by BlondieWrites on February 6, 2010
Credit card debt is the number one form of debt in the country and every day more and more Americans are finding themselves in deeper and deeper with credit card companies. When the payments seem high and many and the interest rates are beyond comprehension, you may be looking for relief. Debt negotiation can bring relief to the situation and allow you to fight for your hard earned money and still make your creditors happy.
Debt negotiation is a form of debt management that allows for the debtor or a representative of the debtor to negotiate the terms of the loan with the credit card company to reach a settlement amount and form a pay off or reduce the interest rate, thus bringing relief to the debtor. What this means for you is a way to pay off your credit card balance while saving a little money or by bringing relief to your monthly payments and shortening the amount of time it takes to pay off your balance by decreasing the interest rate.
The first step to successful debt negotiation is to know as much as each of your credit card accounts as possible. Pull out all the information for each account you have a make a short list of the following information for each account to have readily available when you call. You need to have the account balance, monthly payment, interest rate, creditor and full creditor contact information. Knowledge is power in this instance and the more you know about the company and how the company compares to your other accounts, the better the negotiating power you have.
While, credit counselors are trained in the art of debt negotiation and if you are absolutely unable to make the calls and negotiation yourself, you can find a credit counselor who offers debt negotiation services and have them make the calls for you. With that said, with a little courage and some confidence you can negotiate your own account and contracts with great success and a few tips.
Tip #1: The most important thing to remember when negotiating with your creditors is that you MUST be speaking with someone authorized to make changes to your account, otherwise you are wasting your time. Only certain supervisors are authorized to offer settlements and make changes to accounts and most people you talk to are only there for customer service and billing calls. Ask for a supervisor or account specialist before starting your pitch.
Tip #2: Put together some pay off money and know your back up bargaining chips. The best thing you can do is offer a pay out or settlement offer. To do this you need a lump sum that you can pay them to settle the debt if they agree. If you are unable to offer this, then you need to have the information in front of you to negotiate other conditions like a lower interest rate. For this you should have other credit card offers and accounts in front of you to offer what other companies are offering you. Many credit card companies would rather meet a lower interest rate, than lose your business.
Tip #3: Don’t take no for an answer. What this means is that if they don’t go for a settlement or pay out option, don’t give up. Instead ask for a lower interest rate or a loyalty credit to your balance. If they are resistant to lower your interest rate tell them you have other offers that you have been considering transferring your balance to that offer a lower interest rate. They will often at least match it, if not beat it. Even if your account is default, they would rather you stay with them and pay it than close the account and leave their company.
Debt negotiation can be a great tool for lowering your interest rates, monthly payments or finding a way to pay off credit card debt. These tactics can all bring success when partnered with a confident attitude and understanding of the credit card industry. With a little work and negotiation you can be well on your way to a life without credit card debt.
Popularity: 3% [?]
by BlondieWrites on January 4, 2010
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Popularity: 3% [?]
by BlondieWrites on December 16, 2009
In today’s society, we tend to accumulate debt without giving it much thought. That was once seen as a sign of severe irresponsibility. But it has become so common these days that it seems more like a matter of mimicking what we see around us than a character flaw.
With consumers getting into more debt than ever before, it’s no surprise that many have no idea just how much debt they are in. They get the bills each month, but instead of looking over the finance charges and account balance, they only take note of the minimum payment. Bill collectors might call to remind them of their balances, but those who are in over their heads often let the answering machine get it rather than talking to them.
Whether you’re managing your debt well or struggling with it, it’s important to know how much you owe to each creditor, and how much you owe all together. In this case, ignorance might seem like bliss, but it’s actually quite dangerous. If you have no idea how much you owe, it’s hard to come up with a plan to get out of debt.
If you can’t at least come up with a good estimate of how much you owe, now is the time to sit down and take inventory of your debts. Here’s what you need to include:
* How much credit card debt do you have? The balance of each card should be included on each of your monthly statements. Get out your latest ones and add them up. And while you’re at it, see how close you are to your credit limit on each card. If you’re down to the wire, you’ll need to take care not to charge any more and try to start paying it down.
* What is the balance on your mortgage, your car loan, and any other loans you have? If you don’t get monthly statements for these debts, call your creditor and ask for your balance. In the case of home and car loans, it’s also important to know how much equity you have.
* Do you have any unpaid medical bills? We often forget about these, but it’s important to get them paid because they do show up on our credit reports. In some states they can’t officially be held against us when obtaining credit, but they are there for anyone who does a credit check to see.
* What about student loans? These can haunt us long after we’ve finished college. Interest on student loans is usually relatively low, but if you request a deferment or forbearance it can add up in a hurry.
* Do you have any other debts that haven’t been paid? If you’re not sure, get a copy of your credit report. Any outstanding debts should be listed.
Once you’ve added up how much you owe, you’ll probably be more motivated to get it all paid off. The next step is to take a look at your spending habits and see where you can cut back. If you cut out excess spending and put the money saved toward eradicating your debt, you’ll get rid of it much sooner. And knowing that you don’t owe anything is truly a wonderful feeling!
Popularity: 3% [?]
by BlondieWrites on September 6, 2009
Credit can be a wonderful thing. But when it gets out of hand, it can wreak havoc on our finances. This is especially true when it comes to credit cards. Charging up a large balance is bad enough, and by the time you add in fees and high interest rates, the debt can be overwhelming.
In a perfect world, everyone would use credit wisely and pay off balances within a month or two. But in reality, cardholders often build up a mountain of debt and fail to realize it until it’s unmanageable. That’s when it’s time to put the plastic away and work on paying off the balance. Here are some tips to help you do that.
1. Rework your budget, eliminating unnecessary items. Even little things like that cup of coffee you buy on the way to work every morning can add up. Once you’ve decided what you can do without, add up how much you’ll save and add it to your monthly payment.
2. Volunteer for overtime, or get a second job. Put all the extra money you make toward your balance.
3. Reduce your overall interest rate. If you have a low interest card that allows balance transfers, transfer the balance of a higher interest card to it. Even if you can only transfer part of the balance, you will save some money and be able to pay everything off more quickly.
4. Put lump sums of money that you receive toward your credit cards. These may include tax refunds, bonuses or settlement proceeds. This can save you a lot of money in interest.
5. Put your raises toward paying down your debt. A raise is money that you were living without before, so you should be able to continue to live without it until you’ve paid off your credit cards.
6. Sell stuff. Get rid of that extra vehicle, or have a garage sale. We all have things sitting around that we could do without, and those things can make us money. Use the extra cash to help pay off your credit card debt.
7. Snowball your debt. This simply means paying the minimum payment on all but one card, and paying as much as possible toward that one until it’s paid off. Then you move on to another card, paying the minimum payment plus what you were paying toward the previous one. Repeat until all balances are paid in full.
8. Get help from friends and family. A loan from someone who is close to you can help you get out of debt, and repayment terms are usually much more favorable. But it’s still important to have a repayment agreement and follow it carefully.
9. Negotiate with your creditors. If you’re having a hard time paying off your balance, they might be willing to lower your interest rate. You may be required to stop using your card while the lower rate is in effect, but a moratorium on charging until your finances are in better shape is a good idea anyway.
10. Talk to a credit counselor. If you are several thousand dollars in debt and can’t afford your payments, credit counseling could save you from bankruptcy. A credit counselor will negotiate with creditors on your behalf, and can usually get you lower interest rates and reduced payments. Once it’s all set up, you make one monthly payment to the credit counseling agency, and they forward the appropriate amount to each creditor.
Popularity: 2% [?]
by BlondieWrites on September 6, 2009
When it comes to finances, few things are as unnerving as losing a credit card or having it stolen. By the time you realize it’s gone, someone could be living the good life and charging it to you. But by taking action quickly, you can avoid most, if not all, liability for unauthorized charges.
When their cards go missing, cardholders are protected by the Fair Credit Billing Act (FCBA). This law mandates that as long as you report your card missing or stolen in a timely manner, you can be held liable for no more than $50 in unauthorized charges. And if you report it before the card is used, you can’t be held responsible for any charges made.
If you find that one or more of your cards are missing, here’s what you need to do:
1. Report the missing card to the issuer immediately. If you don’t know the phone number to call, it should be printed on your credit card statements. Reporting the theft or loss as quickly as possible is crucial, so it’s best to keep a list of your card numbers and the fraud reporting phone numbers in a safe place for easy access.
2. Write a letter to each credit card issuer summarizing the details of your phone conversation. Include your name, card number, when you noticed your card missing and when you reported it. Also include the name of the representative you spoke to. Make a copy for your records, and send the letter via certified mail or with a return receipt request.
3. Keep a close eye on your credit card statements for several months. If you notice any charges you didn’t make, contact the issuer immediately. You should not have to pay any charges made if you have already reported your card lost or stolen.
Minimizing Your Risk
Anyone can have his credit card stolen. But there are a few things you can do to minimize your risk. These include:
* Leave your credit cards at home when you don’t plan to use them. You’re much more likely to have them stolen from your wallet or purse than from your home, especially if you keep them locked up.
* Do not carry your PIN number with you. If you do, a thief can easily use your card to obtain cash advances.
* Carefully check your credit card statements as soon as you receive them. Thieves do not have to have the actual card to make charges to your account. They can often make purchases online, by phone or by mail with only your name, card number and expiration date. These can be obtained by stealing records from stores you’ve done business with in the past.
* Be careful when using your credit card. Only buy online from websites you trust, and be aware of suspicious activity when using your card in person. Thieves have been known to snap pictures of credit cards with cell phone cameras and use devices to read cards as they are swiped.
No matter how careful we are, having our credit card or card number stolen is a possibility. By keeping an eye on account activity and taking action quickly if a card is lost or stolen, you can prevent a thief from benefiting from his crime and avoid having to foot the bill.
Popularity: 1% [?]
by BlondieWrites on August 4, 2009
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Learn the secret to repaying debts quickly and still save on interest charges…And once that debt is paid off, you can use the secret to pay off the rest of your debt.
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Popularity: 2% [?]
by BlondieWrites on August 3, 2009
According to the American Banker’s Association, the average American family carries $8,000 in credit card debt. While a lot of companies claim they can magically make this debt disappear, there’s no substitute for formulating a realistic plan to get it paid off. High interest rates and late fees can complicate matters, so it’s important to make a plan and commit to it. There is no quick fix – paying down any debt takes time – but there are several viable options and techniques that can help.
* Prioritize
Make the payment of your credit card debt a priority. Without this basic first step, you will likely find it only too easy to keep running from the situation or accumulate more debt. Unless you address your debt head-on, it will continue to eat away at your family’s budget and even your relationships – according to PRLog, excessive credit card debt may be a leading cause of divorce.
* Create a family budget
This is not as daunting as it may seem. First, gather the family’s financial records: bank statements, utility bills, etc. Then, list your family’s total monthly income followed by its total monthly expenditures, such as a car payment and mortgage. This way, you will have concrete numbers to work with in regard to your credit card debt.
* Pay the debt with the highest interest rate first
Lay out all your credit card statements in order of highest to lowest interest rate, and focus on paying off the highest interest rate card first. On the highest rate card, pay as much over the minimum payment as you can each month. When that one is paid off, move to the next highest interest rate card.
* Work with the credit card company
Because they are unsecured creditors, credit card companies tend to be willing to negotiate the interest rate or other aspects of your credit agreement. When you explain that your intent is to get your debt paid, most creditors are willing to listen and work with you. When you call, have your household budget and latest credit card statement from that company handy.
* Think outside the box – do you really need to spend money on that?
What if you can’t find that extra $20 or $100 every month to dedicate to your debt payment? It never hurts to get creative. Go back to your budget and detail all expenditures - even those for which you don’t have a paper trail, such as a daily cup of coffee on your way to work or eating lunch out. Make your coffee at home and bring it to work in a travel mug, and save up to $3 a day – that’s $60 a month you could put toward paying off a credit card. And that’s just coffee.
Brown bag it for one week a month and save the $10 a day you were spending on lunch out. In one week, that’s another $50 saved. And that waiter or waitress who brings you your lunch might be working to pay off his or her credit card debt – waiting tables is a viable option for bringing in some extra cash with flexible hours.
Often, we just don’t realize where our money is going. Taking the time to sit down and evaluate just how much we have and where it’s being spent is not magical, but with commitment it can bring relief and eventual freedom from debt.
Popularity: 1% [?]
by BlondieWrites on December 24, 2008
If you’ve struggled with debt for any amount of time, you know how it can feel like you’re in a big black hole, you just can’t seem to dig yourself out of. Balances never seem to go down and you need to keep tapping into credit cards just to make ends meet.
There is plenty of debt advice out there and you may have tried things like debt consolidation, making large payments to your debts to try to pay them faster and other methods that just don’t seem to work. Things just keep getting more and more difficult to manage.
But it really doesn’t have to be that way…
If you’ve been able to keep up with your minimum monthly payments until now, there is a solution for you. And it’s remarkably simple if you follow the appropriate steps laid out for you.
I’m talking about the “Pay Debt Quickly Kit” that shows you how to:
- Pay debt off faster without having to make any large payments.
- Get what you want from your creditors to pay off your debt faster and even improve your credit score.
- Make drastic changes in the way you think about and handle money without feeling like you’re deprived in any way.
The kit includes everything you need to get to debt-free faster. From software that helps you quickly and easily calculate your precise debt-free dates to strategies to take control of your finances and even work with your creditors so that you benefit, instead of them – this kit has what you need to eliminate your debt.
Learn more and get debt-free at: Pay Debt Quickly
Everything is available for instant download and you don’t have to wait for anything to come in the mail. That means you can start sleeping better and stop worrying about your debt, starting RIGHT NOW.
Popularity: 22% [?]
by BlondieWrites on December 23, 2008
With the economic downturn, everyone is feeling the effects in their daily lives. For some, however, having credit card debt can be the straw that breaks the camel’s back. If this applies to you, here are five tips to reduce credit card debt.
1. Pay down your debt. Use the “snowball” method, which works as follows: Make a list of your credit cards and place the card with the highest rate of interest first, then the second highest rate, and so on. For the card with the highest rate, add an additional $25, $50, or $100 (whatever you can afford) to the minimum payment due. This will be the amount you pay every month.
When the first credit card is paid off, apply the same amount you paid for the first card to the second card (add additional money if you can). Once the second credit card is paid, move on to the third card and so forth until all debts are paid.
2. Keep one credit card (for emergencies only) and leave it at home in a safe place. Pay for anything you buy with cash. If you can’t afford it; don’t buy it.
3. Call the credit card companies and ask to have your interest rate reduced.
4. If you need assistance, seek out a certified financial counselor who can help you come up with a plan to pay off your debt.
5. To avoid bankruptcy, you may wish to take out a home equity loan that will enable you to pay off all debts you have incurred. Before you decide if this is right for you, determine if you can afford to make the payments without the loan by taking a closer look at your household budget to find an item you can either eliminate or reduce.
The crippling effect of credit card debt has grown to a staggering amount in this country. We are a nation of debt, and the credit crunch has forced banks to freeze lending to other banks and consumers.
It will take a great amount of sacrifice and fortitude to withstand the days ahead. However, if you start now you can alleviate some of the stress and worry by cutting up all but one credit card and begin paying down your debt. It is no longer a choice.
Popularity: 25% [?]
by BlondieWrites on October 1, 2008
Frugal Simplicity is giving away a free credit help and credit repair ebook, 101 Powerful Tips for Legally Improving Your Credit Score.
Click here to get your free ebook.
There are many misconceptions about credit scores out there. There are customers who believe that they don’t have a credit score and many customers who think that their credit scores just don’t really matter. These sorts of misconceptions can hurt your chances at some jobs, at good interest rates, and even your chances of getting some apartments.
The truth is, of you have a bank account and bills, then you have a credit score, and your credit score matters more than you might think. Your credit score may be called many things, including a credit risk rating, a FICO score, a credit rating, a FICO rating, or a credit risk score. All these terms refer to the same thing: the three-digit number that lets lenders get an idea of how likely you are to repay your bills.
Every time you apply for credit, apply for a job that requires you to handle money, or even apply for some more exclusive types of apartment living, your credit score is checked. In fact, your credit score can be checked by anyone with a legitimate business need to do so. Your credit score is based on your past financial responsibilities and past payments and credit, and it provides potential lenders with a quick snapshot of your current financial state and past repayment habits.
In other words, your credit score lets lenders know quickly how much of a credit risk you are. Based on this credit score, lenders decide whether to trust you financially - and give you better rates when you apply for a loan. Apartment managers can use your credit score to decide whether you can be trusted to pay your rent on time. Employers can use your credit score to decide whether you can be trusted in a high-responsibility job that requires you to handle money. The problem with credit scores is that there is quite a bit of misinformation circulated about, especially through some less than scrupulous companies who claim they can help you with your credit report and credit score - for a cost, of course.
From advertisements and suspect claims, customers sometimes come away with the idea that in order to boost their credit score, they have to pay money to a company or leave credit repair in the hands of so-called “experts.” Nothing could be further from the truth. It is perfectly possible to pay down debts and boost your credit on your own, with no expensive help whatsoever. In fact, the following 101 tips can get you well on your way to boosting your credit score and saving you money.
By the end of this ebook, you will be able to:
• Define a credit score, a credit report, and other key financial terms
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Plus, unlike many other books on the subject, this ebook will show you how to deal with your everyday life while repairing your credit. Your credit repair does not happen in a vacuum. This book will teach you the powerful strategies you need to build the financial habits that will help you to a keep a high credit risk rating. It really is that simple.
Start reading and be prepared to start taking small but powerful steps that can have a dramatic impact on your financial life!
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Popularity: 19% [?]
