How do I get rid of credit card debt fast?  Being in credit card debt can be a frustrating and scary experience.  The over the limit fees and the late fees can get burdensome if not pushing you over the financial edge.  If you have your back against the wall you do have a few options.

What Is The Quickest Way To Get Out Of Debt? Continue Reading »

Americans have a bad habit with credit cards.  The average american has over $9000 in credit card debt.  This according to an article by Liz Pulliam Weston.  This is a troubling figure in light of our current credit crunch.  As people start earning less money or just plain just loose their jobs, credit card debt becomes more of a concern.  For some it will begin the beginning of the end financially.  Once you start getting behind on credit card debt it is very hard to get caught up again.

The Vicious Circle Of Credit Card Debt Continue Reading »

If you are behind on your bills and are being hounded by your creditors, the experience can be unsettling.  Many people are curious as to how long it takes for their past due accounts to be turned over to a third party collections company or collection agency.

It Can Take 90-120 Day For Your Account To Go Into Collections Continue Reading »

If you have a dispute over a creditor charge and you are not getting anywhere over the phone, you may need to send the creditor a dispute letter in writing. You have the right to dispute a charge in the Fair Debt Collection Act. Be sure to keep a record of all correspondence. You want to keep a paper trail of when you sent in your documentation just in case they want to give you a hard time about it.

Try To Resolve A Dispute Over The Phone First Before Legal Action Continue Reading »

How to use your credit cards responsibly. What you do not know about your credit cards will hurt you.

1. If you use your credit cards overseas, do not be surprised by and extra fee added to each transaction that you make. If you can use your ATM card to access your bank account. Continue Reading »

Your credit card company is not your friend. They have one goal in mind and that is to make money off of you. You will probably not find any sympathy from them if you are unable to make your credit card bill.

How will my credit card try and trick me? Continue Reading »

The ugly truth about credit card balance transfers

Your mailbox is probably being pounded of credit card offers with low introductory interest rates. I see a 0% credit card offer at least once a week. Many of these rates are just teaser rates and they can jump to over 29%. Continue Reading »

What will happen if I stop paying my bills? It is important to know what will happen if you are unable to pay your monthly debt obligations. The first 30 day late that you have your credit score is going to drop like a rock. I have seen credit scores drop as much as 100 points just for one 30 day late. Your interest rates will probably go up as well. You credit card contract has a provision call the universal default rate. This is the rate they can charge you when you do not make a payment. Continue Reading »

What debt guru has a better method for getting out of debt?  If you were to match Suze Orman up against Dave Ramsey and their debt free plans, who would win?

How does Suze Orman tell you to get out of debt? Continue Reading »

Will a credit card company really negotiate with me? If you are current on your credit card bills and have a good payment history it is unlikely that a credit card company will negotiate the amount of principal that you will have to pay back. Think about it, if you are current and have been paying on time, why would they want to take less from you. The credit card business is a cash flow business anyway. They will only start to care about their repayment if you stop paying on your balances.

You can only negotiate with a creditor once your are behind or are in collections

A creditor will be more interested in settling with you once your are behind or are in collections. Keep in mind that if you file bankruptcy the creditor will not get any more money out of you. It would be in their best interest to take something rather than them get nothing.

Bankruptcy Questions

If you do not get anywhere with your debt negotiations you may actually want to consider bankruptcy. If the creditor knows that you are serious they may just take your offer. I would start out low and see what you can get. If you do not like dealing with creditors and collection agencies you could always hire and attorney or debt settlement firm.

This information is of general interest and is not legal advice. If you need legal advice seek the services or a professional or attorney

What happens to my fico score if I am reported late? If you are late paying on your credit card bill by thirty days or more, it will get reported to the credit bureau as a late. I have seen credit scores drop as much as 100 points just by having one late payment. If you are trying to buy a home and the credit late is within a 12 month period it may keep you from being able to buy or refinance your home.

Does having to pay the late fee automatically mean that I will be reported as late to the credit bureau? Continue Reading »

What happens to my fico score if I cancel my credit card? canceling a credit card does not eliminate your responsibility to repay the debt. What it can potentially do is to lower your credit score. A percentage of your credit score is determined by your credit history. When you cancel a credit card, your credit history goes with it. Canceling a bunch of credit cards and moving the debt to another credit card will hurt your credit score in most cases. Continue Reading »

How do bill collectors operate? Debt Collection companies work on behalf of a creditor who wishes to collect on a delinquent debt. Typically the original creditor does not have the time or resources to go after delinquent credit accounts. Collection Agencies are specialists in the world of debt collection. They have the people and resources that specialize in collecting debt. Continue Reading »

How do you use a credit card? The credit card industry has changed the way we buy consumables. You see Visa, Master Card, Discover and American Express logos everywhere now. You can even buy your hamburgers at McDonalds with a credit card. It is now convenient to make purchases even if you don’t have the money. Anyone who survived the depression would probably cringe. Back then if you didn’t have the money you didn’t buy it. Bank loans were tough to come by. So if you couldn’t afford something you just made do. Now you can go buy something an hope to figure out how to pay for it later. This type of thinking has made us a nation of debtors. At no point in our history have we seen such an abundance of debt and financial issues facing people. Bankruptcies in our country are at an all time high with no relief in sight. Continue Reading »

The universal default rate is the highest interest rate a credit card company can charge you if you are late or default on your credit card. If you read the fine print it is in the contract that you sign with your credit card company. Some credit card companies can charge you as much as 30% interest once you miss a payment. Make sure that you have a plan to pay your credit cards on time every month. A missed credit card payment can be a costly exercise.

Remember to use your credit wisely. Being in debt is no fun and it is not a great way to live. Live by your needs and not your wants and you will always be happy.

How do you do a fraud alert?  If you think you have been the victim of identity theft, you can inform the credit bureaus.  There is no penalty on your credit if you do so.  In fact you can do a fraud alert even if you have not been a victim of identity theft.  This would be another layer of security.  Once you have a fraud alert on your credit, you must personally authorize any new credit. Continue Reading »