Freedom From Debt » credit card

Is a Debt consolidation/personal unsecured loan a good plan?

admin — Mon, 06 Jul 2009 06:49:38 +0000

simonselmira asked:

We currently have three auto loans and three credit card, making six payments going out each month. The average APR on all come to 11%. Some of the autos were used so the APR was not so great and the CC are from ages ago when our FICO wasn’t that great either.

Our FICO is in the high 700’s so getting approved for a HELOC or an unsecured personal loan wasn’t a problem.

The reason we don’t want the HELOC is that the houseing market isn’t that hot right now and we don’t want to max out our home loan.

So the other day we were approved for the full amount that we asked for but will end up using 92% of the amount we asked for.

The main reason is that I would like one payment for everything. That way I’m not shuffeling things around just to make the min. payment on things etc. And when the housing market pics up we could revisit the HELOC.

What do you think?
As far as the HELOC, we didn’t have enough in the house to take care of all the loans so it wasn’t going to work right now.
that’s good to know that you’ve done it before. I like the idea of the single payment. We just had another baby, that makes three kids under 4yrs. old and I’m responsible for paying the bills and I don’t want to ***** up our FICO by missing or making late payments. We will most likely do a HELOC when the appraisal of our property goes up. Twelve months ago it was worth 30K more then today, crazy.
we aren’t trying to borrow our way out of debt just trying to keep our great FICO score. A few times in the past a last and miss payment is what damaged our FICO more then anything. So with ONE auto payment to the bank that will keep our score great.

Being a SAHM isn’t easy but it can be a little hectic during Summer break, KWIM?

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Technorati Tags: Consolidation Loan, credit card, home loan, Late Payments

How to save AND pay off debts with low income job?

admin — Tue, 23 Jun 2009 18:33:22 +0000

heather k asked:

I love my job but I don’t make a lot at all.

I have a credit card that is maxed out due to not having a job for a month [it was stupid to use, but I had to live some how] its at a little over 1200

I have a cell phone [so I have a cell phone bill], no house phone, so I cant cut that off, but I do use it a lot. that bill is about 100 a month.

As well as my rent which goes from about 500-550 depending on utilities. And then there is food, but thats not that big of a deal, I dont eat out hardly ever and during the day I eat at work and the food is free. And then I spend about 20-40 on gas depending on the prices ever 1.5-2 weeks

Heres the thing pretty soon I have to take over payments on the car I have. I NEED to get OUT of debt and be on top of things. Because in about 6 months I am planning on moving to Upstate NY.

What are some good tips on saving money and paying of my card, but still having money for living expenses?
Thank you for the answers so far;

I actually dont have cable tv and am using someone else’s wireless internet so thats good.

Oh, I also have a cash box that I put all my change into [I dont want to use that on debt though, its kind of a hope chest for my big move]

Do you think opening another bank account for debt/bill money would be a good Idea? I dont really have an issue with careless spending, its more or less just the fact that I am making JUST enough.

I’ll be using your tips and I hope to get some more!
Also I’m not sure what my payments will be, right now the car is under my moms name and insurance in another state… and the payments will change once I get them in my name. but I think I am looking at 300 a month for the insurance and note.
Another addition; golly gee, haha..

The phone bill WONT be that high for very long. Its just like that right now [as in the next two months or so]

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Technorati Tags: Cable Tv, credit card, Insurance, Pay Off Debts, Wireless Internet

what is the best debt consolidation program?

admin — Mon, 22 Jun 2009 13:34:07 +0000

shortgirl_1984 asked:

i am trying to pay off amy loan and credit card but have gotten behind, what is the best debt concolidation program, one that is going to work with you and everything thanks

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Technorati Tags: Best Debt Consolidation Program, credit card, Debt Concolidation, Debt Program

Can a credit card co. sue me after selling my debt to a collector?

admin — Sun, 21 Jun 2009 16:48:19 +0000

Avis T asked:

MBNA wrote off my debt and sold it to a collection co. That collection co. is now being sued in a class action law suit, and MBNA took my case to court and is trying to sue me. Can they do this?

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Technorati Tags: Card Co, Class Action Law, credit card, Debt Collector, Law Suit

Can I be sued by a creditor if I was named an authorized user of a credit card?

admin — Wed, 17 Jun 2009 17:42:31 +0000

Mary M asked:

I reside in the state of Florida. Our settlement was that each would be responsible for our own debts. However, there is a card under my ex-husbands name that I was named an authorized user. He defaulted in this card. I am getting calls from creditors. It was not a joint account. I was only named as a authorized user.

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Technorati Tags: credit card, Creditors, Debts, State Florida, State Of Florida

How does debt consolidation work?

admin — Tue, 12 May 2009 00:07:07 +0000

Lib asked:

can I still keep one credit card? Will I be able to get a car loan when my lease expires? How will it effect my credit?

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Technorati Tags: car loan, credit card, Debt Consolidation Work

Can I be sued as an authorized user on a credit card for non-payments?

admin — Mon, 04 May 2009 14:37:28 +0000

Rage asked:

I was wondering if I became an authorized user on a credit card, can the primary card holder sue me for the purchases on the credit card? I have read that as an authorized user, I would not be responsible for paying the debt. Is this true, and if so, would it hold up in a small claims court if a lawsuit was filed?? Thanks!!

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Technorati Tags: Card Holder, credit card, Small Claims Court

Can the creditor or collection agency remove a collection account from my credit report? How to convince?

admin — Mon, 20 Apr 2009 11:55:28 +0000

djz2k asked:

I graduated and began a new job. I went to India for 6 months. While i was away, I recieved a hospital bill. When I returned, I discovered it had been sent to collections. I called the hospital and paid the bill. I moved across the country (east to west coast). I called the collection agency verify that it had been marked as paid. I now have one collection account on my credit report marked as paid. I have been turned down for certain benefits because of this recent collection account being on my credit report. I tried filing a dispute online w/ equifax (the CRA reporting the collection account). Because of my recent changes in address, the online/phone methods fail to verify me, so i cannot order my credit report. Now I am supposed to mail in several pieces of POA to validate my new address. Before i do this, is it possible for the creditor or the collection agency to remove the account from my record? If so, i’d like to try it b/c at least i can talk to someone.
I am only 22 years old w/ little but good credit history. I have one credit card (revolving credit since 2005) that i use frequently and pay off. I have almost no debt. Would the creditor/collection agency consider any combination of the following:

- It was a medical bill for $108- i thought my insurance (from university or my company) would have covered it.

- the hospital visit was Employment related and reimbursable by my company. Had I been given the bill right away, I would’ve paid it.

- I was overseas and never recieved the bill (old address)

- I mailed payment and it was lost in International mail

- I’m just a kid!! I made a mistake. please give me a break!

What’s my best option? If I have to call Equifax, what’s the best number to call (preferrably to speak w/ a human)?

I know i’ve posted a similar question and this one is very long. Thanks for reading and helping out a young guy trying to get his life in order!

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Technorati Tags: credit card, Insurance, Insurance Company

Understanding Just How Simple It Is To Get Yourself Into Credit Card Debt

admin — Mon, 10 Nov 2008 13:09:22 +0000

Today having a credit card is no longer thought to be a luxury or a status symbol but reather is seen as a necessity and the majority of people has not one but several credit cards. Consequently the credit card business has grown by leaps and bounds in recent years and today the marketing of credit cards is itself an enormous business. However along with this growth in credit cards has come a terrific growth in the amount of credit card debt.

As the name suggests a credit card merely allows you credit with the credit card provider and the limit of that credit will be established at the time the card is issued and then reviewed from time to time thereafter. In other words when you use your credit card you are simply borrowing money from the card provider and you will be able to go on using your card as many times as you like until you have reached your credit limit.

The moment you begin borrowing money from your credit card provider you will begin to pay interest on the money you borrow and every month you will be required to pay back at least a portion of the money borrowed. The rules of course will vary from card to card but, in some cases, the initial interest charged is at 0% and if you pay back the total amount borrowed in any month at the end of that month you will pay no interest charges on that money. However, if you pay back only part of the debt, you will be charged interest on the remainder of your borrowings until that money is paid back. Interest again varies, but it is common to find that you are paying double figure interest rates which can frequently run to 20% or more annually.

Of course if you are sensible and only make use of your credit card for convenience when you are out shopping and then pay off your debt in full each month then you will be fine. However, the majority of people do not operate a credit card in this way and a surprisingly high number of people make only the minimum payment every month, which is usually about 10% of the outstanding debt. But herein lies the real danger when it comes to credit card debt.

As the months pass you continue to spend so that your debt increases but pay back only the minimum required, which also grows from month to month. but, because interest charges are added to your account every month, your balance actually increases at a faster rate than you are spending money and this really begins to rocket after only a few short months because you are now paying interest on the interest charges which are added to your account every month. Unsurprisingly what happens all too often is that the minimum monthly payments become more and more difficult to meet and before you know where you are you are simply meeting the monthly interest charges which are being added and not paying back any of the money you have actually borrowed to spend.

Used correctly credit cards are very useful but, if you do not use them properly or do not understand exactly how they work, then your credit card debt can spiral out of control very fast.

So, before you begin to max out your credit cards and find yourself in need of help with debt problems make sure that you fully understand just how your credit card works. Also, if you have already let things get out of control then do not hesitate when it comes to asking for help with out of court settlement on credit card debt.

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Technorati Tags: borrowing, credit, credit card, Credit Card Debt, credit cards, debt

About Secured Credit Card Comparison

admin — Thu, 06 Nov 2008 21:34:07 +0000

If you ever need help to sort out your financial matters then you will be spoilt for choice as the number of financial management companies grows steadily. One of the most visible among the unending line of financial management services there are is the ubiquitous credit card.

Although it is true to say that applying for a credit card is not generally something someone does on a whim. Most people usually have something planned to use the credit card for before they apply, whether it’s a new entertainment system of a short vacation. It doesn’t matter why people apply for a credit card because ultimately is because nothing compares to it for versatility and usefulness. It is quite normal now for me to receive in the mail at least one you-have-been-approved credit card notification per week. Since people are quite vulnerable when they apply for a credit card, some credit card issuers lure these people by giving low introductory APR, no annual fee offers among numerous perks. The tendency to offer so many alternatives and value deals is to sway the person who wants to apply for a credit card. Thats why it important to do thorough secured credit card comparison before you make your decision.

To help you on your way whenever you do apply for a credit card, there are three things you ought to know. Initially to get your bearings, try using the internet as your primary information resource if you need to learn more about applying for a credit card. Next, you can compare numerous credit cards that would best serve your needs and meet your financial situation. The final part of this three part plan is to carefully study the terms of the agreement you will make with the card issuer.

Do not go past this point if you are still not sure what a credit card is and what it means to have one. Whatever else you may consider a credit card agreement is, do not forget that it is a credit agreement that will create a financial burden on the owner. So, it’s best to compare terms and fees before you apply for a credit card and agree to open an account.

Many people are confused by the term APR or annual percentage rate but don’t be as it is just the amount of interest you will be required to pay on the balance each month. Being a measure of the cost of credit expressed as a yearly rate, the APR should be disclosed before you apply for a credit card. In addition to this the customer must have the periodic rate disclosed as well so they will know exactly what any other charges will be. There will also be other fees to watch out for and some notification of how long the grace period is for purchases. You are not expected to a financial expert and there my be things you do not understand so if that is the case make sure you get the information you need before it is too late to change your mind.

For more information visit Debt Consolidation Care

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Technorati Tags: credit, credit card, credit cards