** Credit Card Debt Relief Tip of The Day **

Can A “Do It Yourself” Plan Help To

Control Credit Card Debt?

By Donna Nell
Guest Author

After the colossal financial collapse in the US, people are submerged in the sea of debt. These debt stricken consumers are struggling hard to come out of this catastrophic financial situation. In such a situation, they rely on credit card debt settlement to eliminate their financial woes. You can easily manage and settle your credit card debt on your own if you follow some simple steps.

Here are a few steps that can guide you to settle your debts directly with the creditors:

1. Contact your credit card companies and negotiate with the creditors to reduce the interest rate. When the interest rate on the principal balance is reduced then a large amount goes toward paying down the balance.

2. Prepare a list of your credit cards include the name of the card, interest rate, your current outstanding balance along with the minimum balance and due date. Prepare a list of your credit card debts in descending order of the interest rate then it will be easier to pay back.

3. Try to calculate your minimum payment to estimate the amount required to pay off the debt. You can include additional money that you can use to put forward towards paying off the credit card debt each month.

4. You should try to save money for a settlement offer, then it will be easier for you to settle your debt like a professional. You can negotiate your debt with the creditors to reduce the principal balance by 40% to 50% of the owed amount. The creditor has to give his consent before you start repaying as per the settlement amount.

5. But remember that the settled accounts are considered as charged off accounts by the credit bureau. The Internal Revenue Service treats the forgiven debt as taxable income. Try to convince the creditors to report the account as “paid in full” instead of “settled in full”. Otherwise your creditor will consider you as a high risk borrower and you might face problems getting loans in the future.

** Credit Card Debt Relief Tip of The Day **

Try Negotiating with Your Credit

Card Company YOURSELF –

You May Be Surprised!

Are you mired in store credit debt? Perhaps you owe thousands of dollars to store charge cards. While stores prefer to be paid off in full (they’re a business, after all), they aren’t beyond compromising if you are sincere and honest. Call the credit controller and let them know your situation. If you are having cash flow problems or you anticipate having cash flow problems for a few months, inform them and let them know how much you can afford to pay them in the next few months. They may be willing to lower your monthly due for a few months or they could even lower the interest rate and forgo penalty rates.

It’s the same thing with credit cards. Credit card companies want their borrowers to pay them back. However, if you are truly experiencing financial hardships and you contact your credit card companies as soon as possible to work out a compromise, they are often more than happy to work with you. Credit card companies may lower your interest rate or lower the amount you have to pay for a few months without penalty. Whatever you and the credit card companies agree on, make sure you stick to it and fulfill your part of the deal.

There are companies that will do debt negotiation for you, but you have to be careful and prudent about whom you select. Doing your own debt negotiation can be just as effective, and save you a ton of money in fees.

** Credit Card Debt Relief Tip of The Day **

Learn Debt Management and

Break Free of the Debt Chain

Do you owe the bank a huge amount of money? Are you finding it harder and harder each month to pay your bills? Have you borrowed money from friends and now they are wanting you to pay them back? You are no doubt in a debt chain. You and thousands of others are trapped in this debt chain. If you wish to break free from this chain, you need to be committed to changing your habits.

If your debt is spread across several accounts, you can reduce this debt by consolidating your bills. If you own two or more cell phone plans, why not put them all in one plan and take advantage of the savings? Go with the best plan according to your needs. Do the same with your TV. Why are you paying for the extra channels when you aren’t using them?

Unless it’s more than a mile to the store, ride a bike or walk instead of driving your car there. Know that your car burns more gas to run one mile than it does to run five miles or more because of the starts and stops. Gas prices are so high now, you can save yourself money when you don’t have to put the cost of gas on your credit card.

Consider buying in bulk those items you frequently use and need — paper towels, toilet paper rolls, soap bars, cleaning supplies, etc. Buying these items in bulk often comes out much cheaper than if you were to buy these household items individually.

If you go out for entertainment every week, consider cutting back to just two times a month. And when you do go out, allocate how much to spend and then stick to that budget.

Getting into the mindset of only spending what you can afford, leaving enough left over to make extra payments (above your minimum payment) to the credit card companies is critical to reaching the light at the end of the tunnel of your debt.

** Credit Card Debt Relief Tip of The Day **

The Easiest Way to Get Out of Credit Card Debt?

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Thousands of Americans have gotten out of credit card debt, and that may include yourself. The only way to get out of credit card debt is to do more than just paying the required minimum payments each month. You don’t have to do a lot more, though, beyond picking a monthly payment level, and never lowering it. Consider the following example of how you can get out of credit card debt.

A Credit Card Debt

Payment Case Study…

Let’s look at Amy’s situation. She has been trying to pay off her credit card debt for awhile but she isn’t making any progress. According to Amy’s credit card statement, the amount she owes is around $5,200 and her interest rate is 18%. The minimum payment is based on either 3.5% of the balance or $10, whatever is the highest. She is like a lot of people who do not really understand their finances and believe that not using the card anymore and paying the minimum amount each month would eventually get her out of debt.

Here’s the Truth

Let’s assume Amy is not charging on this credit card anymore and she is paying just the amount required by the credit card company based on the way it calculates the minimum payment amount each month. If Amy does this, she will not pay the debt off for 181 months and the amount of interest she will pay will be around $3,700 when she is done. That means 15 years later and $8,900 poorer, Amy will have paid off the $5,200 of credit card debt. That is crazy! You can see why she feels like she is not making any progress on reducing her credit card debt this way.

A Better Approach

There is a simple way to get out of debt faster. Amy’s minimum payment is currently around $180.00 and she is able to pay this easily. If she keeps paying $180 every month until the debt is paid off instead of lowering her payment to match the required minimum as it goes down, she will be much better off. Doing so will reduce the amount of time needed to pay the credit card off to 43 months from 181 months. It will also lower the total interest she ends up paying to around $1,600, which means she will save more than $2,100 of her hard earned money.

She Can Do More!

If Amy really wants to eliminate credit card debt, she should raise the new minimum payment that she is going to continue to pay. If she decides to pay $18 more each month, her monthly payment would be around $200. That would mean she would pay the debt off in 34 months, not 181 months and the amount of interest she would pay would decrease by $2,300.00.

She could increase her monthly payment by $68 to around $250 every month, which would mean the debt would be paid off in 26 months, not 181 months and she would decrease her total interest paid by $2,600. That is a big savings and the debt would be paid off a lot faster.

In order to make a big dent in the credit card debt in a short time, Amy could pay double the minimum payment she is going to stick with until the debt is paid off. This is great if she can afford to do it. If she paid about $360 every month, her credit card debt would be gone in just 17 months. That is less than 2 years!

Summing It All Up

You have a lot of options when it comes to eliminating credit card debt but the method described above is fast and easy and will make a big difference. Anyone can use this method of credit card debt elimination to get his finances back in order. It’s easy! Just don’t charge on your credit cards anymore and pay the minimum payment you have now until the debt is paid in full. Every month you will be paying down more and more principle on your debt and your debt will be gone before you know it.

** Credit Card Debt Relief Tip of The Day **

How to Reduce Credit Card Debt …Aggressively

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In reducing your credit card debt problem, you can fight back and regain control of your financial situation. The first thing you need to do is take a really close look at your current situation. Because of all the anxiety you have about your finances, it can become easy for you to lose perspective.

If Your Credit Card

Debt Problem is

Relatively Small…

For instance, it should be a big deal to you when you miss a credit card payment and you get a letter from your credit card company. After all, this CAN negatively affect your shorter term credit score, so you never want to miss a payment. However, in the overall scheme of things, you can easily rectify this problem: call up your credit card company, explain your situation, and see if both of you can come up with a solution to the problem. Your credit card company may lower your interest rate or your minimum amount due each month while you are trying to get your financial situation straightened out. As long as you have a good track record, the credit card company may be willing to cut you some slack.

If you are struggling to meet your financial obligations to creditors, contact them right away. You creditors may be able to help you. They can restructure your debt, draw up a new repayment plan for you, get the penalty charges rescinded, or some other solution.

If Your Debt Problem is More Serious,

Consider a Debt Consolidation Loan

If you have a more serious debt issue, one option to consider is a consolidation loan. While it isn’t really a good idea to take out additional loans when you are already having a hard time with your current debts, a consolidation loan may help clear out your debt problems. If you decide to go with this debt solution, speak with a reputable debt consolidation company. If they think a debt consolidation loan is not a good option for you, they will let you know and not lend to you even if they are a consolidation loan provider.

…Or Talk to a Professional Debt Counselor

If debt consolidation isn’t a viable option for you because you have poor credit or you don’t have collateral, you have other debt solution options available. It’s a good idea to see a debt advisor or debt counselor who works at a debt handling company or non-profit organization. A debt counselor can help you explore your options and find ways as to how you can improve your situation.

** Credit Card Debt Relief Tip of The Day **

Rising Credit Card Debt Means Rising

Anxiety for Many

Huge debt is one of the biggest sources of stress and anxiety. But you have plenty of company because millions of people today have huge debts that they can’t seem to get out of. If you are experiencing debt problems right now, it may be that your debts have gotten out of hand because the amounts you have to pay every month are getting to big for you to handle.

In some cases, people get buried in debt because their financial circumstances change, they lose their jobs, the sole provider dies, or they incur huge medical expenses. Regardless, they are now unable to manage the debts they have that there were able to repay rather successfully before.

It’s Hard to Enjoy Life

When Swimming in Debt

If you are in a huge debt situation, you are likely feeling that gnawing fear and you can hardly enjoy life because you are always thinking about the debt. The mere ringing of the phone can send you in a cold sweat because it could be one of your creditors wanting to “discuss” your situation. You may even dread and stop opening your mail because you’re afraid of reading bad news regarding your debts.

It is very tempting to lock yourself up in your room, just curl up in a ball and wish your debt problems will go disappear. However, taking this approach never works. No matter how bad your debt situation, the only way you can start getting out of it is if you take steps towards taking back control of your debt. If you continue to ignore or hide away from your debt problems, your problem is only going to get worse.

Credit card debt is something that is widely discussed. However, there is one aspect of credit card debt that is often ignored: credit card stress. Credit card debt can be a source of great stress for many and can adversely affect your life if you allow it.

It can be tough to not feel the stress of credit card debt, but the key is in learning how to effectively deal with the stress. Stress isn’t any better than an addiction. It’s always looming. It can bring you down, and even make it difficult for you to lead the life you want to lead. If you can recognize the signs of credit card debt related stress, you will be able to deal with it effectively.

What are the Symptoms?

Some of the more common symptoms of stress are inability to sleep, headaches, irritability, feelings of depression, forgetfulness, and inability to concentrate or focus. If you are unsure if any or some of these symptoms are stress related or not, it’s a good idea to see your doctor about it.

Who Experiences Stress?

Nearly everyone who has debts experience stress. In fact, millions of days off work annually is blamed on debt. Debt has also been identified as one of the leading causes of suicide. A large portion of people who are in debt are students, college graduates, and newlyweds.

The average American owes several thousands in debt. Many owe hundreds of thousands of dollars in debt. If you think you’re in a bad debt situation, chances are there are thousands of others that are in worse situations than you.

Dealing with Debt Related Stress

Many people would rather not talk about their stress, especially if it is caused by their debt. They try to put up a happy front even to their family members and closest friends. They hide their stress and their debt problem because they are embarrassed and worried about being viewed as a failure. However, this is not a healthy way to deal with debt related stress.

It can only make you even more stressed, particularly if you are trying to hide it from your spouse, the one person whom you can turn to for support.

Find two people to help you deal with stress. Find one person who can give you advice and another person can be your personal counselor. The first one can be a professional in debt and financial matters, while the second person can be a psychologist or psychiatrist who can help you sort through the mental and emotional effects of your debt problem.

Come up with a solid plan that you can follow to help you get out of debt and become better at managing your finances. Figure out exactly the extent of your debt. Start following a budget. Identify the unnecessary expenses and try to pay off the debt with the highest interest and work your way down. Stick to your plan and you will find yourself eventually out of debt. Be persistent, patient, and disciplined.

Watch for my next post about how to aggressively tackle your credit card debt problems……….

(For now, allow youself a little levity about your debt by watching the videos on the following two pages: Here and Here.)

** Credit Card Debt Relief Tip of The Day **

CNN Money Says DON’T CANCEL Credit Cards

There has been an ongoing  debate over whether or not to cancel credit card accounts as a way to help with credit card debt relief. The old school of thought was that canceling unused cards would help quell the fears of lenders that you might put yourself more heavily into debt if you have unused credit. Also that canceling the cards would take away your temptations to spend.

But CNNMoney.com put out a report on August 24, 2009 that says your credit ratings will SUFFER if you start canceling credit card accounts, especially if they are older accounts. Why? Because older accounts show more readily that you have a track record with credit (hopefully a decent one). Your credit score will actually go UP if you have old credit card accounts (with a zero balance).

Debt to Credit Ratio Extremely Important

It also has to do with the ratio you owe compared to the amount of credit you have. If you have a lot of credit card debt and decide to start canceling credit cards that are already paid off, then your debt to credit ratio is going to rise. The best ratio is 10% or less in the eyes of your creditors and how your credit score is kept.

For instance, if you have $5000 of credit card debt, but your available credit total of all your cards is $50,000, then you have an acceptable debt to credit ratio of 10%. But if you delete credit card accounts, and your available credit total becomes only $20,000, now you have a debt:credit ratio of 25%. That’s a big red flag these days to both lenders and to your credit score.

Actually Open NEW Credit Card Accounts?

So, what’s the best thing to do to help with your credit card debt relief and credit score, according to CNN Money? Pay off your credit cards, but DON”T delete credit card accounts (especially older ones). They actually say that OPENING NEW accounts, while it will negatively affect your credit score in the short run, is actually advantageous to your credit score in the long run (but this is only a good strategy, they say, as long as you don’t need a loan in the very near future).

To see CNN Money’s post on the cancel credit card issue, click the link.

Disclaimer - Remember that the information on this website/blog is by no means official information. While we attempt to be as accurate as possible, the content is largely opinion and entertainment based and should not be confused with official legal or financial advice. If you need help with credit card debt relief, you should seek the advice of a reputable and professional debt counselor. Further, a commission may be paid to the owner of credit-card-debt-relief.org for clicking into other sites through pay per click ads or by purchasing products or services of affiliated websites. (Please Read our Terms page for further info.)

Credit Card Debt Relief Tip of The Day

When Do You Have Too Much Debt?

Credit is one of the few things in life that is both a blessing and a curse. Credit is a very good and convenient way for us to pay for things we need when we don’t have the money we know is coming to us. It can be a curse, however, when we end up putting everything on credit and not being able to repay them on time. It can be easy for debt to pile up this way.

So how do you tell exactly if you have too much debt? Take a look at how much money you owe to various lenders and creditors. You may be able to comfortably make your debt payments currently, but that is not an indication that you have no credit or debt problem.

A Typical Example of Debt

Sneaking Up On You /

Needing Credit Card

Relief

Take for example Betty and John.They basically lived their lives the way they want to. They had a number of credit cards, two car loans, and a mortgage they were repaying. Betty and John were able to make extra payments on their debts. They believed they were doing rather well with their debts. If they wanted something, they simply charged it on their credit card and paid for it later.

And then it happened. Betty discovered she couldn’t work anymore. They were both surprise to discover how much their second income mattered until the next time the monthly bills came. All of a sudden, Betty and John found themselves in a position of not being able to pay their bills. They were better off than most couples, actually. They had a budget and they used their savings to get their revolving debt paid off in just a year. Today, they’re on the road to being debt free completely.

Realize You Have a Credit Card Debt

Problem Before It’s Too Late

Many Americans are not as fortunate as Betty and John when it comes to debt. They are in much worse shape, and in most cases, they realize too late that they have a serious debt problem.

Here are some questions you can ask yourself to determine if you face financial ruin as a result of debt…

If your answer is no to one or more of the following questions, you could be headed towards the path of debt ruin:

* Do you maintain a savings account?
* Are you able to pay more than the minimum amount due on your credit cards?
* Do you use your credit cards only for emergencies?
* Is your income large enough to pay off all your existing debts?
* Do you maintain just one credit card?
* Does the balance on your credit card go down significantly each month?

Red Flag Debt Signs

Answering “Yes” to Any of These Questions May Mean You Have a Serious Credit Card Debt Problem:

* Are you near or at your credit card limit?
* Do you write out checks hoping they aren’t going to clear until you can deposit some money to your account?
* Do you use your credit cards to pay yourmonthly bills?
* Have your cards been declined when you were trying to make a purchase?
* Have lenders denied you credit?
* Have you issued bounced checks?
* Do you avoid phone calls from collectors?
* Do you lie to others regarding your spending or debt situation?

The First Step to Correcting a

Worsening Credit Card Debt Situation

If you want to change your financial situation, the first step is to realize you have a spending and/or debt problem. When you know the extent of your problem, you can being formulation a plan on how you can fix it. Altering your financial situation is not easy, nor does it happen overnight. It takes discipline, patience, persistence, hard work, and making sound decisions. You can turn to companies to help you with your debt problem, but you have to make sure these companies you turn to for help is reputable and won’t put you in even deeper financial trouble.

Disclaimer – Remember that the information on this website/blog is by no means official information. While we attempt to be as accurate as possible, the content is largely opinion and entertainment based and should not be confused with official legal or financial advice. If you need help with credit card debt relief, you should seek the advice of a reputable and professional debt counselor. A commission may be paid to the owner of credit-card-debt-relief.org for clicking into other sites through pay per click ads or by purchasing products or services of affiliated websites. (Please Read our Terms page for further info.)

**Credit Card Relief Tip of The Day **

Tips for Staying Out of Credit Card

Debt

Credit card debt is like a virus affecting nearly everyone’s bank account. But credit card debt relief, unfortunately, usually only comes through some form of tough, time consuming cutbacks in spending and paying down of debt. …So just like with many diseases, prevention is much preferred and much less painful than the treatment after it has infected you.

You (like me) are probably all too familiar with credit cards. And maybe you (like me) could use a decent amount of credit card debt relief? Most people who have a credit card could use some measure of debt relief – some more than others, of course. Just about everyplace you go these days accepts plastic as quickly as money. I even know someone who ran up THOUSANDS of dollars of credit card debt going to strip clubs, of all places! (LOL)

Online shopping has only increased the amount of credit card debt people have accumulated. If you do not payoff your credit cards in full each month, you are going to have to pay a ridiculous amount of interest on your balances and that can ruin your financial health.

Resist The Lure of “Easy Buying”

Another problem to do with credit debt is that we are all getting so many credit card offers in the mail each week. Some people simply cannot resist the lure of “Easy Buying”, and then find out the truth when it’s too late – “Easy” Does Not Equal “FREE”.

Credit cards are a necessary evil in our society today and can be helpful if they are used responsibly. You really do need at least one credit card available to use but you have to be careful not to apply for every credit card offer you receive. You also need to pay your credit card debt off every month. A good idea to help you control your spending may be to get an American Express card that has to be paid in full each month. That way you won’t be tempted to spend more than you can afford. The problem, however, is that American Express is not universally accepted. If you are concerned about accumulating credit card debt (and eventually needing credit card debt relief), the following suggestions will help you avoid problems with your finances.

Here are Four Tips For Staying Out of

Credit Card Debt

1.  Don’t spend money you don’t have just to get credit card rewards. Credit cards that offer things like frequent flier miles are great but only if you can pay off the balance each month. If you carry a balance on a frequent flier reward card, you will have to pay a high interest rate and that means that your so called free airline ticket will actually be costing you more than if you had just bought it yourself!
2. Read all the fine print on any credit card offer you are considering. The teaser low introductory rates they offer you are probably only going to be temporary. That is not the only trick credit card companies use, though. If you are late even by just one day, you will possibly lose your introductory interest rate and end up with a high interest rate. The low introductory rates may also only apply to a balance you transfer from another card, and there are usually balance transfer fees. Also, find out if you have to pay an annual fee and how much other fees, like over the limit fees, are going to cost you (high fees may add to your need for credit card debt relief!).
3. Watch out for the so called grace period offers. Your credit card offer may say that there is no interest if you pay in full before the due date. Some credit cards actually start applying interest as soon as you make a purchase so you really do not have a grace period at all. Others give you a very limited amount of time to pay the balance before interest starts accruing. The grace period may only be a few weeks and may expire prior to the payment due date.
4. To Close or NOT to Close Unused Credit Card Accounts? If you have a credit card you are not using, some experts say you should close the account. Having too much credit available can make it hard to get a home loan or car loan. They say that lenders do not want to risk you using up all your available credit and defaulting on their loan, so you should not keep unused credit cards open (This one is now debated quite a bit. Some other credit experts say that credit cards with a history of non-use shows lenders that you can be responsible with credit, and therefore to keep those accounts open, or at least keep open the oldest account).

Disclaimer - Remember that the information on this website/blog is by no means official information. While we attempt to be as accurate as possible, the content is largely opinion and entertainment based and should not be confused with official legal or financial advice. If you need help with credit card debt relief, you should seek the advice of a reputable and professional debt counselor. Further, a commission may be paid to the owner of credit-card-debt-relief.org for clicking into other sites through pay per click ads or by purchasing products or services of affiliated websites. (Please Read our Terms page for further info.)