Negotiating with a Credit Card company can be easier than you think because you must remember that you are the one who is control. The credit card company does not want you to get mad and default on your debt so they know that you have leverage over them and it is important to use that leverage. You must be nice to them and professional but always make sure that you leave the negotiation table with what you want. You can always speak with a manager if you fell like you are not getting what you want with the first person who answers the phone.
If your debt has gone into default and you are now talking to debt collectors it is always important to try to resolve your debt with the original debtor because there are situations were the debt collector will lie to you and not pay the credit card company what you agree to pay them. It is better to negotiate with a debt collector through the mail and you can send them a letter telling that this is how you want to be contacted. If you fall into there phone call trap you can be in for a long and bad phone experience. They like to threaten you and make you feel like you are going to jail.
Always remember that when you are negotiating credit card debt that you need to get help form a professional credit agency that has the know how to handle these credit collectors.
Nov 15 2010
Negotiate Credit Card Debt
Nov 11 2010
Should You Have Separate Checking Accounts?
It used to be that when you got married, you simply merged your finances. But that isn’t the case in today’s world. Finances are more complicated. Lots of people bring debt, student loans, child support and emotional ties to their money into their relationships. Sometimes a joint checking account doesn’t work out and separate accounts are better. Sometimes separate accounts don’t work.
What you have to do is sit down and talk about all of your options. Discuss your finances with each other, openly and honestly. Make the decision together.
The traditional option is having a joint checking account. This is the easiest method when it comes down to merging your finances. But you both must be accountable for what goes in and what goes out. This option requires a lot of communication. You have to both check the account register regularly and be responsible for putting in debits. If you have debt issues, don’t keep receipts, don’t write down checks and have a habit of spending without thinking, this may not be the best method.
The one-two method is having one joint account and two separate accounts. There are many combinations of this. Many couples will set up a joint checking account and keep their own individual accounts. They each put an agreed upon amount into the joint checking to pay the household bills and expenses. This method allows each person to keep their own financial freedom.
You will have to determine how much each person devotes to the joint checking. Start by setting up a budget to determine the monthly expenses. If you both earn about the same amount, you will each contribute half. Don’t forget to both contribute to your savings for your shared financial goals, such as vacations and college educations for your children.
Any pre-existing credit card debt, student loans or other loans will come out of your own personal checking account.
How do you determine how much each person puts into the joint account if you make different salaries. Start by adding your two incomes together. Divide the lower salary by the combined salaries to get the percentage of income from the lower paid spouse. For example, $50,000 plus $25,000 equals a joint income of $75,000. You would then divide $25,000 by $75,000 and come out with .33, which is 33%. The lower paid spouse will pay 33% of the bills because they bring 33% of the money to the table. The higher paid spouse pays the remaining 66%.
Personally, we keep a joint checking account. We tried separate accounts but kept borrowing from each other and it was confusing and didn’t really work for us. My husband makes 95% of our income, so he pays all the monthly expenses. My income goes straight into savings for our financial goals. That works for us.
Our good friends have separate accounts. In fact, there marriage was on the rocks for years until they split their finances. They each contribute to the household expenses, but for the rest of their individual stuff, they are on their own.
Either way, you have to have communication. You have to talk to each other about what is going on. Be open and honest. You don’t want money to separate you, even though you have separate accounts. Be generous with each other and wise in your decisions.
Oct 24 2010
How to Eliminate Credit Card Debt Legally
Want to know how to eliminate credit card debt legally? Easy.
Pay off the balance.
OK. All joking aside, I think it’s pretty obvious how to eliminate this debt legally. But when you involve multiple cards, different balances, and various interest rates, it can get a little confusing on what approach to take. We recommend these steps:
1. Do not close any credit card accounts!
Closing your credit card accounts can hurt your fico score…and quite dramatically. When you close an account, you lose all the credit history behind that card. No credit history is only slightly better than bad credit history.
Keep all major credit card accounts open so you can rebuild your credit. However, an exception to the rule is to close all retail account cards (i.e. Best Buy, Victoria Secret, Sears, etc.). This will actually help your credit.
2. Cut up all cards but two credit cards.
Ensure that the two cards you have intact are major credit cards (i.e. American Express, Visa, MasterCard, Discover, etc.) From now on, all future charges are to be made only on these two cards. Every month, pay off the monthly activity on your primary cards in addition to the minimum monthly payment. This gets you into the good habit of paying off the monthly activity.
Which cards you choose for your primary charges is up to you. You can base it on interest rate, rewards, vendor acceptance, or any other factors.
Now, if you cut your other cards, be sure to have the account information on hand somewhere else. (You really don’t have to cut them up…unless it just makes you feel better.)
3. Focus on the card with the highest minimum monthly payment.
Dave Ramsey says focus on the card with the lowest balance and pay it off first. Others say to focus on the card with the highest interest rate.
But remember, the name of the game is cashflow. So, I suggest focusing on the card that has the highest minimum monthly payment. I think it’s best to put your attention on the card that is affecting you the most in your monthly cashflow. Get rid of the liability that’s taking the most money from your pocket.
4. Find $100-$200.
Now, I don’t mean go look for loose change in your couch. Find $100-$200 in your budget (or adjust your budget to make it available) and put it towards the card with the highest minimum monthly payment found in step 3. This is to accelerate paying off this credit card. But don’t forget about the other cards. Continue paying just the minimum balance on them.
Of course, if you can always put more towards the payment. The more the better.
5. Lather, rinse, repeat.
Once you have paid off the card with the highest minimum monthly payment, you’ve just learned how to eliminate credit card debt legally.
Now, move onto the next card that has the highest minimum monthly payment. To that card’s payment, add the amount that you were paying on the previous card. Repeat this process each time a card is paid off. This is often referred to as the snowball technique.
6. Pat yourself on the back.
Be patient for this can be a long process. Celebrate each time you accomplish paying off a credit card. Whether it be a pat on the back or a nice dinner, congratulate yourself because working to eliminate credit card debt legally isn’t easy.
Remember, once you’re done, do not close any credit card accounts!
Part of developing your millionaire mindset is taking accountability. If you got yourself into consumer debt, you should be the one to work to get yourself out.
Believe you are able to do it. Once it happens, you have developed the discipline, focus, and energy to achieve greater goals. How about financial freedom?
Oct 21 2010
Get Credit Card Debt Consolidation Help To Overcome Mounting Dues
You can get credit card debt consolidation help to overcome your card bills. You might say that you are like the many others who use credit cards. So what is the big deal? You get a regular income every month; so it is easy to pay off card bills. No, at times it isn’t. A credit card is plastic cash. You might have more than one credit card. Two, three or even five! A plastic card lures you into buying expensive things ‘today’ which you might feel you would be able to pay back ‘tomorrow’, but that ‘tomorrow’ never comes. What comes is mounting card bills, harassing calls from creditors and a need to find debt consolidation help.
When you are surfing the net or asking around from friends, you might get the right debit consolidation company which may offer you free debt consolidation help. In most cases, this ‘free’ help merely means a free quote or some free first time counseling session.
However, if you are lucky to get a genuine debit consolation company that is affiliated with the government, you can avail the following debt management benefits:
The company will merge all the fees associated with your cards such annual fees, current interest rates, finance charges, cash advance fees and any other fees that is included along with the cards into one single consolidated loan. The company will take over the responsibility to pay your creditors and you will simply pay only to the consolidation company for their single consolidation loan. The company will depute a counselor to guide you through a debt control program so that you get ‘liability’ free now and forever.
Debt Consolidation Counseling Is Important
Credit card counseling is an integral part of credit card debt consolidation help. Your counselor will prepare an effective debt management program for you. Your regular meetings with your counselor will provide you with the right information and skills to manage your card dues. You will be able to identify the problem areas of your life that led you into the credit trap in the first place. Your counselor will ensure that you give up your multi credit cards and keep only one, that too if absolutely necessary. You will slowly gain confidence as your loans will be converted to a single loan at a lower interest rate and flexible repayment period.
Other Ways To Consolidate Credit Card Debt
Yes, you have choices. You can go for ‘secure’ debit consolidation by putting forth your house, car or some other asset as collateral. You can also go for ‘unsecure’ debit consolidation where you don’t need to face the risk of putting up your possessions as collateral.
You can also decide to get a hang of your life and through will power and determination; you can become obligation free. How can you do this? Simple! Transfer the balance of all your previous cards to a card that has the least interest rate. You can do much to get yourself decent credit card debt consolidation help, you only have to begin by following the correct path.
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