Good ways to get out of credit card debt include not using cards and quickly paying down cards with smaller balances. Stay out of credit card debt by throwing away enticing low interest-rate offers received in the mail with advice from acertified public accountant and credit counselor in this free video on debt management. Expert: Jerrie Guthrey Bio: Jerrie Guthrey has been a certified public accountant and credit counselor since 1992. Filmmaker: Jack Guthrey
Debt Management Tips : How to Get Out of Credit Card Debt
February 8th, 20104 Credit Card Debt Settling Mistakes That Can Cost You
February 7th, 2010
The way credit card debt settling services work is that they negotiate with lenders, such as credit card companies, on your behalf. They can negotiate lower interest rates, easier payments, or sometimes even having the debt canceled entirely. They sound like a great way to deal with debt, but there are some things that you should know first.
There are a number of possible problems you can run into with these services. Let’s take a look at three of the most common…
They Can Hurt Your Credit Score
When a debt settlement service contacts your credit card company to negotiate on your behalf, the credit card company will often put a note on your credit report stating that debt settlement proceedings are underway. This can cause a drop in your credit score, as well as cause you to be declined for other financing.
You Can Wind Up Paying More
Most debt settlement services collect a lump-sum payment from you that is enough to cover all your payments, and then they distribute the payments to the lenders.
But if they don’t make any of those payments on time, you’re the one that pays for it. This can include more interest plus late fees and other service charges that get added to your balance.
You’re not in control of the payments they’re making, and therefore you can’s manage them as well as if you were handling it yourself.
You Can Run Into Legal Trouble
When debt settlement proceedings are underway, you can still be sued by lenders. Settlement is not like bankruptcy – it doesn’t give you any kind of legal protection, so you’re still at risk of being sued.
Tax Implications
If a debt settlement service manages to get some of your debt canceled (ie. you don’t have to pay it back) it can have income tax consequences. You’ll be taxed on the amount of money that is forgiven, since it is effectively a type of income for you.
As you can tell, there are a number of potential landmines when you start working with a debt settlement company. Before you take the leap, you should always weigh all your options to be sure you’ve done everything you can for yourself.
You can find out more about how to pay off credit card debt on the Debt Reduction Academy website. Visit debtreductionacademy.com/articles/qanda.php now to get a free copy of my Debt R.E.D.U.C.T.I.O.N. System for paying off debt as quickly as possible.
By: W. M. Blake
There are a number of possible problems you can run into with these services. Let’s take a look at three of the most common…
They Can Hurt Your Credit Score
When a debt settlement service contacts your credit card company to negotiate on your behalf, the credit card company will often put a note on your credit report stating that debt settlement proceedings are underway. This can cause a drop in your credit score, as well as cause you to be declined for other financing.
You Can Wind Up Paying More
Most debt settlement services collect a lump-sum payment from you that is enough to cover all your payments, and then they distribute the payments to the lenders.
But if they don’t make any of those payments on time, you’re the one that pays for it. This can include more interest plus late fees and other service charges that get added to your balance.
You’re not in control of the payments they’re making, and therefore you can’s manage them as well as if you were handling it yourself.
You Can Run Into Legal Trouble
When debt settlement proceedings are underway, you can still be sued by lenders. Settlement is not like bankruptcy – it doesn’t give you any kind of legal protection, so you’re still at risk of being sued.
Tax Implications
If a debt settlement service manages to get some of your debt canceled (ie. you don’t have to pay it back) it can have income tax consequences. You’ll be taxed on the amount of money that is forgiven, since it is effectively a type of income for you.
As you can tell, there are a number of potential landmines when you start working with a debt settlement company. Before you take the leap, you should always weigh all your options to be sure you’ve done everything you can for yourself.
You can find out more about how to pay off credit card debt on the Debt Reduction Academy website. Visit debtreductionacademy.com/articles/qanda.php now to get a free copy of my Debt R.E.D.U.C.T.I.O.N. System for paying off debt as quickly as possible.
By: W. M. Blake
Help With Paying Off Credit Card Debt Balances
February 4th, 2010
hubpages.com Need help with paying off your credit card balances? Debt settlement and bankruptcy are too costly. Try this method of paying off debts fast and be debt free.
Is credit card debt considered an open account or a written contract?
January 26th, 2010I live in the State of Georgia and am being sued over an old credit card that I defaulted on. It has been more than 4 years but less than 6 years since the date of default, so depending on whether credit card debt is considered an open account or a written contract in the State of Georgia, the Statute of Limitations may or may not apply. The Staute of Limitations is 4 years for open accounts and 6 years for written contracts. Does anyone know for certain which type applies for credit card debt in Georgia? The account is with Citibank MasterCard and was opened in the late 80’s or early 90’s. Thanks.
Using Credit Card Debt Consolidation Wisely
January 18th, 2010
We all live in a world where it is easy to get credit cards. When you first begin your journey unto adulthood and bring in income, there are requests and applications available most days to convince you that you need to have a credit card. The worst part is that they only require small minimum payments that barely cover the interest fees, much less paying off the debt itself. Once you acquire one credit card, you are assumed to be a safe risk and may be asked to apply for a variety of high interest, low payment credit cards for everything from general use, to store cards and even gas cards.
As easy as the cards come, the debt continues to follow just as easily. Eventually, this credit card debt becomes increasingly larger and the ability to pay with your card at so many places can begin to add up and become unmanageable. A good credit card debt consolidation plan will encourage you to list all of your creditors and therefore make an inventory of the entire debt that is due. Sometimes this includes every payment that you make and compares it with what you must pay immediately and those that can wait longer.
Credit card debt consolidation is a way of fighting against the pernicious and creeping spread of credit availability. People who begin to get credit are soon offered multiple lines of credit, sometimes with high interest rates since they are more of a risk and are just beginning to establish themselves. Credit card companies are also more likely to realize that, over time, you will continue to increase your income and be able to handle more credit. That is, if you can make it that long. The reality is that, in just a short while, your credit rating can be ruined by overextended credit card debt. This can not only affect your day to day finances but also your credit score. This can make it very hard to obtain new credit once you have cleared up the debt issues, since it appears that you are unable to manage your financial responsibilities in an adequate manner.
People more commonly use credit cards because you can charge them now and worry about paying later. The reality is that many people in credit card debt spend more than their income will allow. If this bad habit continues, they are not only forced into debt consolidation but could possibly lose access to all of their credit cards and many other financial resources besides. Indeed, part of the credit card debt consolidation management plan should always include debt management and changing spending behavior to ensure that they are not in the same situation.
One thing to remember is that just because someone puts into practice good credit card debt consolidation management plans the first time, the real change comes when their spending habits are also changed. Otherwise, they will be back to the same situation in just a short while. Often when you are in debt consolidation and you acquire new debt, this new debt will not be included in the old consolidation plan. People may end up making more than one payment to several places and thus increase their credit card balances again.
The real answer is prudence. Every one of us must draw up a list of incomings and outgoings and keep to that plan solidly. There is no escaping from this hard fact of life. As Mr Micawber immortally said, in Dickens’ novel David Copperfield, “Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”
That’s a lesson that is as true now as it was then. What a shame there was no such thing as credit card debt consolidation in Mr Micawber’s day!
By: Gordon Goodfellow
As easy as the cards come, the debt continues to follow just as easily. Eventually, this credit card debt becomes increasingly larger and the ability to pay with your card at so many places can begin to add up and become unmanageable. A good credit card debt consolidation plan will encourage you to list all of your creditors and therefore make an inventory of the entire debt that is due. Sometimes this includes every payment that you make and compares it with what you must pay immediately and those that can wait longer.
Credit card debt consolidation is a way of fighting against the pernicious and creeping spread of credit availability. People who begin to get credit are soon offered multiple lines of credit, sometimes with high interest rates since they are more of a risk and are just beginning to establish themselves. Credit card companies are also more likely to realize that, over time, you will continue to increase your income and be able to handle more credit. That is, if you can make it that long. The reality is that, in just a short while, your credit rating can be ruined by overextended credit card debt. This can not only affect your day to day finances but also your credit score. This can make it very hard to obtain new credit once you have cleared up the debt issues, since it appears that you are unable to manage your financial responsibilities in an adequate manner.
People more commonly use credit cards because you can charge them now and worry about paying later. The reality is that many people in credit card debt spend more than their income will allow. If this bad habit continues, they are not only forced into debt consolidation but could possibly lose access to all of their credit cards and many other financial resources besides. Indeed, part of the credit card debt consolidation management plan should always include debt management and changing spending behavior to ensure that they are not in the same situation.
One thing to remember is that just because someone puts into practice good credit card debt consolidation management plans the first time, the real change comes when their spending habits are also changed. Otherwise, they will be back to the same situation in just a short while. Often when you are in debt consolidation and you acquire new debt, this new debt will not be included in the old consolidation plan. People may end up making more than one payment to several places and thus increase their credit card balances again.
The real answer is prudence. Every one of us must draw up a list of incomings and outgoings and keep to that plan solidly. There is no escaping from this hard fact of life. As Mr Micawber immortally said, in Dickens’ novel David Copperfield, “Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”
That’s a lesson that is as true now as it was then. What a shame there was no such thing as credit card debt consolidation in Mr Micawber’s day!
By: Gordon Goodfellow
How do I fix credit card debt, I got good info on http://credit-debt-consolidation.blogspot.com/ , need more?
January 11th, 2010I have $10,000 in credit card debt, and found some resourceful information on the blog with some good links, and I am wondering if anyone has some more.
Credit Card Debt Negotiation Tips
January 4th, 2010
One thing many people don’t understand is that they have the advantage. Most consumers run from debt collectors. Just the mention of a collection agency strikes fear in the hearts of the masses.
But, you have something the collector wants. They are basically begging you to pay. So if you get the image of a beggar calling you to ask for money in your mind, the collection agent doesn’t seem so intimidating. I certainly don’t want to down play the seriousness of the situation. They do have recourse, and it can be dire. But the fact is that the process is slow.
You can get them to give you the deal you want. You have to be firm, professional and show some fortitude. They are always going to tell you no. Relax, take a deep breath.
I really want to encourage you to NEVER talk to a collector on the telephone. First, most people can collect their thoughts a little better in a letter. It gives you time to think and make rational, unemotional, unpressured decisions. Second, everything you do with the collection agency needs to be written. If you use the mail everything is documented and date stamped. They can’t dispute it.
Most collection agencies pay literally a few cents on the dollar for old debt. Depending on the age, 1-7 cents may be average. On debts that are out of statute, they have paid one cent or less on the dollar.
Start your negotiation at 25% or less. If you owe $1000, offer $200 or $250. Many will accept quickly because they are making money can close out the account.
If the collection agency has added “fees”, don’t include them in the negotiated amount. Only negotiate on the original amount of the debt. Don’t seem to eager. Don’t volunteer any information. Never give them your bank account number, your employer or that inevitable “other number to contact you at”. Oh yeah, and why are you talking to them on the phone?
Time is on your side. Be firm, and get the deal you want.
By: Ted Batron
But, you have something the collector wants. They are basically begging you to pay. So if you get the image of a beggar calling you to ask for money in your mind, the collection agent doesn’t seem so intimidating. I certainly don’t want to down play the seriousness of the situation. They do have recourse, and it can be dire. But the fact is that the process is slow.
You can get them to give you the deal you want. You have to be firm, professional and show some fortitude. They are always going to tell you no. Relax, take a deep breath.
I really want to encourage you to NEVER talk to a collector on the telephone. First, most people can collect their thoughts a little better in a letter. It gives you time to think and make rational, unemotional, unpressured decisions. Second, everything you do with the collection agency needs to be written. If you use the mail everything is documented and date stamped. They can’t dispute it.
Most collection agencies pay literally a few cents on the dollar for old debt. Depending on the age, 1-7 cents may be average. On debts that are out of statute, they have paid one cent or less on the dollar.
Start your negotiation at 25% or less. If you owe $1000, offer $200 or $250. Many will accept quickly because they are making money can close out the account.
If the collection agency has added “fees”, don’t include them in the negotiated amount. Only negotiate on the original amount of the debt. Don’t seem to eager. Don’t volunteer any information. Never give them your bank account number, your employer or that inevitable “other number to contact you at”. Oh yeah, and why are you talking to them on the phone?
Time is on your side. Be firm, and get the deal you want.
By: Ted Batron
What is the advantage of settling a Credit Card debt and how is it going to show on my credit report?
December 27th, 2009I have a credit card debt is not so much I actually thought I can pay it all off. I received a phone call from the bank and they offered a settlement much less then what I owe. Can this really back fire on me or affect my credit in a really bad way?
Effective Debt Settlement Program
December 24th, 2009
Debt can happen to anyone. Don’t let outstanding debts or credit card balances control your life. Debtcaretaker.com services can help you take charge of your finances and eliminate debt fast. Debt settlement is a method of eliminating debt for less than the amount actually owed to creditors. In this process, you stop paying your monthly payments to creditors and instead save some money. When you have saved at least 50% of the total, you start to negotiate with your creditors for a refund …
Credit Card Debt Problems
December 22nd, 2009
Credit Card Debt Problems. We Can Help. avoidpersonalbankruptcy.org