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Credit Card Settlement Methods

December 15, 2011

Credit Card Settlement

Credit card settlement is one of the best credit card debt eliminations known to man. You can literally wipe out your debt with one payment, which can be as lower as 50 percent less than what you originally owed in the first place. Now the words credit card settlement can bring images of having to go through a settlement company in order to get the settlement process started, but this doesn’t have to be the case. You can actually negotiate a settlement with your company, especially during times when you are having trouble paying and/or not paying at all. Credit card companies actually like dealing with you, the direct source, rather than going through a middle man, as well as are willing to cater to your situation if it has anything to do with wiping out your debt.

credit card settlement

But this situation is a kind of “grass is always greener on the other side” situation, as unfortunately when you pay off your debt, it will come up on your credit score as paid off, but not ”paid as agreed”, which will have a negative affect on your credit score. But if you are not paying at all, you might as well take the hit on your score with settlement, instead of not paying each month and your credit score slowly creeping down.

Credit Card Settlement Companies

Now the above credit card debt settlement negotiation method is the best way of settling debt, which it can come in handy if you happen to have enough money settle your debt with your creditor(s), but often times debt totals get out of hand, and a complete payoff is pretty farfetched. If you still want to enjoy the beneifts of credit card settlement, but doing it your self is not an option, you can employ the likes of a credit card debt settlement company.

When a settlement company settles your debt, they do it by negotiating lower debt total for their customers, which then they will pay off for you, then you will start paying monthly dues to the settlement company. The great parts about it is that you will be paying on a much lower debt total than the original as well as paying on only one lump sum instead of multiple payments, the negative part is that these companies often times charge you with large activation fees, or monthly fees for service. But settling your debt through a settlement company can take up to a year, which you will contiue to get calls and notices about not paying, which it is suggested that you pay the minimum during this time, until your debt is negotiated.

Using credit cards settlement can be a great way to; get out of debt faster and cheaper, stop late fees and interest charges from accumlating on your debt total as well as avoid bankruptcy. It has negative aspects, but the positive aspects out weigh the negatives for those that are in a desperate situation.

If your debt is way out of hand, then hiring a lawyer to do your credit card settlement may be the best option.

You can also consider using credit card consolidation which is a great debt settlement alternative, which you can learn more about the consolidation process by clicking the following link: Credit Card Consolidation.

If you are looking for payoff methods that allow you to get out of debt by yourself and fast, visit the following link which has 7 different debt elimination methods: Eliminate Credit Card Debt.

 

Eliminate Credit Card Debt – 7 Methods

December 15, 2011

Eliminate Credit Card Debt


Credit card consolidation, credit counseling and setting up a budget can be excellent tools to use when setting out to eliminate credit card debt you have, but there are other ways that you can use that can help you pay it off without having to use a settlement or consolidation company, as these companies are in business to keeping you in debt longer so you pay more interest. If you are looking for credit card debt elimination methods that actually work, look no further as well have 7 ways to do so right below!

eliminate credit card debt

  • Save For Retirement – Now this isn’t your traditional save for a rainy day tactic, it is applicable to getting your out of debt fast. When you save for retirement you get excellent tax write offs which you can use as funding to eliminate your credit card debt, as well as use the funds you saved to pay it off as well if you so choose.
  • Debt Transfer – Consider tranfering your debt to a card that has low or no interest, or just lower interest than what you are paying on now for a certain period of time, which the time period is usually up to a year. During this short period of time, this is where you buckle down and pay big on the debt, either eliminating the credit card debt for good, or leaving just a small amount left for you to pay off which you can easiily knock out after the low interest period is over. These are also referred to as balance transfers.
  • More Than The Minimum – The minimum payment has two sides to the coin, where the good part about it is that you can afford it with ease, the other side is that it is designed to keep you in debt for the longest period of time. Paying more than the minimum will both pay off your debt faster, as well as pay less in interest. The power of paying more than the mimimum can be proven evident by using a minimum payment calculator and putting in a higher minimum total than what you are paying now. You don’t even have to go through a debt settlement company to settle your debt, you can acutally negotiate the terms yourself with your credit card company.
  • Snowballing – Focus on paying your smallest account off first focusing all efforts on knocking out that debt, then shift your focus to the next smallest debt total. You can use this method to both eliminate your debt as well as instill more and more confidence as you pay off each account. This will also take away the overwhelming feeling of trying to pay all debt off at the same time. While you are dropping more than the minimum payments on the smallest debt, all you have to do is pay the mimimum on the others. Rinse and repeat! You can also try to negotiate lower interest rates on your cards during this process. You can also use the snowballing effect to eliminate credit card debt on the cards with the highest interest first.
  • Debt Settlement – Settling your debt can mean that you end up paying half or less than what you originally owe. Credit card companies want you to pay which if you are not paying they are willing to go to extensive lengths to get you to pay. Settling debt will allow you to pay off your debt in one swift move, leaving you debt free at a much lower cost.
  • Smart Shopping – Pinching pennies may be the last thing you want to do, but it can help you save big each month, which you can use to pay more than the minimum on your debt. If you were ever a student, you know exactly what bargain shopping is, so revert back to the colleges days!
  • Use No More! – Last but certainly most important is to stop using your credit card to buy things, or just save it for emergencies. This will put a halt to your debt total, which means paying less in interest as well as knowing the exact number that you need to pay off. If you are not comfortable with carrying around cash all the time, you can get a debit card and just keeping a small amount of cash in the account, allowing your to still pay with plastic.

The best part about these methods is when you use them they can eliminate credit card debt without having to file for bankruptcy which will kill your credit as well as chances to borrow money in the future. These debt elimination methods will also allow you to keep your savings in the savings account, that is unless you want to use the funds towards payin debt. Use them today to get out of debt!

Credit Card Debt Consolidation – Can It Help Your Get Out Of Debt?

October 19, 2011

Credit Card Debt Consolidation – How It Can Help

If your credit card debts continue to grow and you are already very desperate to find the most effective way to deal with it, then you have to know that credit card debt consolidation can be of huge help to you. This method is most suitable for you if you have more than one credit card and the balances in each card are already extremely overwhelming. Instead of being alarmed and trying to start hiding from your creditors, you should consider getting the service of a credit card debt consolidation company. This will increase your chances of preventing the major consequences of huge credit card debts such as receiving incessant calls from your creditors and the possibility of being sued.

credit card debt consolidation

When attempting to avail of the best credit card debt consolidation service, you have to spend time checking out your financial health. This is considered to be one of the greatest factors that determine the kind of debt consolidation service that you need. Financial health can actually be defined as the future probability of getting all of your credit card bills paid. You can expect to have a good financial health if there is a great possibility that you will be earning more in the future. This is something that you need to greatly consider when trying to get the service of a credit card debt consolidation company.

Credit Card Debt Consolidatoin Benefits

Credit card debt consolidation can be expected to offer a lot of advantages including the following:

 

  • Decreased amounts of monthly payments. If you decide to get the service of a reliable credit card debt consolidation company, then expect the amount that you need to pay every month to be reduced. This is possible since this method allows you to pay off your credit card bills for a longer duration. This means that the total amount of your credit card debts will be divided based on the new payment period and this will make your monthly payments lesser.

 

  • Credit card debt consolidation can be easily managed. All it takes for you to receive the benefits of the method is to sign up an agreement with the company offering the debt consolidation service. After signing up, you can expect to obtain relief from having to read all of your credit card statements all the time. The company will consolidate all of your credit card debts and decide on your capability to pay. Based on your ability to pay, the credit card debt consolidation company will decide how much you will be paying each month and try hard to make negotiations to your creditors.

 

  • Decreased Rate of Interest. If you deal with an effective credit card debt consolidation company, then expect the rate of your interest to be reduced. The company will start to negotiate to your creditors to lower down your interest rates so you can easily pay off your remaining balances. Aside from helping you save a substantial amount of money, this is also useful in terms of easily managing your credit card debts.

 

  • An effective credit card debt consolidation service offers debt management tips. Aside from helping you deal with your current debts, you can also expect a reputable company to offer free tips that will help you easily manage your debts in the future. They will establish an effective debt management plan for free and you can use it in your future dealings with your debt.

 

Credit Card Consolidation Loans Can Help You Get Out Of Debt

September 23, 2011

Credit Card Conslidation Loans

Credit card consolidation loans can provide great benefit to those who are overwhelmed with their credit card debt. If you are unfamiliar with what credit card consolidation loans are, they are basically a loan that a consolidation company gives you to pay off your credit card bills, and enjoy just one monthly payment as well as what often times come with lower interest and a lower monthly payment.

credit card consolidation loans

Benefits of Credit Card Consolidation Loans

  1. Consolidation will drop the interest rate that you are paying on your credit card debt, as a loan through a credit card consolidation service is a secured loan, which always offers lower interest than that of credit card companies. The money you save in interest can be used towards paying off your bills, money you wouldn’t have had if you didn’t consolidate. Lower interest also equates of lower monthly payments, as the interest rate determines how much you pay monthly, also the repayment terms are usually extended which will drop your total monthly payment.
  2. You only have to pay one payment each month, and you no longer will get calls or call your creditors as your consolidation company does it all for you.
  3. An all an all lower debt total can come out of credit card conslidation loans as consolidation companies often times can negotiate lower payoff totals.
  4. You can also get an even lower rate by using your property as collateral, which is basically the protection for the lender who knows that in the event of default, they take the property, but with lower monthly payments, you will have enough money to pay off your debt.. Also, you don’t have to have collateral in order to consolidate.

Finding Reputable Credit Card Conslidation Loans Service

There are three things which you should check when looking for a provider for credit card consoliation loans, which one or more of them will prove that they are accredited and a reputable conslidation company.

  • They are listed in the Better Business Bureau.
  • Check if they are part of Internal Association of Professional Debt Arbitrators (IAPDB).
  • Also, are they are part of The Association of Settlement Companies.

Who Should Use Credit Card Consolidation Loans?

You want to use consolidation loans if you have few options left, which it is suggested to make a budget first and try to manage your finances, as just like with anything there are negative aspects of credit card consolidation loans. Credit card conslidation loans should be used by those who are buried in debt and their monthly payment are too much compared to what they can afford as well as those who are either behind in their payments, or have flat out stopped paying. Also, if you are having trouble tracking all of your monthly payments, credit card consolidation loans are great to manage your debt.

The Right Time For Consolidation

When it comes to the right time for people to take out credit card conslidation loans, there is a pretty basic explanation for this. You shop around for interest rates that are lower than what you are paying on your credit cards. If interest rates in consoliation companies are higher, than the act of consolidation will not benefit you. Right now, interest rates are at an all time low it is a great time to get credit card conslidation loans, but you can also find out if the time is right by keeping track of the interest rates in the consolidation market.

Finding Good Credit Card Consolidation Loans Companies

To ensure that you are doing service with a reputable provider, you can do one of three things:

  • Conslidate with your personal bank.
  • Or you can call your credit card lenders who will assist you in finding a conslidation company who provides honest service.
  • You can also seek the consultation of a lawyer or credit counseler for information on credit card consolidation loans.

Eliminating Credit Card Bills – 7 Methods

September 23, 2011

Eliminating Credit Card Bills

Credit card bills are really annoying and just don’t seem to ever want to go away. This might be the long term case for many, but for you, it can be a lot more short term by using a few debt relief tools that will provide for you. By using these tactics you can manage and pay off and eliminate credit card bills for good.

credit card bills

7 Ways To Eliminate Credit Card Bills

  1. Negotiate – The first tactic you can use on your quest to elminate credit card bills would be to call and try to negotiate a lower rate, both on your total debt and or interest rate. Credit card companies often times have access to funds which are at a much lower interst rate, or may even offer you a card through them that has a lower interest rate.
  2. Snowballing – Credit card bills can also be eliminated by using the snowball method. This method is when you pay the minimum payment on all of your cards except the one with the lowest total, which you pay more than the minimum. This will allow you to focus on paying one off at a time and pay if off fast, instead of trying to pay them all off at the same time. This can also work by paying more on the one with higher interest so that you won’t be stuck with a high for long term.
  3. Save For Retirement – Saving for retirement can allow you to get a tax write off on your savings. You can use this tax write off towards your credit card bills and if you choose to do so, you can take out your savings and use it towards your debt as well.
  4. Getting your bank to pay it off – You can try to get a loan from your bank that you can use to pay off your credit card bills. By doing this you will get a secured loan which always have much lower interst rates than credit cards. This will also allow you to avoid consolidation which is the same idea where they give you a loan, but it often times affects credit.
  5. Make A Budget – This is pretty cliche and is mentioned in many article on eliminating credit card bills, but it is such a oftenly dismissed tactic that can provide you with much value. By creating a budget, you can view where you money is going each month and eliminate certain things that you don’t reall “need”. Don’t eliminate the same thing forever, just maybe for a month or two, then bring it back and take out another thing for a couple months. By doing this you will have extra money to use on your debts and enable you to crush out you credit card bills.
  6. Pay more than the minimum – Always pay more than the minimum! The minimum payment is designed to keep you in debt for the longest time possible, which means you paying much more in interest. By paying more than the minimum you will save big on what you would have paid in interest and get rid of your credit card bills.
  7. Stop Using Your Card – To take advantage of these methods at the highest level, it would be a great call to stop using your credit  cards, or at least stop using one or more and maybe just keep one for emergecies.

By applying these methods of credit card bills elimination you can pay your bills off much faster and get better terms as well as more peace of mind. These methods can help you avoid bankruptcy and get you out of debt and back in the green!

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