoke with lost more than $15,000! In this article, I’ll review the principles behind this program and explain exactly why it’s a scam to be avoided.

First, let’s get our definitions straight. The scheme I’m describing here should not be confused with Debt Consolidation or Debt Settlement (also known as Debt Negotiation), both of which are legitimate and ethical methods for debt resolution. The easiest way to distinguish the Credit Card Debt Termination scam from other valid programs is based on the central claim that you really don’t owe any money!

With Debt Consolidation, you pay back all of your debt balances. With Debt Settlement, you pay back a lower amount (usually around 50%) while the creditor agrees to forgive the remaining balance. However, with the bogus Credit Card Debt Termination program, promoters claim that you won’t need to pay anything at all (except their outrageous fees, naturally). They make the surprising claim that you can legally wipe away your debts simply by using their super-duper magic documents. Based on some legal mumbo-jumbo, the claim is made that you really didn’t borrow any money from your creditors!

In order to understand this scam, a little background is necessary. Remember the tax protest movement back in the 1970s? People were claiming that the IRS tax collection system was unconstitutional, and based on their misinterpretation of the tax code, they refused to pay taxes. The IRS came down hard on the tax protest movement, and through the court system, they blew holes in all the legal arguments put forth by the protesters. The Credit Card Debt Termination scam is a lot like the tax protest movement. In fact, among collection professionals, it’s called the “monetary protest movement.”

Just like the tax protest movement, there is a common theme that runs through all of the promotional materials issued by the monetary protestors. The basic idea is that our Federal Reserve monetary system and generally accepted accounting principles (GAAP) do not permit banks to loan out their own money. Therefore, according to their interpretation, the credit card banks are the ones running the scam on the American public.

Stay with me here, because the logic is pretty strange. If a bank cannot lend its own money, how does a credit card bank extend credit? The claim here is that your credit card agreement itself becomes a form of money (known as a promissory note) the moment you sign it. The idea is that the bank “deposits” your agreement as an asset on their books, and then any credit you use is offset as a liability against that asset. In other words, the core concept here is that you literally borrowed your own money from the credit card bank.

So let’s say your balance with ABC Credit Card Bank is $10,000, which you borrowed against the card to make everyday purchases. The scam promoters say all you need to do is notify the bank that you want your original “deposit” back. However, you will permit the bank to offset the amount you borrowed against the amount you have on “deposit.” Presto! You don’t owe the balance anymore!

Now, as you can imagine, the banks don’t take kindly to such tactics. Many of the consumers using this technique are getting sued by their creditors. But the scammers have more tricks available, as if the “smoke and mirrors” financial nonsense wasn’t enough. One of their techniques is the use of bogus “arbitration” forums. Arbitration is of course a legitimate system that allows businesses and individuals to resolve disputes without going to court. What do the scammers do? They coach people on how to set up a fake arbitration forum, for the express purpose of making a dispute against their creditors! Naturally, the creditors will not send representatives to some non-existent arbitration forum, so the consumer gets to rubber-stamp their own arbitration award. If they get sued in a regular court, they present their bogus award to the judge in the hopes that the creditor’s lawsuit will be dismissed.

There are other techniques used by promoters of this scheme, but the key point to remember is the central claim that your credit card debt does not really exist. Of course, it’s all nonsense based on a misinterpretation of our monetary system, and if you step back and think about for a minute, the truth seems pretty obvious. What these scammers are saying is that the entire $700 billion credit card industry is operating on an illegal basis! Even if the legal theory used by the promoters were true (which it isn’t), do you think for a moment the government would allow this giant industry to go under? That’s exactly what would happen if the promoter’s claims were proven true and used on a widespread basis.

The Federal Trade Commission, which has jurisdiction here, hasn’t stomped on these con artists yet, but it’s only a matter of time. Unfortunately, in the meanwhile, consumers are being bilked out of millions of dollars for a worthless program that will only get them into deep trouble with their creditors. If you are approached by someone offering to wipe away your debts using this system, I strongly recommend you run in the other direction while you hold on tightly to your wallet or purse.

Remember, you can eliminate your debts if you take a disciplined approach to your finances, make a budget and stick to it, and don’t use your credit cards unless you can pay off new balances in full each month.

Good luck in your financial future!

By: Charles Phelan

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

What Happens If I Don’t Pay My Credit Card Bills?

admin — Mon, 05 Jul 2010 09:50:52 +0000

When facing amassing credit card debt, it is not uncommon for many individuals to ask “Why pay my credit card bills?” Granted, while this option is there and it may give you some extra cash for a few months, here are a few of the major repercussions you might be facing should you decide to go delinquent on your monthly payments:

1. Creditor/Collection Calls:

This might be the worst part of a delinquent debt-the constant calls from creditors demanding their money. Collectors have been known to call 8-10 times a day, at home, at work, on your cell phone. And these are the ones who follow the rules. Creditors have been reported to speak to bosses, neighbors, and family members (which of course is illegal). Once they get you on the phone they can be even worse. They use a number of psychological techniques to demean you and force you to give them checking account numbers or other bank information. In other words, they will do anything they can to make you pay. (Please keep in mind that your rights are protected by the Federal Trade Commission. To find out more information, please consult the Fair Debt Collection Practices Act.)

2. Damaged Credit Score:

Creditors will begin to report missed payments to credit bureaus which will inevitability have an affect on your credit score. These marks can be removed once a settlement is reached or payments are made.

3. Interest/Late Fees/Over-the-limit fees:

Not paying does not mean that interest will stop accruing. Once you go delinquent, many creditors will immediately raise your interest rate to the highest possible interest rate, about 30%. In addition, they will charge late fee penalties ranging between $30-50, and if your balance exceeds the credit limit, they are more than happy to tack on over-the-limit fees.

4. Legal Action:

Eventually, if a debt becomes very delinquent, a creditor may opt to take legal action which can result in liens, garnished wages, or other legal judgements requiring you to pay your debt. However, this is typically a long and complicated process that companies would like to avoid. Nevertheless, it does happen.

If you are considering not paying your credit card bills, it may be the perfect time to considering professional help. There are a number of financial companies that can help you find a Credit Card Debt Relief solution to your financial dilemmas. Why wait? Contact one today, as the first step in finding a solution to your economical problems is usually asking for help.

By: Scott Wallitsch

Negotiating Credit Card Debt With the Creditors – Get the Professionals to Help You

admin — Fri, 04 Jun 2010 10:16:40 +0000

One of the options in order to solve your credit card debt is by going through a credit consolidation company. They will help you pay your debt off but in return they will charge you with different terms of interest rates. Another option is by negotiating credit card debt with your creditors.

You can directly approach your creditors, get an appointment and get further to negotiate your debt situation. There is a great possibility that they will make a negotiation with you since you are calling on your own behalf and at least willing to pay the bill off. If you feel not capable enough to face the creditors, then you can get a service from professional who is well verse in dealing with debt settlement. Their specialties in debt negotiation will help you get the most in settlement of your debt.

Most of the time when people opt to use a professional credit card debt negotiation company, it is well known that these companies can get better “deals” for people than if the people tried to make the negotiations themselves! One of the reasons why these professionals are capable to get better deals is because they are strictly deal with making negotiations and also they know how to barter and negotiate with the creditors!

One of the best ways to get the help from a professional negotiator is by looking up and reading up on many of them on the internet. It is there; that you will be able to see which ones are really the good guys and which are not! So, don’t hesitate in going for negotiating credit card debt. It is surely an option available for all.

By: Zul Wafiy

Credit Card Debt Elimination

admin — Fri, 30 Apr 2010 17:23:29 +0000

Credit card debt elimination can be done with a good plan and a little patience.
The important thing is to find what works best for you and stick to your plan. The rewards are well worth it and you’ll save yourself a lot of money in the process.

You can choose to either start paying off the credit card with the highest interest rate first or you can get rid of the credit cards with the smallest balance first. The important thing is to know exactly how you are going to approach your credit card debt elimination before you begin.

First, set a realistic budget for yourself to lower your spending in all areas and stick to it. Living by your budget will help you pool your available cash for your credit card debt elimination plan.

The most important you must do immediately is eliminate your credit card spending. You can never succeed with credit card debt elimination if you continue to add to the outstanding balance. The interest on that debt added with a climbing balance will make credit card debt elimination impossible.

It’s important to pay your credit card bills on time and always pay more than the minimum payment on the bills you want paid off first. Paying the minimum payment doesn’t eliminate that high credit card interest rate. That’s exactly what the credit card companies want because they are making a killing off of that interest.

If you are concentrating your bill paying efforts on one bill at a time, then you should still pay at least the minimum on the others. Once each bill is paid redirect your resources to the next bill so your credit card debt elimination can become a reality.

A tip that some have been successful with is contacting creditors to ask for a lower interest rate. Even if most creditors say no what if some of them say yes? The interest savings to you will multiply your credit card debt elimination efforts and save you money. It’s worth a few phone calls and your time to try this.

One last tip is, if you choose to close your credit card accounts, do not close them until after the bill has been paid. Some credit card companies often will penalize you by raising interest rates if you close an account that carries an outstanding balance.

The most important thing to remember is to begin your plan right now. Think of how you will feel when you are finally free of high credit card interest. The sooner you start, the sooner your ultimate goal of credit card debt elimination can be accomplished.

By: Gary Gresham

Help With Credit Card Debt – Where Can Consumers Turn For Legitimate Credit Card Debt Help?

admin — Fri, 30 Apr 2010 00:39:34 +0000

Do you need help with your credit card debt? If so, you will find that you have many choices. A few of those credit card debt relief choices are outlined below.

Financial Planners: Sometimes you will notice that financial planners double as credit counselors. Their services can be used whether you are already in debt or just fearful about it happening in the near future. While you will find varying services, a financial planner can help you look at all aspects of your finances (including your current income and your total debts owed), they then help you create a plan. If you are already in debt, that plan will be how to get you back into stable financial ground.
Debt Consolidators: You might not have a problem paying your debt. Say your total owed was $10,000, with a stable job that really isn’t a huge total. The problem comes from the fact that you fell behind on your bills and now the credit card companies are asking for a huge amount that you cannot pay. Since you missed some payments, they now appear on your credit report. What you need is a lower interest rate and more affordable monthly payments. You can get this with a debt consolidator because they will pay off your overdue debts and create a more flexible consolidated loan.
Debt Settlers: There are some consumers who have a little bit of credit card debt. Unfortunately, you might not be one of those individuals because you might have a lot of it. It is hard to say what is a lot. Generally speaking, if it will take you years to seek full debt relief, you are a good candidate for settlement. You can enroll in a professional settlement company and let them do the work for you. What is that work? It involves negotiating with your creditors and the goal of this negotiating is to get them to settle for less and it usually works.
Debt Relief Networks: I just told you above how you can use the services of a debt settler or a consolidator. These individuals and companies can give you more time to pay off your debts and lower your total due. Both are a great choice, but which one should you choose? How can you find the right company? These are all important questions and a debt relief network can provide you with the answers. These networks are designed to provide you with helpful information that can get you on the path to living your life debt-free. When in doubt, it is always best to turn to a debt relief network.

By: Lisa Archer-Jones

Credit Card Debt Solutions – Bankruptcy Vs Debt Relief – Which One Should You Pick

admin — Wed, 28 Apr 2010 19:40:52 +0000

If you have unbearable credit card debt, you’re probably asking yourself what are the solutions. You have multiple choices ranging from bankruptcy to different forms of debt relief. But which one is the best for you?
Bankruptcy is legally declaring your impairment or inability to pay your creditors. There are two types of bankruptcy: Chapter 7, which will make all your debts void with the exception of certain federal debts such as student loans, and Chapter 13, which demands you come up with a payment plan to cover as much as you can of your debt in a period of 5 years.

However, the ramifications of filing for bankruptcy run much deeper than that. Your bankruptcy will show up on your credit report for the next 10 years. Debt relief, on the other hand, is a more reliable way to settle your debts. It can mean anything from making a workable budget with your debt counselor to debt settlement or debt consolidation.

Debt counselors can help you with a debt management plan to determine your income and budget or re-negotiate rate interests and payments with your creditors. This type of debt relief usually works if your financial problem isn’t very serious. For more complicated situations, a good choice is consolidation. This will bundle up all your bills into just one monthly payment, with just one interest rate. If you find that you just can’t keep up with your payments, you should opt for debt relief in the form of settlement. This usually involves a lump sum that is less than the amount you owe, which will be accepted by your lenders as full payment.

It is entirely up to you to choose what option suits you best. However, consider the long term benefits of debt relief as opposed to the lasting mark bankruptcy would leave on your credit report.

By: Lisa Archer-Jones