Monthly Archives: April 2009

Credit Card Tips for College Students

Posted by on April 30, 2009 5 comments
SanyikaCallowayBoyce asked:


Sanyika Calloway Boyce appears on Wall Street Journal Report and discusses the myths and misinformation about credit cards and college students.

Lucy

Credit Card Debt Settlement Programs – Criticized But Necessary

Posted by on April 29, 2009 No comments
Hector Milla asked:




Criticism typically rains down from lots of different angles when you bring up debt settlement. The personal financial world is full of options and it is full of opinions. Many people feel that settlement is not a good way to get out of debt, but it can really be necessary for many people. While some of the criticisms have merit, it should be noted that consumers are usually forced to turn to this when they have few other options to choose from. So why do these criticisms continually come and why is settlement such a necessary thing in today’s financial world?

Gauging the criticism

One reason why people are critical of debt settlement is because consumers typically only have to pay a small portion of their debt in order to get out of the hole. This might not seem like the right thing to do in the eyes of many. The problem with this line of thinking is that people don’t typically take into account why consumers owe so much money. For most people who consider settlement, the debt has been growing not because of something they have purchased. Rather, it has come through interest charges, overwhelming fees, and things like that. This is just more profit for credit card companies and the charges can be over the top in many cases.

Why is it necessary?

So why do some people have to turn to settlement for their credit card issues? A lot of it has to do with the money that can be saved. If you have something like $10,000 worth of debt, paying off the whole balance can be outrageous and impossible. If those people have ten thousand bucks laying around, they probably would not be in debt in the first place. If they can settle the debt for half of that amount or even less, then it becomes something that will set them free of the debt chains that they have been carrying around. Anyone can see the value of this type of solution.

For debtors, listening to the criticism is a good idea, but you have to consider your own personal situation first and foremost. If you have been slaving away, paying off tons of interest for years and years, then you have done more than enough for the creditors. You should be able to use credit card settlement without worry to alleviate your debt pain.

Georgia

Beware Of Credit Card Debt Reduction Offers

Posted by on April 27, 2009 No comments
WCVBtv asked:


With unemployment in double digits, millions of people are struggling to pay their bills.

Melissa

Tips for Credit Card Debt Relief

Posted by on April 21, 2009 No comments
asked:




Brooks

Credit Card Debt Relief Ideas

Posted by on April 20, 2009 No comments
Ted Batron asked:




OK, lets face it. Everyone has some credit card debt. Some have just a little, they pay it off every month, and they’re done with it. Some have a moderate amount, and pay it off in a few months.

Now the sad part. Many have credit card debt that they will never be able to pay off. The minimum payment is almost more than they can afford. The interest eats up what they do pay so that none of it goes toward paying down the balance. Sleepless nights are frequent, and a bottle of antacid isn’t very far away.

I’m here to say, relax. Lets look at the situation in the cold light of logic. The key is to make a plan, stick to the plan, and not create any more debt.

Remember, your creditors don’t want you to default, they want to continue to get paid. You have the upper hand. They are in your pocket, not the other way around. You have something they want. Keeping that in mind, do a chant or something and find your center.

Lets take a look at what can be done to get things back on track and get out of credit card debt.

First and easiest is to just call your creditor. Tell them the situation. Ask them to lower the interest rate or alter the payment. There are credit counseling services that can negotiate this for you, but most are just in it for the money. Its a simple procedure you can do yourself.

Be polite, but be firm. Know what you want to ask for when you call, and don’t take no for an answer.

I harp on this issue quite a bit in my other articles, but one thing you have to do to get out of credit card debt is stop charging. The easiest way to do that is scissor method. It does little good to make the effort to get your debt under control, if you just keep running up more. Do whatever you have to do, but get rid of the card. Its an anchor keeping you from achieving your long term financial goals.

Getting rid of the cards are the hardest part of getting debt under control. We are a society addicted to credit, and its time for rehab.

Enough preaching!

Use the “debt snowball” if you have more than one card. Pay the minimum on all cards but one. Set a budget that is as much as you can afford, or a time frame for payoff and concentrate your efforts on only one card. Pick either the highest interest rate card, or the one with the lowest balance. When that card is paid, move on to the next card.

The big credit card companies don’t like losing money. They don’t want you to default. Work with them, get out of credit card debt, pay down your balances and get on with your life.

Erik