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Eliminate Credit Card Debt Easily & Successfully

Posted by on May 4, 2011 No comments
Get your credit card debt paid off before it takes over your financial health. 

The first step is to be true and honest with yourself about your debt and how much you have. If you are purchasing more than what you are making, then you need to stop. Do not add anymore to your debt. Cash needs to be used rather than credit cards. If you do not have the cash for your purchase then do not buy it.

The next step is to start paying off the credit cards. Start by paying off the card with the highest interest rate first. Each month pay the minimum on all the cards except that one.

Pay that one credit card’s minimum plus any additional amount that you can. When you finish paying off that highest interest rate card, then move on to the next highest interest rate.

Keep doing this until you have paid them all off one at a time. This will take some time and commitment but it can and will be done.

One other step you can take is lowering the interest rate on your current credit cards. Many times all it takes is a phone call to the creditor and the rate will be lowered just by asking.

You can also try to transfer balances from one card with a high interest rate to one with a lower or zero interest rate. This will save you money all around.

If you are honest with yourself, set a budget and make a commitment to paying off your credit card debt, it can easily and successfully be done.

Step On Credit Card Debt

Posted by on October 30, 2010 3 comments
DebtReductionTV asked:


Learn how you can step on your credit card debt and crush it like low life vermin. The Debt Reduction Toolkit™ is the brand new step-by-step, do-it-yourself debt reduction kit. It includes telephone scripts, creditor letters, how to handle aggressive debt collectors, how to respond to lawsuits and more. The Toolkit does not contain fluff, it breaks down the process into simple-to-follow steps and includes support. A free credit debt evaluation is available by calling 1-877-220-7291 toll-free.

Bryan

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

What Happens When You Are Sued Over Old Credit Card Debt?

Posted by on January 4, 2009 No comments
Jay M Johnson asked:




Have you received a summons for breach of contract on an old credit card debt? Or, do you have collectors calling you daily and threatening to bring legal action? For many “junk debt collectors” bringing about lawsuits over old credit card debt (that has likely been charged off, leading you to believe that you are “untouchable”) has become big business.

If you are like the majority of American’s out there who are being hounded by creditors you likely ignore their calls and letters thinking they will eventually go away. Wrong. The new breed of junk debt buyers will SERVE YOU WITH A COMPLAINT SUMMONS!

What’s a junk debt buyer?

There are many, many of these companies and they all go by different names and aliases. Companies can buy charged off debt from your original lender for pennies on the dollar. It’s not uncommon for these debts to be bought & sold over, and over, and over again.

What does this mean?

Well, say you had an old credit card from 1999 that you defaulted on and eventually stopped paying. The original creditor (OC) charges off the debt, closes their books and sells YOUR debt to a third-party junk debt buyer (JDB). The JDB pays pennies on the dollar for your debt.

If you agree to settle for even half of the debt (if you are going to pay a collector, always negotiate down the debt, they’ll often settle for 70% of the original amount because they are still making HUGE profits!) the JDB is still making an obscene profit off of YOU.

However…there is GOOD NEWS if you have one or more of these JDB’s after you. They are banking on the fact that the majority (some estimate it to be as high as 97%) of Americans who are sued over old credit card debt do not show up for their hearing date and do not try to fight the lawsuit in any way. Even if you do owe the debt, this is the worse thing you can do!

Here’s the scoop….

If a creditor has determined that you are a good prospect for paying on your debt and you have failed to respond to their demands for payment you will then be moved to their “legal department”.

Many of these junk debt buyers or collection agencies have retained law firms that are basically collection agencies masquerading as law firms. They usually have one legitimate lawyer working for them and the rest of the employees are just plain old collection agents. All these JDB’s have to do is file a Complaint (typically for Breach of Contract) with the civil or district court in the county where you reside. They will pay a nominal fee and a process server to deliver the Summons to you in person.

YOU CAN BE SERVED AT YOUR WORKPLACE OR HOME!

You generally only have (20) days to respond to the Summons with an Answer, which is a document that must be filed in person at the courthouse by YOU and a copy sent Certified Mail, Return Receipt to the attorney representing the creditor.

If you DO NOT RESPOND WITH AN ANSWER WITHIN 20 DAYS (OF THE DATE YOU WERE SERVED) a DEFAULT JUDGEMENT is entered against you AND this gives the collector the GREEN LIGHT to FREEZE YOUR BANK ACCOUNT AND GARNISH YOUR WAGES!

Note: Often the “collection attorneys” are junk debt buyers themselves and actually own the debt.

Most Breach of Contract lawsuits are filed in civil court, NOT small claims. The creditors are smart and know that in the civil courts YOU must be represented by a lawyer or you can represent yourself buy must follow standard rules and procedures of the court. This is called being a “Pro Se” litigant.

A “Pro Se” litigant must file proper legal pleadings and represent themselves just as a lawyer would. It’s really quite simple but you can understand why this scares off so many litigants and why civil judges often spend one or two afternoons a week going through complaints and granting default judgements because VERY FEW defendants know how to/nor have the time to figure out how to respond within the (20) day time-frame.

If a DEFAULT JUDGEMENT is entered (which happens over 90% in these cases because people don’t have the time and knowledge to fight back!) your creditor AUTOMATICALLY WINS THE LAWSUIT!

The creditor doesn’t even have to show up to court and OFTEN DO NOT! YOUR FAILURE TO RESPOND WITH AN ANSWER AUTOMATICALLY GRANTS THE JUDGEMENT TO THE PLAINTIFF (THE CREDITOR)!

Over 90% of credit card debt lawsuits end in default judgement because the defendant does not appear and/or does not respond with an Answer. This is a GOLDMINE for the creditors!

They expect you NOT TO FIGHT BACK and are literally banking on the fact that over 90% of debtors roll over and accept the judgement. Oftentimes the amounts these companies are suing over have been ridiculously inflated and they have NO RECORDS to back up their claims, additionally they are NOTORIOUS for violating the Fair Debt Collection Practices Act and for trying to collect on out-of-statute debts. The statute-of-limitations on debt collection can range from 3 years to 10 dependant on your state’s regulations. You can easily Google the SOL for your state.

If you respond with an proper “ANSWER” within the required time-frame (generally 20 days) your chances of their DROPPING THE LAWSUIT are VERY GOOD! They don’t want to actually fight you in court, that costs them time & money. AND, they OFTEN don’t have any kind of records to substantiate their claims.

When the JDB’s purchase debts they receive minimal information. In many cases, the actual credit card contract you signed (and statements) is unavailable as the original creditors closed the books on your account years ago. Additionally, YOU never signed any kind of contract with the collection agency…..this is another defense that you can raise.

If you’re still hesitant to fight back, consider this:

They’ll be monitoring your credit report electronically….any purchases or even requests for credit will raise a red flag. They will know if you’ve bought a new car, house, boat, or anything of value that they can put a lien against.

YOU NEED TO AVOID A DEFAULT JUDGMENT AT ALL COSTS! IT WILL RUIN YOUR CREDIT FOR A MINIMUM OF 7-10 YEARS!

The Good News -

I was served with a summons for breach of contract in May of 2007. I immediately began RESEARCHING….AND RESEARCHING……AND RESEARCHING.

I’m a middle-class person who ran up some debt in my early twenties. I made sporadic payments not realizing the detrimental effect that it was having on my credit report. All told I believe I actually charged about $1,000 on a VISA card. My account was turned over to various collectors where I would make one or two large payments and then I wouldn’t hear anything….and then another one of these collectors would crop up. I eventually stopped paying. The sporadic payments I was making weren’t even making a dent as they just kept adding charges onto my balance.

With all the late fees, over limit fees, and interest charges I felt like I had probably paid them well over what I originally owed and at the time I just couldn’t keep up. They pretty much dropped off the face of the earth for many years and I forgot about it. I got married, bought a house (with a terribly high interest rate), car, had kids, etc……and then last May some beater car pulls up to my house and delivers me a Summons while I’m outside watching my daughter ride her bike. It was very unsettling. I was being sued for $5,000 plus legal fees and I had 20 days to respond with an ANSWER. The wording was such that I could tell the “collection attorney” expected me to just accept the judgment.

So, I began my RESEARCHING, it’s not easy, but SO worth it. I began researching at the law library, poring over legal message boards, NOLO law books, and credit repair blogs and websites. I spoke with an extremely helpful court clerk who gave me the real dirt on how these companies operate and I was fortunate enough to consult with a consumer affairs lawyer.

All of my work paid off and my creditor dropped their lawsuit.

Regardless of your exact situation, the first step is to FILE AN ANSWER. Your creditor will either drop the lawsuit or you will be granted a court date. In all likelyhood, the creditor won’t show up for the court-date (granting you automatic dismissal) and if they do, you’ll be in a better position to negotiate a settlement or payment plan with them.

Utilize the internet, there are many, many folks in the same boat as yourself. There are many helpful message boards which are a good place to start.

Try to remember that even though the debt is yours, you have every right to have their claims against you substantiated. These companies are making a tremendous profit off of hard working Americans and you owe it to yourself and your financial future to face the music and fight your lawsuit as best you can.

Milton