Time-Tested Debt Management Methods and Debt Solutions

Posted by Rana & filed under General Debt & Loan Consolidation Information.

14 Time-Tested Debt Management Methods and Debt Solutions

Yara Zakharia, Esq.

Stranded in an ocean of over-the-head daily expenditures, budget-breaking emergency expenses, maxed-out credit cards, and spending sprees, an increasing number of Americans living paycheck to paycheck are struggling to reach a harbor of financial safety and security.  Fueled by the ubiquity of credit and lax qualification requirements, consumer debt in the U.S. continues breaking records each year and consuming an ever-growing chunk of the average family’s resources.  Here are some of the latest debt statistics tabulated by the Federal Reserve and Census Bureau:

  • U.S. consumer debt totals approximately $2.5 trillion, or $8400 in indebtedness per household
  • Approximately 33% of all consumer transactions in the U.S. are effectuated via a payment card, such as credit, prepaid, and debit products
  • There are more than 175 million credit card holders in the U.S., and collectively, they hold more than 1.5 billion cards
  • At least 10% of the U.S. population owns more than 10 credit cards
  • American consumers hold an average of four credit cards
  • U.S. credit card debt currently tops $965 billion
  • Both the debt-to-income ratio for households and the financial obligations ratio (FOR), the latter measuring the percentage of disposable income that is allocated to items such as auto loans, mortgage obligations, and property taxes, exceed 19%.

Getting out of debt necessitates the implementation of sound financial habits, a solid money management plan, and a good measure of self-discipline.  By generating a healthy cash flow and achieving a debt-free state, Americans will reap the benefits of economic freedom, peace of mind, and stress relief.  What follows are some time-tested debt management methods and proven debt solutions:

1. Elimination of highest-interest debt. One effective approach to debt reduction is to tackle first the credit card balance that boasts the highest interest rate and then pay off the remaining cards in descending order, rate-wise.

2. Balance transfer. This involves the transfer of an existing credit card balance to another card, with the objective of capitalizing on a lower interest rate or low introductory annual percentage rate (APR).

3. Snowball technique. This popular method of consumer debt reduction and elimination involves the following steps:

  • Paying off the lowest balance first to knock out some of the debt
  • Making the minimum payment on the remaining balances
  • Paying off the next smallest balance
  • Adding the amount paid on the first debt to the minimum of the second debt and paying this total.

With each payment that is made and each debt that is eliminated, the snowball grows.

4. Credit counseling. Credit and debt counselors, financial planners, and debt settlement agencies assist borrowers in devising a budget and a debt management program and help them identify short and long-term goals.  They also teach them how to save and manage their daily expenditures, as well as how to utilize credit wisely, and offer them customized financial management tools to wipe out their debt.  By establishing a realistic repayment plan, consumers will be able to make manageable monthly payments while focusing on repaying their outstanding loans.  Credit counselors also negotiate on behalf of their clients with the latter’s creditors in order to obtain a debt settlement arrangement, a lower interest rate, and a reduced monthly payment.

5. Debt consolidation. Debt help may also be achieved through a consolidation loan, which enables borrowers to pay off the outstanding debt with a single loan.  This results in lower monthly payments and interest charges.  Similarly, by consolidating high-interest credit cards into one lower-rate card, debtors can cut their monthly payments and benefit from substantial interest savings.  Where the balance is large, a mere percentage point or two can have a considerable impact.  Consolidation also enables consumers to better track their spending and repay their debts in a timely fashion.  Furthermore, borrowers may quickly improve their credit rating by consolidating their debts and bills.

6. Realistic budgeting. The creation of a detailed, reasonable budget enables consumers to track their expenses and income on a monthly basis.  Expenses should be categorized as essential or superfluous.  Essential expenses include food, transportation, rent/mortgage, and utilities.  Non-essential items include restaurant dining, entertainment, and dry cleaning.  Consumers can save than $100 each month by eliminating unnecessary purchases and applying the extra cash to pay off their credit card balances and reduce their debt.  Numerous online tools help borrowers reduce their spending and manage their money.  Ideally, consumers should maintain their debt-to-income ratio below 20 percent.

7. Savings plan. Consumers should set aside funds for emergencies and unforeseen expenses.  Preferably, they should establish a savings plan that will shield them financially for a period ranging from 3 to 6 months.

8. Investments. Another path to debt reduction involves depositing funds into a money market account, IRA, or 401K, which generate interest.

9. Home refinancing. By refinancing their home, borrowers will lower their monthly installments and interest rate and thus have more cash available to pay off their debts.

10. Living below their means. To become debt free, borrowers should not spend more than they earn.

11. Timely bill payment. By paying their bills on time and not using a company’s grace period, consumers can steer clear of debt and maintain a good credit score.

12. Utilization of cash for purchases. A highly efficacious debt management strategy involves refraining from borrowing additional funds and using only cash or checks for all purchases until the outstanding credit card debt is repaid.

13. Verification of credit report. Consumers should request a copy of their credit score from the three consumer reporting agencies- TransUnion, Experian, and Equifax.  If there are any errors regarding their credit history, they should immediately make the necessary adjustments.

Payment of more than the minimum monthly payment. Paying more than the minimum monthly payment amount on credit cards can lower consumer debt and increase overall credit rating.

Minimizing Credit Card Debt through Consolidation and Lower Rates

Posted by Rana & filed under Credit Card Debt Consolidation Information.

Minimizing Credit Card Debt through Consolidation & Lower Rates

Mevish Jaffer

When money is tight and the need to finance certain purchases is absolutely necessary, many individuals find it simple and convenient to charge them on a credit card. The financial independence that credit cards provide allows individuals to pay for large expenses, including their weddings, a home, a new car, and any other unexpected expenses that may arise. However, the financial freedom experienced by most is usually short-lived as charging items on a card can easily become a habitual practice that ultimately leads to consumer debt. This is precisely why millions of Americans all over the country are plagued by an increasing amount of credit card debt.

Unfortunately the current status of the US economy, which appears to be headed towards a recession, makes the burden heavier for Americans trying to achieve credit card debt relief. However, this does not mean that minimizing your credit card debt is not possible. In fact, there are several ways to reduce consumer debt, including searching for a lower interest rate on your outstanding loans as well as a variety of loan consolidation options.

First Thing’s First – Cut them up!

As difficult as it may be to do so, the first step towards debt reduction is to stop using the words, “charge it to the card!” If that seems too daunting, the alternative solution is to cut up those “troublesome” credit cards. While the act may sound somewhat dramatic and perhaps a little extreme, you will be better off once you realize the bigger picture. By getting rid of the “plastic” in your wallet, you also eliminate the risk for getting into further debt. This is because having the credit cards at your disposal means that there is a greater chance you will be tempted to spend more money than you should in order to maintain control of your debt.

You could also opt to simply cancel your credit cards all together. However, if you do so, you must be aware of aggressive representatives who will try their best to retain your business by tempting you with the offer to increase your credit limit or provide you with a zero percentage rate for a limited period of time. It is during these specific times that you have to remember to “stick to your guns” and resist the temptation at any cost in order to finally get credit card debt relief.

Credit Card Debt Help – Solutions for debt reduction

The most popular method of getting credit card debt help is through various consolidation strategies that you can implement on your own. For example, one way to consolidate credit card debt is to search for another low interest credit card in which the total balance on all the cards with outstanding debt can be transferred to. This debt reduction strategy will allow you to gradually minimize your overall debt and enable you to make one monthly payment as opposed to several installments to multiple creditors.

Another useful technique you can deploy to reduce your debt is to take a low interest consolidation loan. This debt reduction method will enable you to choose how much money you can afford to pay on the loan every month until your debt is completely paid off. However, it’s important to understand that you will have to follow a rigorous repayment schedule in order to truly ease the financial burden that goes along with being in credit card debt.

On a final note, remember that you are not alone in your struggle with consumer debt. Countless individuals are in the same boat and have managed to survive successfully, which means you can get out of debt too!  There are also numerous debt management programs offered by qualified credit counseling agencies that you can choose to enroll in. Overall, there are several options available to help you reduce and even eliminate credit card debt, but it is ultimately up to you to take the appropriate steps to make it happen!

No Teletrack Payday Loans

Posted by Rana & filed under Payday Loan & Personal Loan Information.

No Teletrack Payday Loans: Access to All

Yara Zakharia, Esq.

Like an agonizing ulcer, a financial emergency needs to be treated immediately in order to prevent further endangerment or damage.  For the average American living paycheck to paycheck and confronting a short-term cash crunch, the only quick fix appears to be a loan from a relative or friend.  An equally attractive alternative for consumers desiring privacy, confidentiality, expediency, and credit-blind qualification is the innovative borrowing concept known as the no teletrack payday loan.  Traditionally treated as outcasts by conventional lenders, individuals with a battered credit history and/or with a bankruptcy filing on their credit report can now easily qualify for no teletrack payday loans.  Urgent financial circumstances necessitating short-term cash advance range from household purchases and hospitalization expenses to utility bills and auto repair expenditures.  Also known as no telecheck payday loans, no teletrack payday loans help borrowers cover unforeseen expenses and tide them over to their next payday by providing them with a quick cash advance for a period of two weeks.

Teletrack is a credit organization that records most of the loans in the marketplace and provides information to financial companies.  Specifically, it collects data relating to subprime consumer credit and assists creditors in ascertaining whether a particular borrower is creditworthy or poses a risk.  Teletrack furnishes its clients with information concerning the financial status of prospective borrowers, which typically includes items such as credit and checking account history, outstanding checks against existing loans, and bankruptcy.  No teletrack payday loan providers do not utilize teletrack services.  The rationale is that since payday cash loans are short-term loans of a small amount, there is no urgent need to verify the data submitted by applicants.  The appeal of no telecheck payday loans can be explained by the fact that they do not take into account whether a prospective borrower has a good or bad credit report.  This type of fast payday advance waives the credit check requirement and approves applicants irrespective of poor credit.  The absence of teletrack makes this loan category an extremely convenient and practical financing option for consumers with damaged credit.  No teletrack payday loan companies do not examine a client’s credit report because the latter’s payroll check secures the loan.  Since the applicant need not pledge any security to obtain the funds, a no teletrack payday loan is also referred to as a no-collateral cash loan.

In the United States, there are a multitude of no teletrack payday loan providers who specialize in assisting consumers caught in a financial bind.  A growing number of cash advance lenders offer no credit check, no fax and no telecheck payday loans.  Consumers may apply for a no teletrack payday loan online from the comfort of their home, the process being simple and consuming two to three minutes on average.  Instead of commuting to and waiting in line at a bricks and mortar cash advance store, prospective borrowers may preserve their privacy and anonymity as well as expedite the process by applying online.  Typically, no telecheck payday loans are available for an amount ranging from $500 to $1500.  Amounts vary depending on the fast payday advance creditor’s policies and the applicant’s salary.  The borrower may utilize the funds for whatever purpose he or she desires.

All that an applicant needs to supply is basic personal information, a designated checking or savings account, and employment details.  Upon completion and submission of the short application, processing and approval is issued typically within minutes.  No teletrack payday loans enable borrowers to receive the funds in their bank account within a few hours and no later than one business day from submission of the loan application.  After approving the client’s application, the quick cash advance lender directly deposits within 24 hours the moneys into the former’s checking or savings account.  It is a hassle-free transaction since customers are not required to fax any documents or undergo a credit check.  On the due date, the no teletrack payday loan company electronically debits the loan amount and finance charge from the borrower’s bank account.

Credit Card Debt Consolidation or Settlement: Two Debt Resolution Titans

Posted by Rana & filed under Credit Card Debt Consolidation Information.

Credit Card Debt Consolidation or Settlement: Two Debt Resolution Titans

Federal Reserve statistics bluntly confirm that millions of Americans are living on the edge of a precipice called credit card debt:

  • Nearly 50% of card holders in the U.S. carry a credit card balance
  • Outstanding credit card balances top $800 billion
  • The average rate of interest on a credit card is 14.9%
  • Forty percent of American households earn less than they spend

Fortunately, there are two highly effective strategies to protect borrowers from falling into debt’s abyss: 1) debt consolidation and 2) credit card debt settlement.  Indebted individuals faced with the question of “credit card consolidation versus debt payment” must carefully weigh the pros and cons of these two popular methods that help to eliminate credit card debt.  What follows is an in-depth discussion of the advantages and disadvantages of each of the two options and alternatives to bankruptcy.

1. Credit card debt consolidation

This is effectuated by combining the outstanding, high-interest balances on several credit cards into a low or zero-interest credit card or a low-interest loan.  Ideal candidates for this debt resolution approach are individuals (1) whose income is insufficient to cover their credit card balances, (2) are unable to pay the minimum amount due, and/or (3) have pending balances with multiple credit card accounts.  Also known as loan consolidation, debt consolidation involves the substitution of multiple loans with one new loan that is usually paid off in 3-5 years.  Before applying for a consolidation loan, consumers should ensure that the new loan will cost them less in interest and fees than what they were paying their previous lenders.  Credit card debt may be consolidated via a second mortgage, a home equity loan or home equity line of credit, or a 0% credit card.

Credit card consolidation offers numerous benefits including the following:

  • Credit rating is not negatively impacted over the long term
  • Lower rates of interest
  • Simplification of financial management and budgeting
  • Convenience of a single monthly payment as opposed to several payments to different creditors

Conversely, this debt resolution method presents a few disadvantages or obstacles, such as:

  • No diminishment of the principal
  • Requirement of sufficient equity to secure the low-interest loan
  • Potential loss of collateral (i.e. home) in the event of the borrower’s default or late payments
  • Payment of points (1 point= 1% of the sum borrowed) in addition to interest charges

2. Credit card debt settlement

Also referred to as debt negotiation, this method involves a credit card company’s agreement to forgive a significant amount of the customer’s debt in exchange for the latter’s payment of the settlement.  The customer must be delinquent in his or her payments and show financial hardship.  On average, debt negotiation can knock out 40-75% of a borrower’s credit card debt.  This is the most expeditious and affordable route to a debt-free state without filing for bankruptcy.  Credit card debt settlement offers a drastic reduction of overall debt since borrowers are only required to pay a portion of the sum owed.  It is a recommended measure for individuals who (1) do not qualify for debt consolidation, (2) cannot realistically envisage a repayment of the accounts, (3) are saddled with too much debt and/or (4) are considering bankruptcy.

Typically, a debt settlement firm negotiates with the credit card company on the client’s behalf to settle for an amount below the outstanding balance.  Upon satisfaction of the settled debt, the credit card company reports to the three credit bureaus that the debt has been “Settled for less than full amount” or “Paid”.  A credit card debt settlement usually takes 1-3 years to complete and offers the following benefits:

  • Substantial interest savings
  • No payment of over-the-limit fees
  • Significant improvement of the borrower’s debt-to-income ratio, which facilitates the obtainment of a new loan

On the downside, a credit card debt settlement often results in:

  • A negative impact on the credit score on the short term due to the presence of the notations “settled” or “charge-off” in the credit report (which may remain for up to seven years)

Potential taxation on any canceled debt exceeding $600

Mortgage Refinance: Ripe Occasions for Refinancing

Posted by Rana & filed under Home & Mortgage Refinance Information.

Heraclitus once wrote that “all is flux; nothing stays still”. In the home ownership arena, this change takes the form of mortgage refinancing. Studies show that the average American enters into a mortgage refinance almost every five years. Mortgage refinancing is defined as the process of taking out a new secured loan to pay off an existing loan that is secured by the same property or assets.

It allows borrowers to adjust the terms of their mortgage to suit their personal circumstances and lifestyle. A mortgage refinance opens the door to substantial long-term loan savings and more financial breathing room in the form of a monthly spending surplus. Most commonly, a refinance is performed by way of a second home loan. To assess the utility and benefit of mortgage refinancing, homeowners may utilize an online loan calculator. Read more on “Mortgage Refinance: Ripe Occasions for Refinancing” »

Free Debt Consolidation Services

Posted by Rana & filed under General Debt & Loan Consolidation Information.

One of the major factors contributing to America’s current financial crisis is the increasing amount of people who are drowning in debt! Rising interest rates, finance charges and other types of hidden fees are just some of the reasons for why many Americans are unable to get out of debt. Whether the debt is a result of credit cards, personal loans, or medical bills, every debtor should be aware of the solutions available to reduce their financial burden.

For instance, one of the most common methods for achieving deft relief is through consolidation. The practice of debt consolidation works by combining all of the individual’s debt into a single loan.

Free Debt Help
Fortunately when burdened with debt, individuals can turn to debt consolidation services to help them get back on track with their finances. In fact, debt consolidation services are specifically meant for people who require support and guidance as a result of financial mismanagement. Although some debt consolidation companies charge certain fees for their services, many offer assistance to consumers at no charge. Similar to for-profit debt consolidation organizations, non-profit organizations offer various types of free debt consolidation services and personal assistance to consumers.

In addition to getting expert advice, support and guidance, debtors are also able to reap other benefits by seeking consultation through free debt consolidation services. Because the objective is to help consumers get out of debt and solve their financial problems, consolidators provide the following debt management services to help individuals pay down their debts:

  • Negotiate lower interest rates
  • Reduce monthly payments
  • Budget planning tips
  • Answers and solutions to financial questions
  • Guidelines to prevent future financial trouble

Choosing Credible Free Debt Consolidation Services

While consumers do have access to free debt consolidation services, it’s important for them to be cautious when it comes to choosing the right company to work with. For instance, if a company that is claiming to offer free debt consolidation services asks the consumer to make any type of payment upfront, or requests a “contribution” because they are a non-profit organization, the red flag should immediately go up.It’s important for consumers to remember that if companies advertise free debt consolidation services, they should never be asked to pay any type of upfront fees or service charge in exchange for debt help.

Another way to ensure the credibility of various debt consolidation services is to contact the local Better Business Bureau office. The BBB office records the ratings which are given to businesses based on both the positive and negative feedback provided by existing and/or previous customers. Consumers can also perform preliminary research on free debt consolidation services through the Internet by browsing different search engines, reading various consumer reviews and blogs, and finding forums that showcase people’s real life experience with the company in question.

Although consolidation may not be the answer to everyone’s financial problems, many consumers have, and continue to find financial relief by combining their debt into a single loan. With the help and guidance provided by debt consolidation services, individuals can reduce their overall debt faster and get on the road to financial independence.

Unsecured Debt Consolidation

Posted by Rana & filed under General Debt & Loan Consolidation Information.

An individual who undergoes an unsecured debt consolidation plan can get out of debt much sooner than those who try their own course of action. This is due to the rate of interest reductions, lower monthly payments, elimination of additional fees and penalties.Reliable debt consolidation companies maintain relationships with many creditors throughout the country. These creditors can work with them to resolves thousands of people in immense financial strain. These debt consolidation companies help people consolidate bills, student loans and credit card debts into a single monthly payment, while also saving thousands of dollars worth of added costs.

The benefits of unsecured debt consolidation provide decreased interest rates and increased convenience due to reducing monthly payments to one single payment for all your debts. It can allow you to focus on that one monthly payment, as opposed to worrying about multiple payments, which bring added stress and confusion. Debt consolidation services provides the ability to get out of the black hole of debt and begin constructing good credit for the years to come.

Consolidation & Debt Relief
If you are unable to put down collateral during your financial crisis, unsecured debt consolidation may work for you. This process is best for those who do not own a home or for tenants of an apartment. These loans work in the same way as debt consolidation because they combine multiple debts into a single manageable loan. Under the proper circumstances, unsecured debt consolidation can be a risk-free loan because no collateral is given in exchange for the loan. There is no chance of repossession of your property and you can free yourself of various debts and lenders. Many lenders are available to provide these unsecured loans at a decent rate.

If you are impending bankruptcy and have too much debt burden, you may be at a point where unsecured debt consolidation is right for you. You can use debt consolidation to organize your debts in a way that is effective for you and your family. Unsecured consolidation is meant to pay all of your pending debts or loans off so you can gain a better quality of life and reduce anxiety. Since no collateral is required with unsecured debt consolidation, you do not have to deal with several different creditors nor do you run the risk of losing your hard earned property.

Other advantages include a fixed period of payment where you set a time and bring down interest rates. There is no need for evaluation and verification which makes the loan available at a faster process. Even those with a lousy credit rating can get unsecured debt consolidations. Some people decide to pay their consolidated loans by achieving a personal loan from a financial institution. This is also part of the unsecured process because there is no collateral involved.

Unsecured debt consolidation may have a higher interest rate and a more rigid term of payment, but they are referred to people who don’t possess the collateral needed for a secured consolidation plan. Do your homework!In conclusion, managing your credit in a time of financial crisis is a positive way to overcome pending debts and dues and can help you to improve your credit score.Prior to making the consolidation move, make sure to do appropriate research on companies, your financial state and speak with people to advise what is best for you.

Every financial situation is different than the next one and different situations may call for different actions. Calculate the cost of the new loan and make sure it is lower than what you are currently paying.

How To Increase Your Credit Score

Posted by Rana & filed under General Debt & Loan Consolidation Information.

The importance of having a good credit score cannot be stressed enough in this day and age. For starters, your credit score bears the greatest factor in the decision banks and other lending institutions make to extend credit. The truth is that being able to borrow money is extremely essential in the world we live in and while it’s somewhat unfortunate, banks have the ability to make life-altering decisions based simply on a number. There are also further detrimental consequences of having poor credit. Some of them include higher costs for health insurance and auto insurance and higher interest rates for financing the purchase of a car and a home. It’s almost as if having a poor credit score means you have to pay a lot more to live! Fortunately, there is a bright a side to all of this as there are ways for you to fix your credit and avoid such adverse effects.

Understanding Your Score

Before you can learn how to improve credit, it’s important that you understand how your credit score is actually calculated. Let’s start with where a credit score comes from; the figure is basically generated from your financial track record. Financial institutions such as banks make their judgments on how well you manage your credit. Consequently, their judgments add up to create your credit score. If you are able to manage your credit score responsibly, the way most creditors expect you to, then you will retain a high credit score. On the other hand, if you are incapable of controlling your credit and have credit debt, your score will most likely be low.Lending institutions need to evaluate the potential risks involved when lending you money, which is the main reason everyone is assigned an individual score based on their own situation. The way it typically works is that if you have poor credit, lenders are more inclined to charge you higher interest rates which they justify with the higher risks involved with lending you the funds. For this particular reason, it’s important for you to know how to improve your score if you are someone who suffers from poor credit. Credit score ratings generally range from 300 to 850, which makes the average 600. A credit score of 575-650 typically constitutes as a good score, while one in the lower 500’s translates into poor credit.

Improving Your Credit Score

Poor credit is not the end of the world and it certainly doesn’t have to last forever. There are ways of improving credit; you just need to know how to go about it. The following are some helpful credit repair tips to fix your credit score:

Correct errors on your report Credit counseling Pay your bills on time Keep your balances low Don’t open new credit cards Debt consolidation

You can access a free credit report online to see for yourself exactly where you stand. The important thing for you to do is to review the report in its entirety and ensure it’s absolutely accurate. If you do find any inconsistencies on the report, you need to contact the credit reporting company immediately and have them fixed. You can also get helpful advice on improving credit by consulting with experts in the field. Credit counseling companies are a great resource to turn to for credit debt help, budget management and financial planning.Another way to fix your credit score is to pay your bills on time, which might be difficult task at times. However, if you create a budget for yourself and stick to it, you will be better able to pay what you owe each month without accumulating a mountain of unwanted debt. You can also make the effort to keep the balances on all of your open accounts as minimal as possible because as tempting as it may be to max out your five thousand dollar (limit) credit card, you need to avoid doing so at all costs.When you have poor credit, the last thing you should do is open any new credit cards. What you should do instead, is pay off your existing cards in a timely manner to avoid accruing further debt to your name. A final option for fixing credit is debt consolidation, which allows you to combine all of your debt into one single loan. Because monthly installments are made more affordable through a debt consolidation loan, you are able to consistently pay off your loan, which in time will restore your credit score and bring it back to normal.

Debt Management and Credit Card Debt Counseling

Posted by Rana & filed under Credit Card Debt Consolidation Information.

Stretched beyond their financial limits and struggling to pay their credit card balances, indebted consumers may find it difficult to see the end of the tunnel. Whether it is calls from collectors, over limit and late fees, denial of credit, or high interest rates, overburdened cardholders can regain control of their finances by seeking credit debt counseling.

Credit Counseling Benefits:

Before their credit debt load attains mammoth proportions, borrowers should consider enrolling in some type of credit debt counseling program. The benefits that can be reaped from credit card counseling are as follows:

Assistance with establishing a manageable spending program Reducing monthly payments and interest by negotiating with credit card companies Obtaining a reduction in or an elimination of finance charges Consolidating payments Crafting solutions to achieve financial goals

Credit Counseling Services:

A reputable credit counseling agency can also offer a lifeline to financially-distressed individuals and families by extending the following services:

Advice on debt and money management A one-on-one discussion of debtors’ financial predicament Negotiation with credit card companies to lower interest rate and eliminate late fees Development of a personalized plan for resolution of monetary issues

Furthermore, many credit card debt counseling agencies offer their services in different foreign languages. Cardholders should choose a credit counseling agency that is a member of the largest and most esteemed networks of credit counseling agencies, namely the Association of Independent Consumer Credit Counseling Agencies (AICCCA) and the National Foundation for Credit Counseling (NFCC). They should also consult the United States Trustee Program’s state-by-state and district-by-district listings of approved credit counseling agencies.

Recommended Credit Counseling Resources:

More and more American consumers are relying upon the following two resources, which are free, easy and expeditious: 1. Family Credit Counseling:This non-profit Christian credit counseling organization reaches out to borrowers throughout the nation, helping them to achieve a debt-free existence through debt management. Some of the key services provided by family credit counseling are the following:

Analyzing cardholders’ spending habits and debt for purposes of assessing their present financial status Teaching debtors how to rebuild credit and establish a positive credit score Creating a debt-elimination plan to enable borrowers to attain their financial objectives Negotiating lower payments and interest rates on behalf of their clients Supplying a multitude of calculators as an aid for debt analysis Furnishing financial educational pamphlets

2. The Credit Counseling Foundation (TCCF)Through this non-profit organization, cardholders nationwide who are wrestling with monthly payments may obtain confidential credit counseling and debt management services, as well as debt education. The Credit Counseling Foundation helps borrowers avoid having to apply for a debt consolidation loan that does not address the root of the problem or to file for bankruptcy, a measure of last resort. Its debt help program helps consumers save a substantial amount in finance fees. The Credit Counseling Foundation assists borrowers in a number of ways, including the following:

Instructing them on basic budgeting techniques and offering them personally-tailored budgeting tips Providing at no cost a credit counseling session on financial education Teaching them how to reduce their debt

Consolidate Your Credit Card Debt

Posted by Rana & filed under Credit Card Debt Consolidation Information.

How many times have you used the infamous words, “charge it” to finance your purchases? If you’re like most people, the answer is probably one time too many! Credit debt has a tendency to pile up rather quickly, making it extremely difficult for you to have control over your spending habits. Some consumers tend to transfer the balance on their credit cards over to another card which usually has 0 percent interest for a limited period of time; however this is only a temporary solution. If you’re someone who wants to avoid the consequences of debt accumulation, you need to concentrate on ways to reduce credit debt permanently. Credit Debt HelpThe good news is that there is help out there, which can help you attain credit debt relief. If you’re consumed by debt and see no way out, consider the following credit debt reduction options: Credit debt management Written plan Avoid minimum payments Utilize your savings Live within your means to permanently stay out of debt

Debt Consolidation

Debt consolidation is part of the credit debt management process; it allows you to take a separate loan which much like the name implies, “consolidates” all your outstanding debts into one single loan. Credit debt consolidation makes it easier on you to make your monthly payments as you pay one installment to a creditor as opposed to several every month. You can also benefit from the lower interest rates that companies usually offer with credit debt management. Credit debt management includes two forms of debt consolidation loans; secured and unsecured. A secured loan is typically taken against collateral, such as the property you own. However, in the event that you default on your loan payments, your home may be seized. In an unsecured consolidation loan, collateral is not necessary, but the interest rates attached are significantly higher. Aside from debt consolidation, credit debt management services also include debt management advice, negotiation discounts and much more to help you get credit card debt relief. You may be wondering exactly how a written plan can help you reduce credit debt; however rest assured that some of the most prestigious credit counseling companies insist on one in order to review each individual consumer’s debt situation. A written plan is usually customized to your (or your family’s) specific financial circumstances. If you go through a credit counseling professional for this service, try to ensure that there are no unrealistic plans or promises for resolving your credit debt problems. Remember that a good written plan has practical benchmarks for debt repayment purposes and allows you to pay off creditors without imposing economic hardship. Eliminating Credit Card Debt

As difficult as it may be, one of the ways to achieve credit debt reduction is to avoid making minimum payments to creditors. This is because minimum payments typically only cover the interest charges on your credit card, which means the installments you make don’t go towards the principal or actual amount of purchases on your card. Thus, it makes sense to try and avoid this type of payment tactic as much as possible. Because it takes a while to build up a savings account, you may be a little reluctant to dip into it, even for financial emergencies, including paying off your credit card debt. However, it doesn’t really make sense to have savings and not make use of it when you are in debt, after all the entire point of having extra funds set aside is to be able to use it when you really need it. While it may not always be the case, sometimes it’s necessary to utilize your savings in an effort to reduce credit debt. Changing Your Lifestyle

Of all the ways to get credit debt relief, the most obvious is to simply stay out of debt! How on earth can you possibly do this? You can start by changing your lifestyle; making adjustments where necessary and making a conscious effort to spend less than your income. Believe it or not, most families have no budget at all, which is where most financial issues, such as credit card debt usually stem from. Creating a budget is one of the ways you can control your (or your family’s) spending habits. You can also try only buying things you need instead of those you want until you solve your credit debt problems.