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Posts Tagged credit card debt

Will A Debt Consolidation Loan Work For You?

Feb 26

Posted by admin in Debt Consolidation, Debt Relief

Many people think that debt consolidation loans will solve all of their financial problems, but these loans may not be the perfect way to solve everyone’s debt issues. To determine whether or not a debt consolidation loan is right for you, you must know what it is and exactly how it works.

The Debt Consolidation Loan Defined

A debt consolidation loan is used to pay off other debts. Most people utilize debt consolidation loans to take advantage of lower interest rates, fixed interest rates, or for the convenience of making only one payment every month as opposed to several. In certain cases, you may be able to get an unsecured debt consolidation loans, but not all lenders are willing to loan money on good faith alone. You may be required to put up some sort of collateral, such as a house, to become eligible for a debt consolidation loan.

Who Should Consider a Debt Consolidation Loan?

Debt consolidation loans are often recommended for people who carry a large amount of credit card debt. Credit cards often carry the penalty of high interest. Debt consolidation loans typically have a lower interest rate. Still, you should think carefully before taking the plunge. You may be able to get away with skipping a payment or two on your credit cards, but you can?t do that with a debt consolidation loan. Remember, most debt consolidation loans are secured with collateral. If you don?t make your payments, you could lose your house. Here is a list of recommended Debt Consolidation Lenders online. It’s important to use a reputable lender online to make sure your personal information is secure.

Finding a Debt Consolidation Loan Lender

The debt consolidation market is competitive. When shopping for a debt consolidation loan, you should take the time to compare lenders, rates, fees, and loan terms. Never get a debt consolidation loan if you are confused about the terms. The goal of the loan is to provide relief, not undue stress.

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Credit Card Judgment – What Does It Mean?

Feb 12

Posted by admin in Credit, Debt Consolidation

A court order which acknowledges that a credit card cardholder owes a debt and explains the way the debt may be recovered is called a credit card judgment. Typically a credit card judgment is issued when a credit card cardholder fails to make required minimum monthly payments and has not attempted to work with the credit card provider to come to an agreement for bringing the account current.

Idealistically speaking, before getting to this point, it would be best to contact the card provider so things do not get out of hand. Credit card providers are often willing to work with a cardholder to either arrange a payment plan or to arrange for a pay off in full for a reduced debt amount.

If you do not make arrangements with the credit card provider, your debt may wind up with a collection agency. At this point, you are no longer able to negotiate with the credit card provider. Collection agencies, as a rule, don’t like to go to court to collect a debt because it costs them time and money for what to them normally amounts to a very small amount. Collection agencies normally purchase debt for cents on the dollar. Therefore, they will normally be willing to make arrangements with you for a lump sum payment or monthly payments.

If your debt does come before a judge for a credit card judgment, you have the right to appear before the judge and plead your case. If the debt is not yours or if the seizing of the assets would mean serious difficulties for you, the judge may take this into consideration. However, this is viewed on a case-by-case basis.

Additionally, not all assets may be seized and a judge may determine exactly which assets may be taken. A judge may also order that money be taken from your bank account to pay the debt , may set a ruling to garnish your wages (depending upon state law), or may even order the filing of a lien upon your real property, if you own any.

Your credit score will be severely damaged if you obtain a credit card judgment. Also, it will be extremely hard to be approved for any credit products. Your credit history can carry this albatross for up to seven years.

Your ability to obtain reasonable rates related to car and home insurance will be affected. Also, a credit card judgment can affect your opportunities for future employment or advancement in your present position.

Once the credit card judgment has been issued, do your best to pay the credit card debt off as quicikly as you can. Keep in mind that you can contact the credit reporting agencies after the debt has been paid in full to request that the debt be removed altogether or, at the very least, be revised to a “paid” status.

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TARP Money and Credit Card Debt: The $700 Billion Elephant in the Room

Feb 3

Posted by admin in Finance, Real Estate

If you’re a bank, things are looking up! The $700 billion from the Troubled Asset Relief Program (TARP) has largely gone to buoying up financial institutions with some help to the struggling auto industry as well. So if your name is Bank of America, Citigroup or GM then congratulations are in order. In fact, over $25 billion have been eagerly repaid by those institutions who are stockpiling funds and do not want to have any government oversight of their business. Go banks!

But, if you’re a homeowner or a potential homeowner, an average American, or a small business then the news isn’t all that great. From where I often sit behind the desk of a real estate radio show and podcast, it looks pretty discouraging. The real estate system is starting to move homes, but lending requirements are stricter than ever, and even high FICO and truly qualified buyers are not getting approval. It seems like we’ve created a system in which no one is deemed qualified. Brilliant.

TARP Funds should help those in need!
How needy are the banks? Frankly, the banks are posting great profits. They are benefitting from government funds, and even Treasury Secretary Geithner has stated that most banks now have more money than they need. That extra infusion of bailout money to repair the financial system seems to have worked, for the banks.

What about the consumers?
Loan programs are increasing, interest rates are low, but credit continues to deteriorate! Job losses continue as many businesses scale back on staff and are forced into layoffs. If you’re one of many working Americans who has lost a job or lives in fear of a job loss, then the success of Bank of America doesn’t do much to feed your family or put a roof over their head, does it? They still won’t give you a loan. And Bank of America is just one striking example of how the bailout funds are working for the big banks and against average Americans. Bank of America posted a $4.2 billion profit in the first quarter of 2009, yet they have $1.3 billion in credit losses. Doesn’t this point to a huge problem that no one is addressing?

Credit card debt is the elephant in the room!
There’s about $110 billion left in the TARP funds. Where is it going to go? I hear all this talk about bolstering the financial industry and getting credit flowing again, but no one is looking at the credit situation from the buyers’ end! Nothing will start flowing until qualified buyers can actually get loans!

Crazy Ringmasters and Hoops for Home Loans
Home values are down and the real estate market is showing signs of improvement; but folks who can finally buy are forced to jump through double hoops. It’s like the banks are crazy ring masters!
Every day I hear from folks who are forced to go through a pre-qualification procedure with one bank, even though they already have a loan with another bank. Why? Banks that have foreclosures don’t even want to do loans on their own foreclosures, so you have to get pre-qualified by the first bank’s loan reps to get a loan with another bank. That’s crazy!

Why don’t those banks open the doors, loosen credit and make loans on their own bank foreclosures to the people that want to buy? If they make the terms better and easier to qualify they can stop the foreclosures, keep buyer paying the loans, and help to unclog the housing market. Everybody wins!

So why isn’t anyone talking about the credit card and qualifying situations? These are the issues I get calls about on my radio and podcast shows every day. Want to buy a home? There are thousands out there that banks, lenders and homeowners need to sell. It’s too bad that no one seems to be qualified to buy them.
We’ve got a $700 billion elephant in our nation’s financial living room. Maybe we should start talking about it.
Moratorium? Is that still on?? I see everyone got quite!!

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TARP Money and Credit Card Debt: The $700 Billion Elephant in the Room

Feb 2

Posted by admin in Debt Consolidation, Real Estate

If you’re a bank, things are looking up! The $700 billion from the Troubled Asset Relief Program (TARP) has largely gone to buoying up financial institutions with some help to the struggling auto industry as well. So if your name is Bank of America, Citigroup or GM then congratulations are in order. In fact, over $25 billion have been eagerly repaid by those institutions who are stockpiling funds and do not want to have any government oversight of their business. Go banks!

But, if you’re a homeowner or a potential homeowner, an average American, or a small business then the news isn’t all that great. From where I often sit behind the desk of a real estate radio show and podcast, it looks pretty discouraging. The real estate system is starting to move homes, but lending requirements are stricter than ever, and even high FICO and truly qualified buyers are not getting approval. It seems like we’ve created a system in which no one is deemed qualified. Brilliant.

TARP Funds should help those in need!
How needy are the banks? Frankly, the banks are posting great profits. They are benefitting from government funds, and even Treasury Secretary Geithner has stated that most banks now have more money than they need. That extra infusion of bailout money to repair the financial system seems to have worked, for the banks. What about the consumers?

Loan programs are increasing, interest rates are low, but credit continues to deteriorate! Job losses continue as many businesses scale back on staff and are forced into layoffs. If you’re one of many working Americans who has lost a job or lives in fear of a job loss, then the success of Bank of America doesn’t do much to feed your family or put a roof over their head, does it? They still won’t give you a loan. And Bank of America is just one striking example of how the bailout funds are working for the big banks and against average Americans. Bank of America posted a $4.2 billion profit in the first quarter of 2009, yet they have $1.3 billion in credit losses. Doesn’t this point to a huge problem that no one is addressing?

Credit card debt is the elephant in the room!
There’s about $110 billion left in the TARP funds. Where is it going to go? I hear all this talk about bolstering the financial industry and getting credit flowing again, but no one is looking at the credit situation from the buyers’ end! Nothing will start flowing until qualified buyers can actually get loans!

Crazy Ringmasters and Hoops for Home Loans
Home values are down and the real estate market is showing signs of improvement; but folks who can finally buy are forced to jump through double hoops. It’s like the banks are crazy ring masters!

Every day I hear from folks who are forced to go through a pre-qualification procedure with one bank, even though they already have a loan with another bank. Why? Banks that have foreclosures don’t even want to do loans on their own foreclosures, so you have to get pre-qualified by the first bank’s loan reps to get a loan with another bank. That’s crazy!

Why don’t those banks open the doors, loosen credit and make loans on their own bank foreclosures to the people that want to buy? If they make the terms better and easier to qualify they can stop the foreclosures, keep buyer paying the loans, and help to unclog the housing market. Everybody wins!

So why isn’t anyone talking about the credit card and qualifying situations? These are the issues I get calls about on my radio and podcast shows every day. Want to buy a home? There are thousands out there that banks, lenders and homeowners need to sell. It’s too bad that no one seems to be qualified to buy them.

We’ve got a $700 billion elephant in our nation’s financial living room. Maybe we should start talking about it.

Moratorium? Is that still on? I see everyone got quite!!

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Some Credit Card Debt Reduction Ideas

Jan 1

Posted by admin in Credit

In the mainstream world of today, credit card debt has become a household bill that many people think of as a normal bill. Most people who are paying credit card debt off need to focus their efforts with more forethought. For instance, obtaining a low interest loan from a commercial bank and paying off a high interest credit card would definitely save money.

A lot of debtors don’t realize that they can obtain lower interest rates from anything other than a home equity loan. Most banks today offer short term loans to persons with good to average credit scores who have current checking or savings accounts with their institution.

Another easily overlooked way for credit card debt reduction is through your company sponsored 401k or savings plan. Money from these accounts can be taken out, pay off the credit card, and then pay the same amount you would have paid the credit card to yourself, in addition to the normal amount you would contribute. This can benefit you in the long run, even though you will have to pay additional taxes in the year you initially “borrowed” the money from your tax deferred plan.

If you contribute the amount you normally did previously, plus the payment amount you were paying to your credit card company, your taxable income will be reduced, and as a result, you may actually bring home more or at least the same amount as you previously did.

Now if you then apply this “extra” toward after tax 401k to reduce your “borrowed” amount as well, you end up paying yourself interest instead of paying it to a credit card company. There are tax laws for every income level regarding this and each situation is different from individual to individual. Your situation should therefore be evaluated to determine the financial impact this solution to credit card debt reduction could make on your individual circumstances.
Perhaps the simplest solution, yet the hardest to do is to sit down and create a budget, that allows for paying off the debt, not just the interest, and then stick to that budget. Each month that you pay extra on the principal cuts down on the length of time it takes you to pay off the entire debt, and by extension will reduce the total amount you repay..

Taking the time to research these methods of credit card debt reduction could mean a big payoff for you and your family.

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Credit Card Offers And How To Deal With Credit Card Debt

Jun 12

Posted by admin in Credit

Do you have too much credit card debt?

You spend too much one month and you put it all on your credit card account. You can?t pay it all off so you leave it until next month but you can?t pay it off next month either. Before you know it your bill has grown into something that you can?t manage and you are going to have to do something dramatic if you are ever going to get the debt under control. Why not make your credit card account work for you instead.

Credit card offers available

0% APR credit card offers are readily available but they only give you zero interest for a limited time and often have some catches. They may give you zero interest on the balance you transferred onto the card but not on new purchases for instance. You should also make sure that you understand what happens after the introductory offer period. Will the interest rate go sky high in 6 months time?

You can use the 0% APR credit card offers to slow down your accumulation of debt and give you a chance to start paying it off. It\’s a lot easier to reduce the balance if they aren\’t forever adding interest to it. Be ready at the end of the introductory period however because the interest will start piling up again. When you get close to the end look around for another 0% APR credit card that you can transfer your balance to. This is called \’surfing\’ your credit cards.

Here are some things to look a=out for when hunting for credit cards.

APR or Annual Percentage Rate

This can vary a lot and will make a huge difference to your monthly repayments.

Interest Free Period

Most cards charge interest from the date of the statement but some calculate your interest from the date of your transactions. In most cases the maximum interest free period is 56 days.

Cash Withdrawals

Be careful when drawing cash from a credit card. The interest rate can be much higher than it is for purchases or transfers. They also start charging you interest from the moment you withdraw the cash with no interest free period.

Annual Fee

Make sure that there isn\’t one.

Consumer Protection

This can give you protection in the event of goods not received or faulty or even stolen. There is often a minimum value transaction that allows you to benefit from this protection so make sure you know what it is.

Travel Insurance

Travel insurance when you purchase by credit card can be useful especially if you commute to work. Check the terms and conditions before you take the credit card though.

Cash Back

Some cards will give you 1% or more of every transaction back. This doesn\’t sound much but it can add up over the course of a year.

Reward Schemes

Some cards offer air miles or reward points for large stores. This might interest you if you are a frequent flyer.

Charitable Donations

This can be a painless way to donate a little of what you spend to charity. Often you won\’t notice it because other cards may have given it back to you in the way of cash back.

Online fraud guarantee

Having a guarantee that you won\’t lose money due fraud when you use your credit card on line can be a very comforting thought.

Gold and Platinum Cards

They only give these cards to people that they think will be able to pay back larger debts accrued on them. Think very seriously about taking one of these credit cards.

I hope that this information has been helpful to you in making an informed decision about using credit cards to manage your debt.

More free credit card information Credit Card Account at www.creditcard-account.thecatcollar.com
Steve Gee

Writen By : Steve Gee

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Are Students Getting In Over Their Head With Student Credit Card Debt?

Jun 11

Posted by admin in Credit, Debt Relief

It?s no big surprise that major credit card companies are aiming their marketing campaigns towards our countries up and coming generation. To credit card companies, no consumer is more profitable than today?s college students.

Students are big business to them, and for good reasons. Why? Simple, teens like to spend money they don?t have! Were you poor when you left the house and took your first shot at the big University? Yeah, so was I. In fact the majority of today?s college students live off of loans and a minimum wage job, leaving them very little to spend on merchandise. This is where the credit card companies make their killing. Instead of saving up for that cute pink shirt on the clearance rack, or that shiny new watch, students can charge it to the new ?low? APR student card they just received in the mail. In fact, by opening up credit card booths Nationwide, credit card companies are making it easier than ever for students to get their feet wet.

So in answer to the topic question: yes, students are most definitely getting in over their head when it comes to credit and debt management. If your part of the younger generation you may recall getting your very first shiny gold/platinum card in the mail. Do you remember skipping all the fine print mumbo jumbo? Well, most students today are in the same boat. The only thing we cared about is that little line at the bottom that tells us how much we can spend: our line of credit. The fact is, Most ?Student? credit cards come with a ridiculously high APR and crippling late fee charges, which in most cases, cause the APR to soar even higher!

This may seem a little redundant and obvious to you and I, but to students the phrases ?APR?, ?late fees? and ?interest rates? aren?t an established part of their vocabulary yet. This is where things get sticky. The statistics don?t lie, and research has it that nearly 11 percent of people who seek credit counseling are under the age of 24. According to Colorado Public Interest Research Group, 49 percent of Colorado\’s college students have more than one credit card, which is higher than the national average of 37%!

The solution should be obvious. Students should be taught about credit and debt management. In fact, most students don?t even know that free nonprofit credit counseling agencies are at their disposal, nationwide. Counseling can help make budgets or stop students from sinking further in debt. They also re-teach young students the ?value? of the dollar bill, a concept slowly diminishing in our day and age. It?s obvious credit card companies care very little about this. The more we don?t know, the more they make.

Adam Boulton is currently enrolled as a full-time student and has seen first hand the damages student credit cards can cause. If you would like more info about the pros and cons of student credit cards please visit his website at StudentResourceCenter.com

Writen By : Adam Boulton

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