How to Pay Off your Credit Cards and Loans

Credit Card Debt

How to write a financial plan to get out of debt.

Is constant worry about having no money destroying your life! How to manage your repayments to the credit card and loan companies.

If your loan repayments have got out of control and you are stressed out by debt collectors and legal letters then follow this step by step guide. Worrying about money destroys you financially and mentally.
Credit Card Debt
Credit Card Debt
Money Problems

Do not ignore your debts – They will not go away

It saps your positive energy because when you think about money it is only with worry and stress. As the debts mount up so does the interest and late payment charges, then your debts become out of control.

It becomes impossible for you to meet the agreed repayments and you are in financial trouble

It will get to the stage where you will be afraid to open the letters, answer the phone or even go outside your front door because of the debt collectors. Take control of your debts and take control of your life. You can still take back control of your life by facing up to your financial difficulties .

Every country is different in the way they deal with people who have found themselves with these money problems. But as a universal rule it is accepted that if you ignore your money problems they will only get worse.

Existing unpaid loans will get bigger with more interest added. This only causes more stress to you and affects your health . If you are brought to court the expense of this will be added to your debt. In most countries the court will look at your financial situation. If it sees you are genuinely in financial difficulty it will order you to repay a manageable amount each month.

But beware if you fail in this order for any reason then you will be jailed for contempt of court. The credit card debt will still be there when you are released.
So What Can you Do

Make a list of everything you owe. Include all the credit cards, loans and other financial institutions you owe money to. By taking this first step you have made a decision to accept responsibility for your debts. You can now face up to the reality of the situation. Write down exactly how much you owe to each.

Add it all up. Yes it will be a shock, but this is the first step in taking back control of your life. I now want you to work out how much it costs you a month to service these loans. Look at the high interest charges and see how much it is costing you.

Or if you have got to the stage that you can not even pay the interest, look how much extra this is putting on top of that debt every week.
Owing Money
Owing Money
How Much Money

You now know exactly how much money you owe. That is the first step. You have accepted you need to take control of the situation.

Make a list of all your monthly expenses. These will be the necessary ones to enable you to survive.
Monthly Rent or Mortgage

If you are in danger of losing your home you must contact the people immediately. I know too many people who have lost their jobs and now find themselves in negative equity and unable to meet their mortgage payments.

So far the banks have been patient and allowed them to come to an agreement of either a three month gap or a twelve month interest only repayment. Contact your mortgage broker and try to come to a similar arrangement

This applies to a rental property too, do not let the rent go unpaid. Contact the landlord and try to come up with a repayment plan for the arrears. Your next priority is your monthly food and utility bills. If you have children also include any necessary expenses they incur on this list.
Monthly Income

Write down everything that comes into the household.starting with wages from anyone working. If unemployed add your social security payments and any vouchers.

If you earn money from any part time business and it is guaranteed then include this too. If you are not sure how much income can be earned every month then leave this out. You need to know exactly how much money you can commit to repayments

Credit Card Settlement: How to calculate, negotiate, and close the deal?

Don’t cry, just cut your credit card into pieces to live happily
Don’t cry, just cut your credit card into pieces to live happily
Get out of your credit card debt. Calculate, negotiate, validate, and close the deal.
Get out of your credit card debt. Calculate, negotiate, validate, and close the deal.

If you are overburdened with your longstanding credit card debt, fed up of receiving harassing phone calls by your credit card issuing bank, want to get rid of debt collectors who threaten you at your home and office on a regular basis, and don’t know how to negotiate with bank authorities, then this article is for you. As you know that millions of people around the world are affected by credit cards due to their high interest rates that are beyond limits. Most of them are aware that credit card debt is the worst type of debt they have ever experienced but then also they keep on using credit cards because it is an easy way to buy any really expensive thing at once and when they have credit cards in their pockets, they feel like kings and it does not take them so much time to spend all the balance they have in their credit card, sometimes above the limits. When the limit gets exhausted and there is no money left to revolve, then the person finds out the problems that happen after using credit cards. Some people are able to pay the minimum amount due and they keep on paying it every month but then also their credit card debt keeps on increasing instead of decreasing and this is the primary reason why a person then decides to settle a credit card by paying off all the debt at once, but it is interesting to note that this is not so easy because the amount a person has in his/her pocket to pay in lump sum does not match the balance to be paid for settling the card. For example a person has got 1500 dollars to settle the card but the balance is more than 3000 dollars than what a person will do. Below I have listed some steps to be taken into account before settling your card. I have utilized these steps personally and they include calculating the debt and payments, negotiating the settlement, and finalizing or closing the deal.
This old man with sexy blonde has thrown away his credit cards. Look how happy he is after getting out of debts.
This old man with sexy blonde has thrown away his credit cards. Look how happy he is after getting out of debts.
How to negotiate debt?
Debt-Free: How to Get Out of Debt To Your Road Towards Financial Freedom
Debt-Free: How to Get Out of Debt To Your Road Towards Financial Freedom
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Step by step instructions on how to calculate and negotiate credit card settlement:

Call up your bank’s customer care and ask them to send all the monthly statements including all the payments you have done up until now on your credit card via email or post. In my case, I got them via email.
After receiving the payment details, calculate how much you have paid first, like in my case my credit card’s limit was 85000 INR and I had already paid 67400 which was correctly reflected in my credit card statements. Now calculate how much you have really spent and how much interest the bank has charged and the what is the total outstanding according to bank. In my case, I had spent 87000 INR and the total outstanding was 111000 INR according to bank.
Now minus the amount you have paid out of total outstanding according to bank. For example in my case, it was 87000 minus 67400 is equal to 43600. Now calculate what is the interest? Do you think the interest charged is legible? Do you have this much money to pay? Yes or no, it’s according to your wishes.
Now in this step I will share my personal experience what I did. I stopped making all the payments for 3 months and whenever there was a call from the bank I kept on saying them that I have spent 87000 INR and already paid 67400. The balance amount is 19600 and the valid interest should be 9000 to 10000 INR. I told them that I can only pay 25000 and that also only once. First they said you have to pay total 111000, then only 95000, then only 75000, then 50000, then 35000 and when came to this figure, I tried to negotiate with them some and ended up at 29000. So we closed the deal at 29000 and I agreed to pay 29000 INR to the bank if the bank gives me the full and final settlement letter.

Can’t Pay Credit Card Bills? I can HELP!

Maxed Out
Maxed Out
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Credit card companies are blood sucking vipers. They will offer you credit on the one hand and take your soul with the other!
Who needs this advice?

This blog is for people out there who cannot pay their credit card bills. If you have lost your job or possibly have suffered from a debilitating illness, whatever the reason and you cannot pay your credit card bills…well this article is for you.

I’m sure you have already had many a sleepless night wondering what you are going to do, maybe you’ve had good credit your whole life, maybe you’ve already tried credit card consolidation and now that you missed a payment or two and your interest rate has sky-rocketed, your FICA score has plummeted and you know that you can’t pay your credit card bills. Well, what I am going to tell you may go against the grain of many but here is my advice…are you ready, hmmm?

If you aren’t working, if you are renting your home or apartment or sleeping on your brother-in-law’s couch, if you are barely able to buy food for your kids:
DON’T PAY YOUR CREDIT CARD BILLS!

That’s right, don’t pay them. Don’t file for bankruptcy and for goodness sake don’t sign up with a consumer credit counseling company. All these people will do is take what little money you have left and leave you penniless, with bad credit and in a worse position than if you had never contacted them.
What NOT to do..

If you file bankruptcy, you will have to pay thousands of dollars to do it and then it will be on your credit report for ten years. Depending on where you live if you simply can’t pay your credit card bills then STOP trying to pay them. Your credit will be clean after possibly six years (in some states as little as three). Whatever you do, DON’T TALK TO THEM. If you talk to them, you will be giving the credit card companies or banks the advantage and you will also be setting the clock back to zero on the six years. You will have to deal with phone calls but that is easily remedied by getting a cellphone and screening your calls. If you are not working, the credit card companies cannot take your unemployment checks. If you are working they can sue you and garnish your wages, but unless you owe them a lot of money they probably aren’t going to go through the trouble and expense of doing that…it is a risk. Furthermore, if you are summoned to court make the company provide verification of the debt and proof that they own the debt. If they cannot supply this (and almost all of them cannot) you win!
I.O.U.S.A.
I.O.U.S.A.
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Don’t even think of calling a consumer credit counseling company!

All these people will tell you to do (after taking their fee which is quite substantial) is the same thing I am telling you to do right now (only I’m not charging you a fee). They will tell you to stop paying your bills, then after a certain amount of time the credit card companies will start negotiating with you. They will offer to settle with you for sometimes as much as half as much as you owe them but if you hold out you may be able to settle for 10 cents on the dollar. If you can settle with them, do so, if not you will have to run the risk of harassing phone calls (get a cell phone and only answer calls that are identified) and possibly a lawsuit. However, they aren’t going to take you to court if you don’t have any money. It’s not worth their time.

There are more and more instances of people who owe money being issued a bench warrant for their arrest. These instances usually involve failure to appear in court. So if you are summoned to court, by all means go. What is the worst that they can do? The worse thing that can happen is that you will be given a judgment on your credit record. In many instances if they cannot prove that they own the debt they debt is unenforceable but that is another story. So what if your credit is ruined, the credit system is a contrived system put in place to control you. Stop using credit completely.
For the Naysayers…

Now, for all of you out there who think that this is awful, who think that I am encouraging irresponsibility all I have to say is these are the same BANKS that stole millions of dollars in bail out money using a Ponzie scheme that they benefited from. They took a risk, lost, could not pay their bills and now we are paying their bills for them! These are the same banks that have lobbied (otherwise known as bribing congress) for decades to stack the deck against the consumer. These are the same banks that have brought this country to the worst depression since 1929. So, don’t cry to me about irresponsibility,that is exactly what the banks want you to feel, they want you to keep on that hamster mill until they have sucked every ounce of blood from you. You’d better believe that the CEO’s of these banks aren’t sleeping on their brother-in-laws couch or staying up nights worrying about how to pay the electric bill. Not only that but the money that was lent to you was made out of thin air! That’s right, the money that banks lend to you they CREATE out of thin air, it’s not your neighbors money, it’s not the “banks” money all it is are digits in a computer made up. It’s called the fractional reserve system and it’s the biggest scam you never heard of!

Now, if you own a couple of houses or have any kind of real assets you then may have to consider filing bankruptcy. If that is the case you should speak with a bankruptcy attorney because if you stop paying your credit card bills they may go after your assets. But, if you are like many of us who have nothing, then just stop paying, there is nothing they can do but give you a bad credit rating and guess what, your credit is probably already bad!

In the end, it’s up to you. You can try to pay them but if you can’t pay your credit card bills, don’t! Just don’t file for bankruptcy and don’t sign on with a consumer credit counseling company, if you can’t pay your bills just don’t pay them until they knock them down to half, then wait until they knock them down to 10 cents on the dollar, then think about it 🙂

Credit Cards Consolidation

If you have a lot of credit card debt then consolidation may be the route for you to take. This will help you to be on the road to better credit. The main reason people consolidate is to get a better rate on their card. Whenever you need to get a better rate, you should do it.

Credit card consolidation will also save you money. If you owe a lot of money on your credit cards, whether one or several you should consider consolidation. Consolidation puts all your bills into one payment making it easier for you to pay. This saves time and reduces the stress on you and your family. It will give you one payment and close out the other cards, which improve your credit right from the start.

Make sure you have a professional help you through this. You should not do it on your own. Make sure you do some research on who is best suited to help you and also make sure there are no hidden fees involved in this processes. Get all your information up front before you decide.

Many of the people who go this route have let their credit cards take over their life. If you are not careful in your credit card usage then it can get the best of you in a hurry. It is very hard and time consuming to get out of debt once you are in it. This could take months if not years to get out.

Before you get into consolidation, go over all your bills and sort them out to see how much you owe. This will help you when you are talking to a professional and always ask questions. Even if you think you may sound stupid, ask it. You may be surprised at the answer. They are there to help you that are what you are paying them for. They are not paying you. Get everything out in the open so you can consolidate everything and not forget one bill.

Once you get help and have your credit cards and all your other bills in one easy to handle payment you will feel like a ton of bricks have been lifted off your chest! You have to be diligent in keeping your debt under control once you consolidate. You cannot go back and get four or five more credit cards just because you paid these off. Stick to your guns and do not let your debt control you again. You are on the track to getting yourself back under control and do not need to get caught in the trap again.

Just remember to do your research and find the right people to help you. Go to your local bank because they know how to handle these situations and will be more than glad to help you out.

Lvnv And Citibank Lawsuit Attorney — Providing A Good Defense To Fight Debt Collection Lawsuits

Citibank is one of the largest international credit card issuers. LVNV on the other hand is debt purchaser that collects consumer debts. Many lawsuits were filed by these companies to force consumers to pay credit card debts. If you want to have a good defense against their lawsuits, you should hire a Citibank lawsuit attorney or LVNV collection LLC attorney. Your lawyer can provide a good credit card lawsuit defense so you can avoid unfavorable judgment. You should also consider getting the services of a professional debt elimination company that can provide good lawyers who will represent you in court.

There are many reasons why you need to hire a Citibank lawsuit attorney or LVNV collection LLC attorney. Remember that the lawsuits filed by Citibank and LVNV have one purpose: to get judgment against you. These companies are hoping that you will never respond to the charges or you will simply ignore the lawsuits. Once judgment has been issued, then the debt collectors will have all the rights to take money from you. They can garnish your bank account and take whatever savings you have. They can also take away some of your assets. These are the reasons why you need to have a good credit card lawsuit defense lawyer. Your Citibank lawsuit attorney or LVNV collection LLC attorney could prevent unfavorable judgment.

You might be asking why you need to hire Citibank lawsuit attorney or LVNV collection LLC attorney. Well, it is true that you can defend your self in court. Unfortunately, this is a big mistake that may lead to unfavorable judgment. You need to take note that a non-lawyer can easily fall into a legal technical trap. The legal system is highly complicated and there are many technicalities that could compromise your case. If you are going to launch your own defense but you do not have enough training on the legal procedures, the lawyers of the contending parties could eat you alive in court. If they caught you even on a small technicality, then you will certainly suffer from unfavorable judgment.

A competent attorney can easily defend a credit card lawsuit. That is because most credit collections today are conducted by third party collecting agencies. These are the debt purchasers who bought the debts from the credit card companies at rock bottom prices. The debt collectors will immediately file lawsuits to get judgment to make a good profit from their investment. Most often than not, the collectors do not have sufficient documentations to support their claims. That is why a good credit card lawsuit attorney can easily move for the dismissal of the case.

If you have been sued by Citibank or LVNV Funding LLC for debts owed to credit card companies, then you need to act quickly. Make sure that you can respond to the charges as soon as possible. You can only do this if you have the best credit card lawsuit defense attorney. By getting a good lawyer, your credit card debts can be completely eliminated.

Attacking The Main Cause Of Your Credit Card Debt

The subject of credit card debt is very popular nowadays because it affects everybody. What we don’t know however is that our credit card debt is just a part of our excess baggage in life. It is a manifestation of our irresponsible financial management and, perhaps, the output of our not so good personal relationship with our own selves.
When you think about it, you have easy access to credit with your cards. It is easy to get away with it and before you know it, you already amassed an extremely difficult amount of debt to get rid of. If you not still aware of the situation, you are probably so nave that taking more steps would lead you to your financial ruin. Without a question, help is needed and the time to take action is now. Get rid of your credit card debt now but how? Get rid of your debt now with these methods on how to get rid of debt here.
The simple answer is being conscious of your spending habits. Pay your due every time with twice the minimum payment. And be on time. This should be done without any more excuses.
So how can I be conscious with my spending? That is where the simple concept of budgeting will help you. Spending without a plan is simply spending your way to financial hell. So write things down and keep that budget every time you buy something.
Many people would say that they don’t have the time to work on a budget. The truth is that you should have no time not to make a budget!
The budget is your best friend at this time of financial crisis. Don’t worry because everybody is doing it now and that might probably be good news to you. Create a budget periodically say every month. Your budget is fundamentally just a plan to guide with your spending habits. A budget serves as a way for you to limit yourself on the things that you truly need. It keeps you focused on spending on the things you have a purpose.
Few people follow their set budgets though. This is for the reason that they view their budgets as a constricting factor in their lives. A budget seems to enslave them with their rights to have some comforts in life.
However, here is an insight that might get you inspired. Some people who disciplined themselves and controlled their habits with money by following the principle of only spending with intentions have actually experienced more freedom with their lives. By taking control of their lives, they saved a lot of money and became debt-free. Now, that’s the real freedom. So stick with your budget and get out of that debt cycle very soon.

Different Credit Card Debt Solutions

The tidal wave of consumer debt accumulating from unchecked personal credit card debt threatens to overwhelm our nation even as the lenders themselves reap the benefits. Americans have grown addicted to spending without care for their own income and budgets are something our grandparents used to employ. As a nation, we have almost lost track of the notion of saving for the future – aside, of course, from the exceedingly wealthy who no longer bother with banks within the United States – and our economy suffers as a result. More to the point, our citizens suffer as well from the drop in property values and rise in unemployment that are direct results of the consumer debt explosion. Credit card bills are killing this country, and it is past time that we do something about it.

It is more than understandable how this all happened. Just turn on the television: every other commercial advertises either the untold benefits from plastic purchasing (The sheen! The class climbing! The convenience!) or the consumer credit counseling surgical practicalities (The desperation! The condescension! The oh so marketable convenience!). Somehow, along the way, the average American household managed to rack up around eight thousand dollars in unsecured debt almost wholly from credit card usage. The past decade, as home appraisals skyrocketed and well paying jobs could be plucked from the vine, there was not much reason to worry. This was the American millennium, after all, and things would never change.

Somehow, an unprecedented period of economic expansion came to an end, and the real estate bubble finally burst. And, more to the point, a good number of borrowers found that they were having trouble making even the minimum payments upon their various credit cards. Who knew? The tyranny of unsecured debt has at last seeped into the household accounts of most of our citizenry and the effects are everywhere. Beyond the new budgeting, though, and the tightening of belts, families need to take a close and educated look at their credit card problems and see what can be done. There are a number of debt managements solutions that have arisen in the past few years purely to deal with such situations although the simplest debt relief is the most annoying: a halt to purchases. Serious attention paid to expenses and savings accounts are the foundation of any lasting credit card debt relief.

Above all else, families must stop spending without regard to the future. Heads of household should collect all credit cards and, while not necessarily setting them aflame, at least keep them tightly locked away from the grasp of misguided purchases. One of the greatest problems facing consumers is this culture of commercialism. Credit cards really are an addiction, and otherwise ordinary people will find themselves driven to buy something they do not really want simply because they are depressed or worried. This is precisely the sort of action that the credit card companies are counting upon. This is the reason that the credit card companies offer new accounts at rock bottom rates to borrowers just exiting Chapter 7 debt elimination bankruptcy even if the borrowers successfully washed away debts owed to the same credit card companies. They figure the borrowers will be all too likely to resume past spending habits – this time, without hope of bankruptcy protection for near a decade – and, more’s the pity, the credit card companies tend to be correct.

Obviously (as you would hope, actually) credit card debts are dealt with according to their debtors’ credit ratings. The Fair Isaacs Corporation devised the FICO credit scoring system more than fifty years ago expressly to guide lending institutions toward equitable treatment of borrowers regardless of rage, gender, income, or, really, anything beyond the borrowers’ history of payment and capacity of credit. To this day, the exact equations remain a mystery – and they grow more complex by the moment – but the overall methods remain a sorta miraculous triumph of democratic capitalism. No matter their earnings, consumers that maintain excellent FICO ratings will always be able to garner credit balances well above what they should ordinarily deserve.

Unfortunately, that availability of credit card debt leads untutored applicants toward significant debts they have no hope of soon paying off. At this point, debt management solutions are necessary. They come in a few different flavors, but all of them contain severe disadvantages. The ideal debt management solution is – yeah, that’s right, we know – to never get yourself in debt. Careful budgeting, spending only when needed, cutting out wasteful expenses, and all proper household financial techniques will do more to prevent credit card debt from overtaking consumers’ lives than a string of limos carrying debt professionals. Alas, since you are already reading this article, we are going to presume it is too late to apply preventive measures, but there are still steps available to successfully deal with the credit card debt problems as they stand.

As your credit card companies will explain (along with many, many other credit card companies that you have never heard of), the easiest solution would be to just transfer all existing credit card debts onto a single account. Presuming your credit rating has not dipped to fraudulent levels, virtually every credit card company should be eager to take on your existing debts for initial rates nudging zero percent. At the same time, every representative of every credit card will urge such a change in debt and mollify the borrower by insisting they will pay off the balances well before the adjustable interest rates would rise.

Of course, the very reason most borrowers are in this state is precisely because they cannot guarantee they could repay their debts and the last thing such debtors need is more capacity to spend. Remember, not only are the borrowers consolidating their credit card debts upon a single card risking the interest rates rising to over twenty percent should they fail to repay their obligations within a specific time, but they are also allowing themselves more space for foolish purchases upon the cards that remain. It is not a double edged sword; it is a ticking time bomb. The number of credit card victims genuinely served by credit card consolidation within credit cards could be counted… well, it would resemble that initial rate offered.

For some borrowers, debt consolidation loans that are not themselves tied to credit cards may make a bit of sense. Unfortunately, in order to get any sort of decent interest rate, these sort of loans tend to be secured. Low interest unsecured credit accounts do exist, but, alas, they tend to only be offered to those without credit or income issues and tend to be only above six figures. Secured debts are almost always available, witness the current sub prime mortgage lending crisis, but most debtors haven’t much significant collateral to offer beyond their own primary residence. In other words, debt consolidation loans may as well be considered home equity loans, and this creates a whole new sort of problems.

Whether you first think of a consolidation loan walking through your bank and noticing the ever present advertisements or listening to the sweet sounding pitch of a telephone salesman, there is no worse way to rid yourself of credit card debts. To be sure, the rates will be lower – they would have to be – and the payments, stretched to ten or thirty or however many years, will surely be much lower. At the same point, though, the eventual money paid for that original debt will be exponentially higher considering the wonders of compound interest, and, as with debt consolidation through other credit cards, this still leaves open other credit accounts without penalty or reason to curtail destructive spending habits.

There is, as every borrower knows, one worse option when eliminating credit card debts. Despite the legislative carnage wrought the past few years, Chapter 7 bankruptcy protection does still exist as a palliative, but anyone who has seen friends or family suffer the effects knows just how little Chapter 7 bankruptcies could not consider this actual protection to any borrower’s life. Above all else, the 2005 congressional alteration of the United States bankruptcy code effectively forced anyone thinking about declaring bankruptcy to surrender all assets (even cherished items handed down through generations) to threat of seizure by government authorities for court auction so as to repay the original lenders for a trifle of their actual worth. Nowadays, the court trustee must consider the filer’s assets as according to replacement value rather than, as formerly, the resale value. To fully imagine the distinction, look around your living room and imagine the worth of the items when sold at estate sale compared to the cost should they be purchased at mall stores absent haggling. The Internal Revenue Service was heavily involved in the passage of this legislation, if that needs to be said.

One can always talk directly to representatives of the credit card companies and plead for forgiveness. In the case of sincere and demonstrable (and, most importantly, tragic) mishaps, they will sometimes shrug away partial debts so as to avoid the bad publicity, but one shouldn’t expect forgiveness from lenders. There are also several state and federal government programs, dizzying in their numbers, that apply to various borrower predicaments, but, at the same time, one should never expect consumer debts to explicitly fit into statutory regimens. It is not exactly a hard life for this generation of borrowers. Even thirty years ago, this sort of credit availability and (relative) unaccountability would have been beyond imagining.

Still, there is a financial burden and the lenders will eventually demand payment. Should the payments be of sufficient worth, the lenders will have no choice but to start legal proceedings to attempt to recoup their losses. However, it is important remember that such action are extremely expensive and the absolute last resort of multinational corporations. More than anything else, these sort of businesses are terrified that their debtors will simply disappear or (hard as it is under current circumstances) declare Chapter 7 bankruptcy. It’s virtually impossible to declare bankruptcy these days, but company guidelines are famously slow to notice the evolution of consumer practices and still worry over the dissolution over promised obligations.

In the wake of our sudden credit card debt crisis and the limited powers bankruptcy protection now holds (and, more to the point, the limited understanding of such among credit card companies), other financial services have come into their own which play with that slight threat yet existing. As long as Chapter 7 bankruptcy still has the potential to eliminate credit card debts, borrowers still have one ace in the hole when arguing cases with their lenders, and a new business has developed to enable the singular advantage consumers retain. Debt settlement isn’t so terribly different from Consumer Credit Counseling. The debt settlement professionals have essentially the same approach when dealing with credit card debts, but, unlike the CCC hordes, they actually work on behalf of the debtors.

The ugly little truth about Consumer Credit Counseling companies is their dependence upon credit card companies. There’s a reason they have the advertising budget to blanket late night television with ever more desperate commercials, after all. The CCC industry will – at pains – lower interest rates for their favored customers as well as waive past due fees and over limit charges that never should have been assessed in the first place, but they won’t ever even try to lower actual debt balances. Consumer Credit Counseling isn’t much of a lie, really. They do counsel consumers about credit. It’s just rarely counsel that the consumers should follow.

Certified debt settlement specialists, on the other hand, work solely for their debtor clients. Moreover, they place the burden for financial burdens squarely upon the lenders. This isn’t the same thing as borrowing the price of a carton of milk from the nearby store, after all. These are massive conglomerates whose profits depend upon not only convincing naïve borrowers that they can buy whatever they want without consequence but also allowing them the credit to do so. The borrowers, admittedly, are not without fault, but the lenders themselves have institutional malfeasance that must still be addressed. Fortunately, for the moment, anyways, this is where debt settlement comes into play.

Debt settlement companies negotiate on the part of the borrowers in attempts to lower the overall balance originally owed. Seems too much to ask, but credit card companies regularly let loose more than half of their promised funds in exchange for a payment schedule vouchsafed by a respectable debt settlement firm. Credit cards, by their nature, as with anything that could charge twenty percent annual percentage rates, assume a certain risk that is backed up by the guarantee of tax write offs for delinquent borrowers. Otherwise, they would never lend so much to so many with so few resources. These credit card companies are conglomerates betting on fractional chances of profit one way or another. All traditional notions of ethics and morality should seem as irrational and disparate as that of someone going to war for a Klondike Bar. Credit card settlement really is a different sort of system, and owing has nothing to do with it.

Article Source: http://EzineArticles.com/1572982

How to Get Out of Credit Card Debt – 10 Easy Steps to Get Out of Credit Card Debt Fast!

I speak from bitter experience when I write this article, as I had to claw my way out to get out of card debt in the past. What I want to make clear is that it does not matter how much you have to repay, you must realise that there is a way to get out of serious, out of control debt. With a easy step by step process, I will show you how to negotiate credit debt and consolidate charge card debts, so that you will see clear progress. This is how I did it, and if it works for me it can work for you! I’ve broken it down into steps so it’s easy to follow.

Settle Debt – The Current Reality

Before you start the process to get out of debt, and attempt to settle credit card debts, it’s important to understand how it all happened, so you don’t get pushed straight back into debt again! During the period of low credit card and loan rates, most of us started using debt to consume stuff as it was cheap and easy. Many of us even bought investments which we thought would go up in value, and that helped to push us into debt. Now we’re stuck and need to get out of credit card debt and desperately need to settle credit card debt.

The Cure to Get Out of Debt Slavery & How to SUPERCHARGE your debt repayments!

Step 1

Mindset change Needed to Get Out of Card Debt

First of all, you have to change your mind set. there is no point getting out of debt just to get back in again, so you are going to have to change the way you do things!

The Golden Rules to Get Out Of Card Debt:

1) Do not use debt for things you consume.
2) Use debt only for investing in assets that genuinely produce an income.

I say that again: Do not use debt for things you consume. Use debt only for investing in assets that genuinely produce an income.

You need to stop living on debt money and start living on income money, other wise you’ll get back into debt. But how you say, you’re in serious debt know and your income is smaller than your monthly commitments and you’re desperately trying to settle credit cards debts and getting nowhere. Keep reading – I reveal how here.

The reason you got into debt is you spent more than you earned, so you need to change that, by either earning more or spending less or both. I’ve written a special section on how to SUPERCHARGE your debt repayment, to kill it in LESS TIME. More on that under supercharge your debt busting.

Step 2

Cut your cards through, but don’t cut them into pieces, you’re going to need the details when calling the companies.

Step 3

Before anything else, open a spreadsheet and list all the debts you have, name of the card and with which bank. Next to that list the interest rate and how much you pay them monthly.

If you don’t know the interest rate call up the bank and find out. Arrange them from highest rate to lowest rate, in priority repayment order you could say, and list your credit limit and the outstanding balance. Also list what you spend for your monthly budget on rent, food, utilities, etc You need to know this to budget. The reason you’re doing this is to get in control of exactly where you stand. If you’ve done this and your budget shows you that your cashflow leaves something over each month, then that’s a good place to be in.

If your budget shows that you are short every month, then you need to work on reducing your monthly outgoings and/or increase your income. But that will be dealt with in another article.

Step 4

Add all you credit card and loan monthly payment amounts up and all your monthly budget amounts up. Take your income and minus the amount. If you have nothing left after this or the figure is negative, you need to do 2 things. You need to access more income, you need to reduce the amount you spend without reducing your quality of life. Yes this is completely possible, I show you how to reduce spend not quality here. See SUPERCHARGE your debt repayments.

Step 5

Call all your credit card companies but don’t use their premium rate numbers! If you’re in the United Kingdom, look at saynoto0870 for landline numbers. Call your card companies, and tell them you have been a loyal customer for x number of years and ask them politely “how much of a debt reduction you can offer me”.

Use those words; don’t say “can you” don’t allow them to say no, phrase it in a way they can easily say yes to! This is how you negotiate credit card debt, you check whether they can offer you a reduced rate on your existing debt. If they ask if you’re in financial difficulties, tell them no, but that you’re streamlining your financial accounts and tidying up.

Step 6

Do a credit check on yourself. This is a vital step to get out of credit card debt, so that you can see exactly where you stand financially, and to see what information is being held. Take one of those free credit checks or free credit reports. Just remember to set up a reminder to yourself to email you from your gmail/hotmail calendar, in order to cancel it before the free period ends. You can always to do this again in 3 months time with another company to get an update. Read the small print! If you’re in the UK, checkmyfile is great.

If you’re missing payments and are actually fall short on what you need for your monthly cashflow, then you need to set the direct debit payments to the minimum. If you have something over each month, then you’re already in a better position to get out of debt.

Step 7

In order to consolidate credit card debts, apply for 0% credit cards that allow you to do balance transfers. Check which ones have the longest period and smallest balance transfer fee. See my article on magic tricks with credit cards for more information on this process.

Transfer as much debt as possible to the credit card that has the lowest interest rate, or get a personal loan from a bank at a lower rate to consolidate credit card debt. Work out how much the repayments are going to be and make sure you include it in your budget. Budget how much you can afford to repay. Set all the credit card repayments onto the minimum amount. Then if you have extra cashflow each month, because of the reduced interest, start to overpay the cards.

Now, there are 2 ways you can do this. You can choose to target the highest rate card first, or the one with the smallest outstanding balance. It all depends on which strategy will give you the biggest feeling of control once you’ve paid it off. For me fortunately the smaller were at the highest rates so I just started overpaying those. Set up a seperate automatic payment from your bank account, to make this overpayment easy. It doesn’t matter if it’s just £1 extra a month, it is still helping you get out of credit card debt.

Step 8

Once you’ve paid off a card, use that extra cashflow to overpay the debt you have left. You see you are making progress and the repayment system is becoming more powerful and beginning to get you out of credit card debt. So add the monthly cashflow which you had used to repay the first card, on the next credit card, to speed up your process to settle credit card debts.

Step 9

Once you settle the next credit card, combine payment amounts again and keep going. Continue until all your cards and other debts are paid off.Check your credit record each month. You’ll notice how it improves, and then you will be able to borrow more 0% or lower rates, and you’ll be able to consolidate again, so you have even more cashflow. Checkmyfile file updates on the 3rd of each month, so you’ll be able to see the change from month to month.

How to Supercharge your Debt Busting Strategy:

Now you need to face reality. To become financially free you need to change a couple things. You have no choice. Think about what it’ll be like to be debt free and having your salary to keep every month.

Step 10

Super charge you debt – Kill your Debts Super Quick

If you really want to settle credit card debts quickly and seriously want to get out of credit card debt fast, you need to also earn more. If you’re already working, you can start various on-line income streams to bring in another income. It’s easier than you think! That will help you to start living from money you have, not money you don’t have; which is bad debt. By earning extra cash, you can use this income to live on so you don’t go back into debt. Or better yet, use this extra money to pay back you debt quicker, by increasing your repayments to settle your credit card debts quicker.

Everytime you want something you can’t afford. Think, don’t go into debt, start a business and use profits to buy what you really need.

Do you Want To Get Paid While You Watch TV?

There are many ways to earn extra cash, but I have found a very consistent income completing short consumer polls and surveys, while watching TV or DVDs or chatting to friends on the phone. I could not believe that I was actually getting paid for time I was already using!

The great thing with paid market research is that the cash is a constant stream, reliable and regular, so I was able to use the cash to pay off chunks of debt I owed and slowly worked my way out of debt. The vouchers I received where used to replace my usual grocery spend and I just pocketed the cash. I’ve found I earn a consistent amount of cash each month this way and it’s a very efficient use of time.

Article Source: http://EzineArticles.com/4144727

5 Tips To Reducing Excessive Credit Card Debt

1)pay off credit card debt : Surely, to be able to pay off is really a great achievement in itself for not everyone is able to pay off credit card debt. To pay off the debt takes a lot of discipline and planning.

2) Consolidate credit card debt : It is a process of consolidating the debt on various credit cards into one or two card. Either it can be done through a low interest bank loan or by transferring balance to a new credit card i.e. transferring the amount you owe, on one or more credit card, to a new credit card.

3)credit card debt negotiation : Basically, negotiation is about asking your current credit card suppliers for help/assistance in clearing off your credit card debt. If it is successful it will save you not only money due to reduction in APR but also the hassle that is associated with finding for a new credit card to transfer balance.

4) credit card debt settlement : Whatever be the reason for employing a debt settlement agency, a good credit card debt settlement agency would surely be of help. However, it’s important that you select a good credit card debt settlement agency. Do not fall for ads of credit card debt settlement agencies that promise to wipe off your debt overnight. No one can do that. Select a settlement company that has verifiable credentials or you know has a good reputation.

5)Balance Transfer : Balance transfer is often treated as the number one measure to reduce credit card debt. This is really something that can help reduce the debt by slowing down the pace at which your credit card debt is getting built. It also provides you relief in terms of the APR being 0% for initial 6-9 months and hence helps reduce the debt faster.

4) credit card debt settlement : Whatever be the reason for employing a debt settlement agency, a good credit card debt settlement agency would surely be of help. However, it’s important that you select a good credit card debt settlement agency. Do not fall for ads of credit card debt settlement agencies that promise to wipe off your debt overnight. No one can do that. Select a settlement company that has verifiable credentials or you know has a good reputation.

5)Balance Transfer : Balance transfer is often treated as the number one measure to reduce credit card debt. This is really something that can help reduce the debt by slowing down the pace at which your credit card debt is getting built. It also provides you relief in terms of the APR being 0% for initial 6-9 months and hence helps reduce the debt faster.

4) credit card debt settlement : Whatever be the reason for employing a debt settlement agency, a good credit card debt settlement agency would surely be of help. However, it’s important that you select a good credit card debt settlement agency. Do not fall for ads of credit card debt settlement agencies that promise to wipe off your debt overnight. No one can do that. Select a settlement company that has verifiable credentials or you know has a good reputation.

5)Balance Transfer : Balance transfer is often treated as the number one measure to reduce credit card debt. This is really something that can help reduce the debt by slowing down the pace at which your credit card debt is getting built. It also provides you relief in terms of the APR being 0% for initial 6-9 months and hence helps reduce the debt faster.

Wipe Out Your Excessive Credit Card Debt

1)pay off credit card debt : Surely, to be able to pay off is really a great achievement in itself for not everyone is able to pay off credit card debt. It takes a lot of discipline, restraint, planning and perseverance to finally pay off the debt.

2) Consolidate credit card debt : It means consolidating the debt on various credit cards into one or two credit card. This can be done through either a low interest bank loan or by transferring balance to a new credit card i.e. transferring the amount you owe, on one or more credit card, to a new credit card.

3)credit card debt negotiation : Basically, negotiation is about asking your current credit card suppliers for help/assistance in clearing off your credit card debt. If it is successful it will save you not only money due to reduction in APR but also the hassle that is associated with finding for a new credit card to transfer balance.

4) credit card debt settlement : Whatever be the reason for employing a debt settlement agency, a good credit card debt settlement agency would surely be of help. However, it’s important that you select a good credit card debt settlement agency. Do not fall for ads of credit card debt settlement agencies that promise to wipe off your debt overnight. No one can do that. You should select a settlement agency which has verifiable credentials.

5)Balance Transfer : This is the number one measure for reducing debt. This is really something that can help reduce the debt by slowing down the pace at which your credit card debt is getting built. It also provides you relief in terms of the APR being 0% for initial 6-9 months and hence helps reduce the debt faster.

How to eliminate credit card debt? A questions that is asked by a number of individuals around the globe. Due to uncontrolled spending many individual face the problem called credit card debt Here are the ways to reducing excessive credit card debt.pay off credit card debt : Surely, to be able to pay off is really a great achievement in itself for not everyone is able to pay off credit card debt. It takes a lot of discipline, restraint, planning and perseverance to finally pay off the debt.Consolidate credit card debt : It means consolidating the debt on various credit cards into one or two credit card. This can be done through either a low interest bank loan or by transferring balance to a new credit card i.e. transferring the amount you owe, on one or more credit card, to a new credit card.

credit card debt settlement : Whatever be the reason for employing a debt settlement agency, a good credit card debt settlement agency would surely be of help. However, it’s important that you select a good credit card debt settlement agency. Do not fall for ads of credit card debt settlement agencies that promise to wipe off your debt overnight. No one can do that. You should select a settlement agency which has verifiable credentials.