Credit Card collection lawsuits are rapidly increasing in Pennsylvania, especially with the down economy. The volume of phone calls and emails that I receive on this topic is astounding. What I have discovered is that many people do not know their rights or how to handle these situations. I can say with certainty that contacting a Consumer Attorney is a very good move. Unfortunately, many people call me after the credit card company or collection agency has a judgment against them. Had they called sooner, I might have been able to help them.
Credit card lawsuits are instituted on the basis that you have failed to pay (defaulted) on a credit account. Certain credit card companies like Capital One will simply file a lawsuit against you. Others will sell your account to a collection agency for pennies on the dollar. The collection agency will then try to collect from you, and will then file a lawsuit if you do not pay the alleged debt.
It is important to understand your rights and obligations in this regard. Let’s start with the most important question of all "How long do they have to sue me"? In Pennsylvania, the answer is typically four (4) years from the date of the default on the account. The date of the default is typically 30 days after you have made your last payment on the account. It is important to know that this doesn’t mean that they cannot sue you after that time. I tell my clients that anyone can sue you for anything at any time. The key is that you have to present the proper defense to the lawsuit. Submitting a statute of limitations issue is presenting a viable defense.
The next important right that you have is to know how much you allegedly owe. A credit card company or collection agency must be able to document, with absolute certainty, the exact amount of principle, interest, late fees and so forth. If they cannot document it then they are not entitled to collect on it. The way that they typically would document this is to provide a copy of every account statement that you have had, from inception of the account to the current time.
Another important right is to know who exactly is entitled to sue you. This is often an issue where a collection agency is involved. A collection agency typically does not have the right to sue you unless they have been "assigned" that right. This assignment would come in the form of a written document from the original creditor to the collection agency and would list your specific account for sale. Without same, a collection agency does not have the right to sue you in a court of law in Pennsylvania.
An Overview of Credit Card/collection Agency Lawsuits
Credit Cards for Easier Payments
First and foremost is the annual fee that credit card companies charge. The annual fees may range from $25 to more than $100. The fee depends on the type of card you choose. To attract customers banks sometimes waive the first year annual fee and often offer a one-time membership charge. You should also find out beforehand the other type of fees that the company charges - balance transfer fee, over-the-credit-limit fee, credit-limit-increase fee and others.
The grace period to make payments is another important consideration. The grace period is normally a certain number of days from the statement date. Payments not made within the grace period will incur late payment fees.
Most credit cards allow cash advances from ATMs. For cash advances, a cash advance fee is charged, which is normally a percentage of the cash withdrawal made. Most cards do not allow any grace period for cash advances and interest is charged from the day of the cash advance.
Credit cards may be of many types - silver, gold or platinum. The credit limit normally depends on the type of card you choose. The type of card offered depends on your income level. Cards with higher credit limits normally attract higher fees but also come with additional features. Additional features may include discounts on purchases, money back on frequent use, accident insurance etc.
It is important that you carefully read the application form before signing on the dotted line. An application does not imply acceptance by the company. Credit card processing takes time and your personal details will be thoroughly checked before your application is accepted.
It is always advisable to make purchases within your financial limits. However, there are many people who face credit card debt problems. The best way to eliminate these debt is to enroll in a credit card debt consolidation program. Debt consolidation programs help reduce the debt burden and allow repayment with easy monthly installments. Do a thorough research and check the credibility of the company before choosing a debt consolidation plan.
Ways to Negotiate Credit Card Debt Settlement
Facing problems paying your credit card bills? Well, this easy-to-read guide will help you deal with your credit card debts in the most efficient way and faster than usual.
There may be several causes for getting into debts that include: poor income, divorce, medical expenses, poor money management, no savings, and many more. However, one cause that is consuming a large segment of the American population and continues to increase at an alarming rate is credit card bills.
With plastic money being introduced to people, spending has become easier than it ever was. Credit cards are a service offering of all finance companies that allow consumers to spend more so that they can earn more. And unfortunately, people usually tend to fall in these traps very easily and later fail to pay their debts.
Reasons to Consider Credit Card Debt Settlement
Once you are in a debt trap, paying the minimum amount do not help you much in paying off your loans, rather you realize that you have paid a lot more than the amount you had initially borrowed. Remember, these credit card companies make a yearly turnover of multimillion dollars, which is only made possible with your minimum payments.
If you are already in credit card debts, and your bills are keeping you up all night then stop worrying as it won't help you come out of the whirlpool that you are into. Instead, start working on your problems, and put your finances back on track. As carrying on with your minimum payments will be only helping the companies and not yourself, the best way to go about it is debt settlement.
When considering debt settlement, however, your aim should be to get the best deal possible from your lenders. It all depends on your creditors whether they want to agree on a settlement plan, but if you have an expert negotiator on your side then you are sure to strike the best deal.
Can You Do It by Yourself?
Yes, you can seek a credit card debt settlement with your creditors. Many professional debt negotiators can cut the credit card debt of their clients in half or even more. You might achieve a similar result of settlement if you know how to deal with your credit card companies.
You will need to have some cash in hand. This will help you negotiate an affordable settlement with the credit card company. Once you have the cash, contact and talk to a collection agent at the company. Politely tell them that you want to settle your debt and you have x amount of money to offer them. Depending on your creditors and your negotiation skills, there is always a chance that they are able to offer you a discount.
Should You Hire a Professional?
A professional will help you negotiate with your creditors and reduce your payments by 30-60% depending on your financial state. They can not only help you lower you debt payments but also eliminate your late fees, in many cases. As these attorneys have had firsthand experience in dealing with such cases for years they are likely to help you deal with your creditors better.
There are several debt settlement companies that promise to help you get out of your debts in the most efficient way possible. But, among the lot there are fake companies as well that are after your money but don't have the slightest intention to help you reduce your payments. So do your research and then go for a reputed company for genuine assistance.
Overall, if you see your credit card bills piling up on your desk and you are in a big financial mess, it's high time that you go for credit card debt settlement. Reach out for professional assistance and successfully achieve your debt-free goal. And next time you use a credit card your aim should be to use it wisely, so that you benefit out of the credit card company instead of them benefiting out of you.
Can I Negotiate Credit Card Debt Reduction
Are your struggling financially have you asked yourself...Can I Negotiate Credit Card Debt Reduction? With a large number of online programs it can be really difficult to find out the good ones from the bad ones. And some of these companies will give you a better interest rate or even a better payment plan. But how can you do it?
Can I Negotiate Credit Card Debt Reduction...Here's some facts and tips.
>>> Begin by searching online for companies that offer these types of programs, you should be able to find quite a few. Try adding the word [review] with your search and read what other people in your situation are saying and doing. After spending some time doing your research you will have weeded out any companies that you should avoid.
>>> Once you have completed your research you will have a list of reputable companies. Now you can start to compare each program and what there offering. Be sure to note the interest rates being charged and watch for fees. Make a list comparing each companies offerings and then you can choose which ones you're going to contact.
>>> If you're just trying to deal with your current card company in order to make the repayment interest and terms easier to manage make sure you're totally honest with them. When you're talking with them make your intentions clear and what they need to do if they're to get their money back. Be sure to do this in writing and keep copies for your record.
You will find that these companies will be eager to work with you because most of these types of debts are unsecured and they're counting on you to repay them. It's better for them to get less interest then to have you go bankrupt and not get any of their money back. Can I Negotiate Credit Card Debt Reduction?... You bet you can!
Legally Erase Credit Card Debt
With the crumbling economy and the unemployment rate climbing, many Americans are faced with the prospect of filing bankruptcy to avoid paying their debt. Before you call up a bankruptcy attorney and pay thousands of dollars for their services, you need to look into credit card resolution instead of bankruptcy.
There are a number of ways to legally erase your credit card debt without declaring bankruptcy. In fact, many of the systems available to you can slash your debt by up to 90%! These programs work, you only have to know where to find them.
Who Qualifies for Credit Card Resolution Programs?
That's the great news! Anyone with any amount of debt can qualify for these programs. Keep in mind, that these programs not only slash your debt, but they also can drastically reduce medical bills and other unsecured debt.
Unlike government programs and grants, there are no lengthy forms to fill out of hoops to jump through. You only need to know how to find these well guarded systems.
How Much Does It Cost To Legally Erase Your Credit Card Debt?
The cost of using one of these debt reduction programs varies based on your debt amount and the system you choose. Here are a few of the options you have:
* Do It Yourself Credit Card Resolution System: These programs cost between $50 and $100. Each of these programs outlines the steps you need to take and walks you through the process step by step. In addition, the best programs we've found have letters and forms pre-written for you by debt attorneys. These programs require a little extra work but are a much better option to choose instead of bankruptcy.
* Debt Consolidation Companies: There are many companies who provide services to clients that bundle all of their debts together into a more affordable payment. Keep in mind that these systems do not slash your credit card debt, but rather "repackage" it into a different loan with a better rate. While this type of system can be beneficial to certain clients, the idea option is to use a system that legally erases your debt forever. Debt consolidation companies' fees can vary from a few hundred to a couple thousand dollars.
* Debt Settlement Companies: Using one of these companies is the preferred way to legally erase your credit card debt instead of bankruptcy. These companies work on your behalf to negotiate with your creditors to drastically reduce and eliminate your debt. A debt settlement company can charge anywhere from under one thousand to over three thousand dollars. While that may sound like a great deal of money, you need to ask yourself how much you would pay to eliminate $10,000 - $30,000 of debt. If you're willing to pay a fraction of what you owe to slash your credit card debt, debt settlement is the way to go.
How to Get Started:
Getting started with one of these programs is easy. Simply gather up all of your unsecured debt statements and total up your overall obligations. Calculate your current monthly payments and figure out what it would be worth to eliminate that debt forever. If you're only willing to pay $50-$100, check out a do it yourself credit card resolution program.
However, if you current obligations are significant and you want a professional to help you erase it quickly, look into a debt settlement company to help you out.
The Best Credit Card Debt Settlement
Getting into financial debts is like putting on weight. It is easy to get by leading a carefree life but is quite a difficult task to get rid of. Although losing weight can be a difficult task it is not impossible and neither is getting out of debt traps. You must have heard the old adage, where there is a will, there is a way and this is exactly what it takes to deal with financial debts and you will see yourself out of it sooner than you expect. Discipline, hard work, and right help are all that you need to get your finances back in control.
Credit card debts are a common problem for millions of Americans today. This problem is mostly faced by immature young individuals who go through major dilemma in reasoning their temptation of easy credit. However, it is not only young people who are facing this problem but there are other segments of the population as well who come across similar issues. There are many people, be it individuals who have suffered a job loss, injury or have spent more than they could afford, see their credit card bills growing every month. Most of these people can only afford to make the minimum payments required or in some cases, skip payments. This definitely leads towards growing credit card dues, which makes their situation even worse. And remember, the credit card industry makes a yearly turnover of multi-million dollars, which is made possible by your growing credit interests and minimum payments.
Well, the good news here is that there are ways to counter such financial issues. One of the most common ways to deal with the situation is to go for debt settlement. Let us take a quick look at what debt settlement is all about and how does it help in overcoming the credit card debts.
What is debt Settlement or credit card debt settlement?
Debt settlement is as old a concept as debt itself. It is a completely ethical, logical, and legal method to get you out of debts. This is a way in which you can avoid bankruptcy and come out of those debt traps laid by the credit card companies.
In case you have major credit card dues that you cannot afford to pay, then banking on credit card debt settlement is the best thing to do. Making only minimum payments do not do much to help your situation, rather you take decades to pay back all your debts and probably end paying ten times more than what you had borrowed initially. Debt relief can not only reduce your payments by 40-60% but also cut down your repayment time to 3 years or less.
So to conclude, if your credit card bills are keeping you up all night, and you just can not think of any way to get out of your debts, then considering credit card debt settlement may be a good option, this way you can not only save on the interest but also prevent yourself from filing for bankruptcy.
Debt Settlement Affect My Credit Score, is it true?
It seems as though individuals and families seeking some form of debt relief are seeing a significant amount of information regarding credit card debt settlement. Obviously, this form of debt relief (like all others) has some critics, which leads to at least a little skepticism amongst consumers who might be considering debt settlement.
One of the most common questions that are asked of debt settlement is whether or not it will have a negative impact on your credit score. The answer is yes, no and maybe. You see, each person's situation is different, so depending on your own personal financial status, credit card debt settlement may have a negative impact on your credit score.
If your bills are always paid on time each month, and your credit score is relatively high, I can say with a great deal of confidence that your credit score will be compromised by the time your accounts are settled. Most people who are paying their bills on time, but are seeking debt relief, do so because they tend to find themselves borrowing from one creditor to pay another in an effort to keep their finances afloat each month. Unfortunately, by doing this you're really not keeping your finances afloat; rather, you're getting yourself deeper in debt. Your credit score might appear to be okay, but overall your finances are lacking the type of stability that is needed to truly stay afloat. In situations like these, people notice that their credit score may fall below 700, sometimes dipping to as low as 500 during the delinquency period that is required to negotiate with creditors. After all of your accounts are settled, and reflecting zero balances, however, you'll see your credit score increase and reach a level which is considered to be high enough for credit approval on an auto loan or home mortgage within 9-12 months.
Those individuals whose accounts are already delinquent will likely not see their credit score negatively impacted due to debt settlement. Rather, those who fall into this category will find that their credit scores will increase significantly after all of their accounts are settled and reflecting zero balances. Let's face it - delinquency is what really impacts a credit score, so by remedying this delinquency, whether through full payoffs or reduced debt settlement payoffs, your credit score has nowhere to go but up.
In summary, depending on your personal financial situation, your credit score may be negatively affected by debt settlement, or this process can have a positive affect. Again, this all depends on your own financial situation. Debt settlement has helped many individuals, families and small businesses to avoid bankruptcy and/or years of paying high interest to various creditors.
Should you Avoid Debt Settlement Pitfalls?
If you're considering credit card debt settlement due to the fact that you're no longer able to meet your monthly financial obligations, you may be wondering what the pitfalls may be for this type of debt relief. Or perhaps you've heard some debt settlement horror stories, and you'd like to do your best to avoid these pitfalls so that you don't become a debt settlement horror story yourself. Below are some of the most common pitfalls of debt settlement that you'll want to know about prior to entering a debt settlement program:
* Debt settlement can potentially have a negative impact on your credit score. If you've been making your credit card payments by their respective due dates each month there's a good chance that your credit score is hovering at or above 700. In order to negotiate settlements with your creditors, unfortunately, your accounts must be delinquent, thus resulting in a negative entry on your credit report. These negative entries will result in a reduced credit score until your accounts are settled and reflecting zero balances, at which time your credit score will begin to increase. Many people considering debt settlement, however, have been unable to continuously make their monthly credit card payments, and have found that their credit score has already been affected. If this is the case for you, obviously your credit score has nowhere to go but up, and negotiated settlements will result in an increase in your credit score.
* Debt settlement may result in a tax liability. I'm sure you've heard about the potential for a tax liability as a result of debt settlement. You see, creditors are required by the IRS to report forgiven debts greater than $600.00 on IRS Form 1099. This notifies the IRS that you have settled one or more of your accounts for less than the full balance, because the IRS views your canceled debt as taxable income and wants you to pay taxes on it. Fortunately, most individuals and families find that they aren't actually liable for taxes on their forgiven debt. Fortunately, the IRS has an "insolvency" rule, whereby if you're considered insolvent during the tax year that your debt was canceled (i.e. your liabilities exceed your assets), you will not face a tax liability as a result of debt settlement.
* Collection calls from your creditors may be received. If your credit card accounts are not delinquent you're not receiving calls from your creditors. If they are delinquent, however, you know what I'm talking about. Creditors reserve the right to take whatever actions are necessary to collect them money owed them, and contacting you via telephone calls is perfectly permissable and lawful. You do have certain rights, under the Fair Debt Collection Practices Act, to protect yourself against ruthless bill collectors. It's not uncommon to hear phrases such as "if you don't work with us now your account will go to the next level of collection," "I'm calling about a legal matter" and "your account is scheduled to be turned over to our legal department." Most often, these are no more than threats. While some accounts do obviously end up with an attorney, most do not.
In summary, are there pitfalls to debt settlement? Some - but the end result is a tremendous feeling of relief after your accounts have been paid off and you're living a debt-free lifestyle. You'll no longer experience sleepless nights or the necessity to juggle money around in an effort to pay your bills; you can start to enjoy life again after your accounts have been settled and you no longer have monthly bills which are beyond your ability to pay. If you're planning on hiring a debt settlement company to assist with your debt, I urge you to research your options very carefully so that you hire a company that is ethical, honest and has only your best interest in mind.
Eliminate Debt With Free Grant Money
Many people are finding that using a government grant can help them to eliminate all they are credit card debt. It is really not that hard to find free grant money but you need to make sure you find the one that fits your specific needs the best. Each year the government creates grants to help people and businesses with all kinds of issues they may have. It is important to understand that there is money available for you but you need to be patient and search for free money online.
You may be shocked to learn that much of the money that is available each year does not get used and this is mainly due to the fact that people are not aware it is available to them. It is important that you do not also miss out on getting approved for a free government grants. If you want to reduce the amount of stress you have in your life worrying about your credit card bills then you need to find this free money as well. We all hate it when each month we receive our credit card statements and we are constantly juggling trying to make our monthly payments. You can break this habit by finding a government grant that works out for you and your bills.
Remember that eliminating your debt and getting a fresh final financial start can be easier than you think. You have to be proactive with your financial situation so that you can payoff goes on and wanted bills. Finding a government grant can be easier than you think but you must be patient and find the best one for your particular situation.
Stimulus Package Government Grant Scams to Avoid
As you search the webs I'm sure you come across ads that tell you that you can get a piece of Barack Obama's stimulus package. They claim to show you how easy it is to get government grants that you do not have to pay back. All you have to do is sign up for a free kit and pay a couple of bucks for shipping and handling. The only problem is that it's a scam. You need to avoid this because it does not work that way.
Government grants are not something you get off an ad. The government does not even advertise their grants at all. You have to go to them and apply for one yourself. These scammers offer you some bogus free kits with a very low shipping cost because they are after your credit card number. Once they get it you will be charged every month a certain fee for joining the membership site. It will be there in small print but you will not notice it. You will end up focusing on the dreams of getting thousands of dollars by just filling out a few forms. They even go so far as to put Barack Obama's face on it to make it seem like it is apart of his stimulus package but it is not.
The stimulus package is about giving some taxes breaks when you file your taxes and spending to create jobs. The president is not going to put out ads on the web for just anybody to get a government grant. Unfortunately with so many people out their losing their homes and jobs the allure of getting some easy money from the government can sound good. That is what the scam is all about. Oh, and by the way, that free kit they promised you will not show up.
So if you want to get a government grant always go to the government's official website for more information. Never believe that someone will give you some stimulus package money from an ad. These scams will be all over the internet so please avoid them at all cost.
Personal Stimulus Package to eliminate credit card debt
Everyday, we hear the news of the debated economic stimulus package. We sit back and wonder how this will directly help us. Each of us has a unique perspective on the stimulus, and we all have different needs for where, when, and how the stimulus may or may not personally help.
Many Americans are asking about a stimulus program to help the average citizen. People today need help with their rent and mortgages. Even keeping food on the table has become a challenge with grocery prices skyrocketing over the past year.
Previous economic stimulus packages have sent rebate checks directly to taxpayers. Most of this money paid directly to the people was simply forwarded onto creditors to pay down debt. So the previous attempts at stimulating the economy simply sent money into the pockets of the banks and credit card companies. The current stimulus plan does not contain any provisions to send money directly to the people, and the debt balance for most people continues to grow.
For a person with overwhelming debt, any stimulus received would be used to pay down that debt. Without the government's help, many people are finding that they can create their own personal stimulus package by completely eliminating 100% of their debts from credit cards and personal loans. Instead of waiting for help, they are taking responsibility for their own financial future. Of course, personal responsibility is what this country was founded on.
Without debt, and without the monthly credit card payments, hundreds of dollars per month are saved on principal, interest and other fees. For some people, this can be thousands of dollars per year in savings. It could also be the difference between financial comfort and bankruptcy.
A debt elimination program is not applicable to secured debts such as mortgages and auto loans. Student loans and medical bills also do not apply. But without the credit card payments, extra money would be available to help pay for other obligations in life.
The debt elimination program is not for everybody. It is imperative that some time be set aside to understand just how and why the debt can be wiped clean. An elimination program is not bankruptcy, consolidation, or a home refinance. Having a basic understanding of the premise of the program will also remove any fear that someone has in regards to proceeding with this debt relief method.
A person does not need to become a lawyer to understand this process. You just need to be open to some unfamiliar information. This is time well spent considering the thousands of dollars of debt that can be eliminated. There is also no cost to obtain this understanding, for this is not secret information, just hard to find. You will not be spoon-fed this knowledge from our main information sources, such as television, newspapers, co-workers, and our parents.
By taking control of your debt, you will initiate your own personal economic stimulus plan. And you don't need an act of congress to accomplish it. A little knowledge can set you free.
Government Grants for reduce your credit card debt
Finding a solution so that you can pay off all of your old that is an important thing for you to do. Government grants can be a great way for you to take all of your debt and eliminate it. We all hate it when we get our monthly statements each month because in most cases we have a hard time paying all those bills. You can take action on your debt now by obtaining free grant money that you have a right to get. Most people do not know that they have the ability to apply for and receive grant money to help them pay off their credit card bills. You need to take advantage because this opportunity can help you become debt free.
We all struggle with trying to pay our bills on time each month but getting the right solution to eliminate those bills can be a great option for you. Apply for and get approved for free grant money because it can help you out to have a fresh financial start.during bad economic times people tend to use their credit cards more often so that they can buy the things they need to live each month. You should not feel guilty if you fall into this category but taking action now to eliminate this debt is something you need to do.
Remember that if you are stressed out because you have a lot of credit card bills you need to get a government grant. Obtaining free grant money can be the best option for you to have a new start financially. There are many benefits to getting the money you need to pay off your credit card bills and one of the best is that you will be able to reduce the amount of stress you have in your life.
Get Free Government Grants Online and Get Debt Relief
A Government Grant can help you get out of debt and put you on the road to financial freedom. Now more than ever we are finding it hard to make our credit card payments and with gas approaching $5.00 a gallon we are using and racking up more credit card debt than ever. It is best if you can eliminate the debt you have so that you do not have to have the extra stress of worrying about making your monthly payments.
More Information on getting : Debt Relief Today
There are many benefits to getting a Government Grant so that you can get debt free. One of the great benefits is that you will be able to save yourself a hundreds if not thousands of dollars in interest that you will be paying to your credit card companies. Also having a lot of debt hanging over your head can cause a lot of stress to you and your family.
Learn How to Get a : Government Grant Now
With the economy on the down turn we are seeing more and more people getting into financial trouble with credit cards because they need to use them so that they can pay for things that we need everyday. It is not a bad thing that we use our credit cards but when we use them because we do not have enough money it usually leads to credit card debt and we will end up not having enough money to pay for this debt.
Remember that you want to obtain a Government Grant so you can eliminate the debt that you currently have and it is always good to get the right information so you know where to apply and the tricks to get approved.
Understanding The Stimulus Package
The Stimulus Package There are several key points featured in the Obama Administration's Stimulus Package: Health, Education and Infrastructure. Understanding this stimulus package is difficult at best until these key points are viewed as intended. Healthcare Critical to any society is maintaining good health care for all. Imagine a society where illness is rampant. The cost to government for negligently ignoring the sick, dying and those who will become ill due to lack of proper health care will necessarily be borne by taxpayers in one form or another. Originally, health care was provided in the US by employers because many workplace environments were dangerous. Employers worried about lawsuits from improper adherence to worker safety. This aspect of health care is largely forgotten by many corporations and small businesses. Health care became an employee benefit offered by employers. In time, employers who offered the very best health care benefits competed against other employers. As a result of health care becoming a hugely profitable industry, health care benefits became unaffordable for businesses and costs were passed on to employees, reducing salaries and future income. So, the focus on health care in the US is one that should be part of a stimulus package in order to allow employee salaries to stabilize, businesses to afford health care benefits for employees and to stabilize government programs tied to health care. Education Over the past several decades, education has become a virtual industry. From elementary school to college, the cost to educate a single child has become astronomical. Many college students leave college paying huge student loans only to find their degree is inadequate to today's hi-tech industries, leaving many college graduates without employment. Re-education and reining in education costs is crucial to stabilizing the economy of the US. No other country of the world spends as much on education and yet, the end result is lack of adequate education for current industries. Blue-collar jobs are virtually extinct. Many people will require some form of re-education in order to fit into today's employment market. Infrastructure No country can call itself safe for citizens if roads are deteriorating, bridges collapse and housing is built on unsafe, polluted tracts of land. The Obama Stimulus Package rightly addresses this issue by providing funding for numerous infrastructure projects. However, an enormous amount of oversight will be required to avoid unscrupulous contractors from throwing good money into bad contracts. The Stimulus Package Network The Stimulus Package is in actuality a networked plan that some may conclude involves "earmarks". The reality is that health care, education and infrastructure has been seriously ignored as a budget priority for decades. As a result, jobs in these sectors have vanished in huge numbers. The biggest problem attached to the Stimulus Package is controlling free-spending politicians who will use funding to the detriment of its expressed purpose: Shoring up the economy and helping to reinvest in national priorities. If Stimulus funding is spent foolishly, the end result will be higher taxes on the middle and working classes with no relief or financial stability. Without full and transparent accountability, the Stimulus Package could become a national liability.
The main of Credit Card Debt Consolidation
Almost everybody has a credit card these days, and if you are like most people, you carry a balance on your credit cards from month to month. Yes, you know you are paying interest on the outstanding balance and sometimes that interest rate is ludicrous, but in the meantime, you have been able to use your credit cards to purchase things that will make you life easier or happier, or to give you that reward you deserve.
There is no problem with that and most people handle their credit cards exactly that way. But the real problem comes along when you start using those credit cards and personal loans to a greater extent than you should. Eventually, perhaps due to an unexpected high but necessary expense like a medical expense or a job layoff, your financial house of cards is in danger of a major tumble.
In this situation, many people think of bankruptcy as their best or only way out, which is typically the furthest thing from the truth one can imagine. Bankruptcy has a specific purpose, and especially with the new bankruptcy laws, it is not as easy as it once was, and you may not even be allowed to file bankruptcy. Besides, bankruptcy is far from your only or best option, especially when you consider the long term negative effects, topmost of which is the fact that bankruptcy will stick out like a sore thumb on your credit report for the next 7 or more years, and probably long after you've gotten your financial act back together.
One of your most viable and likely options is credit card debt consolidation. You can find free or very low cost credit card debt consolidation services at many companies, some of whom even have a dedicated staff that will work with you to explain to you how it works and how things happen. Understanding how credit card debt consolidation works and what it can do for you can save you a lot of time and money in chasing solutions that are really not a solution.
The interest rate charged by credit card debt consolidation company may not be the lowest in the world, but it is almost certainly better than what your credit card issuers were charging. Also note that you are only paying a single interest rate on your debt consolidation loan instead of multiple different credit card interest rates.
Have you eliminated the debt? No. But with a credit card debt consolidation loan, you have accomplished several positive things. First of all, your single monthly payment on the debt consolidation loan is going to be less, perhaps even far less, than the sum total of what you were paying on all your credit cards. This should hopefully give you the financial breathing room you need to get back on track.
Secondly, it does not tarnish your credit history or your credit score like a bankruptcy would, or as credit card charge-offs would. As far as the credit card companies are concerned, you are making payments on time with the minimum payment due or more, and they are happily reporting you as current and on time to the credit bureaus.
The big danger here is that since you are no longer behind the eight ball financially, there may be a risk that you will go out again and get yourself in financial trouble the same way you did the first time. Hopefully this will not happen and you will have learned some valuable lessons in this whole process, but being aware that this temptation may exist should help you to avoid it and resist the temptation while you financially get yourself back together.
Arriving of Credit Card Debt storm
All over the world, people are keeping fingers crossed that the $700 billion financial system bailout works the way it is supposed to and eases the worsening global credit crunch and restores confidence in the markets. But while the government has been focusing its attention on worldwide fallout from the mortgage debacle and the Wall Street greed, another storm is gathering on the horizon.
With all that's happened since, it's easy to forget that back in August 2008 the U.S. Treasury Department stepped in to take the reins of Fannie Mae and Freddie Mac, the two government-sponsored home loan banks. With the country facing more than $12 trillion in residential mortgage loans, no one wanted to stand by while Fannie Mae or Freddie Mac goes broke.
But who is watching as the rest of the country goes broke? The U.S. is quickly moving toward the next financial credit crisis—this one involves credit cards, and it could be a problem facing millions of Americans, not just over-reaching homeowners who are facing foreclosure.
Charging the basic necessities
Consumer spending has kept the U.S. economy growing for the last two decades. In addition to shopping for homes they didn't actually quality for, consumers used their credit cards and revolving credit accounts to rack up more than $2 trillion in household debt. Where they once indulged in high-ticket items like electronics, plasma TVs, autos, and appliances, today they're forced to scale back and spend more and more on the basic necessities.
When cash-strapped families have a hard time making ends meet because of rising prices, they rely on their only alternative—credit. Consumers are pushing the upper limits on their credit cards in order to pay bills, feed their families, and gas up the car. Some even use their cards to pay their mortgages, and that spells disaster.
The lending industry, now barred from aggressively issuing sub-prime mortgages, has turned its attention to marketing credit cards with high fees, over-blown interest rates, and complex terms hidden in the fine print or written in obscure language. Unwary consumers are setting themselves up for future defaults, and doing it in record numbers.
Debt and delinquencies on the rise
Credit card borrowing grew at an annual rate of 4.8 percent in July 2008, up from a growth rate of 3.5 percent in June. But while the volume of credit card purchases continues to rise, on-time monthly payments are falling.
The percentage of people who were delinquent on their credit card payments rose slightly in the second quarter from the same time last year, while average debt per borrower jumped 8.6 percent, according to credit reporting agency TransUnion LLC.
For the quarter ended June 30, 1.04 percent of credit card holders were delinquent at least 90 days on one or more of their cards. That compares with 0.91 percent for the second quarter of 2007, although it did represent a decline from 1.19 percent in the first quarter of 2008.
The decline from the first quarter to the second quarter likely reflected tax refunds and economic stimulus checks. Since delinquency rates tend to be seasonal, they usually go down in the second quarter.
Late fees and sky-high interest rates—some as high as 24 percent or more—keep accumulating and threaten to keep the economy sluggish. Every dollar that goes toward paying fees and interest on credit card balances is a dollar that can't be spent at the grocers, the hardware store or Starbucks.
How did shopping on credit get so out of control?
Technology has made it impossible to escape the temptation to whip out those credit cards. Television commercials like Visa's "Life Takes Visa; don't let cash slow you down," suggests that cash is out of date. With e-commerce, retailers are now open 24/7. Home shopping networks and catalog 800-numbers let your fingers do the shopping.
Credit card companies market to our most basic instincts and appeal to the herd mentality that suggests, "If everyone else is doing it, it must be OK." And if mere suggestions offered through television commercials don't do the trick, there's always the direct approach—an estimated six billion credit card offers hit the mail annually.
Debt and the job market
Consumers have been on a fast moving shopping spree that's about to grind to a halt. Wages are not keeping up with inflation and too many jobs are going by the wayside.
Higher prices and rising jobless rates are inextricably linked to loan defaults and credit card delinquencies. The U.S. Labor Department reported that unemployment rose from 5.7 percent in July to 6.1 percent in August—a five-year high. Employers slashed 84,000 jobs in August, the eighth straight month of declines, with a total of 605,000 lost jobs for the year.
It's a vicious cycle. Employers get worried about the economy and their own profit margins and start cutting the workforce. More people have less disposable income and are unable to pay their bills, which leads to more mortgage defaults, more credit card delinquencies, less consumer confidence, and on and on.
But the worst is yet to come. There is a lag between the time someone loses a job and when mortgage loans default or credit card delinquencies appear, so we might just be seeing the tip of the iceberg. Moody's predicts household credit conditions will continue to weaken through the remainder of the decade, with another 5 million homeowners at significant risk of default.
Banks and lenders getting squeezed
Banks, already weighed down with defaulted loans, could face even more troubled mortgages on their books, as well as unpaid credit card debt. Credit card companies like Visa and MasterCard bear relatively little risk for defaults and other payment problems. It's the banks issuing the cards that assume responsibility for the debt.
Failures are expected to reach such a high level that the Federal Deposit Insurance Corporation (FDIC), the Washington-based agency that insures deposits at U.S. banks, may not be able to insure all deposits—even with protection extended from $100,000 to $250,000 per account under the bipartisan rescue plan now in place. They already raised the number of "problem" banks to 117 in June, up from 90 at the end of March. Ten banks closed down in 2008, the fastest pace in bank closures in fourteen years.
Even before the Treasury Department's takeover of Fannie and Freddie, the two mortgage giants that own or guarantee around $5 trillion, or roughly half of the U.S. home loans, had been on a less than solid financial footing. The more mortgage default rates escalated, the more their capital base eroded.
The government's $700 billion rescue plan may help curb further deterioration in the markets, or ease the credit crunch affecting banks and major corporations, but not much is being done to ease other credit troubles. The big question: Will growing consumer debt lead to another round of massive losses and write-downs at banks and other financial institutions in the coming months?
Under the radar: Packaged credit card debt
Very little attention has been paid to the fact that, similar to mortgage-backed securities, credit card debt is packaged and sold to investors. The inevitable defaults could lead to big losses, not just for the credit card lenders, but also for pension funds and other institutional investors who are buying the debt.
The securitized debt backed by credit card receivables is a $915 billion industry. Increased defaults could unravel the whole game, just as delinquencies in the housing market brought down the $900 billion in mortgaged-backed securities.
Does this add up to an inevitable recession? You will get as many answers as the number of politicians and economists you ask. (As the joke goes, if you laid all the economists in the world end-to-end...they still could not reach a conclusion.)
Consumer debt going global
While we as nation seem only vaguely aware of this looming credit catastrophe, MasterCard has already set its sights on duplicating its U.S. business model internationally. Poised to take advantage of new and growing access to credit in countries like Brazil, Hungary, Poland, Russia, India and China, the credit card giant is anticipating a projected revenue growth rate of 39 percent.
Easy access to credit may be a compelling, albeit temporary, method to jump-start an emerging economy. It paints a rosy picture and offers promises of better living. But unless the populace of these countries is warned to use credit cards with discretion, shoppers globally will surely be lured into the same mistakes U.S. consumers make — and quickly become saddled with the same kind of debt.
When is reach the bottom of Credit Crunch?
Many investors are beginning to think that income investing is every bit as risky as equity investing, but nothing has really changed in the relationship between these two basic building blocks of corporate finance. What has changed in recent years is the nature of the derivative products created by the wizards of Wall Street to deliver both forms of securities to investors. The most popular form of equity delivery today is the three-levels-of-speculation Index Fund. New ETFs are birthed every day and, in total, have become as common as common stocks. Have you noticed that regulators always strive to prevent financial disasters from happening... again?
But, in the meantime, the forever-sacred bond market has become the hysteria arena of the moment in media, country clubs, neighborhood pubs, and retirement villages. Does my nest egg have a crack in it? No, not really.
Stories abound concerning the sub-prime mortgages that financed the recent bubble in real estate prices. Many people, who couldn't afford to purchase homes at any price, were able to obtain financing with no-documentation-required mortgages. Many loans had sub-prime, short-term teaser rates that would adjust to above market levels too quickly. Many borrowers weren't concerned because they never intended to occupy the properties... speculators attempting to flip the properties quickly in a much too hot real estate market. Predatory lenders and some greedy realtors exacerbated the problem. Lenders didn't care because the bad loans and higher risks were gobbled up by Wall Street institutions to be sliced, diced, seasoned, and syndicated into CMOs, CDOs, and SIVs of all imaginable shapes and risk levels.
Rating agencies gave the products AAA status because they were guaranteed. Insurers guaranteed the derivatives because they were AAA rated. Investment bankers underwrote and syndicated the products because of their high quality ratings and their banker friends made markets for them through their trading desks. It was party time on Wall Street, as it always is before such MLMesque schemes unravel. Have you noticed that regulators always strive to prevent financial disasters from happening... again? You can bet that attorneys have.
So when over-the-top real estate prices began to settle and the flippers were hooked with homes that began to smell fishy, the houses-of-cards began to tumble, bursting bubbles and drowning speculators as they fell. Borrowers with adjustable rate mortgages had to face new financial realities, but contrary to the picture painted by the media, most homeowners are making their payments right on schedule. Speculators should expect losses, but should financial institutions encourage the speculators? Welcome to Las Vegas east.
It is practically impossible to determine how many and precisely which mortgages within the CDOs and SIVs are in or near default. As a result, the market value of these products has fallen to levels that unrealistically presume a major default experience. The fact that Wall Street leveraged some of the products excessively has made a bad situation worse, and banks worldwide have written down billions on mortgage portfolios that contain an unknown number of potential defaults. But regardless of the financial reality, the market value reality of having no buyers for these securities has caused a global panic and spiraling illiquidity in the financial markets. So, as a result of their self-inflicted capital-raising problems, the banks have become risk averse with everyone. Aren't banking and mortgage lending regulated industries? Is it time to change the way banking institutions assess the value of their debt investments?
Individual investors have always relied upon fixed income obligations to fund everything from college to retirement. Historically, the default rate on corporate bonds has been low, and that on Municipal bonds approaches zero. Dot-com debt was added to the markets in the later half of the 1990s, and the 8% leveraged-corporate-bond default rate in that era helped cause recession a few years later. But corporate balance sheets were far less liquid than they are today, and by early 2004 the default rate was under 1%. In late 2005 there was a short-term spike to 2%, but since then the default rate has dropped to a recent historic low of 1/4 of 1%. There does not seem to be a major quality issue within corporate debt right now, but fearful investors have abandoned all but treasury securities... finding even the commodity markets more of a safe haven than Municipals. Boy, are they in for a surprise. The fear of a routine cyclical economic slowdown and the credit crunch has caused massive selling of income securities while the default rate has not increased at all.
Corporate and municipal closed end funds have not responded normally to recent reductions in interest rates because of the general problems plaguing the industry and, additionally, because of questions about the Auction Rate Preferred Stock (APS) they use to finance short-term borrowing. (Keep in mind that nearly all corporations and municipalities use debt financing and that such financing is not, in and of itself, a bad thing.) APS in effect resets the interest rate the borrower pays every seven to twenty-eight days. The preferreds are mostly purchased by banks, but may also be sold to individual investors. The credit crunch that originated with the sub-prime problem has spread to the APS market as well. Consequently, CEF managements now have a higher cost-of-carry on short-term borrowing.
APS issues include maximum interest rates that are generally well below the amounts the funds receive from their holdings, and all Closed End Funds can raise new capital by selling additional shares of stock. As long as the earnings generated by the assets in the portfolio continue to exceed the costs of the APS financing, such financing is beneficial to the shareholders. Should the cost approach the revenue, the manager can simply redeem the APS and reduce the holdings in the portfolio.
To alleviate the problems, central banks worldwide have injected billions to help ease tight credit conditions. Ours has slashed the Fed Funds rate to lower borrowing costs and to ease general credit conditions; more rate cuts are expected. Unlike the quality issues in the sub-prime mortgage market, the weakness in the corporate and municipal CEF markets is a more solvable liquidity problem. Historically, the easing of interest rates and injection of reserves into the system eventually move credit markets toward normal conditions. The Fed Funds rate now stands at 3%, down from 5.25% a few months ago. In 2003, the rate moved to 1% as the Fed liquefied the credit markets after 911; there is still a lot of rate cutting room in the system.
Investors would fare better if they could learn to think long-term in the face of short-term problems. This is not the first, and certainly not the last, dislocation in the financial markets. The Treasury Secretary and the Federal Reserve Chairman have testified that they expect economic growth to resume during the second half of 2008. The congressional stimulus package will be implemented quickly. The Fed stands ready with rate cuts and will inject additional reserves if needed. Typically, credit crunches with or without stock market corrections have proven to be investment opportunities. This one will be no different.
Using Credit Card Debt Consolidation Services
When we talk on non profit credit-card-debt consolidation services companies offer, these includes all kinds of debt consolidation and thus this includes credit card debt consolidation. This article will be focusing on credit card debt consolidation which can be integrated in your debt consolidation plans. The beginning part of this article is circling on credit-card consolidation and the rest will elaborate explanation on how you can do it by yourself as well.
The one that a debt-struggling individual must look up to is a non profit credit-card-debt consolidation company. As we are aware of, interests in credit cards can hit as high as 14%- and higher. In fact, there was a case that is noted that one credit-card has determined to have interest rate of about 45%. Such a case is making many individuals confronted by problems on how to cope with it considering their income and finding how to pay for it in as much minimum payment. However, if you just can make a minimum payment, you'll be probably completing your credit-card payment roughly around 25 to 27 years. In such a case, you need to find additional way to cut short the range of time for payment and in tis where non profit credit card debt consolidation companies can help.
You may not know but credit-card interests can be arranged or negotiated and the very catalyst to have it done is through the help of non profit debt consolidation companies who include credit card debt management in their services. They can negotiate your creditor to decrease the interest rate that you may take and reduce your monthly spending.. Though credit card companies are enthusiasm in imposing high interest rates in their clients, they are also considering on the impact that decision can bring. So, they will be always willing to have negotiation form a non profit credit card consolidating companies to establish the best option for them- and for you.
Non profit credit-card debt consolidation companies can bring something essential to you like taking a part of credit-card counseling agency. They can inject some essential points in which you can apply to minimize your financial obligation. However, you can still to it by yourself alone if you have difficulty to put your finance together. You can do it by directly going to credit-card debt companies and try to ask to lower their interest if you can establish your payment plan but this could bring you to scenario of closing your credit card.
Deciding whether to seek a help from credit card debt consolidation services offered by companies or all by your self to negotiate for low interest in credit card companies can be a tough decision already. Be sure you are knowledgeable enough before you select an alternative to reduce your payments for interest rates. You can browse the web to absorb more knowledge about credit card debt consolidation services that can be a great help to address your needs.
Eliminate Credit Card Debt by Government bailout
A bailout for personal credit card debt is available for American consumers. Corporate bailouts make the news as the government steps in to help. But a lesser known bailout will help average citizens get a new lease on their financial lives.
It seems like everyday now that we learn about a government sponsored bailout of another major corporation. Many smaller businesses, as well as individual people, are left asking where is their bailout from the unscrupulous lending practices of the banks and credit card companies.
In recent years, consumers have been encouraged to use their credit cards for everyday purchases, including groceries, fast food meals, and even the morning cup of coffee on the way to work. All of these purchases, plus the interest and fees added on, have only built up a vast pile of debt for the average cardholder.
This is not much different than the debt built up by corporations, who now have their hand out, asking for help. And the government seems very willing to provide that help, at the long-term expense of the American taxpayer.
There is however, a bailout of sorts for personal credit card debt. This is not a government program, no taxpayer dollars are used, and you will not hear about it on the nightly news. In fact, there is actually no money involved in this bailout. Through debt elimination, a person can legally and completely discharge 100% of their debts from credit cards and personal loans. All without a new loan, subsidy, or government takeover.
For someone with too much debt, a personal bailout could be the difference between bankruptcy, and financial stability. Yet no agency or congressional handout is available for the average consumer. Instead, individuals need to take some initiative and go help themselves, without seeking a stimulus package that will probably never come.
Secured debts such as mortgages and auto loans, do not qualify for an elimination program. Yet without the burden of the monthly credit card payments, money would be available to pay for housing, transportation, and other obligations. Keeping people in their homes and driving their cars is imperative to improving the economy.
There are many options when it comes to debt relief. Not every program is a good fit for all people. Most people believe that negotiating or settling debt is the fastest way to pay them off. A debt elimination program is not a settlement program, nor is it a form of bankruptcy. It also will not sting your credit report for the next 7 to 10 years.
For anybody looking at this option, it is important that some time be dedicated to understand how and why the debt can be relieved. It is not difficult to grasp this concept, nor is this information an obscure secret. It is just information that is not given to us from our normal sources of news. The right information can set a person free from the bondage that the banks have put us into.
By taking personal control of your life and your debt, you will initiate your own personal bailout. A presidential order is not needed to accomplish it, and the taxpayer is not burdened with extra future debt.
A Stimulus Package for Credit Card Debt
A personal economic stimulus package is not in the plans of our government. But you can stimulate your own economy by eliminating your credit card debt.
Everyday, we hear the news of the debated economic stimulus package. We sit back and wonder how this will directly help us. Each of us has a unique perspective on the stimulus, and we all have different needs for where, when, and how the stimulus may or may not personally help.
Previous economic stimulus packages have sent rebate checks directly to taxpayers. Most of this money paid directly to the people was simply forwarded onto creditors to pay down debt. The current stimulus plan does not contain any provisions to send money directly to the people, and the debt balance for most people continues to grow.
For a person with overwhelming debt, any stimulus received would be used to pay down that debt. Many people are finding that they can create their own personal stimulus package, without the government's help, by completely eliminating 100% of their debts from credit cards and personal loans. They are taking responsibility for their own financial future, instead of waiting for outside help. Of course, personal responsibility is what this country was founded on.
Without debt, and without the monthly credit card payments, hundreds of dollars per month are saved on principal, interest and other fees. For some people, this can be thousands of dollars per year in savings. It could also be the difference between financial comfort and bankruptcy.
Secured debts such as mortgages and auto loans are not applicable to the elimination program. But without the credit card payments, extra money would be available to help pay for other obligations in life.
The debt elimination program may not be for everybody. It is imperative that some time be set aside to understand just how and why the debt can be wiped clean. An elimination program is not bankruptcy, consolidation, or a home refinance. Having a basic understanding of the premise of the program will also remove any fear that someone has in regards to proceeding with this debt relief method.
A person does not need to become a lawyer to understand this process. You just need to be open to some unfamiliar information. This is time well spent considering the thousands of dollars of debt that can be eliminated. There is also no cost to obtain this understanding. This may be "hard-to-find" information, but it's not top-secret. You will not obtain this knowledge from our main information sources, such as television, newspapers, co-workers, and our parents.
Assuming control of your debt will initiate your own personal economic stimulus plan. And you don't need an act of congress to accomplish it. A little knowledge can set you free.
Good News for Credit Card Holders
Arriving in mailboxes across the nation are letters from creditors that are offering help to those who are struggling with their credit card debt. The card issuers have hardship programs available to those who are in the worst positions.
What to expect. Card issuers are taking a more conciliatory stance with consumers in an effort to stave off additional delinquencies and help struggling card holders begin to get a handle on their accounts and start making payments once again.
Here are some of the details being offered by Capital One to card holders:
Past due fees suspended. Customers who receive letters are being notified that their account has not been assessed a past due fee for the current month if they are at least three payments behind in making minimum payments.
Bring account current with just one minimum payment. The offer being touted is to be able to bring the account current by making just one minimum payment. This at least brings the account to 'par' status and then the customers can begin to work on the balances from there.
Offer of a lower payment with a phone call. Even if you are unable to make a minimum payment, the card issuer is asking that customers call in order to get a lower payment amount by entering the program. Additional suspension of past due fees. If a customer calls for assistance and enters the program of making three additional monthly minimum payments, then the past due fees will be suspended for two additional months (for a total of three).
Re-instating the account as current with participation. Once the program has been successfully followed, card holders will find that their accounts have been re-instated as current.
Do not avoid contact with card issuers. This represents aggressive action on the part of card issuers and sends a signal that communication with them is a must. If you are behind on your payments and have been looking for a way to work through your balances, now is the time to call.
Those who truly need the help are encouraged to call. In fact, you can call all of your credit card issuers and find out if they are offering similar programs. However, if you are not in need of this plan, then you should avoid calling as calls such as this can put your account in adverse action status.
Further examination of your credit card accounts warrant a decision of whether or not to keep them open as opposed to moving the account in a balance transfer to another card and taking a credit score hit as well. This is an individual decision which must come after reviewing your accounts and circumstances surrounding the balances. Taking steps to improve your situation is recommended and can help you move towards a better, overall credit picture. Use the above in your strategy to eliminate balances and get back on track. You will be in a better position as a result. This is, indeed, good news for card holders.
Common sense advice to reduce your debt
It's too easy to get in debt, getting out is a struggle for all of us
Like most families living in the rat race just getting by every month can be a real challenge on a regular salary, even if both parents are working. You think your head is above the water and all of a sudden the car shocks go , the kids need new clothes and the basement starts leaking. Before you know it you actually start going under financially without living an excessive lifestyle or going beyond your monthly budget. With credit so easily obtained the idea of just going without because you have no choice does not seem to apply. If your debt gets real bad you may need some help
Eliminate as much spending as you can !
This is a lot easier than you think to figure out where you can make some cuts to spending, the hard part is forcing yourself to implement them. How badly do you want to reduce your debt ? Cancel your cable, satellite radio or magazine subscriptions until the debt is paid off. These are luxuries you don't need and you should use this money to pay off the debt burden you have. Have a garage sale and get rid of all that stuff you don't need and use the money to make a payment on your highest interest rate credit card. Instead of going out for dinner or drinks with your partner go for a walk or play tennis and make a payment with the money you would have spent.
Credit Counseling Talk to people and get advice. There's a lot of information out there and non-profits that will sit down and take a look at your financial situation and help you. You may decide to pay for a professional service and if that's the case, spend a lot of time researching and shopping around as there are a lot of scams out there. If you sit down with a credit debt counselor don't feel obliged to use them just because they spent some time with you. Once again, walk away and shop around. You should at least speak to 5 different professional debt counseling companies and don't let them rush you in deciding which one you want to go with. You need to make the right choice here as you'll be in a relationship with this organisation until your debt has gone. If you pick a bad company you could end up in a worse situation and with a lot more stress. Do your homework !!!!
The best plan to Eliminate Credit Card Debt
Credit cards are very convenient. They allow you to purchase items even if you don’t have the cash on hand. However, they also allow you to purchase items even if you don’t have the cash in your bank account
. Some abuse the convenience and power of credit cards without regard to how the charges will be paid. Before they know it, they have thousands of dollars in credit card debt and no money to pay it off. This is the situation many of us find ourselves in. Personal debt is a growing problem and credit cards are one of the leading causes of it. It’s very easy to allow your credit card debt to pile up. All you have to do is pay the minimum monthly balance and the creditors won’t be on your back. Although this is true, this is a very dangerous way to look at and use your credit cards.
Your credit
cards are indeed convenient; however you need to use them properly. It’s important to pay them off as soon as possible. If not, you’ll be deep in credit card debt. If the creditors are already calling, it means you have a serious debt problem on your hands. The best way to tackle this situation is through debt counseling, or debt consolidation. However, if your credit card company isn’t calling you and you just want to eliminate credit card debt from your life, you can tackle your debt on your own.
How to Eliminate Credit Card Debt Yourself
If you’ve found yourself in financial trouble and want to eliminate credit card debt from your life, you need to first commit yourself to reducing your credit card debt. You basically need to dedicate your life to it. This involves breaking bad spending habits and cutting back on luxury expenses (i.e. going out to eat, buying CDs and DVDs, etc.). If you want to eliminate credit card debt, you’re going to have to make some sacrifices.
The next step is to immediately reduce your charges. This means stop using your credit card as much as possible. This will get you in the habit of reaching for your cash rather than your credit card. Many of us charge things even if we have the cash. This allows you to consolidate and keep track of all your monthly expenses; however the idea behind this practice is that you pay it all off at the end of each month. If you’ve found yourself deep in credit card debt, this method is obviously one that won’t work for you. So, pay for your items in cash, not credit. You want to also avoid using your bank ATM card to make purchases. Even though it’s directly connected to your bank account, it is still possible to overdraw your account.
Once you’re in the habit of paying in cash rather than using your credit card, the next thing you need to do is budget your expenses. You need to see where you can cut back on your expenses so you can start making significant payments on your credit card debt. The best way to do this is to separate your expenses based what is necessary (rent, utilities, food, etc.) and what are not necessary (trips to the movies, luxury item purchase, expensive cable TV packages, etc.). You need to establish and stick to a budget if you want to eliminate credit card debt. It’s the best way to tackle it yourself.
Credit card debt is a problem many of us face every day. It’s a financial and personal burden that adds unnecessary stress to you and your family. So if you want to improve your financial standing, you need to follow the above-mentioned steps and eliminate credit card debt from your life.
Knowledge-based credit card debt elimination
Credit card companies will probably not help you eliminate credit card debt. The reason is the fact that credit card companies make most of their money through the interest that they collect on credit card debts. A study reveals that in the year 2006, the profit made by credit card companies through interest alone was close to a hundred million US dollars! This is why a number of companies do not encourage credit card debt consolidation. There are ways to legally eliminate credit card debt. To know more about how you can eliminate credit card debt and its legal aspects, read on.
A Few Ways in Which You Can Eliminate Credit Card Debt
A number of individuals opt for an easy home equity loan to pay off their credit card debts. This mode of credit card consolidation would be advisable only in case your credit card debt has not already skyrocketed. This approach is highly popular in the face of the fact that the late fees and interest rates charged by most credit card companies are simply atrocious. An untimely repayment can cost you a lot, quite literally. Your financial advisor may not advice you to go for this option as you may land up using your credit card again to make up for the deficit in your finances caused by the new loan. If you are on a stable salary package then you can latch on to a credit-counseling firm. This is one of the alternatives available to you to legally eliminate credit card debt. Through this approach, you commit yourself to pay a certain amount every month to the firm that you are attached to. The credit card debt consolidation company on the other hand takes up the responsibility of distributing your funds efficiently to all the credit card companies you need to repay.
How to Eliminate Credit Card Debt in the Worst of the Situations
In the worst of the situations, you have two options available:
Debt Settlement
Bankruptcy
To eliminate credit card debt you can use debt settlement as one of the last alternatives for credit card consolidation. If your condition is so bad that even the payment of your monthly bills is becoming a problem, you can then opt for debt settlement, the most effective way to legally eliminate credit card debt. The credit card company in this case can reduce the repayment amount by as much as fifty percent and may even accept the sum in five or six installments.
The other option available of course is declaring bankruptcy. This should really be your last option as it completely messes up your public record. To legally eliminate credit card debt through the declaration of bankruptcy, you must make sure you have the aid of a good bankruptcy lawyer else, your case may go horribly wrong.