Credit card debt » Late Fees

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 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

Few Tips For Credit Card Debt Relief

admin — Sun, 25 Apr 2010 05:52:50 +0000

If you have been looking for a solution to your credit card debt and bankruptcy is the only answer you have come up with, there are other options.

Credit card debt relief is something you might consider before filing bankruptcy. With the high interest rates and late fees given by certain companies, this is pushing consumers into a state of frustration. It almost feels as if your payments are not going anywhere, nor is your debt.

Bankruptcy is seen as a last ditch effort by people who are completely frustrated with their financial situation. As common as it’s become, bankruptcy does have an effect on your credit rating.

It will take years to get off of your record and not to mention the amount of stress it will place you under. There are solutions available from debt settlement companies who can provide you with relief.

First of all you can look to the internet for debt relief companies. Be cautious to really do your research and find the companies that are reputable.

This is a very easy and convenient way to look for help. Not to mention the fact that you can start this process from home or your office and work on your own time.

Start focusing on the debt relief companies and their websites. This is a great indicator of what kind of company they are. A great company will provide a credit card debt calculator that will help you get an idea where you stand.

You can enter your basic info, such as your income and monthly amount you owe to companies. This calculator will show you approximately how many months it will require to get out of debt.

After you have chosen a debt company, you will be required to go through some debt counseling. This is necessary before you decide to go through with the debt service. The specialists will take a look at your individual case and offer you the best advice for debt relief. There will be a fee for working with a debt company, but it is definitely worth it.

The most common methods of getting out of debt is credit counseling, loan consolidation and debt settlement. If you opt for a consolidation loan these are usually secured. So make sure you look for a loan with the lowest interest rates. Unsecured loans usually come with higher interest rates.

Yet, if that is all you are able to get this type of loan is better than not doing anything to get out of debt. If you are able to get an unsecured loan at a high interest rate, but it is still lower than the interest on your credit card, that is still a little debt relief.

Just remember that a bankruptcy might seem like a solution if you have struggled with your finances but it will hurt you for a good seven to ten years. If you are able to get debt relief from debt settlement, debt consolidation or even counseling, this is a good way to avoid bankruptcy.

Once you get back on your feet you can fix your credit and go from there. There are reputable debt relief companies online and most will be able to give you a free quote in seconds!

By: Christina Costa

Tactics To Reduce Credit Card Debt

admin — Mon, 19 Apr 2010 21:45:54 +0000

Almost on a daily basis we receive emails from individuals who have gotten in over their heads with credit card debt. The most common question is, “what can I do to get out of debt?” Of course, asking the question means that they’ve already taken the first and most important step: they have faced the situation and understand the importance of changing it. One major sign of trouble is if you’re having trouble making the minimum amount due each month. If you find yourself in this situation, act now – not later by following these five steps:

Get a copy of your credit report and your credit score. You can get a copy online through any of the major bureaus. Once you have it in hand, review it carefully. With the exception of true emergency situations, take a break from making any purchases with your credit card. Make a commitment to refrain from using your credit cards until all of your debt is cleared up. If you have high-interest balances, get a 0% or low interest balance transfer card and transfer as much as you’re allowed. Then use that introductory period to pay your balance down. If you must make purchases with your credit card, deduct that amount from your checking account and put it in savings so that you have it available when the credit card bill comes due. Be careful to pay at least the minimum amount due on each and every credit card – on time, every time. This will help ensure that you won’t be charged costly late fees or incur a higher “default” interest rate.

By: Denise Wolf

Get Rid of Credit Card Debt

admin — Sun, 28 Mar 2010 14:42:49 +0000

Credit card debt is an unbearably heavy burden borne by millions of Americans. The pain of this burden is often exacerbated by bad spending habits and poor money management. Twenty-three percent of Americans admitted that they had maxed out a credit card at some point in their lives. Thirteen percent said they had been at least thirty days late paying credit card bills. Considering this, it should be no surprise that, in that same year, credit card companies took in over $43 billion in fee income from late payments, over-limit fees, and balance transfer fees. Over $11 billion of that came from late fees alone.

It is time to stop the madness. To win in the struggle against credit card debt, you need but two things: a plan, and the will to act on it. Your plan may take many forms, but the first two steps should always be the same.

First, stop using your credit cards. Pay cash for daily needs like groceries and gas. This usually only requires an easy change of habit. You will find that you will spend less, as well. More difficult, but just as important, is paying cash for large purchases. If your television breaks, and you do not have enough cash to buy a new one, save up. Do you have enough cash to buy a book in the meantime? Retailers often offer store financing to help you pay for big-ticket items. Do not fall for this ploy. They will pull your credit information to determine if you are worthy for credit in their eyes. They know they can persuade you to buy complementary items and service plans as well. Even if there is no actual card, it is still an unnecessary debt.

The second indispensable part of your plan must be to pay your bills on time. Use a calendar or planner, tape notes to the fridge, have a responsible friend call you in advance, stamp reminders on your forehead – whatever you have to do to remember, do it. Paying off a large balance over time on a credit card means that you will be paying a great deal of interest. That interest is all the credit card companies should get from you. Don’t worry about them, they will find a way to survive without your late charge fees coming in.

Many resources online can help you fill out the rest of your plan to eliminate credit card debt. It is up to you, and only you, to stick to that plan. Your success is dependent only on the strength of your conviction. Go now, and begin to chart your course to get rid of credit card debt.

By: Michael Rasco

Bad Credit Debt Consolidation Loans

admin — Thu, 11 Feb 2010 16:25:01 +0000

Are you looking to consolidate credit card or other debt? Do you have bad credit history? There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation. Here is a short overview of what kind of debt services are available online.

If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.

You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.

There are other companies that will help you manage your debt without having to use another loan. These companies usually charge you a fee and then help negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.

Some of these companies are definitely worth the small monthly fee, and can save you much more than they charge. But, some of these companies are not legitimate and can take your monthly payments and keep them for a month or more before they make your payments (collecting interest on the money all the while), causing you to accrue late fees and possibly collections. These companies can actually cost you money and make your situation worse.

Be careful when searching for debt consolidation companies to work with. Make sure they are legitimate, long standing companies before you sign on the dotted line. To see our list of recommended debt consolidation lenders click on the link below.

Consolidating your debt can provide great relief and breathing room when it comes time to pay your bills. Sometimes, when you are up to the hilt in debt, it can be so overwhelming just keeping up with your bills that it can be difficult to think about ways to start paying the debt down.

To see our list of recommended debt consolidation service companies, visit this page:
Recommended Bad Credit Debt Consolidation Services and Lenders.

By: Carrie Reeder

Facing Credit Card Debt

admin — Sun, 07 Feb 2010 00:43:13 +0000

In an almost “cashless society”, having a credit card or a string of cards is becoming a necessity, not a luxury. This convenience however is coupled with a problem of developing debts which could be a real headache if the card holder does not know how to handle his/her finances well.

It is not surprising that thousands of people would prefer to use plastic money instead of carrying and paying cash for transactions. This makes business boom for credit card companies. Card holders however, must understand the concept because they might fall prey to a big problem called “credit card debt”. With this, everyone who has a plastic in his wallet must have a total understanding of how the card works.

Having a credit card gives a holder access to borrow money from a bank or establishment that supplies your card to pay for purchases done either actual or online. The total amount you owe the supplier is your credit card debt and you will be receiving regular monthly bills for it.

When you default payments on your bills, this is the start of a big problem for you. The amount you owe to the card supplier will incur late fees and interest charges if you fail to pay on time. This means if you fail to pay your debts in full, the interest charges will be added to the principal amount.

This means too, that you will end up paying interest on the previous month’s interest and so on that before you know it, your debts has turned into one staggering figure and you do not have the resources to pay for it. Unless you pay, the figure will just keep on bloating and bloating and that is far from a pleasant thing to happen to you.

Some credit card issuers however give customers the option to make minimum partial payments on their debts. This makes it possible for you to pay only the interest charges on your debts. Living with a debt-free style is one way to enjoy life fully. You only need to manage your finances well. Sometimes, a credit card makes one powerful that the card holder would be tempted to spend more than he can afford to pay for. This is a serious matter.

Getting a clear grasp and total understanding of the concept of credit cards is important. This should help a card holder curb and control his spending habits and learn to spend only within his means. Acquiring credit card debts is a vicious circle that every card holder must be aware of so you can prepare to avoid this.

This is card holders must understand how the whole system works so they can enjoy the benefits of it and avoid the pitfalls at the same time. Knowing all there is to know about plastic money could also help a card holder avoid the pitfalls that can sink them into an abyss of credit card debts in the end.

By: Peter Finch

Shocking Facts – What Debt Settlement Companies Don’t Tell You

admin — Tue, 26 Jan 2010 15:20:49 +0000

If you’re thinking about using a debt consolidation or debt settlement service to help you get out of debt faster and save money on your monthly payments, make sure you do your homework before choosing a company. There are definitely shams and scams out there.

First let me say that debt consolidation is *not* the same as debt settlement/negotiation, which most people don’t realize.

Debt settlement companies charge hundreds of dollars as an initial “admin fee” to set up your account, plus a monthly service fee. The fees vary depending on the company and the amount of your debts.

Such companies take your money every month, but don’t make monthly payments to your creditors! Instead, they put it in a trust account, negotiate your debts with your creditors, then make a lump-sum payment when there’s enough in your account to pay a creditor in full.

That can take *years* depending on the amount of debt you have with each creditor. Meanwhile, you can be sued by your creditors and your wages can be garnished! (Or just don’t make payments to your creditors. You’ll end up in the same spot without paying someone to help you get there!)

Settlement companies don’t ask your creditors to stop all interest, late fees and overlimit fees from accruing. That means while the negotiations are ongoing, your bills will continue to grow! So if you’re sued and a judgement is brought against you, you’ll owe more money than before!

And shoddy companies, which there are alot of, don’t tell you *any* of this up front. I call it “getting permission by omission” because they simply don’t tell you how their program works *before* you sign an agreement with them. Or after, for that matter. But if you ask the right questions, eventually you’ll figure it out. (Or when the crap hits the fan. Whichever comes first.)

Let me give you an example of how debt settlement works.

Let’s say you have $20,000 in unsecured credit card debt. You owe $10,000 to one credit card company, $6,000 to another and $4,000 to a third. You agree to a 5 year plan where you pay $250 a month to the settlement company. (After all, $250 a month for 60 months is only $15,000, so you’re saving $5,000 and you’ll be debt-free in 5 years, right?)

The admin fee will cost you $750. Your first 3 monthly payments go towards that and nothing gets put into your trust account until your 4th month.

The settlement company keeps $50 of your $250 payment each month for the service fee. That means $200 a month is being added to your trust account.

Most debt settlement companies claim to be able to negotiate your debt for about 50% of what you owe. So let’s use the lowest credit card debt as an example.

If you owe $4,000 and your creditor agrees to accept $2,000 as payment in full, it will take 10 months at $200 per month to have enough in your trust account to pay off just that one credit card.

But remember, your first 3 payments to the settlement company only paid the admin fee. That means your first credit card settlement is 14 months *after* you started sending them money.

So what’s the problem? It’s simple. Your creditor won’t agree to accept half of your actual debt unless, or until, it can be paid in full. Otherwise, you’re expected to make your normal monthly payments.

Since you don’t have $2,000 in your trust account, and you won’t have it until more than a year after you stopped paying your creditor directly, they’ll probably take you to court and request that your wages be garnished long before you have that $2,000 built up.

And what about your other creditors? Well, they’ll be waiting even longer to get their money from the settlement company. The $6,000 debt will take 15 *more* months to pay off, assuming your creditor waits that long and agrees to 50%. And that $10,000 bill? You do the math.

On the other hand, if you signed up for a 3 year plan with the settlement company, your debts would be paid off sooner. But, the question is, will your creditors wait that long? Probably not.

The facts are, you can negotiate with your creditors yourself. Most will agree to take a smaller monthly payment from you and stop all interest and fees from accruing. And, of course, you’ll save thousands of dollars in fees to a settlement company.

Before signing up for any service, please be sure you check out the company thoroughly. And don’t let the words “non-profit” fool you either. Alot of debt settlement companies claim to be non-profit.

Going back to the example above, if you pay them $15,000 over a 5 year time frame and they settle your debts at half of what you owed, they’ll make $5,000 from you. I’d call that a profit, especially since they might not have actually helped you in any way.

Most companies will allow you to cancel your account and get a refund of what you’ve paid, less the non-refundable admin fee and the monthly service fees. If you feel you’ve been mislead about their program, don’t hesitate to argue til the cows come home. File a complaint with the Better Business Bureau or hire an attorney if you feel you’re getting nowhere.

You can visit the Better Business Bureau’s website ( http://www.bbb.org ) and find reports on hundreds of companies. Here’s a small listing of companies that have poor reputations with the BBB:

National Consumer Debt Council LLC – Irvine, CA (A.K.A. NCDC, United Consumer Law Group)

Financial Rescue Services – Burbank, CA

Debt Legal Services – Anaheim, CA

American Debt Relief – Los Angeles, CA (A.K.A. A M Debt, American Debts Relief, Debt Relief)

Please be very cautious when choosing a debt help company and ask lots of questions before agreeing to anything. If you find they’re evading your questions, run fast and run far. There are reputable companies out there, so keep looking until you find one.

By: Denise Hall