The numbers of credit card users that are constantly finding themselves mired in debts that they cannot pay off are in the thousands, and though some are lucky to climb to the top of the mountain of their debt, others are often faced with having to declare bankruptcy to find salvation. However, they should realize that credit card debt help is out there for them and it is just around the corner if they only make an effort to find the numerous options available.
Accumulated Interest Rates
A typical credit card debt can easily mount, especially when you realize that there is a considerable amount of accumulated interest that is also added to your credit card debts, and so you need to learn how to pay down credit card debt and thus eliminate or reduce the burden of the outstanding debts. The first credit card debt help step that you should try is to negotiate with your credit card company and ask for a lower rate of interest, and surprisingly there are many companies that will accommodate your request, especially if you have a long standing relationship with the company.
Another credit card debt help solution is to also ask your credit card company to lower late fees levied on you, and here again, a number of these companies will accommodate your request, even going so far as to totally wipe off the late fees, especially if you promise to pay the minimum outstanding amount soon. In fact, another way of getting credit card debt help is to request the company to extend the payment lines. Of course, some people are not good negotiators and for them the best course to seek credit card debt help is to avail of the services of a credit card relief company to negotiate on their behalf.
Nevertheless, before asking a credit card relief company makes sure to deal with only a reputable company, because there are many unscrupulous companies out there that you need to steer clear of. Do your research in this area. One company I have used and can recommend is Veracity Credit Consultants.
In any case, the best form of credit card debt help is to ensure that you use your credit cards safely and judiciously, and not make unnecessary credit purchases that will send your debts soaring and which are beyond your budget capabilities. Another credit card debt help solution that you can try is to open a fresh credit card account that carries with it a lower rate of interest, and though it sounds crazy, in fact, it is not, because you can use this new card to pay off your outstanding debts, and because it has lower interest rate, will enable you to pay off your debts in a shorter time period. Just make sure you don’t get further into debt with the new credit line! . For more credit card information please visit Reduce Credit Card Debt.
Monday, January 28, 2008
How to Handle the Bill Collectors
Credit card debt collection is a big business. There are millions of dollars every year from thousands of accounts that go to collection agencies for delinquency. Being in debt is never easy and it’s a very stressful time. You may receive several phone calls a day from each one of the credit card debt collection agencies for each one of your accounts.
There is a variety of ways to handle a credit card debt collection creditor when they call. This first thing to remember is to remain calm. Many people tend to be overly stressed and become angry at the caller. In some instances, as with an overly aggressive debt collector, this may be appropriate. However, the majority of the people you will receive calls from are just like you, attempting to do a job.
The next thing to remember is track the call. This means writing down the name of the person and their identification number if they have one. Also, remember to write down which collection agency they are from and the account number and client for this debt. The client for the credit card debt collection agency would be the credit card issuer and also write down the date and time they call. Keep this information in your records with the credit card information. You should receive a call no more than perhaps twice a month. If you start getting daily calls, or calls that are several times a day remind them that while they have a right to collect the debt, over calling could put them in the position of facing harassment charges.
When they do call, calmly explain your situation. Let them know that you are attempting to pay the debt but due to whatever the circumstances are, you are having a little difficult. Talk to them to see if you can locate a payment plan that will work to help you pay. If an agreement cannot be reached then simply, let them know you will pay them as soon as you can. Most debt collectors work on a commission basis. The more debt they collect the more they get paid. Try to negotiate a settlement if you can. A collector would rather have a portion of the total bill than none at all.
There are companies that can help you through this collection process. If you have multiple creditors calling, it might be wise to do some research. One company I have used is Veracity Credit Consultants. They can also help you clean up your credit and improve your credit score.
Communication is essential when dealing with creditors, being calm and willing to listen to the options they have for you and being willing to explain your situation so that both parties can reach an agreement is key. For more information please visit Reduce Credit Card Debt.
There is a variety of ways to handle a credit card debt collection creditor when they call. This first thing to remember is to remain calm. Many people tend to be overly stressed and become angry at the caller. In some instances, as with an overly aggressive debt collector, this may be appropriate. However, the majority of the people you will receive calls from are just like you, attempting to do a job.
The next thing to remember is track the call. This means writing down the name of the person and their identification number if they have one. Also, remember to write down which collection agency they are from and the account number and client for this debt. The client for the credit card debt collection agency would be the credit card issuer and also write down the date and time they call. Keep this information in your records with the credit card information. You should receive a call no more than perhaps twice a month. If you start getting daily calls, or calls that are several times a day remind them that while they have a right to collect the debt, over calling could put them in the position of facing harassment charges.
When they do call, calmly explain your situation. Let them know that you are attempting to pay the debt but due to whatever the circumstances are, you are having a little difficult. Talk to them to see if you can locate a payment plan that will work to help you pay. If an agreement cannot be reached then simply, let them know you will pay them as soon as you can. Most debt collectors work on a commission basis. The more debt they collect the more they get paid. Try to negotiate a settlement if you can. A collector would rather have a portion of the total bill than none at all.
There are companies that can help you through this collection process. If you have multiple creditors calling, it might be wise to do some research. One company I have used is Veracity Credit Consultants. They can also help you clean up your credit and improve your credit score.
Communication is essential when dealing with creditors, being calm and willing to listen to the options they have for you and being willing to explain your situation so that both parties can reach an agreement is key. For more information please visit Reduce Credit Card Debt.
Wednesday, January 23, 2008
Credit Tips so Simple you Should have Thought of Them Yourself
Credit card debt can seriously ruin your enjoyment of life. Studies have shown that how a married couple’s rating of how happy they are is directly correlated to the amount of credit card debt they carry. Reducing your credit card debt can also improve your love life! That was enough motivation for me, but you might need some more.
The absolute best way to reduce your debt is to cut back your spending and apply that savings to your credit card debt. I’m sure you are thinking “thanks for the advice genius”. Hey, you spent the money in the first place not me. Anyway, I have a few ideas on how you can do that without making any drastic changes to you life. The best way to reduce debt is to reduce your spending on food and drink consumed outside of your home. If you are anything like me I’m sure you could stand to cut a few things out of your diet and lose a few pounds in the process but that is a topic for another day.
Here is a little tip. Keep track on how much money you are spending on food. I guarantee you will be amazed. The first time I did my list I found out I was spending more on food than I was spending on my house. Yes, I am serious. That was an eye opener. How much you are paying for the convenience of having ready-made drinks and meals? Just making a few simple lifestyle changes can drastically increase the available cash you have to pay down your debt.
The easiest way to make these changes is to make them one at a time. Drastic cutbacks will leave you feeling deprived, but if you gradually change the way you spend money, you will gain a sense of pride and accomplishment in your achievements. Slow and easy wins the race and it’s really the only way you can maintain your efforts for the long term.
Starbucks and other coffee shops are icons of today’s American culture. Look around, I’m sure there are twenty other people just like you waiting for their morning cup of coffee. Specialty coffee drinks usually cost $3 to $5 by the time you tip, and you might spend even more if you also purchase breakfast foods, like croissants, scones, and bagels to go with your latte or mocha. I suppose you could cut back on the tip, but don’t blame me if you get crappy service the next time around.
Make your coffee at home and skip the stop at the coffee shop. You can buy a coffee brewer and a pound of coffee for about the same amount you spend on coffee drinks in one week. You can buy Starbucks coffee beans or grounds in the grocery store. Like iced coffee? Add ice!! Latte? It’s milk!! Seriously, you can save big money here and don’t forget about all the extra time you now have from not standing in line.
If you look forward to your coffee break as a way to socialize, go ahead and walk with your friends to the coffee shop. You can catch up on conversation while you wait in line and wait for your friends’ drinks to be made. Chances are, though, that your friends also need to reduce their credit card debt. Let them read this article.
At the end of the month, add up the amount you have saved on coffee drinks, bagels, scones and donuts. Reduce your credit card debt by that amount plus your regular monthly payment. Don’t go and spend all your savings. Use it to pay down that debt. For more information please visit Reduce Credit Card Debt.
The absolute best way to reduce your debt is to cut back your spending and apply that savings to your credit card debt. I’m sure you are thinking “thanks for the advice genius”. Hey, you spent the money in the first place not me. Anyway, I have a few ideas on how you can do that without making any drastic changes to you life. The best way to reduce debt is to reduce your spending on food and drink consumed outside of your home. If you are anything like me I’m sure you could stand to cut a few things out of your diet and lose a few pounds in the process but that is a topic for another day.
Here is a little tip. Keep track on how much money you are spending on food. I guarantee you will be amazed. The first time I did my list I found out I was spending more on food than I was spending on my house. Yes, I am serious. That was an eye opener. How much you are paying for the convenience of having ready-made drinks and meals? Just making a few simple lifestyle changes can drastically increase the available cash you have to pay down your debt.
The easiest way to make these changes is to make them one at a time. Drastic cutbacks will leave you feeling deprived, but if you gradually change the way you spend money, you will gain a sense of pride and accomplishment in your achievements. Slow and easy wins the race and it’s really the only way you can maintain your efforts for the long term.
Starbucks and other coffee shops are icons of today’s American culture. Look around, I’m sure there are twenty other people just like you waiting for their morning cup of coffee. Specialty coffee drinks usually cost $3 to $5 by the time you tip, and you might spend even more if you also purchase breakfast foods, like croissants, scones, and bagels to go with your latte or mocha. I suppose you could cut back on the tip, but don’t blame me if you get crappy service the next time around.
Make your coffee at home and skip the stop at the coffee shop. You can buy a coffee brewer and a pound of coffee for about the same amount you spend on coffee drinks in one week. You can buy Starbucks coffee beans or grounds in the grocery store. Like iced coffee? Add ice!! Latte? It’s milk!! Seriously, you can save big money here and don’t forget about all the extra time you now have from not standing in line.
If you look forward to your coffee break as a way to socialize, go ahead and walk with your friends to the coffee shop. You can catch up on conversation while you wait in line and wait for your friends’ drinks to be made. Chances are, though, that your friends also need to reduce their credit card debt. Let them read this article.
At the end of the month, add up the amount you have saved on coffee drinks, bagels, scones and donuts. Reduce your credit card debt by that amount plus your regular monthly payment. Don’t go and spend all your savings. Use it to pay down that debt. For more information please visit Reduce Credit Card Debt.
Sunday, January 20, 2008
Oh Those Great Offers For Consolidating Credit Card Debt
If you have half decent credit then you get junk mail every day that tries to get you to consider consolidating credit card debt with various financial institutions and some of them seem like very familiar names. You will see names like GE Capital and other familiar names but remember that just because they use the name of a big familiar company does not mean they are still part of that company. They could have been spun off years ago and are their own organization. That also doesn’t mean that they can’t lend a helping hand when it comes to consolidating credit card debt, they can. You just have to be careful that in the process of consolidating credit card debt you don’t dig your financial hole any deeper. There is a danger to consolidating credit card debt because many companies make it seem so easy.
You’ll get these documents that look like checks made out to you for huge sums of money and it seems like the answer to getting out of your debt. The reality is that they are offering you a way of consolidating credit card debt that uses the equity in your home as collateral for a line of credit that you can use for consolidating credit card debt. You should probably avoid using equity lines of credit for consolidating credit card debt. Lines of credit are used for major expenses like college for you children or remodeling your home. Plus they are tied to your home's mortgage and you do not want short term debt like credit cards to turn into a long term obligation. You can just throw those offers in the garbage.
You’ll get these documents that look like checks made out to you for huge sums of money and it seems like the answer to getting out of your debt. The reality is that they are offering you a way of consolidating credit card debt that uses the equity in your home as collateral for a line of credit that you can use for consolidating credit card debt. You should probably avoid using equity lines of credit for consolidating credit card debt. Lines of credit are used for major expenses like college for you children or remodeling your home. Plus they are tied to your home's mortgage and you do not want short term debt like credit cards to turn into a long term obligation. You can just throw those offers in the garbage.
Wednesday, January 16, 2008
Worried About Getting Sued Over Credit Card Debt?
Credit card debt can sneak up on you. You miss a payment or make a couple of late payments, and before you know it, your minimum monthly payments add up to several hundred dollars a month and your creditors are threatening to sue you over credit card debt.
Credit card holders who are afraid they are going to get sued over their credit card debt have at least three alternatives available to them: they can declare bankruptcy, they can use a credit counseling service, or they can reduce their credit card debt by cutting back on expenses and applying the savings to their credit card balances.
Is Bankruptcy For You?
If your credit card debt is overwhelming and your circumstances make it virtually impossible for you to repay the debt, bankruptcy may be an option for you. Consult with an attorney specializing in bankruptcy to find out if filing bankruptcy would reduce or eliminate you credit card debt. At a minimum, filing for bankruptcy may fend off a creditor who is threatening to sue you over credit card debt. Filing for bankruptcy may also buy you some additional time to pay off your credit card debt by allowing you to restructure all your debts and reestablishing the minimum amount you pay to each creditor.
Bankruptcy is a drastic step that can have a negative impact on your credit rating for many years to come. You should not consider declaring bankruptcy until you have consulted a bankruptcy attorney and carefully weighed all your other options. Explore all your options!
Is Credit Counseling For You?
If you are concerned that you may be sued over credit card debt, one alternative to bankruptcy is to consult a credit counseling service. A credit counseling service will assess your income and your debts and approach your creditors on your behalf to make alternative payment arrangements. You make one monthly payment to the credit counselor, and the credit counseling service pays your creditors for you, per the agreement they made for you.
Making payments through a credit counseling agency may mean that your credit report reflects late or delinquent payments; however, these ratings are not as detrimental to your credit and do not last as long as filing for bankruptcy. One company I can recommend in this area is Veracity Credit Consultants. I’ve had some really positive feedback but as always do your research.
Cutting Back On Expenses
Before you consult a bankruptcy attorney or a credit card counseling service, make an honest assessment of your monthly expenses and see what you can cut back on. If you are making a car payment, consider whether you could do without a car for a year or so. By applying you monthly car payment and auto insurance premiums to your credit card bills, you can substantially reduce your credit card debt in a relatively short period of time.
Communicate with your creditors. If they know you are serious about not getting sued over credit card debt, and that you are willing to sacrifice your personal convenience by giving up your car for a year to pay your credit cards off, they are more likely to work with you than to sue you over credit card debt. For more credit card information please visit Reduce Credit Card Debt.
Credit card holders who are afraid they are going to get sued over their credit card debt have at least three alternatives available to them: they can declare bankruptcy, they can use a credit counseling service, or they can reduce their credit card debt by cutting back on expenses and applying the savings to their credit card balances.
Is Bankruptcy For You?
If your credit card debt is overwhelming and your circumstances make it virtually impossible for you to repay the debt, bankruptcy may be an option for you. Consult with an attorney specializing in bankruptcy to find out if filing bankruptcy would reduce or eliminate you credit card debt. At a minimum, filing for bankruptcy may fend off a creditor who is threatening to sue you over credit card debt. Filing for bankruptcy may also buy you some additional time to pay off your credit card debt by allowing you to restructure all your debts and reestablishing the minimum amount you pay to each creditor.
Bankruptcy is a drastic step that can have a negative impact on your credit rating for many years to come. You should not consider declaring bankruptcy until you have consulted a bankruptcy attorney and carefully weighed all your other options. Explore all your options!
Is Credit Counseling For You?
If you are concerned that you may be sued over credit card debt, one alternative to bankruptcy is to consult a credit counseling service. A credit counseling service will assess your income and your debts and approach your creditors on your behalf to make alternative payment arrangements. You make one monthly payment to the credit counselor, and the credit counseling service pays your creditors for you, per the agreement they made for you.
Making payments through a credit counseling agency may mean that your credit report reflects late or delinquent payments; however, these ratings are not as detrimental to your credit and do not last as long as filing for bankruptcy. One company I can recommend in this area is Veracity Credit Consultants. I’ve had some really positive feedback but as always do your research.
Cutting Back On Expenses
Before you consult a bankruptcy attorney or a credit card counseling service, make an honest assessment of your monthly expenses and see what you can cut back on. If you are making a car payment, consider whether you could do without a car for a year or so. By applying you monthly car payment and auto insurance premiums to your credit card bills, you can substantially reduce your credit card debt in a relatively short period of time.
Communicate with your creditors. If they know you are serious about not getting sued over credit card debt, and that you are willing to sacrifice your personal convenience by giving up your car for a year to pay your credit cards off, they are more likely to work with you than to sue you over credit card debt. For more credit card information please visit Reduce Credit Card Debt.
Monday, January 14, 2008
Planning on Paying Your Credit Card Bills With Your Tax Refund?
A last minute Congressional change to the tax code is both good news and bad news to the average taxpayer. Congress voted to approve a bill that puts in place a one-year fix of the AMT (alternative minimum tax) which was created to make sure the ultra rich did not totally avoid paying taxes. But since it was never adjusted for inflation, it has been hitting more middle and upper-middle class taxpayers every year.
The Good News
Upwards of 20 million US taxpayers will escape the AMT this year. About 4 million taxpayers owed the AMT in 2006 and about the same number of taxpayers will owe the AMT for 2007. Without the fix, more than 20 million taxpayers would have seen an average increase in taxes of $2,000.
The Bad News
Lawmakers waited so late in the year to approve the bill that many taxpayers will have to wait until March to get their refunds. The IRS usually begins processing tax returns in mid-January, but the schedule will be delayed this year because the IRS will need about seven weeks to reprogram its computers to reflect the last minute changes to the tax law. What does this mean to you? Many taxpayers who normally file their taxes in late January and early February will end up waiting four weeks longer than usual to receive a refund.
The bottom line here is don’t hold your breath for that early refund and don’t try to hold off on your credit card payments until that refund comes. It could be a while. For more useful articles on credit card debt and personal finances please visit Reduce Credit Card Debt
The Good News
Upwards of 20 million US taxpayers will escape the AMT this year. About 4 million taxpayers owed the AMT in 2006 and about the same number of taxpayers will owe the AMT for 2007. Without the fix, more than 20 million taxpayers would have seen an average increase in taxes of $2,000.
The Bad News
Lawmakers waited so late in the year to approve the bill that many taxpayers will have to wait until March to get their refunds. The IRS usually begins processing tax returns in mid-January, but the schedule will be delayed this year because the IRS will need about seven weeks to reprogram its computers to reflect the last minute changes to the tax law. What does this mean to you? Many taxpayers who normally file their taxes in late January and early February will end up waiting four weeks longer than usual to receive a refund.
The bottom line here is don’t hold your breath for that early refund and don’t try to hold off on your credit card payments until that refund comes. It could be a while. For more useful articles on credit card debt and personal finances please visit Reduce Credit Card Debt
Sunday, January 13, 2008
How Not To Pay Your Credit Card Debt
Many people probably have considered a variety of options of how not to pay your credit card debt. In other words, they are looking for ways to get out of debt without paying your credit card bills. If you are looking for ways how not to pay your credit card debt that will get you out completely without damaging your credit, you are out of luck. There are no ways how not to pay your credit card debt that leave you with decent credit if you do not wish to pay for any of the debt you owe. There are ways how not to pay your credit card debt if you are looking for a way to pay it off without damaging your credit and still make all your other obligations.
Limiting Credit Score Damage
If you are short on funds and are looking for ways to get around paying all your bills but just cannot seem to make ends meet to pay them all then there is a way you can get away without paying your credit card bills in favor of more important bills. This should only be done if absolutely necessary and for the shortest amount of time possible.
The first thing to do is to take care of your must pays. This includes things like rent, food, car, child support, and the things you have to have in order to live and work. If you have the option of paying the mortgage or rent or the credit card pay the must haves first. Credit card companies will usually wait 30 or more days before issuing collections or submitting your information to the credit reporting agencies as delinquent. While you may end up paying fees or higher interest rates, it can help you keep your home, car and take care of the things you have to have in order to live.
This should only be used as a way to buy time to get your financials in order and you should make a payment, the late and the current payment as soon as possible on your credit card in order to avoid collections action. These types of reordering will usually only create small notes on your credit if at all. This means that the damage is not as extensive as doing something drastic as a bankruptcy or charge off.
Limiting Credit Score Damage
If you are short on funds and are looking for ways to get around paying all your bills but just cannot seem to make ends meet to pay them all then there is a way you can get away without paying your credit card bills in favor of more important bills. This should only be done if absolutely necessary and for the shortest amount of time possible.
The first thing to do is to take care of your must pays. This includes things like rent, food, car, child support, and the things you have to have in order to live and work. If you have the option of paying the mortgage or rent or the credit card pay the must haves first. Credit card companies will usually wait 30 or more days before issuing collections or submitting your information to the credit reporting agencies as delinquent. While you may end up paying fees or higher interest rates, it can help you keep your home, car and take care of the things you have to have in order to live.
This should only be used as a way to buy time to get your financials in order and you should make a payment, the late and the current payment as soon as possible on your credit card in order to avoid collections action. These types of reordering will usually only create small notes on your credit if at all. This means that the damage is not as extensive as doing something drastic as a bankruptcy or charge off.
How to Negotiate Credit Card Debt
There are many things that people fear and out of control credit card debt is not something that always comes first to someone's mind when they think about the worst financial hardship that could happen. But, when it does happen to someone, it can feel as though it is the worst thing ever and that they are buried so far that they will never see any light. But this does not have to be true as there are many ways to go about fixing the problem including considering credit card debt negotiation. What credit card debt negotiation does is take the debt you owe and either reduces the total amount that you owe or find a way to make it easier to pay it off.
Generally, when a credit account hits a collection agency, there is more room to work a credit card debt negotiation plan. This means that if you owe a total of four thousand dollars, they may be willing to take a lump sum payment of two thousand dollars and call the debt paid off. This helps the company in that they are finally receiving money from the debtor and the debtor is helped by the reduced amount of debt. Credit card debt negotiation plans are often a win-win situation for both parties involved. And while it is true that there will be a small mark on your credit for paying less then the total due, the affect is much less then leaving the debt sit or filing bankruptcy.
What to Do
If you look at your credit card bill you will see that your interest rate is listed on there in a spot that is easy to find. If your rate is over 10% then you have something you can use for negotiating credit card debt. These are arbitrary numbers set by the credit card company and you can use them when you are negotiating credit card debt. As long as you always pay your principle you are fine. I had a friend that would call his credit card companies once a year and tell them that if they didn't lower their interest rates he was paying the card off in full and canceling it. More often than not the rates got lowered. This also affects your monthly payment and can help you control your monthly debt.
The best and generally the cheapest way to go about tackling credit card debt negotiation is to call each of your creditors yourself and explain your hardship. While not every single credit card company or collection agency will be able and willing to accept a deal, there is a good chance that one or even a few of those on your list that you owe will be willing to work with you. Even though you would love to see every creditor on your list cut your debt in half, the fact is, even if one or two were able to slice your debt in half, you will have been successful in your credit card debt negotiation.
If you are feeling that you are not outgoing enough or maybe you are just simply too scared or shy to contact your creditors, you may need the assistance of someone else. There are agencies that are dedicated in helping you with credit card debt negotiation and since it is their job, they may know a few tricks that you do not and this could make all the difference in getting it done. It never hurts to call in some professional help but try to stay away from those who want to charge you hundred of dollars for their assistance because successful credit card debt negotiation isn't promised and you could up even worse off then before. For more useful information please visit Reduce Your Debt.
Generally, when a credit account hits a collection agency, there is more room to work a credit card debt negotiation plan. This means that if you owe a total of four thousand dollars, they may be willing to take a lump sum payment of two thousand dollars and call the debt paid off. This helps the company in that they are finally receiving money from the debtor and the debtor is helped by the reduced amount of debt. Credit card debt negotiation plans are often a win-win situation for both parties involved. And while it is true that there will be a small mark on your credit for paying less then the total due, the affect is much less then leaving the debt sit or filing bankruptcy.
What to Do
If you look at your credit card bill you will see that your interest rate is listed on there in a spot that is easy to find. If your rate is over 10% then you have something you can use for negotiating credit card debt. These are arbitrary numbers set by the credit card company and you can use them when you are negotiating credit card debt. As long as you always pay your principle you are fine. I had a friend that would call his credit card companies once a year and tell them that if they didn't lower their interest rates he was paying the card off in full and canceling it. More often than not the rates got lowered. This also affects your monthly payment and can help you control your monthly debt.
The best and generally the cheapest way to go about tackling credit card debt negotiation is to call each of your creditors yourself and explain your hardship. While not every single credit card company or collection agency will be able and willing to accept a deal, there is a good chance that one or even a few of those on your list that you owe will be willing to work with you. Even though you would love to see every creditor on your list cut your debt in half, the fact is, even if one or two were able to slice your debt in half, you will have been successful in your credit card debt negotiation.
If you are feeling that you are not outgoing enough or maybe you are just simply too scared or shy to contact your creditors, you may need the assistance of someone else. There are agencies that are dedicated in helping you with credit card debt negotiation and since it is their job, they may know a few tricks that you do not and this could make all the difference in getting it done. It never hurts to call in some professional help but try to stay away from those who want to charge you hundred of dollars for their assistance because successful credit card debt negotiation isn't promised and you could up even worse off then before. For more useful information please visit Reduce Your Debt.
Thursday, January 10, 2008
Tips On Negotiating Credit Card Debt
Many people that get themselves into credit card debt do not realize that they can be negotiating credit card debt for themselves without relying on a credit management company. When you are negotiating credit card debt you just have to remember that there are two sides to every story. Yes it is difficult for you to pay right now but the credit card company just wants their money so when you are negotiating credit card debt remember that you are trying to find a place to meet the credit card company halfway. One of the things that help you in negotiating credit card debt is to know what can be negotiated and what is not open for negotiation. If you go into it wanting to negotiate your principle down, which the money you spent that you actually owe them, then you can cut up that credit card and say goodbye to your credit rating. Principles owed are not open for talks when you are negotiating credit card debt however interest owed and interest rates are open. The credit card company may not like it and they may cancel your card but at least you are paying your principle and that counts for a lot.
If you look at your credit card bill you will see that your interest rate is listed on there in a spot that is easy to find. If your rate is over 10% then you have something you can use for negotiating credit card debt. Many store cards and low limit credit cards have rates that are over 20% and they usually go up every year. These are arbitrary numbers set by the credit card company and you can use them when you are negotiating credit card debt. As long as you always pay your principle you are fine. I had a friend that would call his credit card companies once a year and tell them that if they didn't lower their interest rates he was paying the card off in full and canceling it. More often than not the rates got lowered. This also affects your monthly payment and can help you control your monthly debt.
Not Your Friend And Not Your Buddy
In the end the credit card company only cares about getting paid so don’t expect any more than that. They don't care about you no matter how nice they talk to you; all they care about is money. They also do not like you if you pay your balance off every month. I know someone who has used their card and paid off their balance every month for years and their credit limit has never been raised. I pay my minimums on my three cards and my limits get raised constantly. Threatening to pay off the entire balance is a huge threat you can use when negotiating credit card debt.
Remember that they are a business and you are the customer. You always have the option of taking your business elsewhere if you are unhappy. If you let them know you are willing to do that then they will talk to you.
Make Money Today
If you look at your credit card bill you will see that your interest rate is listed on there in a spot that is easy to find. If your rate is over 10% then you have something you can use for negotiating credit card debt. Many store cards and low limit credit cards have rates that are over 20% and they usually go up every year. These are arbitrary numbers set by the credit card company and you can use them when you are negotiating credit card debt. As long as you always pay your principle you are fine. I had a friend that would call his credit card companies once a year and tell them that if they didn't lower their interest rates he was paying the card off in full and canceling it. More often than not the rates got lowered. This also affects your monthly payment and can help you control your monthly debt.
Not Your Friend And Not Your Buddy
In the end the credit card company only cares about getting paid so don’t expect any more than that. They don't care about you no matter how nice they talk to you; all they care about is money. They also do not like you if you pay your balance off every month. I know someone who has used their card and paid off their balance every month for years and their credit limit has never been raised. I pay my minimums on my three cards and my limits get raised constantly. Threatening to pay off the entire balance is a huge threat you can use when negotiating credit card debt.
Remember that they are a business and you are the customer. You always have the option of taking your business elsewhere if you are unhappy. If you let them know you are willing to do that then they will talk to you.
Make Money Today
Monday, January 7, 2008
Yes...You Can Reduce Your Credit Card Debt
You probably have several reasons for wanting to reduce their average credit card debt. If you want to buy a house in the next year or so, you probably know that mortgage lenders frown on high credit card balances, and reducing your credit card debt will get you a better rate on a mortgage. Even if you already own your own home, or you are not in the market to buy a home, you may find that you are uncomfortable with the high amount of your credit card debt, or you want to reduce your monthly credit card payments so you can have more disposable income.
The best way to reduce your average credit card debt is to cut back on your other expenses and use the amount you save each month to pay off your credit card balances.
Keep A Spending Diary
Most people are not aware of what they spend their money on. Sure, they pay their debts online or write checks to pay their living expenses, but they do not categorize their day-to-day expenses, so they have no idea how much they could reduce their average credit card debt by cutting back on expenses.
The first step in cutting back is to know what you are spending your money on. For one week, track everything you buy with cash, checks, credit cards, and debit cards. If you like to work with paper, get a small notebook you can carry with you at all times, and write down each item as you purchase it. Don’t wait until the end of the day to track your expenses; studies have shown that people underestimate their expenses when they try to remember what they purchased. This may seem like a burden, but it is not as much of a burden as credit card debt can be.
If you can’t be bothered with a notebook, use your cell phone to keep track of your expenses. If your cell plan offers free text messaging, send yourself a text message every time you buy something. At the end of the day, you can read your text messages and enter the information into a spreadsheet. If you can reduce your average credit card debt, all this recordkeeping will be well worth the effort.
After you have itemized one week’s worth of expenses, go over each item and ask yourself whether you really needed that item and, if you did, whether you could have purchased a less expensive alternative. You can reduce your average credit card debt by cutting back on those items that you can easily live without.
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