Ways to Negotiate Credit Card Debt

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There are so many different methods you can use to negotiate credit card debt. While the negotiation should not be tried when you are mad or upset, it lets you talk to them about your account and see how the credit card company may be able to help you out.

One major way to negotiating credit card debt is with the interest rate you pay each month. Interest rates on credit cards are so very different from each other so that the credit card companies must know there is a major amount of rivalry out there for your business. There is another company out there who will take on your case at a lowered rate of interest. You do not have to even mention this to them; they are already aware of the competing. You might ask the credit card company to give you the full explanation of exactly how their interest fees work. Sometimes you might pay zero interest on what you buy for a specific number of days, but if you are unlucky enough to need a cash advance, then you had better expect to pay some high interest payments. If you know how to use the credit card advantageously, then that is great. A lowered interest rate means you will pay lower interest fees monthly, and that more of your payments goes to pay off the actual debt rather than interest.

When settling credit card debts, think about all the fees you pay for a credit card. Sometimes we are willing to pay a little extra in order to get bonus points or rewards from the card. By switching over to another card, or working out lower fees with the company, you can possibly save lots of money per year.

If you have run out of options and are really in a lot of debt, you may need to try to negotiate a repayment schedule with the credit card business. They would rather see a little money over time than have to try to collect that debt or to use a collection agency to get in touch with you.
Just tell them if you are really having a hard time making just the minimum payments each month. There may be other solutions that are available that will work really well for you, or ask them about making a schedule of payments until your debt has been reduced down to a comfortable level.

There are many ways to negotiate credit card debt. So get your budget figure out and take a look at your financial situation, and phone your credit card company to talk about what your options may be.

Debt Reduction Strategies – That Work

The feeling of being in debt can be very worrisome, and you may not always know where to turn. However, by taking the time to do some research into different debt strategies, you will be able to put your mind at ease and take steps back into the black.

The first strategy you should try is transferring the balance from existing cards onto a new card with 0% balance transfers and 0% interest. Some of the credit cards will allow you to benefit from these two advantages from up to 12 months, meaning that you will be able to tackle the debts you have without having to worry about the added interest that you would have received on top. However, if you have missed payments, this may be difficult to achieve because of the damage that would have been inflicted on your credit score.

You should also consider ringing your lender and explaining the circumstances surrounding your debt, such as unemployment or an unexpected emergency. If you are struggling to meet your bills, many lenders will be able to draw up an alternative repayment plan for you to adhere to. You should also consider that this scheme may come at an additional cost to you, because some credit card providers penalize borrowers who go through this process. Nonetheless, it is still important for you to go through this process.

Another strategy that works is sitting down and getting your finances in order by looking at your income each month and your expenditure. Usually, those of us in debt will find that we are spending more than we earn, and in this instance, it is important to review what buy every month – cutting out the things that we no longer require. Some of these things may include branded goods from a grocery store when there are cheaper alternatives, gym memberships, and magazine subscriptions that could be cancelled. At this point, you need to cut out some of the luxuries you enjoy to ensure that you are back in financial stability – preventing the chance of your assets being placed at risk.

You may contemplate bankruptcy plans, such as filing under Chapter 7 bankruptcy. Usually, it is important to enlist the support of a lawyer who will guide you through the process, instructing you on the assets that you will be able to keep once the bankruptcy has been filed. The rest will usually be liquidated, with the funds from the sale of your possessions being used to pay off the people you owe. After this, you will be in a position to start again.

Not only should you consider reviewing what you spend, but you should take the time to critique how you spend as well. If you are continuing to use a credit card in your situation, you should reconsider – especially if the interest rate is higher than average. Instead, you should use physical cash, or a debit card where the cost of the item you are purchasing would be taken from your bank account. After all, you don’t want to add to the money you owe unnecessarily, do you?

This is a difficult time, and thankfully, there are charities that will be able to help you and support you through help and impartial advice.

This is a guest post from Connor Stephens, freelance writer from the UK.  Connor lives in London and provides global insight in personal finance and financial management.

Advantages of Debt Consolidation Loans


For many people, debt consolidation is a way to consolidate one’s bills into a smaller monthly payment that is more affordable. Through the acquirement of such a loan, the individual can start to get their financial life back on track and get the debt reduction you need.

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Before you obtain a debt consolidation loan, the first step is to determine whether the new payments will be less than the payments that were being made before to each creditor. This is particularly important since some of these loans, specifically unsecured ones, have higher interest rates. Therefore, if the new payment is not low enough to be feasible, it is not worth it.

In order to determine whether the payment will be less than what you’re currently paying, you should take your existing debts and calculate the fees and interests on all of these accounts so as to determine the total amount that you are currently paying. Once these have been calculated, compare this figure to the new amount that will take effect after the consolidation loan is acquired. Finding the best deal is important so research different banks in order to find the best deal with the lowest interest rates. Currently Bank of America is one of the leading banks offering low-interest consolidation loans.

Individuals who are not currently able to make their payments should not automatically obtain a debt consolidation loan. It can add to the current problems if you do not have the discipline it takes to make the payments. If you find that you don’t have the drive it takes, credit counseling may be a better option. Seeking help from professionals can help to manage your debt and can also encourage you to change your spending and bill paying habits.

Instead of acquiring a credit card debt consolidation loan, some credit counselors recommend that you eliminate your use of credit cards as plans for reduced payment can often leave a negative mark on your report. Although you are paying an amount that was agreed to by the creditor and yourself, you did not actually pay off the full amount.

In order to choose a good debt consolidation firm, you should make sure that it is highly rated and thoroughly legitimate. You should ensure that the they are members of either the National Foundation of Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. You should also request that the firm provide you with references and make sure that you confirm them before taking out a loan. Ensure that the credit counseling or debt management answers your questions and that you understand how the entire process would work before embarking on a debt consolidation loan.

Megan Albricht is a writer for FranklinDebtRelief.com.

Checking Account Promotions for New Customers

When people search for a new bank to do business with, one of the first things they look at is whether the bank has free bank checking account promotions. This is a method of saving money from the start and the banks know this. Banks are very competitive and will add additional benefits for their new customers.

Because the debit card is so popular, fewer checks are written than ever before and banks have the ability to save on personnel, thereby forwarding some savings to their customers. There are times when banks will waive charges on ATM withdrawals because so many people use them machines frequently.

Banking institutions can at anytime stop the process of promotions without consumer knowledge. So when you are setting up a new account with a bank, it is important to pay attention as to the promotion periods. Some banks market their services so competitively that they will offer gifts to entice the consumer. Everything from picnic ensembles to free phones has been offered to reel in customers.

Along with free checking account promotions, one of the greatest benefits to banking is the advent of online banking. This service has become a great convenience over the past several years. Any bank of notoriety offers this to their customers. Processing funds transfers from checking to savings accounts are common, and easily accomplished from the comfort of your own home.

Some checking account promotions offer free checking for customers that are over a certain age. Others may offer additional benefits when a certain amount of capital is transferred into a new savings account from a competing bank. Many will waive fees when multiple accounts are opened between family members.

They may offer low interest rate and easy to get credit business cards and ATM cards when any family member uses them. There seems to be no end as to what banks will offer to reel in customers. But banking sure has been a lot less expensive over the past decade.

The Credit Score Scale: The Best Friend You Ever Had

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Many Americans today might prefer not to think about the credit score scale, or their position on that scale. Hard economic times may have contributed to a certain amount of backward slippage along that scale, especially for those who have not monitored it wisely. Indeed, many may have lost the good credit position they at one time enjoyed. The truth of the matter is, however, that most people who attain good credit scores usually keep them, no matter how hard the times may be. For having a good credit score is a reflection on whether or not an individual has control over their financial situation, or understands how to keep their finances in order. Someone who is financially savvy has made accommodations for the rainy days and should not have to be concerned with whether or not the market has fallen.

Unfortunately, many people have not made use of the credit score scale as a guideline for keeping themselves in check financially. In fact, many repress the very idea of keeping the number ever-present, for that number would remind them constantly that they have too many credit cards and that their debt-to-income ratio is sky-high. For those in denial, the credit score scale is a constant reminder that they are living far above their means and that the emergency fund started ten years prior has a negative balance. The more the rating slips, the less the folks in denial want to deal with the problem, until it is too late. The banks will no longer lend to someone who has constantly paid off debt with debt, or submitted payments late. Once the negative patterns are established, good job offers stop coming in and the downward spiral takes over.

Whatever your particular situation may be, the first step in the road to financial recovery is actually knowing what that score is and monitoring it constantly. The next step is changing your lifestyle completely: Destroy all but the three credit cards with the lowest rates; pay off debts, one card at a time; and do not use the cards again. Monitor every penny spent, eliminating all luxuries and non-essentials. Find a way to eliminate several hundred dollars of expense each month and then re-allocate it as follows: a term-life insurance policy that would protect your loved ones and dependents; the building of an emergency fund in the form of a money market fund (to at least five times the monthly salary); one hundred dollars for investments in a mutual fund; and the rest for paying off debt. Of course, having a financial advisor helps tremendously in the climb back to financial solvency. But for the most part, it is up to you and your determination.

Remember, your financial health is reflected in your credit score, and your ability to borrow money and land an excellent new job may depend upon it. It is far more important to your status than your wardrobe, or the car you drive, or the house you live in. Live by the credit score scale and let it serve you well, as it will, if you simply heed its warnings.

Characteristics of bad credit unemployment loans

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Various financial institutions have come up with different ways of helping the unemployed and specifically those with bad credit loans to meet their financial needs without lots of hassling. This has been made possible by the available bad credit unemployment loans that are designed to take into considerations these peoples needs. These loans are quite flexible and can be accessed by any unemployed person regardless of your credit history. This therefore makes it easy for persons with bad credit scores to access loans to help them meet their basic needs in this trying period of unemployment.
There are various characteristics that make these loans a better option for the unemployed person. To begin with, the loans are offered with low interest rates. This is unlike the interest rates that the other loans extended to persons with bad credit ratings attract. The lower rates have been seen as a result of not bearing in mind a person’s credit history. Therefore the rates are set to help all the people who are unemployed on equal grounds.
In addition to the low interest rates, the loans granted also come with special discounts for the unemployed. This includes things like overdrafts and payment holidays for the unemployed regardless of their bad credit score. These are special offers that always accompany loans awarded to people with bad credit loans. There is also the short repayment term that is often associated with these loans. This repayment period is more often than not determined by time that will be taken by an individual to get employed. Therefore, it is much easier and convenient for a person who is likely to get a job as fast as possible.
Regardless of all this characteristics, the financial institutions are known to offer finances to suit every applicant’s circumstance. The circumstances that led to losing a job always vary and different people always have different financial situations. Bad credit unemployment loans, always takes all this into consideration making it possible for almost all unemployed to access financial assistance. Therefore, in as much as being unemployed makes one feel like having reached the end of the world, there are financial institutions that are out to rescue and maintain the unemployed in their current state.