Credit Cards & Debt Relief

Credit Cards & Debt Relief - Some Must Know Facts

Every person who owns a credit card thinks about debt relief at some point of time. After the current economic downturn, the credit-debt issue has come with as a serious challenge to the people. Let us discuss about the debt relief and things related to it. What is Debt Relief? It means partial or full debt forgiveness of a person or a country.

In the current economic conditions where every minute, jobs are being cut, people are getting sacked, this issue has gained prime importance and needs to be understood properly. This term is broadly used in context of underdeveloped countries. These countries are given loan by the developed nations, but if these countries cannot pay back the loan at time, then the term debt relieving is used. In recent years, personal debt has also emerged as an issue. A lot of companies provide the service of consolidating the debt along with debt management. Managing debt in these times is very important.

American Law has a special Chapter 7, which deals with personal debt relieving issues. Relieving Debt can be useful also if you know how to manage your debt and when to repay it. One of the best things that can be done to settle your debt is consolidating your debt. Consolidating debt means getting "a loan" to pay off other several debts of yours. During the poor economic conditions, governments and banks allow users to pay off their debts at lower interest rates or by giving you a later deadline with no raised interest. Getting your debt relieved is easy for students in the hard economic times. Education loan, if one cannot pay back in time, then the government allows students to pay it back when they have got a job or the economic conditions are sound and strong enough.

Lastly, in order to avoid the debt payment problems one should always plan his budget. Keeping a check over the deadlines always helps. Knowing the exact amount you have to pay back is also an important factor. The debt relief has become a problem lately as far as personal debt payments are concerned. So avoid any kind of debt payment, it is advisable to keep a check on your debts and assessing your debt condition from time to time.

Balance Transfer Credit Card

If you've ever been faced with significant debt, you know that the problem has a way of compounding itself. Let's say you're carrying a 4,000 dollar balance on your card and don't have a way of paying it off immediately. Suddenly, the high interest rate on your debt can make your money problems even worse. With some interest rates as high as 20%, it's more important than ever to monitor your interest rates. Balance transfer credit cards, if used correctly, can provide a solution.

Balance transfer credit cards allow you to take the balance from one of your credit cards and put it onto a new card. Why do people do it? Usually, you can take advantage of a very low or nonexistent introductory interest rate this way and avoid paying high charges on your debt. These new interest rates often last as long as six months, which gives you a chance to get back on your feet and begin paying off the debt you've accrued. Applied carefully, these cards can help you save real money.

However, there are a few key hazards you should be aware of. First, balance transfer credit cards frequently have fees associated with them. Some cards measure fees as a percent of the balance transferred, while others limit them to a flat charge usually under $100. It's crucial for you to observe the fee schedule and calculate if your balance transfer credit card will actually save you money. If your debt is significant, chances are a new card's benefits will outweigh its costs. Still, you should always do the math to be sure.

Secondly, you need to note the long term caveats surrounding balance transfer credit cards. Many cards change their fees if you miss a payment, so you should be sure to pay off your balance on time. In addition, it's key for you to mark when the introductory fee on your balance transfer credit card is dropped. Frequently, it can be replaced by a much higher fee. Lastly, remember that you can't apply for balance transfer credit cards forever- the hit on your credit score and finances is unsustainable over a long period of time. Recognize that balance transfer credit cards are a band-aid, not a cure, for your financial woes.

Exceptions aside, these cards are a relatively simple way to fix some of your short term financial problems. If you need a ladder to the next statement or a way to escape your financial spiral, balance transfers are a solution. They aren't permanent- you'll eventually have to pay your debt. But the temporary effects are good enough that you'll have time to improve your finances.

Settle Credit Card Debt Yourself

Is it possible to settle credit card debt yourself, without using a credit counselor or a debt consolidation company?

Actually, it's very possible to settle credit card debt yourself. You really don't need an expensive credit counselor, as they don't actually settle debt. And, regardless of what you think, they usually charge an arm and a leg for their services. Services that you can do for yourself, and do a much better job.

The "credit counselors" don't settle your debt - they sometimes can get your interest rates reduced (something you can do with one phone call). But, they can't usually get your balances reduced. The legitimate counselors have a debt management plan where you write one big check to the credit counseling company, then they pay your individual creditors. At least the reputable ones do.

There are many "credit counselors" who will take your money up front, with a promise to pay your creditors. They also take a hefty "commission" for themselves. But all too often, they don't follow through on your deal, and six months later you find out that NO bills have been paid, and you're a candidate for bankruptcy!

That's why I encourage people to settle their own debts and avoid being taken for a very dangerous ride by unscrupulous debt counselors, or consolidation companies.

Here are some easy tips to help you start settling your own credit card debt.

Skills You'll Need
Communicate. You need to have decent verbal skills to communicate with your creditors. This shouldn't be a problem for most folks - just be sure to express yourself clearly, without anger.

Negotiate. You'll need a clear goal in mind before you make that first call. Then. realize that true negotiating involves some give-and-take. You may not get what you want on the first call. Maybe not on the second, either. You will have to compromise - just be firm but pleasant.

Document. Write down everything - date, time, person(s) spoken to, subject and any deals made. Do this for each conversation. Keep all notes in a separate notebook, for organization.

Follow Up. Always follow up. Complete any phone calls, perform any tasks, and if an agreement is reached, do your part. That's follow up.

While most do-it-yourselfers settle their debt for an average of about 75%, those who have the skills listed above (and use them) can get their settlement for as low as 45% - 60%. Of course, it's possible to not get any reduction. That's how important using these skills really are. Some exceptional debt negotiators have gotten away with a settlement as low as 10% ! Industry professionals (attorneys and professional arbitrators), who bring millions of dollars to the table "only" get about 50%.

The fees these professionals charge is usually around 15% of your total unsecured debt - meaning that, on average, your debts are settled for a cost of about 65% (50% settlement + 15% fee).

If you're using the (4) skills shown above, it's possible for you to walk away from the negotiating table paying as little as 45% of your debt. And, that's a great deal for you!

Your Accounts Must Be Seriously Past Due
Unless your accounts are at least 180 days past due, chances are your creditors won't make any deals with you. If you're not that far past due now, do you just wait for the 180 day mark, then get serious about your debts? NO - before you are this far past due, it is your moral (and legal) obligation to try and pay your debts as best you can.

You can always ask your creditors for a lower rate before the 180 day mark - with the promise to make good on the debt. If it turns out to be totally impossible to pay the entire debt, then save the settlement option for last.

Always Use Certified Mail
When negotiating your debt, it is extremely important that you follow the agreement to a "T." That includes any lump sum payments sent should be sent by certified mail, with a return receipt. This will only cost you a couple of dollars, but the peace of mind you get when you know for sure that your payment has been received is huge.

If your creditors "misplace" or "lose" your check or other paperwork, then the burden of proof falls entirely on you - if you can't prove that you followed through on your deal, then you may be deemed in fault and all deals canceled. You know how difficult it is when working with a large company - that's why it's so important to be sure you have all of your bases covered.

When sending in a check, be sure to include a copy of the agreement in your certified mail.

Can you really settle your own debt?
Definitely, you can. You will have to learn some new skills, and be prepared for lots of ups and downs along the way. The path may not be smooth, but you've got lots of access to help - your local library, for instance.

The key to settle credit card debt yourself is to take action - now. Your debt will not go away by itself. In fact, no matter how dire things seem now, they will get much worse if you procrastinate. So, don't put this off - get organized and take action to help yourself, today. When it's all said and done, you'll look back and have few regrets. The only real regret you'll have is if you do nothing!

Successful Credit Card Settlement

Credit card companies know exactly what they are doing when they make it so easy for us to get the things we want, even though we can not afford them. When money is tight it is all too simple to turn to our flexible friends for help. The problem creeps up slowly as the debt builds up, until the burden of paying them back becomes impossible. The credit card payments then exacerbate the problem still further, making us rely even more on credit and borrowing.

The ease with which we can spend money with credit cards is one reason why serious credit card debt has become such a problem for so many people today. At this point many people can see no way to get rid of the debt, so they start considering serious options such as filing bankruptcy. While this may be necessary in some cases, there are far more times when it can be avoided by using a negotiated settlement.

The main principle of successful credit card settlement is that new agreements are negotiated with each card company, which result in them writing off a large part of what you owe them. While that sounds simple, it is a complicated area and the negotiations can take anything from weeks to years. The basic choice you have is whether to try to do this directly on your own, or to do what the majority choose to do and use the services of a debt settlement company.

Successful credit card settlement is possible to achieve on your own, provided you have the right understanding of the processes that card companies go through when dealing with outstanding debts. A lot depends on the timescale of your approaches and when you choose to try to make a deal to settle. Knowing when to negotiate and what to say makes the difference between getting no settlement deal and writing off over half the debt.

To go into that without help is unlikely to yield great results, though there are various online resources that can teach you about the process and help to give you an understanding of how to reach successful settlement deals yourself.

The alternative is to approach a debt settlement company, who will have highly experienced negotiators, who know exactly how and when to approach creditors in order to maximize the discounts on the debt. The best companies will have relationships with many creditors already, which can make the settlement process that much more effective.

If you do decide that the best way to successful credit card settlement is to work with a professional company, you should exercise some caution with regard to selecting the company to use. Debt settlement has gained a bit of a reputation from some companies who do not operate ethically or responsibly. Unfortunately many people have fallen prey to organisations who take large advance fees from people and then fail to gain any reductions on their debts.

It is important not to let this put you off the whole settlement process, because it works very well when done by reputable companies, but you should indeed be put off from taking any chances with who you use. There are many good companies and you will be perfectly OK provided you make sure you only deal with reputable organisations who are well established and can demonstrate a history of successful credit card settlement. The other essential precaution is to approach at least two or three so that you can see who provides the best proposal, and find out who you feel most at ease with.

Credit Card Debt Relief

Credit card debt relief is not only widely available but credit card debt settlements are being negotiated for very generous percentages. This is due to a few significant factors. First of all there are more people currently in debt than ever before in history. Secondly, the majority of creditors are very fearful that they will continue to experience complete defaults on delinquent accounts and are therefore will to accept a small percentage of money than none at all. Lastly, the government stimulus money has finally trickled down to the consumer level and creditors are using this stimulus money to offset losses on debt settlements. These 3 factors make this the most advantageous time ever to settle your debt and this article will teach you how to locate the most legitimate debt settlement companies in your area.

Credit card debt is the easiest form of unsecured debt to eliminate. Rather than declare bankruptcy, many consumers are finding that a debt settlement is a much more favorable deal. The only consequence is that it will lower your credit score slightly in the beginning. This however is a trade most Americans are more than will to accept; a slightly lower credit score for up to a 70% elimination of your credit card debt. Seems like a good trade to me.

It is no secret that our country and many of our citizens are massively in debt. We have lived in a consumerism society where being in debt was not only common but actually encouraged by government and major creditors alike. Well, the recent credit crisis has awakened the American public and it is clear that we can no longer continue to live beyond our means if we want to continue economic prosperity. Creditors know that the market for people in debt is enormous and therefore are trying to collect at least a percentage of their lent money rather than none at all. They are agreeing to debt settlements unheard of just a year ago and it would be financially prudent for you to look into settling your debt before it's too late.

If you need credit card debt relief and want to hire a debt settlement company for debt negotiation then I have an important piece of advice. Do not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt companies and increasing your chances of eliminating your debt.

Credit Card Debt

Are you wondering how to get yourself out of credit card debt? Over the years your spending has finally caught up to you and now you have to deal with your creditors. Hopefully you are not owing hundreds of thousands of dollars to the creditors like thousands of people out there.

The less money you owe to the creditors the easier it will be for you to get out of debt. The reason why is because if you owe a lot of money to the creditors, they can easily come in and take your savings accounts and property before you even know it.

So what ways can you get out of credit card debt?

Well you can get out of credit card debt by applying 3 simple methods. The first method that will get you out of credit card debt is by filing bankruptcy. The filing bankruptcy you will be able to get out of debt with a clean slate but your credit record can be affected for almost a decade.

Another method of getting out of debt is by going through with debt consolidation. By doing this you will be able to consolidate your debt into one easy to manage payment plan.

The next method of getting out of debt is by applying practical tips. By this I mean that you should start watching how much you are spending on a daily basis on things that are not needed. Things such as your morning coffee from Starbucks and the occasional burger from McDonald's.

Do you want discover how to get rid of debt without spending a dime and stop those nasty creditors from harassing you?

Credit Repair

Credit repair involves removing inaccurate, misleading or outdated information from your credit report. Credit repair services are sometimes able to help you, when you cannot achieve results on your own. Choosing a credit repair service may involve a little investigative work on your part, but it is well worth the trouble.

An internet search for credit repair services will yield thousands of results. You may not know where to begin. First, you must decide what type of help you actually need. If you are having trouble paying your bills and feel you are close to bankruptcy, a new law requires that you receive credit counseling before you can declare bankruptcy. A credit counseling service and a credit repair service are not actually the same thing, though they may be listed side by side in a directory.

Credit repair services help consumers who are being denied credit or do not qualify for the best interest rates, because of negative information on their credit reports. If you have been denied credit or have been told that you do not qualify for the best interest rates being offered because of your “credit score”, then you are looking for a credit repair service.

The number of items on your credit report may help you choose a credit repair service. If you have multiple items that need to be removed, it makes sense to choose a credit repair service that charges a monthly rate, rather than a per item fee. It is also a good idea to look for a company that guarantees results and spells that guarantee out for you, before you sign up for their services.