Bad Credit Debt and Loan Consolidation Advice
Are you deep in debt and have a bad credit history? If you
answered yes to that question, finding a company who offers a
bad credit debt and loan consolidation service may seem like the
perfect solution. It is very important however, to...
Debt Consolidation - What Is It And How Can It Help You?
A debt consolidation program can help you rid yourself of the
burden of excessive debt and may save you hundreds or more
dollars each month. Debt consolidation experts can help you
assess your situation and make recommendations as to your...
Debt reduction companies - How to check them out
Debt reduction companies play an important role in today's
financial market and offer a helping hand for those people who
wish to get out of debt. There are numerous companies which deal
with debt reduction services. And if you decide you seek...
The Fair Debt Collection Practices Act
Declaration Of Purpose: An abundant evidence of the use of abusive, deceptive, and unfair credit collection practices by many debt collectors led to the declaration of the Fair Debt Collection Practices Act. The purpose of the Act, approved in...
Unemployed debt consolidation: dissolving twin burden of unemployment and debt
Okay, did you wish on the fairy godmother to take away debts?
You are doubtful if it will work- especially when you are
unemployed. You are certainly not happy with the current
circumstances. You want to work, have the ability to pay your
own...
Debt consolidation – More Options for Reducing Credit Card Costs
Borrowing money against your credit cards has always been among the most expensive ways to borrow money, and when you fail to pay your bill in full each month, borrowing is exactly what you’re doing. You’re not alone; the average American household now carries more than $8000 in credit card debt. It’s easier to accumulate credit card debt than other types of debt for the following reasons:
They’re easy to use. It’s far easier to borrow spend money on a credit card, even thousands of dollars at a time, than it is to go to the bank and secure a loan. Convenience can easily lead to overindulgence.
The interest rates are higher than for other types of debt. The interest rate on your mortgage may be 6%. The interest rate on your credit card may be 25%. That adds up in a hurry, especially if you are carrying a balance.
There is no set repayment schedule requiring you to pay back a set amount each month. The only requirement is that you pay at least 2% of your outstanding balance. Many people pay exactly that, and no more, causing the interest to accumulate quickly
Credit card lenders tend not to be very forgiving. If you make a late payment, you could end up with a late fee of as much as $39 in addition to having your interest rate increase.
Many credit cards come with annual fees, which can add to your debt, especially if you don’t pay them in full. Then you end up paying interest on the annual fee!
There are number of solutions available. All they require is a bit of time and diligence. Besides shopping around for the card with the best rate and doing a bit of debt consolidation to place all of your credit card
debt on the lowest interest card you own, you might also consider the following:
Ask your lender to waive your annual fee. The competitive nature of the credit card business means that your lender will often waive these fees just for the asking. They would usually rather waive your fee rather than lose you as a customer. It costs nothing to ask. If they do waive the fee, add the fee amount to your next payment.
Pay more than the monthly minimum payment. The minimum payment may soon go to 4%, which may place many borrowers who currently pay only the 2% minimum in a bind. Get in the habit of paying more each month, or pay your bill in full, if you can.
Did you get a large tax refund? Send it to your credit card company. Sure, it would be nice to spend it on a new TV, but if you spend it on a TV while carrying a balance on your credit card at 25%, you are effectively paying 25% interest on your TV.
Use your debit card instead of a credit card. They have the same convenience and ease of use, but few of the drawbacks.
Paying off the national average of $8000 in credit card debt can take a lifetime if you only make the minimum payments. That is a trap that you should make a concerted effort to avoid and by taking a few simple steps, you can keep your debt to a minimum.