Revolving Debt And Credit Card Balances Continue To Soar

Category: Finance, Credit.

Revolving debt and credit card balances continue to soar.

While the burden of working with multiple creditors and trying to keep up with monthly principle and interest requirements can be challenging, there are some options for borrowers. More and more consumers are finding themselves in dire situations, dealing with debt that is out of control and fiscally unmanageable. Many borrowers turn to debt consolidation in order to reduce the burden they face from their debt. Secured loans or homeowner loans are commonly used for debt consolidation purposes. Debt consolidation loans are a way for borrowers to cut down on the number of creditors they owe, while potentially saving money on interest and reducing monthly credit payments. Secured loans are those obtained by offering property as collateral to the lender in the event of non- repayment of the debt obligation.

If the borrower fails to repay their debt, the creditor has a right to claim repossession of the collateral property. Most lenders offer their best rates and terms on secured loans because their risk is lower. By reducing the risk to the lender, most borrowers can get higher loan amounts at better rates. There are many benefits to this arrangement. This allows struggling borrowers to potentially payoff of multiple, higher interest rate credit balances with one, lower interest rate loan. The borrower can pay off multiple creditors while taking on one bigger loan. This leads to reduce interest over the life of the loan and lowers monthly payment obligations.

They could trade in several higher rate balances for a homeowner or secured loan that offers much better interest terms. For many people, the psychological benefits of reducing their number of creditors are great as well. One of the results of increased consumer debt has been rapid expansion of lenders dealing with bad credit and looking to take advantage of desperate borrowers. Borrowers do need to be careful when exploring debt consolidation options. Borrowers need to be careful about offers that do not seem sensible. Prepayment penalties are sometimes used with certain types of debt consolidation loans. It is also important to fully evaluate and understand all terms and rates associated with a particular loan.

Ultimately, if a borrower can lower their monthly debt payment obligations, they can use extra money to pay off principle balances sooner. This leads to lower interest paid over time and helps the borrower to pay off the debt balance more quickly than planned.

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Parents Should Also Avoid Bailing Kids Out To Teach Them Make Choice And Spend Money Wisely - Catalina Favero's Finance and Credit blog:

From the early childhood on, we try to teach our children the basic knowledge for adult life- how to keep room in order, how to eat healthily, how to communicate with people. Toy manufacturers present Barbie shopping kit including credit cards, play Visa card with an electronic" pod" for storage of financial data, new versions of Monopoly with a credit card and many more.

Some Debt Collectors Will Hunt You Down Until You Pay Up

Category: Finance, Credit.

Did you lose your job?

Are you being forced to endure any other cause of financial burden due to your loss of income? Have you suffered some form of medical emergency? You are not alone. Miss a single or a few payments and you can expect a not- so friendly call from a debt collector. Millions of people have to face the accumulation of debt that they cannot pay. Receiving such a call at your workplace can be quite inappropriate and worst of all, utterly humiliating.

Debt collectors are generally compassionate to individual situations on a personal level, but they have to disengage themselves from this level to focus on what their job entails. Some debt collectors will hunt you down until you pay up. It is no surprise that anyone who is deep in debt fears the rather ambitious debt collectors. Their commission is based on the acquired payment amount. Frequently, debt collectors are rewarded for successfully collecting debt payments. Consequently, the greater payment collected. Rights of a Debt Collector.

The greater their reward. It is legal for debt collectors to contact you by phone, mail, fax, telegram and in person. They should not be contacting you before 8am or after 9pm unless you have clearly given them permission to do so. They may contact you at home and in your workplace, but are restricted to if they are informed that your employer prohibits it. Unless you don t have one, debt collectors should be contacting your attorney. They are allowed to obtain your telephone number, or address from, place of employment anyone. Debt collectors are also allowed to find out necessary information about you through other people.

However, they are normally not permitted to divulge confidential information to these people, such as the fact that you owe them money. I Want Them to Stop Contacting Me! Debt collectors are allowed to contact these people only once. You can choose not to be contacted further by debt collectors, whether you owe money or not. They may then get in touch with you one last time to state that they will no longer contact you, or to explain the appropriate actions that may be taken against you. This can be achieved by writing them a letter informing them that you no longer want them to contact you. Putting an end to these exasperating calls will not automatically settle your debt payments.

Your Rights Against Harassment. If you firmly believe that the debt has already been cleared or you do not owe them money, make sure to state it clearly in your letter. Consumers are protected by the Fair Debt Collection policy implemented by the FTC( Federal Trade Commission) . Debt collectors are prohibited from harassing individuals. Knowing your rights will keep even the most determined debt collector at a distance. They are not allowed to abuse, nor oppress you or anyone they might be able to use in order to get to you. Debt collectors who are falsely representing themselves are breaking the law.

Harassment generally includes the use of obscene language, non- stop calling or threats of violence. They should not misrepresent themselves as government agents or attorneys. If they are not sending any legal documents, they should not indicate that they are. They cannot say they are representing a credit bureau if that isn t the actual case. They may not accuse you of crime if you did not commit a crime. If you would like to know more about your rights, you can get all the information you need from the FTC.

Additionally, unless they have been legally instructed to, they are not allowed to seize property, nor imply legal, withhold your income action to be taken against you. If you would like to report an agent, this can also be done by contacting the FTC, or your state s Attorney General. Furthermore, if what they are doing is illegal then you have every right to sue.

Debt Consolidation Is The Easiest And Best Option To Get Out Of The Debt

Category: Finance, Credit.

Debt consolidation is a great hand- out for people swimming in the ocean of debt.

To accommodate expenditure of all the loans and making at least minimum payments out of the limited income is a great challenge and causes great agony to many people. Modern life has increased the comforts and also debts of an individual multiple times, making it necessary to keep maximum number of credit cards, consumer loan and, outstanding home loan car loan. Debt consolidation is the easiest and best option to get out of the debt. Debt consolidation brings back the lost smile in the face of a person who is suffering from bad credit. Debt consolidation paves the way to pay off small loans from a bigger loan. The people who chose debt consolidation also seek happiness in their lives.

In debt consolidation one single payment of loan eases the burden of complex multiple payments of various loans. Debt consolidation lifts the heavy burden of debt from the shoulders of the individual and brings back happiness and peace. In the contemporary society, an individual has to make payments to multiple creditors every month. But, if a person has to make multiple payments, then it becomes difficult to remember and hence the person may get bad credit history. Making a single payment is not that much strenuous as remembering the due date and making the payment can be done easily. So, for appropriate financial management, they can depend on debt consolidation process. Second mortgage, also called as Home equity loan is the most widely accepted and popular kind of debt consolidation loan available in the market today.

Debt consolidation also reduces the amount paid as interest considerably as the interest is paid only on a single loan and also the rate of interest is always less when compared to personal or credit card loans. Mortgage demands prompt repayment and when the payment is not made on time the borrower gets a bad credit. Here, the lender provides money on the basis of one s credit history. On the other hand, credit card loans come under unsecured loans. So, to cover the risk, the rate of interest is generally kept higher than the other loans. In personal loans, a considerable amount has to be paid every month towards repayment and also the tenure will be short.

The special feature of debt consolidation is the low monthly payments and long tenure which is not available in smaller loans. Also, dealing with a single creditor is quiet trouble- free and this also clear communication is possible in case of grievances or issues with the creditor. All that is required is to make a single call to the creditor to solve any matter that may require immediate attention. Also, one can always avoid default and misunderstanding with proper communiqu�. Even you can claim tax exemptions from some type of mortgages whereas a credit card or personal loan cannot offer this benefit to the borrowers. But, the benefits of consolidated loans vary from one individual to other and are not equal for all.

Taking a consolidated loan is an easy load to shoulder compared to complex handling procedures of multiple loans. So, a realistic analysis of tangible benefits is important to decide the amount of advantage one will get from the debt consolidation process.

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Filing For Bankruptcy Is Not The End Of The World - Finance and Credit Articles:

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court.

Many Of You Face Credit Card Fraud Out There In The World And In Random Places - Lena Stearn's Finance and Credit blog:

Many of you face credit card fraud out there in the world and in random places.

You Could Easily Be Tempted To Use Your Credit Cards

Category: Finance, Credit.

Utilizing your home equity is a great way for consolidating your debts and handling your finances appropriately. This will lower the money paid by you every month for your debt.

By shifting your debts to one particular low interest loan from several high interest credit cards, vast amounts of money can be saved by you. Worrying about just one payment each month by consolidating with your home equity loan will be extremely beneficial for you. You may end up paying more interest over the entire loan. Still, you should know three vital things prior to taking a home equity loan even if consolidating it is an excellent idea. Credit card interest rate is higher than the rate of interest for home equity loan, so in 30 years small interest may sum up to a lot more amount than the interest for a long- term home equity loan. You may end up losing your home. Therefore, paying off in record time the home equity loan by using the extra money saved by you each month is a wise thing to do.

Although it does not happen always but there are possibilities. For example, if you lose your job or you re going through some financial constraint for which you miss one or two payments for your home equity loan then your house could be in danger. For missing your payments a mortgage lender may take your house but the credit card company cannot. You could easily be tempted to use your credit cards. On should not think that purchases made by you on the credit card are not being paid by you just because you owe no debt to the credit card company. When there is a zero balance in your credit card statement using your credit card can be tempting for you. Don t repeat mistakes of adding up money to your credit card.

This might lead to paying off a bunch of high interest debts in addition to the consolidation loan for your home equity.

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What Are The Perks For This Credit Card - Harriet Vina's Finance and Credit blog:

Choosing a student credit card is often a burdensome process. But the Chase Student Flexible Rewards Card takes much of the guess work out of the process.

Get Rid Of All Errors On Your Credit Report - Finance and Credit Articles:

With so much information you receive and all the astonishing offers to fix your spoiled credit, it is almost impossible to believe that almost 80% of problems can be easily solved by only focusing on a particular part of a credit report. Here you can find the description of three major credit problems and the fastest way to get rid of them.

There Are Different Fees For This Loan Type - Jaclyn Padillo about Finance and Credit:

You can get the money you need to pay your bills or shopping overnight if you need cash fast.

What Is Financial Independence

Category: Finance, Credit.

Are you always running short of your funds?

Do you get to pay your bills on time? Do you still have to borrow money sometimes to at least live comfortably? If you answered mostly yes, then you are in danger of being financially unstable. Dont go sulking out there! You cannot afford the things you want and sometimes, even the things you need. You better move your body.

You have to be financially independent. If such is the case, better tell yourself that you cannot afford to be that way always. What is financial independence? There are 7 ways or habits for you to follow to gain financial independence. Financial independence is the capability to determine and support yourself through your own endeavors. With the right attitude and the proper goal in mind, you might just find yourself beaming with pride because of your achievement. Start with a vision.

Keep a focused vision. What is your vision for your life? You want financial independence. Where are you definitely heading? You want to be able to stand on your own and have a more stable and secured life, for yourself and for your family. Hold on to it as you start to realize that vision. Keep that vision in mind.

The choices and decisions you will make in the future will have to head to the direction of your goal. Invest your money wisely. Return to that vision when things get doubtful or tough. Generate income. This will basically come from your jobs income, but dont settle with that. Your income will be the financial foundation of your vision. Aim to increase your income.

Start a business that you feel passionately about and make sure it will work. Invest your time, money and effort into a beneficial enterprise. Think carefully of every detail in your enterprise and work on it. Aim for excellence, quality and integrity to succeed. Do not settle with good enough results. Save up. Allot a percentage of your present income to savings.

Start a fund for your future. Do this at the start of each month, before you go ahead. It will also teach you how to properly budget your money for necessary expenses. This will avoid the enticement to buy, buy, buy. Money in the bank could also earn interest. Just make sure you maintain the money in your savings account.

Although it is not considerable compared to a good investment, it is still a good way to keep money for your future. Avoid touching it unless it is really necessary. Every single cent matters. Give value also to your coins. All of those scattered coins you have there could comprise a few dollars. Spend wisely.

Even if it is considerably small amount, it will still find some use for that. Dont spend all your earnings. Buy only things that you really need. As they say, dont earn to spend. Tighten those belts for now as you bank for a more secured future. Forget the need to show off on other people that you can afford. Choose to live simply.

If you want achieve financial independence, you must hold on to your money as much as possible. Take control of your finances as much as possible. Avoid incurring debts as much as possible. Credit cards for example could hold you locked in a desperate state. Make ends meet in the meantime for later on in life, you will surely afford to be leisurely. You could be getting what you want now through that credit card, but imagine yourself giving the bulk of your income for interest payments!

Keep contingency plans. Have contingencies. You must plan ahead for events in the future. Make certain that your financial assets are secured. Insure your life, even your loved, health and property ones. At this phase, it is a good option to get an insurance policy. Protect your interests whenever you enter into any engagement.

This way, you will have optimal performance and desirable results. Make sure that your endeavor is legal, that you are financially capable, and that it is feasible within your means. You could prevent harmful losses in the long run. Health is wealth. Take care of yourself. The only way for you to achieve your dreams and be able to stand on your own is when you are physically and psychologically able to do so.

Have a healthy diet. Have regular check ups with your physician. Exercise Regularly. Only a good physical standing would allow you to enjoy the fruits of your toils today. Health will be your asset to achieve financial independence. Be Unstoppable.

Do not let yourself be distracted by whimsical desires. You must keep yourself focused to achieve the goal of being financially independent. Do not spray. Every cent and every minute counts as what you do today will have a lot to say on what you will have in the future. Do not procrastinate. Take advantage of every opportunity that will come your way.

Tell yourself, you will not be a loser in this game. Keep yourself confident. You have to make it!

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Of Credit, Cards And Credit Card Application - Finance and Credit Articles:

Plastic money" is a term dubbed by the people of the world in reference to the wondrous item called the" credit card. " And at the rate the economy is going and with the pace of life that we have right now we want everything done the express way. Of credit, cards and credit card application.

Some Even Do Give Second Chance Credit - Finance and Credit Blog:

It will be very difficult to qualify for loans or mortgage eve to buy furniture on hire purchase. There are many ways of going about it but it is best not to get there in the first place by respecting a few simple rules about money.

A Bank Credit Card Can Help With These Unforeseen Expenses And It Will Also Help Them To Build Their Credit Score - Malinda Plude about Finance and Credit:

It is important for college students to be able to pay for their tuition, fees and living, books expenses while they are attending post- secondary school. If an emergency occurs and the student needs extra cash, then they need a financial back- up plan.

Debit Card Advantages

Category: Finance, Credit.

With the rise in popularity of credit cards and debit cards, over 40% of offline transactions are now conducted using plastic over cash.

For most, the answer is far from simple, and comes as a result of a number of factors, such as the size of a transaction, the transaction type and your current liquidity. With this set to rise to over 2/ 3 thirds by 2012, the question remains- should I be using a credit card or debit card? With so much to consider, we have prepared this guide to ensure that you are aware of the factors that influence the fundamental choice- debit card v credit card. Should you complete a purchase with your credit card, your credit card company will provide a dispute resolution service should things go wrong. Credit Cards Advantages. They will actually refund you in the interim until they are able to find evidence to suggest either party was correct. If you are unable to finance a purchase, but will have the capital in around 1- 8 weeks, then a credit card could be for you, if you are aware of the costs that you will incur for borrowing.

Strapped for cash? Credit Card Disadvantages. To avoid this, you must only spend with a credit card, what you know that you can afford. The inherent disadvantage in credit cards is that it is all too easy to get yourself in a mountain of debt. Credit card theft and issues relating to this are on the rise. Debit Card Advantages.

Although you may be covered for a large amount of the transaction, this can cause worry and stress to credit card users. You can only spend money you have. Debit Card Disadvantages. With a debit card, you will not be able to spend money that is not available in your bank account, this means that you will never be in red, and therefore the risk of debt spiraling out of control, is less of a worry to you. Should you complete a purchase online and things go wrong, you will have nowhere to go apart from the merchant. If you do not have the cash upfront for a purchase then you may find yourself unable to finance a transaction. That is why it is strongly recommended that a credit card is used for large scale, online purchases.

If you had a credit card then you would be able to do this.

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How Do You Know What These Codes Mean - Finance and Credit Articles:

Less than 6% of the population in the United States can brag about having FICO credit scores above 80 It s an elite club.

That Is Not A Solution For Beating Excessive Credit Card Debt

Category: Finance, Credit.

Most people advocate the case of credit cards, quoting the benefits and convenience that arises from them.

The reason being Excessive Credit Card Debt , which is one of the most serious problems faced by the credit card holders and credit card industry. However, there is another group/ line- of- thought that strongly opposes credit cards. However, you can t pull the shutters on the credit card industry just because of a few irresponsible people( or even if it s more than few) . Moreover, you can t overlook the benefits associated with the credit cards. That is not a solution for beating excessive credit card debt. The issue of excessive credit card debt can be looked at from 2 angles. The first method involves increasing awareness of the excessive credit card debt problem to the masses.

First is addressing of the excessive credit card debt problem at the industry level and second is the addressing of the excessive credit card debt problem at the individual s level i. e. at the credit card holder level. This is more or less being done currently too. This means trying to devise a mechanism to nip the problem( of excessive credit card debt) in the bud. However, there should also be an effort to tackle this problem of excessive credit card debt at an even deeper level. This mechanism should actually be a part of the overall system. Case studies should be taken up, statistics gathered and a proper forum formed( with representatives from the credit card holders and from the credit card suppliers) .

A lot of thought needs to go into devising such a mechanism. As of now, the credit card suppliers just seem to be engaged in coming out with new products and getting customers enrolled to those products. Something like attending mandatory seminars on the root causes of excessive credit card debt could be made part of the credit card application process. There is little attention paid towards addressing the problem of excessive credit card debt in the real sense. Another way of dealing with the problem of excessive credit card debt could be: developing a system for calculation of applicable credit card limit at the individual level i. e. no standard/ product- based credit limits. A checklist or a set of questions could be provided to individuals for recognising the first signs of excessive credit card debt. Then there could be mechanisms for proactively warning the users about excessive credit card debt( based on their credit card usage) or even imposition of early restrictions on noticing the first signs that lead to excessive credit card debt At the individual s level, the treatment of the problem of excessive credit card debt would include following of best practices( on credit card usage and avoidance of excessive credit card debt) by the individuals themselves.

So, the problem of excessive credit card debt can surely be dealt with by putting together some serious thinking at a broader level together with discipline at the individual s level.

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Credit Card Offers Come In The Mail Everyday - Sonya Felan's Finance and Credit blog:

Credit card offers come in the mail everyday.

A Person Can Consolidate His Credit Card Debts Online Also - Finance and Credit Blog:

Credit card debt is inevitable when we cross our financial limits. Credit card helps us in increasing our purchasing power beyond our income levels and soon becomes a good reason for credit card debt.

All Cards Have Different Terms - Finance and Credit Articles:

The bulk of lending institutions now offer no annual fee credit cards to entice prospective clients.