Student Credit Card Debt

7 Tips On Finding A Debt Settlement Company For Your Credit Card Debt

Some people are looking to settle on their credit card debt, but aren’t sure how to how to go about it. There are many debt settlement companies out there that specialize in settling credit card debts, but sometimes it can be difficult to determine if it’s legitimate or not.

Some of them are reliable and reputable, others are nothing more than shams and frauds that just want your money. You’ll still be sitting with a mountain of debt while they’ve moved on to their next victim.

If you are thinking of going this route, there are some things you need to know before you commit to a debt settlement company. Here are 7 tips you should take heed of prior to picking one:

1. Within the debt settlement industry, there is a trade association called TASC or The Association of Settlement Companies. This association works with its members so that they will be in compliance with the standards and rules of the industry. If the company you want to use is not a member, then find another debt settlement company.

1. You need to know up front what kind of fees the credit card debt settlement company will charge you. Some of them charge one flat fee. This flat fee is determined as a percentage of your total debt cost. Some of them get this fee each month. They even get it when no settlements have been finalized. The fee should be connected to the result of the settlement and not as a percentage.

1. If you want to know about money back guarantees, they should be at least be good for 30 days. If it isn’t then don’t accept the agreement. Don’t allow the debt settlement collectors to talk you into something less than 30 days.

1. If you ask about commission and they tell you yes—watch out. They might try to railroad you by charging you exorbitant fees. Forget it and move on.

1. When dealing with credit card debt settlement companies, your credit will be affected negatively. If you ask and you’re advised otherwise, then that’s a red flag to not do business with them.

1. Asking how long it will take to finish the credit card debt settlement is like asking when you will stop growing. No one knows the answer to that, and the collectors don’t know the answer about time frames. If they tell you otherwise, they’re lying just to get your business.

1. When you ask about your first settlement, they should tell you that it should be done within 12 months. Anything longer than that is a lie and a fraud.

Once you get these questions answered, you should have enough information to determine whether or not you will select them to represent your credit card debt settlement. You can also check with your local consumer division as well as the Better Business Bureau to see if they are legitimate or have numerous complaints against them.

It’s better to be informed and educated up front than wait until later to get scammed.

Credit Card Debt Elimination Services

Everyday, people are struggling to get rid of their debt, in particular, credit card debt. Advertisers constantly bombard unsuspecting people with ads that claim to promise “100% credit card debt elimination” or something similar without you having to make payments. Well, you can do that with bankruptcy, but thats about the only way.

Realistically, you should expect to save about 30 to 50% in a debt negotiation and settlement plan. credit card debt elimination programs don’t seek to get your creditors to forgive your debt entirely. They seek to come to an agreement that you can both live with where you pay what you can afford, and the creditor takes the tax loss for the balance. So everyone gets what they want.

If people tell you they can eliminate all of your debt then they are offering nothing more than a marketing scheme designed to get your money or at least as much money as they can suck out of you. Any service or company that promises to eliminate all of your credit card debt using “elimination services” is not operating under ethical guidelines. There is nothing ethical about telling someone that they can promise you that.

These credit card debt elimination services are not entirely truthful because by law, you are required to pay what you owe on your credit card debt. However, the scammers and schemers will try to dupe people into thinking there is some magic for them not to make payments and the debt will just disappear.

There are laws that that specify that if you owe on a credit card debt, that you are legally obligated to pay it. In order for you to get a credit card, you had to provide information. You also had to provide your signature in order to verify that you had read the rules and regulations regarding paying what is owed on the credit card.

No ethical company would tell you that you can negotiate all of your debt away. However, that’s what these so-called debt elimination plans try to con people into doing.

The practical thing to do is to make payments on your credit card every month. You should also pay your credit card debt in a timely manner. This is important because this will reflect on your credit score.

A shady debt elimination program is nothing more than a way to take your money and keep you in debt. Your debts will still be there because you haven’t paid on them. In order for debt negotiation and credit card debt elimination to work, you must have written agreement negotiated with your creditors.

Be careful when people approach you with these types of tricks and schemes. You may be in more than you bargained for, not only with your creditors but also with your credit.

If it sounds like I am being a little harsh, I am. But its important that people realize what they are getting into, and have truthful expectations of what is in store for them. I’ve never been one to blow sweet smoke in anyones face. Hopefully, this is what you want to hear. The facts!

In my opinion, the best way to use debt negotiation is to do it yourself, period. You know your financial situation better than anyone. You need to learn a few pointers, and get some guidance – but the actual process isn’t as complicated as people have made it seem. credit card debt elimination is a combination of factors. It includes both a settlement amount, and a partial forgiveness of the debt. It’s a compromise. Planned and executed properly, it can help you get out of debt, stay out of debt and get your life back in control.

How Christian Debt Consolidation Can Help

There are Christians who are over the heads in debt just like the rest of the world. They are so frustrated and they’re at their wits end. They cannot do much with debt hanging over their heads. To be honest, Christians should be the last ones worrying about debt. There are resources available to help God-fearing people and others.

Christian debt consolidation services are available for those believers that need a solid financial foundation. It combines the spiritual with the practical. Christians can’t just have the spiritual and think they’ll get out of their debt situation.

They need to have both so there will be a balance. The principles of these types of services are based on Christian doctrine. So, anyone who is a Christian should not feel threatened. However, there may be non-Christians who may be offended at this type of setting.

This type of program is designed to help people have financial freedom in their personal life. They work with people and show them how they can pay off their debts. The good thing about this is that there is not a set fee. The fees are based on the loan and how much the client is able to pay each month.
There are different Christian organizations that assist with Christian debt consolidation. They help clients with the best way that they can pay off their debts. They also help their clients create and control a budget. The aim is to pay off debts that are owed and pay off the low monthly payments as soon as possible. The client is exempt from making higher payments from loans that have high interest.

As long as this is done with the practical and Biblical principles in mind, the client will learn to manage their finances and alleviate stress. They can stick to proven strategies that will work for them and successfully get them out of debt. There are different programs available for those that are looking at Christian debt consolidation.

As their debts decrease, clients start to feel at ease. It’s a great feeling to know that progress is being made with eliminating debts that have been festering for years. With Christian debt consolidation, the organizations can also provide clients with counseling and spiritual wisdom in order to continue to manage their money. Their counsel and wisdom is based on Biblical principles and practical action in order to stay out of debt.

As far as the client’s health is concerned, they can become stress-free as they work to pay off their debts in a timely manner. The whole purpose of Christian debt consolidation is so that clients can be and stay financially free. It is important that they adhere to the strategies and principles (spiritual, biblical and practical) in order to stay out of debt. For their part, this will take willpower, discipline and a strong belief in God that it can happen.

3 Ways To Get Out Of Debt

How Get Out Of Debt!

First, and my personal favorite is lite it on fire and watch it melt. But there are other ways to keep from becoming and American debt statistic.

1. Just go 1 day without your cards. Carry enough cash to get you through the day. If you make it, then try for another day. The whole “one day at a time” thing is cliche, but it does work. If you see something you “need”, commit to waiting at least two days before you finally buy it. If you still “need” it after two days, buy it with cash only. What? you don’t have the cash? Dont’t buy it!

3. Just stop using your credit cards!
This is probably a little redundant, but spending with a credit card is an addiction. We as a society are addicted to credit card debt. Cut up the cards, let a trusted friend hold them. Just leave them at home when you go out, carry only cash.

3. Establish a preset amount to spend before you go to the store. If you set your spending limit at $50 dollars, and you buy a new pair of shoes for $35 - you can only spend another $15.

You really have to commit to this. But building up a few techniques like this can get you on the road to being debt free before you know it.

Debt Consolidation Loan Warnings

There are a lot of lenders who work with individuals with no so perfect credit.  I don’t generally recommend debt consolidation loans because they are so often improperly used.  But for some, they are a good way out of a tight bind.  Many debt consolidation lenders have rules that are less stringent than a bank.

You should not expect to fill out the short form.  Along with being completely candid about all of your finances, assets and income - you will probably also have to provide a complete and extensive balance sheet itemizing all of your income and expenses. 

Just like a mortgage, the one piece of advice that I can give you is that the loan guy doesnt care.  He doesn’t care whether you stop paying six months from now or not.  He doesn’t care whether the interest rate or payment will increase to more than you can handle.  He doesn’t care about the impact that the loan will have on your life.  You see, he gets his commission when the loan closes, and thats the last time he will have to think about you.

So, what is the advice.  KNOW THE TERMS, KNOW THE TERMS, KNOW THE TERMS.   Read the fine print. Don’t rely on the explanation of the guy at the bank, the friendly smiling putz on the other side of the table.  He may genuinly be a nice guy.  But ultimately you’re the one who will be in touble if the terms change and you can no longer meet your obligation. 

Make sure that you know whether the loan is a fixed rate or adjustable.  What is the interest rate and payment for the entire term of the loan?  If it is adjustable, when will it adjust?  Is the payment just a teaser, and if so, when will it go up? - and by how much?  How long is the loan?  Will you pay any points?  Is there a balloon payment?

It’s great get some relief from credit card debt.  But make sure  your not making a bigger problem for yourself.

Are You Winning Your War On Debt

Quick, how many credit cards are in your purse or wallet? If it’s more than 2, we need to talk.

In order to be victorious, you really need to reduce the number of cards that you carry and use. Preferably, carry just one. Pay the rest off, and then get rid of them. One point I like to get across is that I don’t mean close the accounts. Just cut up the cards. Closing accounts may or may not lower your credit score. But leaving them open when you don’t have the cards definitely won’t do you any damage, and it may do some good.

Stop paying minimum payments. If you are unable to pay more than the minimum, you are already in trouble. You need to make sure that you are constantly working on paying off one of the cards. When it’s paid, cut it up - leaving the account open, until you are down to just one card.

Interest rates aren’t going down any time soon. In fact, it’s more than likely they are on the rise. With rising rates will come higher minimums, and a bigger problem for people who are already struggling with high balances and high payments.

Think about what the credit card company is giving you for using their card. Are you getting reward points, airline miles, cash back. The card company is getting something from you, you better make sure they are giving you something back.

Credit Card Debt Negotiation - Get Sound Advice

Get Sound Advice

By now, you know that credit card debt negotiation is all over the Internet. Before you take the plunge, get sound advice from your local consumer protection offices or the Better Business Bureau. Check if the company offering the debt negotiation service is legitimate. Alternatively, maybe you have a lawyer friend who can help you out or perhaps a quick visit to the public attorney’s office can get you affordable legal help or at least point you to the right direction. Most people don’t like to discuss their debt issues with others but realize, however, that you have better chances at succeeding in credit card debt negotiation if you don’t go at it alone. There are plenty of resources, individuals and groups willing to provide assistance, pro-bono as it were. A little reassurance and support from the right people goes a long way when going through the delicate process of credit card debt negotiation.

Document Everything

By getting all matters pertaining to your ordeal with credit card debt negotiation down in black and white, you stand to gain the upper hand should matters end up in court. There are many creditors as well as unscrupulous debt settlement agencies that would just as soon pull a fast one from underneath you. Keep a telephone log and a diary of all your dealings and negotiations. Your correspondences should all be in writing preferably by registered mail or otherwise signed received by the individual addressed. Keep all receipts from any payments you make.

Observe a Professional Tone

Be civil and formal with all your communications be they by mail, by phone or when in face-to-face meetings. By carrying yourself in a manner worthy of respect, your creditors will most likely acknowledge your sincerity and goodwill. Furthermore, they may recognize that you actually know a thing or two and would not be an easy push-over. Conversely, if you act brash and ill-mannered, there is no way you will gain sympathy nor will you gain favorable terms as you pursue the credit card debt negotiation.

Observe these aspects before and while you are in the middle of a credit card debt negotiation. Whether you pursue the action by your initiative or course it through reputable credit card debt negotiation professionals, the desired outcome you seek may hinge on the kind of support that you have, the amount of documentation you possess and the level of decorum and diplomacy that you exhibit as you deal with your creditors.

Christian Debt Relief: What’s The Difference?

If you have been in search of debt relief off of the Internet, chances are you have come across the term “christian debt relief,” which seems to convey that it is a completely different order from your garden-variety secular debt relief. Just what exactly is christian debt relief and what difference does it have, if any, to other debt relief practices available to the US credit consumer?

In terms of semantics, by affixing the word “Christian” the concept of debt relief is then restricted only to those related activities and practices that abides by principles of the Christian faith. It may have been used to differentiate particular organizations in the debt relief industry that operates in a more humane and benevolent manner from those companies that are just out to make a quick buck from the misfortune of others.

Sadly, these opportunistic companies seem to have overrun debt relief services so much so that debt relief is now generally labeled a scam. Even more disturbing is the fact that a lot of these scam debt relief agencies have also misappropriated the term “christian debt relief” to attract people in search of truly Christian-based solutions from their debt problems.

So how would you be able to tell the difference between a true christian debt relief service from those that, to borrow a biblical phrase, “come to you in sheep’s clothing, but inwardly they are ravening wolves”?

Church-based Affiliations

If you look at many of the websites offering “christian debt relief,” there would be those that simply affix the term Christian on just about every applicable webpage on their site with little to no mention of anything else related to the Christian faith. Clearly this is just a ruse to drive web traffic to their site from the thousands of Internet users searching for real christian debt relief services on the World Wide Web.

However, the more credible christian debt relief groups plainly, even zealously indicates their church-based affiliations. Most christian debt relief operators are either non-profit groups funded by religious communities or founded by church-based organizations as part of their ministry and they are not usually keen on hiding that fact. Honesty and transparency are key cornerstones of the Christian faith and true debt relief ministries will provide the relevant background information so that potential clients may easily conduct a check whether or not they are who they say they are.

Emphasis on Financial Stewardship

Christian churches teach financial stewardship, which in essence talks about being responsible with money matters as opposed to greediness, overspending and being in debt. Many christian debt relief services start off within their respective church communities as simply a stewardship ministry, helping people become financially responsible and educating their congregation to the principles of sacrifice and giving back to others in need. When such ministries grow, some of them crossover to the mainstream and provide the same debt relief services and financial stewardship coaching to those outside their churches.

Thus, the real christian debt relief programs are geared primarily to teach, train and transform people to become good financial managers. While there are those who may be able to extend some financial assistance from funds culled through their church communities, most christian debt relief organizations focuses more on counseling and intervention based on Christian stewardship principles.

Debt settlement Companies Examined – part 2

The Reality

The ideal conditions for debt settlement remain unchanged over the years. In simplest terms, the debtor must be in a helpless situation financially speaking in order for credit card companies to consider the request forwarded by debt settlement companies. A thorough financial review would be in order and supporting documents to that effect would have to be furnished.

Aggressive credit card debt settlement companies would brag about their mastery of credit legalese and that they would be able to take on credit giants for certain technicalities in order to reduce your debt. If indeed that is the case then well and good; you may pursue that line of argument. However, only you would truly know if your debts are due to unfair credit practices or simply caused by your own negligence and overspending. In which case, creditors have all the right to file claims against you and an aggressive stance would not merit their sympathy to your plight much less agree to a concession on your debt.

Furthermore, a move towards debt settlement would likely merit a negative mark on your credit score. That is why if it is within your capacity to make ends meet and still pay your credit bills, then by all means do so. debt settlement is an option to be considered only by those who are willing to give up a good credit rating for several years just to get out of the debt.

debt settlement companies should reveal these realities to you and not try to hide it behind glossy marketing brochures of empty promises. Furthermore, debt settlement companies should be forthcoming with their fees and not surprise you with hidden charges which may end up more expensive than doing the settlement negotiations on your own.

Dishonest Lenders or Lack Of Personal Responsibility

Did you guys and gals see the Boston Globe article where Dara Duguay, director of Citigroups Office of Financial Education say that high credit card debt is is a major consumer issue. Well, no kidding. According to some of the data out their, credit card debt increased by over 5.5 billion dollars in May 2008 alone. That means that credit card debt is approaching 1 TRILLION dollars. This really represents a major problem for the economy.

The housing market is laying there in a smoldering heap, and I don’t think we have reached the bottom yet. The dollar is falling faster than Lindsey Lohan after a party at Snoop Dogs house. Food prices are rising, gas prices are through the roof. People are not spending real money - they are buying on credit.

Reuters reported that video games took a huge spike in 2008 over 2007. But not surprisingly, that spike came right after the stimulus checks went out. The porn industry also reported a big spike at about the same time. So to avoid their economic woes, people seem to be engaging in some escapist behavior.

People seem to be becoming less and less practical. Engaging in compulsive spending, and disconnecting themselves from rational financial decisions. People are spending more than they earn. I hate to sound a little unsympathetic, but logic tells you that if you make 60k a year, you can’t buy a $600,000 house and a BMW. Unless you live in Miami - I knew guys there that lived in million dollar condos and drove Ferraris and never had a job in there life - but thats an entirely different economy. For most of us, those huge expenses just represent massive amounts of debt, and eventually you have to pay the piper.

People are more and more likely to try to absolve themselves of responsibility by blaming their “bad home loan” on dishonest lenders. And I agree, there are a lot of less than desirable lenders out there. But to the best of my knowledge, they haven’t forced anyone to take a loan that they didn’t agree to.

I guess the moral to this story, is if your going to spend over half a million dollars, you might want figure out how your going to pay it back.

I’ve gotten into a lot of situations in my life where I wanted to blame others.  And without a doubt, others are partially responsible.  But the problem only resolved when I accepted my own involvement, and came up with a solution.   If your reading this, it means that you have gotten to that point in your life and your financial salvation is just around the corner.  Good luck.

I’m interested in your comments and opinions in this area.

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Types of Debt - Secured Debt

Secured debts give the seller or creditor special rights. These are debts where the ownership of the item sold is not transferred entirely to the buyer, but is held as collateral for the debt until the amount owed is paid in full.

If you don’t pay the full amount on a secured debt (your car, house, etc.) the seller or creditor has the right to regain possession and/or title to the property. These transactions are based on written contracts and give the seller the power in the transaction. While there may be some type of court procedure, its really just a formality. If you haven’t paid your mortgage in a few months, the lender will file a foreclosure and take your house. There is no law suit involved. Its just a matter of filing the paperwork.

Because of the contractual nature of these debts, they are not as easy to take care of as unsecured debts. the seller/creditor has little reason to deal or bargain. They are going to get paid, or get their property back.

Types Of Debt - Unsecured Debt

The type of debt is one of the defining factors in how the collection agency collects it. When we talk about debt we are talking about four major catagories.

• Unsecured Debt
• Secured Debt
• Tax Debt
• Judgements

The rights of the debtor AND of the collector are different with each. It also depends a lot on whether the debt was incurred for business or personal use.

An unsecured debt involves nothing but a promise to pay. Credit cards, IOU’s and a “smile and a handshake” all constitute unsecured debt. These are often referred to as “open accounts”. Your utilities and garbage bill are also examples of this type of transaction.

While possession and ownership of the item purchased does belong to the buyer, the seller or creditor retains nothing more than the right to use court action in the even of default. The court action can force the buyer to pay, or return the merchandise.

Sometimes debts are wrongful. The merchandise is faulty or was just not what you expected or wanted. Since you have made a promise to pay, you still owe the money. As in the case of most transactions the rule of the day is “let the buyer beware”.

Even though there are unscrupulous creditors out there, you must accept responsibility for your debt situation. You were not tortured into submission. You willingly accepted the debt. I’m sorry for being so blunt here, but its just the way it is. I’m glad your dealing with the situation now.

The Road Out Of Debt

We are going to talk about this over the next few days.  A lot of the concepts will seem simplistic, but the truth is that the way out of debt is easy to learn.

There are truthfully only about 4 ways to resolve your debt issues.

The first is of course to pay the debt.  If you can come up with some extra cash and pay it all thats the easiest, fastest and best way.  Can you go without something this month, or for the next couple of months and just muster up enough cash to pay off the debt.  If you can’t pay it all, can you pay enough so that the monthly payment becomes manageable?  If not, there is the second way.

You can just walk away.  If your judgment proof (meaning you have no assets or income), and you don’t care about your credit report (which is probably already damaged) or your reputation, there isn’t much a creditor can do.

You can declare bankruptcy.  This is the cleanest way to make a break really.  The debt will be discharged in the bankruptcy, and your finished.  Of course the damage to your credit will be nearly impossible to repair.  It will remain with you for at least 10 years.

Finally you can  negotiate.  This is the way that I advocate.  The way that I have found as the method that produces the best solution, that is the easiest to recover from.  You can reduce the crushing burden of debt, negotiate a settlement, pay the debt and even get your creditors to help you recover your financial and credit rating.

How To Get Out Of Credit Card Debt

How To Get Out Of credit card debt

It’s pretty painless to get into credit card debt, attempting to get out isn’t quite so simple But it is important to find out how to get out of credit card debt so that you can keep the condition from getting worse and so that you will have the skills to avoid the problem in the future.Knowing how exactly how to get out of credit card debt can not only help you, but also help others, as you will be able to offer friends and family advice. Knowledge is always power and it is something that will stay with you forever.

A good starting point is to see where exactly your finances are and what you can afford. You will need to make sure your income is high enough and your expenses are low enough that you can make your payments, and pay more than the minimum balances on your credit cards to get them paid off. Once you go over your budget, you may find that the minimum is all you can pay. But the fact is that this is important stuff. If you don’t make enough, consider getting another job, a second job or starting a business to increase your income. If that isn’t possible because of time constraints, you may have to whip out the budget knife and start cutting. You will probably want to do a little of both!

Where To Get Help

Professional advice is available. If you look at the situation and determine that you just can’t go it alone, there is help out there. Consumer credit counseling services can sometimes be helpful. This area of the marketplace seems to be wrought with fraud, so use some caution. The service should be non-profit. Ask them for a list of references, and make sure you actually contact the references. Contact the Better Business Bureau to check for complaints against the business. These companies will take a long hard look at your current financial situation and your previous payment history in order to set up the best plan of action for you and your individual needs.

There are repayment plans that can be negotiated with the credit lenders if you know exactly what to ask for. Consolidation loans are another option. Probably not the best option as they encourage you to take on more debt to get rid of old debt. And since there isn’t any guarantee that the old debt won’t return (unless you destroy the credit cards) you may end up with a bigger problem down the road.The fact of the matter is that you must keep an open mind and be willing to listen to the ideas of others or you will never get out of credit card debt. Read, learn and stick with your program. Don’t get overly discouraged. If you’re persistent, you will achieve your goal of getting out of credit card debt.

Intermediating Debts with Credit Card Debt Collection Training

The vast majority of people in the U.S. and in the western world use credit cards, sometimes as their primary way of purchasing things in the store. As the net gains ground as the primary place purchases are made, it becomes easier to use credit cards to make purchases. When people use credit cards, they’re essentially taking out a loan from their credit card company, with the agreement that they will repay the amount. However, what does the credit card company do if they are not paid quickly, or at all? To make sure that the credit card companies get their money, there is education available in the art of credit card debt collection.

Some Thoughts About Collectors Are Unfounded

Many people make the assumption that training for credit card debt collection will make you less friendly than before. They see debt collectors as harassers of the common people as is popularized on commercials with people dreading telephone calls because they “know” that the phone call will be from a debt collector. On the contrary though, credit card debt collection training is favored by many people much more than putting the pressure on credit companies, who often put pressure on folks who haven’t paid off credit balances to pay off the debt.

Essentially, credit card debt collection training allows you to reach out to individuals in debt in a much more personal way than credit companies can hope to achieve. While you’d be working with credit companies to get their loans repaid, you could also help the public by working with them to get their debts paid. You would also have the chance to prevent lawsuits and to play a diplomatic roll in disputes between creditors and debtors.  Lawsuits are expensive, and no one really wins.  They cost the creditor money and place additional undue burdens on the people who owe the money.  You can help reduce some of this stress through your credit card debt collection training.

With credit card debt collection training, you can helpkeep this from happening by being friendly with customersand trying to work out fair deals which see the credit companies get the money they’re owed while making sure that the customers are able to pay off their debts. Without debt collectors, some individuals may make the decision to simply not pay what they owe from credit companies, and finances could put a tremendous amount of pressure on the entire economic system. You need to have the right personality to be a debt collector as the career has been vilified in the media, however it is a vital career that is an absolute requirement for companies to function and maintain their cashflow.  credit card debt collection training produces professionals that solve problems.

Student Credit Card Debt is a Monkey on Your Back!

Fact number one.  Many parents don’t have the money to send their children to college.  I know, that seems like a statement of the obvious.   Saving for college was taken care of by their families, right? In many cases that is just not true.  Student credit card debt is a monkey on the back of an increasing number of students who have one more thing to look forward to.  A pile of debt! The debt increases every year.  But without proper planning there aren’t many other options.  Working instead of studying is the choice students have as the debt builds.  Living with stress and bills.  Most college students definately don’t get a free ride!

Student credit card debt isn’t always compiled from carefree partying and diversion.  A great deal of it comes from a need for survival at college.  All of the expenses that a student has from food to housing and books and supplies can end up being a mountain of credit card debt.  What began as a desire to maintain the things that are needed for an education, and to pay for the education itself and finish school often ends as a tremendous amount of personal debt.  Many students would have to quit school without credit cards allowing them to finish their education.

Parties are great.  Don’t spend your time and effort having fun at the expense of the supplies you need to finish your education.  Its obligatory to prioritize and get matters in order. Student credit card debt isn’t easy to get rid of, its just so easy to get out the card everytime you have an expense that sometimes your in over your head before you know it.  The party isn’t as much fun if it takes money away from school.  Blowing off some steam at a party can be a welcome relief, but done to excess they can leave you without resources to finish school.   Keep the parties to a minimum. Make sure you understand your priorities.
It’s pretty common for college students to wind up with steeper rates on credit cards.  Rates are commonly poor for students because of their short credit history.  Because college students have limited income they are prone to missing or being late on the occasional payment.  Because of this they do represent a higher risk and credit card companies will raise the rates to exorbitant levels for late paments.  You need to make sure that you keep up with the payments, and don’t incur the debt if your not absolutely sure you can keep up with your payments.

Student credit card debt may be with you for a long time.  Get a plan in place to pay off all of your credit card debt and begin as soon as you graduate or when you get a good job.  Don’t let your credit card balance pass fifty percent of the limit.  Put differently if you have a card with a $5000 limit, think of it as a $2500 dollar card.  Interest rates are sometimes calculated as a ratio of your balance to your limit and at 50% you become a higher risk, so many times you will get your rate jacked up.
While credit cards may be a hard fact of student life, the debt stays long after schools out.  Watch your monetary resources and don’t start your life with excessive student credit card debt.

The Secret To Getting Out Of Debt

Do you want to know the secret to getting out of debt? Increase your income, decrease your expenses or do a little of each. The problem with most debt elimination plans is that people don’t stick with them long enough.

You’re probably thinking, great, tell me something I didn’t already know. Most people don’t remain disciplined long enough for things to work in their favor.

Most likely you didn’t wake up in debt.  It was accumulated over a long time span. Can you place that exact moment when the debt spiral began.  It was likely years ago. Its like hitting critical mass one day.  You just suddenly realize how grave the situation is.

And this is a valid analogy for your debt problems. Even if it may look impossible, by not backing down the momentum grows. And momentum will step-up until the debt heap tumbles. Always pay part of the principal of a debt, not just the interest. This will step-up the rate at which the debt reduces at a speedier rate.

How can you increase your income That’s a good question that millions of souls contemplate everyday. Can you work some overtime? If this isn’t possible because you already work too many hours, then think of something else. You have to decide.  That would completely defeat the purpose.
Is there something you enjoy doing that can make a little extra income without placing additional stress on you? However, working a desk job and then working on an oil rig is probably not a great idea for a second job (unless oil production is a hobby).

Do you have things around the house you don’t need anymore? Getting together a garage sale or selling some items online is a great way to raise some quick cash. It might not be a huge sum but if you are getting rid of stuff you don’t need then it’s better than nothing.
Having said this, increasing your income is likely far more difficult than getting means to spend less of the money you already make.

Most people who are in situations where their debt is increasing or already in challenging debt problems don’t have a budget. in the absense of a budget there is simply no way of knowing how much they can spend each month or what they spend their money on. This is the first step to getting out of debt.
Getting a budget together so you know what your spending limits are isn’t that difficult. It’s your monthly paycheck plus any other income producing sidelines that you have going. Remember to allow for taxes if your  not already.  You may end up with another unintentional obligation at the end of year.

Now establish how much you spend. It’s important to be ruthless about this. Even the smallest amounts should be recorded. The aim is to set up needed and non essential items. important items are required to survive, so your shelter and food are needed. Having said this, you need to determine whether you are living withing your income. Maybe you could get cheaper accommodation? Do you buy too much food? You could be wasting food. You might be able to cut your food budget.

Non needed usually include spontaneous shopping and entertainment. How many outfits do you need every month?  How many times do you really need to eat out. All these things should be weighed. These are all ways you can save money every month.

Be Cautious Of Debt Negotiators!

There are a lot of unscupulous credit and debt negotiators out there. Thats the reason I encourage people to do most of this on their own. If however you need help, make sure you get a recommendation. Ask for references. How long have they been in business? Check with the Better Business Bureau - Do they have any complaints?. Do your “due diligence”.

These companies can be extremely expensive. Sometimes, thats OK if they do a good job. Spending 3 thousand to save 25 thousand is a pretty good investment. If your already in debt, the last thing you want to do is spend large sums of money on a company that won’t be there tomorrow.

You know that I recommend the “debt free in 3″ program. If you plan on going through the process yourself, and want a program to get out of debt in the fastest time possible, this is it.

If you want some help, and don’t feel that you can go it alone - get in touch with they guys at Consumer Recovery Network. They have a great program. Take a look at

http://www.no-debt.net/AffordableDebtRecovery.html.

Are You About To Go Down The Financial Drain?

8 Signs Of Your Personal Impending Financial Apocalypse

1.  This is the electronic age.  If your surprised that checks clear almost immediately, you shouldn’t be.  There is no significant “float” time any more.  “Float” is term used to describe the period between the time a transaction is implemented, and when it clears your account.  In the past it has been up to a few days.  Now it is almost immediate.  Sometimes no longer than close of business on the same day as the transaction.

If you are relying on float time, you’re in danger.  Banks love to slap heavy fees on bounced checks.  Even if they pay the check, they charge you a significant amount for the service.

Make sure you know what your balances are.  Use MS Money or Quicken to actually balance your checkbook and keep it up to day at least every week.

2.  Your savings account has a zero balance.  There is no money to access in the event of emergency (without going into debt by using a credit card).  The old advice about 3 months income is great, but in many cases just not possible.  That being said, you need some cushion to land on if something happens.

3.  Your carrying huge credit card debt.  Pay this off quickly.  Its costing you interest and reducing the amount that you have available if you actually need the money for something important.  And no, a big screen t.v. is not an emergency.

4.  You have nothing left over at the end of the month.  You spend your paycheck before you even see it.  Your regular expenses eat up your entire salary.  Something has to give here.  You need to cut unnecessary expenses, and be ruthless about it - your future depends on it.

5.  You have no idea what the terms of your mortgage are.  As the single largest purchase you will probably ever make, you need to give yourself an education before you obligate yourself to it.  Don’t trust the loan guy across the table.  He really doesn’t care.  He gets his commission when the loan closes.  What happens after that is your problem.  If you have no idea when or if your payment resets, whether you have a fixed rate or an a.r.m. - you need to find out.  I mean, you do want to keep on living in that house, right?

6.  You are under insured, or without any insurance.  If you don’t have health coverage at your job, dump them.  Get another job.  Make sure that the liability limits on your home and auto are adequate.  Just because you have the amount thats legal, doesn’t mean you have the amount thats adequate the protect you in the event of a loss.

7.  You have a rental or a business that is bleeding money.  If your business isn’t making you a profit, and you’re using your personal credit to keep your head above water - you need to come up with a plan.  Basically, set a deadline for profitability.  Make any changes you think will help.  If it isn’t profitable by that time, dump it.  As badly as all of us hate admitting defeat, the ultimate defeat is complete financial ruin.

8.  Your avoiding financial action because its just too painful to think about.  Avoiding calls from creditors.  Borrowing from a credit card to pay your car loan.  Taking out payroll loans of any kind.  Paying only the minimum payment on your credit cards.  Using your home equity to pay off credit cards, and other bad decisions.

Debt causes stress.  When we are stressed, we don’t always think clearly.  You need to get a plan in place, and stick with it.  Your future depends on it.  You can turn your financial condition around.  You can’t afford to wait - your future is coming whether you ignore it or deal with it.  Start today, plan for the future, get out of debt and get on with your life.

Money Merge Accounts

Money Merge Accounts: Predators Among Us

These accounts have become somewhat popular, so I have to cover them. Like most things they have good points and bad points. No, wait, they have no good points. They rely simply on lack of consumer knowledge.

You know how to get your mortgage paid off sooner right? The answer is logical, intuitive. Pay more of the principle and pay it quicker. There is no other way. There isn’t a magic wand to wave or piece of software you can buy that will do it for you.

Let me simplify the Money Merge Account sales presentation. If you pay more on your mortgage, you will pay it off sooner. You may be saying, “no kidding”. “Kidding” wasn’t my first choice of words, but my wife talked me out of the other one.

We are a society buried in debt, that wants to get out of debt. Now the debt peddlers and predators are coming at us with something called an MMA or “Money Merge Account”. They actually have the audacity to try to convince people that they can pay off their mortgage faster with a line of credit and some software. Unfortunately, they are succeeding in convincing some people.

Its like so many things. Too good to be true.

Do something for me. Just a favor that will really help you more than me. Take your right hand, extend it out in front of you and look at your palm. Now, take that same hand and hit yourself in the head as hard as you can. Do this repeatedly while chanting “I will not buy stupid stuff, I will not buy stupid stuff”. Don’t you feel better?

What these accounts do is is use all of your extra income during the course of the month to pay down your mortgage. There certainly isn’t anything wrong with that. But lets take a look at what they are really charging you $3500 dollars for.

Lets examine a $200,000 mortgage at 6% annually. Lets assume you take home $5000 per month and have $4000 dollars per month in expenses - leaving you with $1000 at the end of the month after the bills are paid.

You would deposit your entire paycheck into the loan amount each month via direct deposit. This would reduce your balance to $195,000 - but only temporarily. As you withdrew money throughout the month to pay your bills the balance would go back up. But because you have $1000 left over at the end of the month - you would still reduce the balance by $1000. In addition you would save the interest that you would have paid by having a lower loan balance throughout the month. For this service, the company selling/administering the MMA would charge you a fee of $3500 to $5000.

Lets take a look at what is really happening here.

By having your loan balance constantly decreased by approximately $4000, you save about $20 per month in interest. In addition by leaving your extra $1000 (the amount that you have left over at the end of the month anyway) in the account, you decrease the principal by an extra $1000 per month. This saves you about $380 dollars a year.

Are you keeping track? You save $240 dollars per year, plus an additional $380 per year for a total savings of $620 dollars per year. So, in order to save you $620 dollars per year, they charge you $3500 to $5000 dollars. At that rate it would take you 5 to 8 years just to recoup the cost of the software and the account.

Lets be pragmatic. The real savings here is that you leave all of your extra money (in the case of our example $1000) every month in the account, thereby paying down the principal by $12000 per year. You don’t need any software, or any company to pay down your account by $1000 per month. You can do it just fine on your own and the results are the same. You certainly don’t need to pay someone $3500 to tell you that if you pay an extra $1000 per month, you mortgage will be paid off sooner.

Using our example your mortgage would be paid off in a little over 10 years.

Without the MMA, If you just pay an additional $1000 per month on your mortgage your mortgage will be paid of in about, oh, a little over 10 years- surprise surprise. And you can do this without spending $3500 to $5000 of your hard earned money for a piece of software that simply tells you that if you pay more, you will pay it off sooner. In fact, if you have $3500 to $5000 to spend - just pay down your mortgage or credit card debt and start saving immediately. Or, if you want, you can send me the $3500 - I can use it to pay down my mortgage and I would be forever grateful.

Use your money wisely, get out of debt, stay out of debt and get on with your life.

Department Store Debt

Did you know that the house collectors for creditors are not covered by the FDCPA (Fair Debt Collection Practices Act). The FDCPA covers collectors and attorneys who are contracted or hired to collect a debt, but are not employees of the creditor.

Not Every State Is Subject To The FDCPA

The FDCPA (Fair Debt Collection Practices Act) is a great piece of legislation, but it isn’t the law everywhere! The state of Maine is exempt. But there is state legislation in Maine that accomplishes what amounts to the same thing.

Binding Arbitration Is A Consumer Nightmare

In the last several years creditors have tried to circumvent consumer rights, and access to the legal system. They have done this by applying “binding arbitration” clauses in their contracts - usually in very fine print!

If you sign a contract agreeing to binding arbitration, you are giving up your legal right to sue the creditor in the event of a dispute. You have agreed to use binding arbitration instead. This process is expensive. You will still need to get a lawyer to represent you. And binding arbitration, unlike the courts, usually favor the creditor. No wonder they want you to agree to this!

If your creditor decides to initiate binding arbitration to resolve a dispute, you won’t get the choice. If you signed the contract agreeing to it (which you probably did when you signed your loan or credit card contract) you’re stuck with it.

Consumer attorneys are fighting this. I don’t usually side with attorneys (sorry if you are one, LOL) but in this case, they are definitely right.

If your creditor, for whatever reason, initiations a binding arbitration - call a consumer law attorney immediately. Binding arbitration is just a way for creditors to trample on your legal rights because they know that the courts would favor the consumer!

For more information on and some suggestions on how to fight this growing problem - go to http://www.GiveMeBackMyRights.com

Online Debt Collection

Online debt collection agencies have been around for a few years. But lately, its become pretty easy for small businesses to turn their customers over to collections.

I’m just going to play devils advocate here. Many of these companies have little resources, and a small unpaid bill can have a large impact on them. May have made attempts to collect, but don’t really know the procedure, and have little time to take to collect money when they also have a business to run.

One of my best friends operates a small plumbing company. I’ve talked to him several times about the amount of credit card debt that he carries. But in his situation, much of it isn’t his fault. He buys parts and supplies for jobs that he does, and if he doesn’t get paid on time, he ends up carrying debt that should have been paid buy his customer, but wasn’t. Currently, he has over $70,000 on his American Express card. But he has over $100,000 in accounts receivable that hasn’t been paid.

He has made calls to collect the money, but has never made taken the step to talk to online debt collection agency (I’ve offered my services on several occasions).

In his situation, he needs to take some kind of action. That level of debt is ruining his future. He could contact an online debt collection agency and expedite the collection process. If you were in this situation, what would you do. Many times small business may turn customers over to online debt collection agency even though they really don’t want to. Its just a reality of business that the cash needs to keep flowing.

I know I usually write about debt reduction. But debt reduction isn’t just for individuals. Debt reduction may be necessary for small businesses to stay in business. So online debt collection agencies can play an important roll in keeping a business solvent.

Dont Retire In Debt!

You have 2 choices.  Retire in debt, or retire debt free.  Some people spend time planning their IRA, their 401K or other retirement plan.  Thats great.  More people should have a retirement plan.  But having the ability to retire should encompass not just making sure you have enough to pay the bills and live a good life.

Your retirement plan needs to include debt reduction in the formula.  You see, the less debt you have, the less income you need.  If your credit cards, car, home and other bills are gone - how large does your income need to be.

Are you saving money at 5 or 6 percent, and at the same time paying credit card bills at 18 - 20 percent?  Just something to think about.

Best Debt Negotiation Companies? Who Are They?

Tough question to answer. For the most part, these companies are rip offs. They take your money, and then dole out a small part of it to your creditors. They get paid well, VERY WELL for doing this. I believe that the best debt negotiation companies are the people who are in debt. You know the complexities of your situation better than anyone else.

So if I were to recommend the “best debt negotiation companies”, I would say just go look in a mirror! It’s you, and the companies that support you in your efforts. This sounds cliche, but you are in control. The more you learn about debt, and how to manage it, the more in control you are. If you just turn your finances over to some ambiguous company, and try to never think about it again, your likely to end up in the same problem a few years down the road.

So if your looking for the “best debt negotiation companies”, look at educating yourself. OR look at companies that will assist you in recovering from debt.

One company that does this is Consumer Recover Network. They offer a program that shows you how to do what you need to do to negotiate and settle your debt. They will walk you through the process, and answer your questions. You will get out of debt, and learn how to manage debt in the process. You can click here to look at what they can do for you, and they have a free report about the differences in debt settlement solutions that is pretty good.

Consumer Recovery Network - Click Here

To get started, I have a free ecourse that will show you the basics. Although you will want to get a lot more information, its a good primer. Just remember, you are your own best debt negotiation company!

The Truth About Student Credit Card Debt

The Truth About Student credit card debt

A lot of people often assume that college students have it made because either they have parents that are footing the bill or that their college loans and grants are giving them a smooth ride through their college years. But while this may be a fact for a small percentage of college students, the fact of the matter is that student credit card debt is on the rise simply because there is not enough money to get through college any other way. Even for those who have jobs after class, they simple cannot work enough hours to take care of what the loans will not.

Student credit card debt is often acquired because of the need to pay for housing, for books, for food, and of course, the occasional party or two whether it is right or not. You would probably be surprised to see how much of the student credit card debt comes simply from the college student trying to survive without having to drop out. For a lot of students, credit cards are the only way that they can make it through and without those credit cards, they would be facing having to drop out and return home.

Trying To Keep Focus

It needs to be known that trying to pay on those bills is going to be extremely hard so in order to avoid student credit card debt from getting out of control; the student needs to keep priorities in mine. Buying supplies for a major party is not what one would call a necessity even though a lot of people consider it a natural part of the typical college experience. Make sure that the credit cards are only being used for things that are must haves such as housing, books, and of course food.

Try to get a game plan going because that student credit card debt is going to need to be paid back and because of the young age of most college students, the interest rate is going to be extremely high. And when the interest rate is high, so are the payments and if you miss even one payment, some companies will raise the interest rate again making it even harder for you to maintain monthly payments. If proper precautions are taken, you can make sure that student credit card debt does not end up out of control to where you cannot make the monthly payments.

A Few Things Worth Considering Regarding How Best To Reduce Credit Card Debt

A Few Things Worth Considering Regarding How Best To Reduce credit card debt

The worst thing about credit card debt is that it can overwhelm you to the extent that your life becomes so miserable that you will do anything in your power to reduce credit card debt. Sometimes, making even the bare minimum payments can be difficult and if such is the case with you, and then you need to check out a good company that helps reduce credit card debt, even if it is an online company.

Find The Right Company

Of course, it is natural to wonder whether it is indeed possible to reduce credit card debt online and though the answer is in the affirmative, it does nevertheless require that you be able to find the proper company before you can succeed. Thus, though you will come across various reduce credit card debt companies – some of which operate for profit motive while others are non-profit companies, the final selection will depend on your needs and of course the services offered and the cost of it all.

However, the non-profit companies will not do more than provide credit counseling as well as help in negotiating lower payments, while those that operate on profit basis will give you proper advice as well as help in finding credit card debt consolidation loans.

Still, there are a number of advantages to using an online reduce credit card debt company since it will help you lower your monthly payments quite significantly. And, there is nothing wrong in seeking out professional advice, especially when your credit card debts are overwhelming because this is where online services can do the trick for you just like any other kind of company does.

However, you still need to be wary of those companies that promise to reduce credit card debt because their main aim may be to scam gullible customers and thus to be on the safe side you need to watch out when the payment quotes are unusually low, or when there are high upfront fees to be paid, and also when the company makes unreasonable requests with regard to deposits. In addition, you need to be careful when such companies ask for a bit too much personal information from you, because you only need to provide names of creditors, balances as well as interest