What Do You Do When Your Minimum Credit Card Payment is Increased?
Marmora, New Jersey (ContentDesk) July 28, 2005 -- Federal regulators are now requiring banks to increase the minimum payment that credit card holders must pay.
What can you do when this happen?
Well, according to Russell Graves, Executive Director of Consumer Credit and Budget Counseling, Inc. (www.cc-bc.com)
you do have choices when faced with higher minimum payments or any financial difficulties.
No one program works for all people or all situations.
Do it YourselfBudgeting: One excellent way to take control of credit is to use a budget.
Think of your budget as your spending plan.
It helps you plan where you will spend your money -- and how you can save some of it. Your monthly budget sets spending guidelines throughout the month.
And at the end of the month, you have a scorecard of how you did.
It is surprising the amount of money we waste each month on unnecessary purchases -- $5 here, $10 there, no big deal.
By keeping track of all your spending, you may discover several hundred dollars "leaking" from your paycheck.There are four steps to making a budget:1.???List your income2.???List your expenses3.???Compare income and expenses4.???Set priorities and make changes so that your income will be greater than your expensesLook at your budget as a friend and not as a punishment. It can guide you back to financially secure ground.
Soon your monthly budget will become a way of life.
And you will be able to foresee future debt problems, thus allowing you to resolve them before they become serious.
Call your Creditors Contact your creditors immediately if you're having trouble making ends meet.
Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Most creditors offer some type of in-house assistance program.
These programs can typically reduce your payments for periods of up to 6 months.
Unfortunately, not all creditors will help and you may find that one creditor "breaks the camels back". if that is the case look into the next option Credit Counseling.Credit Counseling Credit Counseling is financial education, budgeting assistance and debt counseling.
Certified Counselors will review your whole financial situation including both your budget and your debt and will educate you on the merits of the options available to you.
Debt Management Programs: In a Debt Management Program the credit counseling agency will arrange for your creditors to accept lower payment and reduce your interest rates.
Many creditors will also "re-age" (bring current) your account and report it to the credit reporting agencies as current.A Debt Management Program is not for everyone.
It is a HARDSHIP program and may negatively affect your credit report.
Creditors may report that an account is in financial counseling.
While this reporting does not affect on your credit score, it will limit your ability to obtain additional credit while in a program.
Also, the program does NOT erase reported history on your credit report if it is correct and most creditors will close your account upon acceptance on their program. Debt ConsolidationYou may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Remember that these loans require you to put up your home as collateral. If you can't make the payments ? or if your payments are late ? you could lose your home.
What's more, the costs of consolidation loans can add up. In addition to interest on the loans, you may have to pay "points," with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.BankruptcyThe right to file bankruptcy is an important tool which society provides for those with significant debt problems. It is often stated that bankruptcy should be considered as a "last resort" for financially troubled consumers.
Bankruptcy should be neither the first option nor the last resort; each case must be examined on its own merits.Although bankruptcy is not a magical cure, it is an important alternative for a range of financial problems.
Bankruptcy may provide immediate protection, particularly for individuals facing foreclosure or repossession of property.
Even those who are not in short term danger of repossession or foreclosure may often decide upon bankruptcy simply for the relief of having debts lifted in order to get a fresh financial start.There are two main types of personal bankruptcy. Chapter 7 and Chapter 13 Chapter 7.
Chapter 7 bankruptcy is commonly called straight bankruptcy or liquidation.
Under Chapter 7, certain types of property (such as tools of the trade, part of the equity in your home or a certain amount of cash and clothing) are exempt, or protected, from bankruptcy.
That's the property you're allowed to keep.
The rest of your property may be converted to cash, which is then divided up and given to your creditors
Your bankruptcy is then discharged (completed) and creditors can no longer try to obtain payment from you, even if all your debts are not paid off.Chapter 13.
Chapter 13 bankruptcy is often called the wage earner's plan.
You must be employed or have a regular income (such as alimony, pension, support, or government benefits) to be eligible to file Chapter 13 bankruptcy.
Your secured debts cannot total more than $350,000 and unsecured debts cannot total more than $100,000.Consumers who are interested in filing bankruptcy are encouraged to seek the services of an attorney who specializes in bankruptcy.
Also be aware that the bankruptcy laws have been changed and the new laws which may make bankruptcy more difficult become effective on October 16, 2005.Debt Negotiation ProgramsDebt negotiation differs greatly from credit counseling and DMPs. It can be very risky, and have a long term negative impact on your credit report and, in turn, your ability to get credit. According to Federal Trade commission, debt negotiation firms often claim that they can arrange for your unsecured debt ? typically credit card debt ? to be paid off for anywhere from 10 to 50 percent of the balance owed. For example, if you owe $10,000 on a credit card, a debt negotiation firm may claim it can arrange for you to pay it off with a lesser amount, pay $4,000.The firms often pitch their services as an alternative to bankruptcy. They may claim that using their services will have little or no negative impact on your ability to get credit in the future, or that any negative information can be removed from your credit report when you complete their debt negotiation program.
The firms usually tell you to stop making payments to your creditors, and instead, send payments to the debt negotiation company. While this may sound like a good option it is not suitable for most debtors.
There also is no guarantee that a creditor will accept partial payment of a legitimate debt. In fact, if you stop making payments on a credit card, late fees and interest usually are added to the debt each month. If you exceed your credit limit, additional fees and charges also can be added.
This can cause your original debt to double or triple.What's more, most debt negotiation companies charge consumers substantial fees for their services, including a fee to establish the account with the debt negotiator, a monthly service fee, and a final fee of a percentage of the money you've supposedly saved.While creditors have no obligation to agree to negotiate the amount a consumer owes, they have a legal obligation to provide accurate information to the credit reporting agencies, including your failure to make monthly payments. That can result in a negative entry on your credit report. And in certain situations, creditors may have the right to sue you to recover the money you owe. In some instances, when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home. Finally, the Internal Revenue Service may consider any amount of forgiven debt to be taxable income.About Consumer Credit and Budget Counseling, Inc.Consumer Credit and Budget Counseling, Inc.
is a nonprofit consumer education and financial counseling agency.
Our purpose is to assist individuals and families with their financial and credit problems through confidential budget planning, debt management, credit counseling and structured debt liquidation, and to provide comprehensive pre-purchase homeownership counseling and education.Consumer Credit and Budget Counseling, Inc. is committed to promoting consumer education, and provides a number of conferences and seminars on budgeting, credit, and debt management, within the community, as well as nationally through our web site. We publish a wide array of materials, providing educational and technical assistance on credit and budget management.Contact:Russell Graves, Executive DirectorConsumer Credit and Budget Counseling, Inc.888-738-8233www.cc-bc.com.
Learn How To Get Out and Stay Out of Debt
(ContentDesk) August 11, 2005 -- With consumer debt in the UK of ?1 trillion, for thousands of people debt and financial problems are very real. Those of us unfortunate enough to be in financial difficulty, seeking help usually means one of the following options:
the Citizens' Advice Bureau, contacting a dubious loan shark, or consulting an independent debt advisor (at considerable cost)To help all those who wish to identify, pursue and achieve financial success, i.e. ?most of us', a new system in the form of a diary and accompanying CD audio companion, has been launched.
Aptly named MONEY MENTOR, this self-help system has been devised by Scottish businessman Fraser Hay (former Royal Bank of Scotland & Prince's Scottish Youth Business Trust businessman of the year)MONEY MENTOR offers; a unique, proven system that gets results, ways to get out of and stay out of debt, hundreds of money saving secrets, ready to use letters & check lists, inspirational quotes, and anecdotes,...
Debt consolidation > Learn How To Get Out and Stay Out of Debt
Low Rate Debt Consolidation Enjoy The Benefits
Debt consolidation is one of the tools of debt management. It allows people to manage their debts properly.
Debt consolidation allows the borrowers to borrow one single loan instead of a number of loans from different people and then pay them at a reduced rate of interest.
Following example will make it clear as to how Low rate Debt Consolidation Loans can help any borrower. A man has taken three different loans from three different creditors for purposes of wedding, home improvement and for business purposes respectively. But unfortunately his income now has not been up to what he expected. Hence, the borrower is not able to cope up with the requirements of that loan.
That is where the low rate debt consolidation loans can help the individual. By taking the low rate debt consolidation loan the individual can unite all his dues and convert...
Debt consolidation > Low Rate Debt Consolidation Enjoy The Benefits
Student Loan Consolidation ? How does it Work?
Student Loan Consolidation ? How does it Work?Student loans are a great source of financial aid for students who need help paying for their education. Unfortunately, students often leave college with burdensome debt. In addition, they often have multiple loans from different lenders, meaning they are writing more than one loan repayment check each month. The solution to this problem is loan consolidation.What is loan consolidation?Loan consolidation means bundling all your student loans into a single loan with one lender and one repayment plan. You can think of loan consolidation as akin to refinancing a home mortgage.
When you consolidate your student loans, the balances of your existing student loans are paid off, with the total balance rolling over into one consolidated loan. The end result is that you have only one student loan to pay on.Both students and their parents can consolidate loans. Should I consolidate my loans?Loan consolidation offers many benefits:-Locks in a...
Student Loan Consolidation ? How does it Work?
Debt consolidation > Student Loan Consolidation ? How does it Work?
Bad Credit Debt Consolidation
If you are a bad credit borrower, which means your have defaulted quite badly on your earlier credits and hence your credit rating is extremely poor, there is still no need to file for bankruptcy.
A way out from your current crisis can be provided by bad credit debt consolidation. Many financial companies and bad credit lenders are still ready to lend money. As the risk is greater, they charge comparatively higher rates of interest on such loans. This is because the probability of the borrower being unable to pay back the loan is much higher.
There are several debt consolidation companies which provide services regarding bad credit debt consolidation.
Even if one is grappling with huge arrears and has an extremely poor repayment record, there are customized packages available to bail you out.
The bad credit debt consolidation companies would help in arranging a loan from a bank or another financial company so that you are able to clear...
Debt consolidation > Bad Credit Debt Consolidation
Credit Debt Consolidation Help Announce New Web Site: Credit-Debt-Consolidation-Help.com, Providing a Forum for All Debtors
Credit Debt Consolidation Help Announces releases credit-debt-consolidation-help.com."Our website is designed to help debtor find answers to their questions in our forums," says Richard Victor, President of Credit Debt Consolidation Help."The forums of credit-debt-consolidation-help.com contain thousands of contributions related to credit, debt and money issues. Hopefully our visitors will find the answers that they are seeking," explains Mr. Victor.The website contains more than 60,000 entries related to debt relief. Forum topics include Non-profit credit, Investing and Financial planning, Mutual Funds, Stocks and two separate forums covering taxes and debt consolidation."When people start searching for debt consolidation, they may not be ready to commit to a program. We like to give our visitors as much information as is available so that they may make a qualified, informed decision.", states the president.
"Of course, we would like our visitors to take action, which is why...
Credit Debt Consolidation Help Announce New Web Site: Credit-Debt-Consolidation-Help.com, Providing a Forum for All Debtors
Debt consolidation > Credit Debt Consolidation Help Announce New Web Site: Credit-Debt-Consolidation-Help.com, Providing a Forum for All Debtors
Are You a Candidate for Bankruptcy?
Bankruptcy laws give debtors a way to resolve debt by dividing their assets among their various creditors and in some cases will allow debtors to be freed of outstanding debts that cannot be paid, even after the division of assets. For individuals who find themselves unable to pay their debts, bankruptcy can be a viable option. As a debtor, you are entitled to file for bankruptcy. There have been recent changes to bankruptcy laws that may affect your ability to discharge your debts without credit counseling, but individuals who have found themselves unable to pay their debts can still file bankruptcy and be freed of outstanding debts. Chapter 7 bankruptcy is normally used by individuals wanting to rid themselves of all accumulated debt, and is the most frequently used method of filing bankruptcy.
Businesses who wish to completely liquidate assets and close permanently can also file Chapter 7 bankruptcy. Under Chapter 7, individuals are allowed to keep certain property such as...
Are You a Candidate for Bankruptcy?
Debt consolidation > Are You a Candidate for Bankruptcy?
Why Your Credit Score is Important
Your credit score can either haunt you or reward you. It all depends on how you handle your credit and payment activities. Your credit score determines what interest rates you will pay and if you are even approved for a loan or a credit card at all. In addition, your credit score can play a factor in renting your next apartment or getting hired from a potential employer.Your credit score is compiled from the information on your credit report. The performance of your credit activity is rated on a numerical scale from 350-850.
This number is your credit score. The higher your credit score, the better. Late payments, delinquent accounts and maxed out credit limits are all things that can lower your score. Below is a general guideline to determine what your credit score means in terms of getting approved for a loan or receiving credit and what type of interest rates you can expect to pay.750-850: Is considered to be an excellent credit score. You can expect approval and should receive...
Why Your Credit Score is Important
Debt consolidation > Why Your Credit Score is Important
A Libertarian?s Christmas Wish list for 2005
I moved back to Fort Wayne five years ago. I moved back to Fort Wayne to raise my family. I want to do my part to make America a better place for my children; I do not think anything is more important then that. I feel that America has made some very bad decisions in the last 84 years. In 1920 Franklin Roosevelt started "The New Deal" and the government started growing.
In 1920 total government spending was about 4% of the Gross Domestic Product. Today, total government spending is about 40% of the Gross Domestic Product! This means that about 40% of all spending in the United States is now done by one government entity or another. This is a trend that must be stopped. Our government gets larger and more inefficient every year. Bigger is NOT better.I want my children to grow up in a country where citizens are responsible for their own actions.
I want my children to grow up in a country where the United States Constitution is respected and adhered to. I want my children...
A Libertarian?s Christmas Wish list for 2005
Debt consolidation > A Libertarian?s Christmas Wish list for 2005