Copyright (c) 2008 Billy Alvaro
Today everyone is concerned about credit card debt, but in most cases they have no idea how to do something. In fact, for most people once they get into debt, have no idea how to get out again. In fact, for most people, it is much easier to borrow more, it is out of it, especially with credit cards. Of all of the debt in our society, the credit card debt is the leading cause of bankruptcy and plans for debt management.
The effects
How do I start? Unfortunately banks play an important role in credit card debt than many consumers are carriers. With low interest rates lucrative offers that expire after one year no annual fee for cards that have rewards of any circular links free miles cash, holders of these cards in a pressure to be able to enjoy a hurry offer many bonuses. The bond offering is the beginning of what would culminate in a financial disaster. Unfortunately, many of these offers are for new young high school graduates, students and recent university graduates who are not yet emotional maturity to understand the importance of having good credit, or even how to deal a credit card. With this lack of knowledge on the principles of credit cards is a future of financial chaos.
Unfortunately, many people do not realize the effects of credit card debt too until they are in so deep they do not see a way out. For many, the classic signs of having too much credit card debt of just being able to afford to make minimum payments are not highlighted as a problem. Only some time after the actual effects of the credit card debt excessive begin to materialize late payments, inability to pay even the minimum payments, credit lines or more lines of credit established and loan from the card to pay another credit card. Sometimes serious credit card debt apply for another loan with an upper limit and lower interest rates with the original intention of getting rid of the other cards and use the new card. Some may even take a consolidation loan and the balances are paid in credit cards, start using them again instead of getting rid of them. For some, the reality does not hit home until the Bill collectors are knocking at the door, judgments are made, and his attempt to borrow only to discover that your credit is severely damaged, you can even borrow some hundreds of dollars to buy some furniture.
The solution
Once you have put into serious financial problems with their credit cards, the next step is to design a plan to eliminate debt and get back on their feet. There are several plans that can be used depending on the severity of damage. Here are some solutions from one program to a debtor who has made the least damage and ending with the most severe cases.
* If you are one of the lucky ones who make the financial issues before it is completely out of hand, it is much easier to solve the problem. One of the easiest ways to pay your credit card debt if still in a credit card taken out relatively manageable with the lowest balance or highest interest rate if all balances are close in value and add some additional funds each month. Even if it's only $ 15.10, slightly above the minimum payment will reduce the balance faster. How then, if you pay an additional $ 15.10 per month? Here's how: when you pay off your credit card before you leave, all the money you paid into it, adding that the minimum payment on the balance or second card interest rates. In other words, if you had to pay a total of $ 50 per month on a credit card when you pay in full, add the same $ 50 to your payment by credit card 2. Continue this process until all your credit cards are paid in full and to refrain from the use of other than an extreme emergency (car or an appliance is not working, medical bills, medicines for disease), and is used in any If you are in the process of payment in full. If you have more than two cards, get rid of except those used exclusively for business.
* Another release, you can use a consolidation loan. Of course, in most cases you will need to own real estate to get a consolidation loan. This will give you a longer period and lower interest rates, but be careful if you use your home as collateral. When you have paid in full cards, cut or blocked until you repay the consolidation loan. Some people make the mistake of doing a debt consolidation loan, only to start using the cards and create again the same financial position that just evolved.
* Some card issuers have a program where low interest rates and payments, but if you have multiple cards, this program may not work well for you. If you miss a payment, the program becomes null and void, and will be back to where he was.
* Debt consolidation involves working with a management company debt in order to develop a payment schedule. They will work with your card issuer for a lower interest rate, and sometimes the removal of total interest rate, so that you can make a payment to the manager of the debt that will distribute payments its corporate credit card.
For those who have waited too long to do something about your situation, bankruptcy may be the only answer. It's a step you want to avoid as much as possible, so that unless there are extenuating circumstances, to recognize the extent of their financial situation before it's too late to work with your creditors .
------
Economic Advisor "Discover the 7 steps of the tax debt and worry of financial stress in the 37 1 / 2 days or less guaranteed the future!" Click here for a free 20-page report and DVD
For more information click here
Credit Card Debt: The Effects and The Solution
Copyright (c) 2008 Billy Alvaro
Everyone today is worried about credit card debt, but in most cases, they don't have a clue how to do anything about it. In fact, for most people once they get into debt, they don't have a clue how to get out again. In fact, for most of the population, it's much easier to get into debt than it is to get out of it, especially with credit cards. Out of all the debt in our society, credit card debt is the major cause of bankruptcy and debt management plans.
The Effects
How does it begin? Unfortunately banks play a large role in the high credit card debt that many consumers are carrying. With lucrative offers of low interest rates that expire after a year with no annual fees to rewards card that have everything from free flyer miles to cash bonuses, cardholders snap these cards up in a hurry in order to be able to take advantage of the many bonus offers. The bonus offers are the beginning of what will later culminate into a financial disaster. Unfortunately, many of these offers are targeted at young people-new high school graduates, college students, and recent college graduates-who are not yet emotionally mature enough to understand the importance of having good credit or even how to handle a credit card. With this early lack of knowledge about credit cards comes a future of financial chaos.
Sadly, many people do not realize the effects of too much credit card debt until they are in so deep that they don't see a way out. For many, the most classic sign of having too much credit card debt-only being able to afford to make minimum payments-does not stand out as a problem. It isn't until sometime later that the real effects of excessive credit card debt begin to materialize-missed payments, inability to afford even minimum payments, credit lines at or above established credit lines, and borrowing from one card to pay payments on another card. Sometimes those in serious credit card debt will apply for another credit with a higher limit and lower interest rate with the original intention to get rid of the other cards and use the new card. Some may even take out a consolidation loan, and after the balances are paid on their credit cards, they start using them again instead of getting rid of them. For some the reality does not hit home until the bill collectors are knocking on the door, the judgments are issued, and they attempt to apply for a loan only to find that their credit is so severely damaged that they can't even borrow a few hundred dollars to buy some furniture.
The Solution
Once you have gotten into severe financial trouble with your credit cards, the next step is to devise a plan to eliminate the debt and get back on your feet. There are several plans you can utilize depending on the severity of the damage. Following are some solutions beginning with a program for the debtor who has done the least amount of damage and ending with the most severe cases.
* If you are one of the lucky ones who becomes aware of financial issues before it gets totally out of hand, it's much easier to solve the problem. One of the easiest ways to pay your credit card debt if you are still at a reasonably manageable level is to take the credit card with the lowest balance-or highest interest rate if all the balances are close in value-and add some extra funds each month. Even if it is only $10-15, anything above the minimum payment will help the balance reduce quicker. How so if you are only paying an extra $10-15 a month? Here's how: when you pay off that first credit card, take ALL of the money you were paying on it, and add that to the minimum payment on the second highest balance or interest rate card. In other words, if you were paying a total of $50 a month on Credit Card #1, when you pay it in full, add that same $50 to your payment on Credit Card #2. Follow this same process until all of your credit cards are paid in full and refrain from using them other than an extreme emergency (car or appliance not working, medical bill, medicine for illness), and do not under any circumstances use the one you are in the process of paying in full. If you have more than two cards, get rid of the except any used solely for business.
* Another outlet you may want to use is a consolidation loan. Of course, in most cases you will need to own real estate to obtain a consolidation loan. This will give you a longer term and lower interest rate, but you must be careful if you're using your home as collateral. When you have paid the cards in full, cut them up or lock them away until you finish paying off the consolidation loan. Some people make the mistake of obtaining a consolidation loan, only to begin using the cards again and create the same financial situation from which they just evolved.
* Some card issuers have a program where they will lower the interest rate and payments, but if you have several cards, this program may not work well for you. If you miss one payment, the program becomes null and void, and you are right back to where you were.
* Debt consolidation involves working with a debt management company in order to develop a repayment schedule. They will work with your card issuer to obtain a lower interest rate, and sometimes eliminating the interest rate totally, to allow you to make one payment to the debt management company that will distribute the payments to your credit card companies.
For those who waited too long to do something about their situation, bankruptcy may be the only answer. That is a step you want to avoid whenever possible, so unless you have extenuating circumstances, recognize the extent of your financial situation before it's too late to work with your creditors.
------
Economic Advisor 'Discover the 7 easy steps from debt taxes and worry to a stress free financial future in 37 1/2 days or less guaranteed!" click here for a 20 page free report and dvd http://www.savemonthly.com
For more information click here
Everyone today is worried about credit card debt, but in most cases, they don't have a clue how to do anything about it. In fact, for most people once they get into debt, they don't have a clue how to get out again. In fact, for most of the population, it's much easier to get into debt than it is to get out of it, especially with credit cards. Out of all the debt in our society, credit card debt is the major cause of bankruptcy and debt management plans.
The Effects
How does it begin? Unfortunately banks play a large role in the high credit card debt that many consumers are carrying. With lucrative offers of low interest rates that expire after a year with no annual fees to rewards card that have everything from free flyer miles to cash bonuses, cardholders snap these cards up in a hurry in order to be able to take advantage of the many bonus offers. The bonus offers are the beginning of what will later culminate into a financial disaster. Unfortunately, many of these offers are targeted at young people-new high school graduates, college students, and recent college graduates-who are not yet emotionally mature enough to understand the importance of having good credit or even how to handle a credit card. With this early lack of knowledge about credit cards comes a future of financial chaos.
Sadly, many people do not realize the effects of too much credit card debt until they are in so deep that they don't see a way out. For many, the most classic sign of having too much credit card debt-only being able to afford to make minimum payments-does not stand out as a problem. It isn't until sometime later that the real effects of excessive credit card debt begin to materialize-missed payments, inability to afford even minimum payments, credit lines at or above established credit lines, and borrowing from one card to pay payments on another card. Sometimes those in serious credit card debt will apply for another credit with a higher limit and lower interest rate with the original intention to get rid of the other cards and use the new card. Some may even take out a consolidation loan, and after the balances are paid on their credit cards, they start using them again instead of getting rid of them. For some the reality does not hit home until the bill collectors are knocking on the door, the judgments are issued, and they attempt to apply for a loan only to find that their credit is so severely damaged that they can't even borrow a few hundred dollars to buy some furniture.
The Solution
Once you have gotten into severe financial trouble with your credit cards, the next step is to devise a plan to eliminate the debt and get back on your feet. There are several plans you can utilize depending on the severity of the damage. Following are some solutions beginning with a program for the debtor who has done the least amount of damage and ending with the most severe cases.
* If you are one of the lucky ones who becomes aware of financial issues before it gets totally out of hand, it's much easier to solve the problem. One of the easiest ways to pay your credit card debt if you are still at a reasonably manageable level is to take the credit card with the lowest balance-or highest interest rate if all the balances are close in value-and add some extra funds each month. Even if it is only $10-15, anything above the minimum payment will help the balance reduce quicker. How so if you are only paying an extra $10-15 a month? Here's how: when you pay off that first credit card, take ALL of the money you were paying on it, and add that to the minimum payment on the second highest balance or interest rate card. In other words, if you were paying a total of $50 a month on Credit Card #1, when you pay it in full, add that same $50 to your payment on Credit Card #2. Follow this same process until all of your credit cards are paid in full and refrain from using them other than an extreme emergency (car or appliance not working, medical bill, medicine for illness), and do not under any circumstances use the one you are in the process of paying in full. If you have more than two cards, get rid of the except any used solely for business.
* Another outlet you may want to use is a consolidation loan. Of course, in most cases you will need to own real estate to obtain a consolidation loan. This will give you a longer term and lower interest rate, but you must be careful if you're using your home as collateral. When you have paid the cards in full, cut them up or lock them away until you finish paying off the consolidation loan. Some people make the mistake of obtaining a consolidation loan, only to begin using the cards again and create the same financial situation from which they just evolved.
* Some card issuers have a program where they will lower the interest rate and payments, but if you have several cards, this program may not work well for you. If you miss one payment, the program becomes null and void, and you are right back to where you were.
* Debt consolidation involves working with a debt management company in order to develop a repayment schedule. They will work with your card issuer to obtain a lower interest rate, and sometimes eliminating the interest rate totally, to allow you to make one payment to the debt management company that will distribute the payments to your credit card companies.
For those who waited too long to do something about their situation, bankruptcy may be the only answer. That is a step you want to avoid whenever possible, so unless you have extenuating circumstances, recognize the extent of your financial situation before it's too late to work with your creditors.
------
Economic Advisor 'Discover the 7 easy steps from debt taxes and worry to a stress free financial future in 37 1/2 days or less guaranteed!" click here for a 20 page free report and dvd http://www.savemonthly.com
For more information click here
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