It may happen a bad period in our life and we can have economic problems. We spend money trying to overcome the needs and waiting for new profit. But in a while, we can be in front of a challenge: all credit card debt consolidation required by the bank. For business reasons, I made some experience with the rules applied in these cases plus I studied a lot about credit and debit cards prepaid to choose the best payment ways for my daily expenses and my travels.
That’s why I decided to prepare this guide and to share my knowledge to help you to face this type of problem and hope to avoid it or to prevent it. You will find all the steps and the options to pass from the problem to its solution. Follow my tips and you will be safe, managing better your budget and especially prevent any risk.
A problem called credit cards debt
Credit cards are no more a luxury, they are almost a necessity. So, you would imagine a lot of people going on credit cards. In fact, a lot of people possess more than one credit card. So, the credit card industry is growing by leaps and bounds. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’. To understand what ‘credit card debt’ actually means, we need to understand the workflow associated with the use of credit cards as such.
Credit cards, as the name suggests, are cards on which you can get credit i.e. make borrowings (your credit card debt). Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt. Your total credit card debt is the total amount you owe the credit card suppliers.
You must settle your credit card debt every month. So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You must pay off your credit card debt by the payment due date failing which you will incur late fees and interest charges. However, you have the option of making a partial (minimum) payment too, in which case you don’t incur a late fee but just the interest charges on your credit card debt. If you don’t pay off your credit card debt in full, the interest charges get added to it. So your credit card debt keeps on increasing, more so because the interest rates on credit card debt are generally higher than the interest rates on other kinds of loans/borrowings.
Further, the interest charges add to your credit card debt each month to form the new balance or the new credit card debt amount. If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month’s interest too. Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount that you find almost impossible to pay. Moreover, if you don’t still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.
Pay off credit card debt
Credit card debt is a very big problem that is being faced by a lot of people who have been irresponsible and undisciplined in the use of their credit cards. Though some might have landed up with credit card debt due to some unfortunate event/emergency in their life, most people carry a credit card debt due to their own wrongdoings (i.e. wrong usage of their credit card debt). There are a lot of ways to pay off credit card debt and a lot of people do achieve this feat (i.e. can pay off credit card debt).
Surely, to be able to pay off credit card debt is really a great achievement in itself for not everyone can pay off credit card debt. It takes a lot of discipline, restraint, planning, and perseverance to finally pay off credit card debt. However, there is more to paying off credit card debt than just being able to pay off credit card debt.
Here we are talking about life after you pay off credit card debt successfully. As mentioned before, of all the people that try to pay off credit card debt not everyone can pay off credit card debt i.e. there are some failures too. However, some people fail after they have succeeded in paying off credit card debt. These are those people who let themselves loose and go on a spending spree as soon as they pay off credit card debt. Soon, these people again land up with a credit card debt and are again trying to pay off credit card debt.
So, it’s not enough to just pay off credit card debt, it’s equally important to maintain a debt-free status even after you pay off credit card debt; only then can you enjoy a stress-free life in the world of credit cards. So learn your lessons well and do not let yourself loose on the path to another credit card debt. Most of the rules that you followed when you were trying to pay off credit card debt, will also hold good after you have paid off your credit card debt.
Here is a quick synopsis of things that you should take care of even after you pay off credit card debt:
1) Do not overspend. Yielding to the sale offers for something that you don’t really need, is a big mistake that leads to overspending
2) Always remain within 70% of your credit limit.
3) Make credit card bill payments in time and in full.
4) Don’t hold more than 2 credit card accounts (two are enough for anyone)
These are just very basic things; you can add more based on your own experience and knowledge.
Agency card credit debt settlement
Should I use an agency for a credit card debt settlement? Some people like to deal with their credit card debt all by themselves. However, some people do use a credit card debt settlement agency. There can be various reasons for going for a credit card debt settlement agency. Some people use a credit card debt settlement agency because they are not comfortable in dealing with credit card debt settlement by themselves. Some go for a credit card debt settlement agency because they don’t have the time to do the research and evaluate options for credit card debt settlement. Others just want professional advice and hence they contact a credit card debt settlement agency.
Whatever be the reason for employing a credit card debt settlement agency, a good credit card debt settlement agency would surely be of help. However, you must select a good credit card debt settlement agency. Do not fall for ads of credit card debt settlement agencies that promise to wipe off your debt overnight. No credit card debt settlement agency or anyone else can do that. You should select a credit card debt settlement agency that has verifiable credentials or a credit card debt settlement agency that you know has a good reputation. If some friend has been through this process previously, they might be able to recommend a credit card debt settlement agency to you. Sometimes you will find ads that promise impossible things and ask you to call a telephone number that’s a premium line. So beware, or else you might end up paying heavy phone bills that would just add to your debt.
Some credit card debt settlement agencies might be having a very low fee but no reputation. These are again the credit card debt settlement agencies that you should avoid. However, once you find a reputable credit card debt settlement agency, do not try to hide debt-related information from them, no matter how bad your debt is. That is another reason for looking for a reputable credit card debt settlement agency. If the credit card debt settlement agency is not a reputable one, you would not be able to trust them; and trust is very important here otherwise you will neither be able to tell them the full story and nor follow their advice. That said, it’s important to note that no credit card debt settlement agency will be able to help you if you are not ready to help yourself. So, follow the advice given by the credit card debt settlement agency and practice good spending habits.
Bad debt credit card: what’s that?
A bad debt credit card is basically a credit card that the credit card suppliers offer to the people who have bad debt. Did that astonish you? Well, don’t let your thoughts run just yet.
You can classify bad debt credit cards into 2 categories based on what you understand by bad debt credit cards. The first category of bad debt credit cards is those credit cards that are secured (and are also known as secured credit cards). These bad debt credit cards require security i.e. you have to open (and maintain) a bank account with the bad debt credit card supplier. The credit limit on your bad debt credit card is calculated as a percentage of the balance you hold in the bank account you have opened with a bad debt credit card supplier.
Generally, this is 50-100% of your bank account balance. So, this bad debt credit card enables you to spend the amount you hold in your bank account; only the way you spend it changes (i.e. instead of spending that as cash you spend it using your bad debt credit card). So bad debt credit card lets you enjoy the convenience and other benefits that are associated with credit cards, even with bad debt. This security is as important for the bad debt credit card supplier; after all, how can you trust someone who has a bad credit rating.
The other category of bad debt credit cards is nothing unusual, they are the same cards that we know of most commonly; the only difference is in the way you get them and the objective behind getting them. Here, we are talking about the credit cards that you use as a debt consolidation mechanism i.e. consolidating bad debt (as such any debt is bad). So we can call them bad debt credit cards too. These operate by transferring the balance you owe on your current, high-interest credit cards to these bad debt credit cards that have a lower APR (at least for some initial period). Hence, these bad debt credit cards help you in consolidating your debt and getting some relief from the higher APR that you were experiencing on your current card.
Some people accept both of the above categories of credit cards as bad debt credit cards while others tend to go with one or the other. So, what you regard as a bad debt credit card is really a matter of personal choice.
Credit card debt help
Before you go for credit card debt help. Generally, you will find that there is more credit card debt help available than is actually needed. Just flip through the newspaper and you would be surprised by the number of advertisements related to credit card debt help. Now and then, there are articles on credit card debt and credit card debt help. Television channels are full of ads related to credit card debt help. Some websites and magazines are dedicated to credit card debt help. You also hear about the topic of ‘credit card debt help’ being discussed in parliament.
There seem to be policies/laws being formed for credit card debt help. All kinds of suggestions seem to be floating for credit card debt help. Everyone, even some of your friends, have a piece of advice related to credit card debt help. All banks seem to offer credit card debt help in terms of various loan types (generally short-term loans) at low rates.
So, credit card debt help is readily available and in fact, even unwanted credit card debt help or advice will flow into your ears. However, not everyone offering credit card debt help is proficient enough to be able to provide proper credit card debt help that will suit you. So you do need to understand some basics about credit cards and credit card debt before you actually go looking for credit card debt help or before you start helping yourself out with your credit card debt.
So you should try and understand how the credit card suppliers bill you, how the interest is calculated on your credit card balance and how your credit card debt grows. Understanding all about APR goes without saying. Even if you think that you had gone through all this stuff at the time of choosing your credit card, you should revisit these concepts to make sure that you still know them. If you decide against going for professional credit card debt help, you will need to understand these concepts in even more detail. All these concepts will become handy when you are comparing various balance transfer offers (for example). Moreover, the knowledge of these concepts will also help make discussions with credit counselors more fruitful.
So credit card debt help really starts with developing a better understanding of credit cards and other concepts related to credit cards (irrespective of whether you go for external credit card debt help or not).
Credit card debt online support
If you type on search engines ‘credit card debt’ you can find a lot of stories to inspire and help. Credit card debt can really disturb the peace of your mind. You keep hearing stories about people who run a debt on their credit card debt. Some of these stories are serious and some others are amusing. Here’s an amusing one.
The other day I heard a guy tell his story about how he went on his mission to eliminate his credit card debt. He started with reading the advice on various websites and trying various search engines and he was astonished at the number of results he got. One night he was so tired that he typed in ‘card com credit debt en language site’. After he typed ‘card com credit debt en language site’, he realized that he had made a slight typing mistake in typing ‘card com credit debt en language site’. His actual intention behind typing ‘card com credit debt en language site’ was to search for only English sites (.com sites only) that offered credit card debt-related advice. His search amused him, even more, when he found that ‘card com credit debt en language site’ did actually get him some results. Though the search engine did recommend changing the ‘en’ to ‘in’, there were still some results for ‘card com credit debt en language site’. He just went on to search for ‘card com credit debt en language site’ as just one term. For ‘card com credit debt en language site’ as a single term, he got lesser results than he had got for ‘card com credit debt en language site’ typed in without quotes.
He wondered if a lot of people were making similar searches as he was doing on ‘card com credit debt en language site’ i.e. using random terms with a bit of mistyping. He went on to typing ‘card com credit debt en language site’ on some other search engines, just to check that. Soon, it kind of became research (and fun) of a different kind i.e. searching for ‘card com credit debt en language site’ and checking if ‘card com credit debt en language site’ actually meant something. He thought that it was a bit unusual to have some other people too that we’re searching for or using the same term ‘card com credit debt en language site’ (especially such a long term as ‘card com credit debt en language site’). When ‘card com credit debt en language site’ was used without quotes, the search for ‘card com credit debt en language site’ did yield some useful yields. So he went on to examine these results that were returned for ‘card com credit debt en language site’. However, that was just the fun part of it and he soon went off to sleep.
Yes, he did laugh with his friends the next day.
College student credit card debt
Credit card debt doesn’t shy away from anyone who doesn’t want to shy away from it. It treats everyone equally irrespective of whether the person is a seasoned professional or just a college student. So college student credit card debt isn’t uncommon either. Since the credit limit on college student credit cards is much lower, the college student credit card debt cannot rise to the levels it does for other credit cards. However, college student credit card debt is an even bigger menace because a lot of students are already in debt due to the loan they have taken for their education. If they pass out of college with college student credit card debt, they will have to pay back not just the loan they have taken for studies but also their college student credit card debt.
Since most college students are inexperienced in the usage of credit cards, they can easily fall prey to what we call ‘college student credit card debt’. In fact, college student credit card debt is one reason why credit card suppliers keep a lower credit limit on college student credit cards. The solution for avoiding college student credit card debt is similar to what it is for the avoidance of any type of credit card debt. So, the first thing for avoiding college student credit card debt is to understand the concept that credit card is not free money and that whatever you pay-for using your credit card has to be paid back to the credit card supplier when your credit card bill arrives.
So don’t treat credit cards as separate from hard cash. Avoid overspending e.g. do not buy things just because they are on sale, sales keep coming and going and there are always better offers each time; buy only those things that you really need. A good thing to do is to prepare your monthly budget and follow it religiously. Never budge from your budget. Another very important preventive measure for avoiding college student credit card debt is to avoid going for a second credit card. Some students tend to go for multiple credit cards just because the credit limit on college student credit cards is very low. However, this is a perfect recipe for getting into a college student’s credit card debt. This is how college student credit card debt builds up. One credit card is more than enough for any student.
College student credit card is really meant to be treated like a training ground for learning more about credit cards. It should not make an instrument of debt (college student credit card debt).
Credit card debt consolidation loan
Credit card debt consolidation is regarded as the first step towards getting rid of credit card debt. A credit card debt consolidation loan is one of the ways of consolidating credit card debt. Besides, credit card debt consolidation loan, you can also go for a balance transfer to another credit card. In fact, due to the publicity by credit card suppliers, balance transfers seem to be more talked about than credit card debt consolidation loans. Some people kind of forget about credit card debt consolidation loans is available as a method of credit card debt consolidation. However, a credit card debt consolidation loan is important to consider when going for credit card debt consolidation.
So what do we mean by credit card debt consolidation loan? Put simply, a credit card debt consolidation loan is a low-interest loan that you apply for with a bank or financial institution to clear off your high-interest credit card debt. So credit card debt consolidation loan is based on the same principle as balance transfers i.e. moving from one or more high-interest debts to a low-interest one. The credit card debt consolidation loan has to be paid back in monthly installments and as per the terms and conditions agreed between you and the dispenser of the credit card debt consolidation loan.
A credit card debt consolidation loan, in general terms, is an unsecured loan i.e. doesn’t require you to pledge any security. However, if you have a really bad credit history and you won’t go for credit card debt settlement using a credit card debt consolidation loan, the credit card debt consolidation loan will take the form of a secured credit card debt consolidation loan. This type of credit card debt consolidation loan requires you to pledge security e.g. the home owned by you or something else that has a value that is comparable to your credit card debt consolidation loan amount. So, the worse the credit rating, the more difficult it is to get a credit card debt consolidation loan.
Though balance transfers and credit card debt consolidation loans have the same objective behind them, the credit card debt consolidation loans are sometimes considered better because you end up losing most of your credit card accounts which have been the main culprit in landing you in this difficult situation. However, balance transfers have their own advantages which are not available with credit card debt consolidation loans. Choosing between credit card debt consolidation loan and balance transfer is really a matter of personal choice.
Credit card debt consolidation
What is ‘Credit card debt consolidation? ‘Credit card debt consolidation is a phrase that you must have come across many times. There are hundreds of sites with advice on credit card debt consolidation. Now and then your favorite newspaper will also contain an article or advice on credit card debt consolidation. TV channels host discussions on credit card debt consolidation. Moreover, numerous consultants and companies provide professional advice on credit card debt consolidation. So what is this “Credit card debt consolidation” that everyone is talking about? Why is it such an important topic?
“Credit card debt consolidation” refers to the consolidation of the debt on various credit cards into a single credit card (or a couple of credit cards). Generally, you move from a higher APR credit card to a lower APR one. You might ask ‘why?’ If you look into how the vicious circle of credit card debt works, you will immediately understand the logic behind that. Credit card debt grows in 2 ways. One is due to the addition of new debt on account of fresh spends on your credit card and the second is due to the addition of interest charges to the existing credit card debt. The first one is due to your use of a credit card but the second one is due to interest charges which are calculated based on the interest rate or the APR applicable to your credit card. So a lower APR rate means that your credit card debt will grow at a slower pace and hence switching over to a card with a lower APR makes perfect sense.
The process of credit card debt consolidation is also referred to as the balance transfer process (you transfer the balance or debt from one credit card to another). The credit card debt consolidation (or balance transfer) offers are made even more attractive by the credit card suppliers by associating various benefits with them. The simple logic behind offering these benefits is the fact that such a customer would be defecting from one of their competitors. The biggest benefit offered by these credit card suppliers is 0% interest on balance transfers (or credit card debt consolidation). This 0% APR is generally applicable for a short period of time i.e. 3-6 months, after which the standard APR is applicable. Other credit card debt consolidation offers to include things like interest-free purchases for a short period, reward points, etc. These credit card debt consolidation offers make the exercise of credit card debt consolidation even more logical and meaningful.
Credit card debt consolidation seems to be a good way of tackling the problem of credit card debt and that is the reason why there is so much discussion on the topic of Credit card debt consolidation.
All credit cards debt counseling
Is ‘credit card debt counseling’ really beneficial? Not everyone believes that credit card debt counseling is beneficial and there are various reasons for that. Some people just read articles in the newspapers or find advice on the internet and take that as the final thing. So they don’t feel the need for credit card debt counseling. Some others feel that credit card debt counseling companies are just trying to make quick money by telling you the obvious i.e. by telling you something that is being advertised everywhere. However, the most important reason arises from the fact that not all credit card debt counseling companies are genuine and of those that are genuine, not all credit card debt counseling companies provide good advice. So, choosing a proper credit card debt counseling company becomes a critical factor in determining the success of credit card debt counseling.
Always go for a reputable credit card debt counseling company, even if their fee is a bit higher. Remember that proper credit card debt counseling can help you in not just eliminating your credit card debt, but eliminating your credit card debt in a way that is so cost-effective as to more than offset the fee the credit card debt counseling company is charging you. Moreover, proper credit card debt counseling can save you a lot of time and energy that you would have otherwise spend studying all about credit card debt, gathering information about various credit card debt elimination measures, and comparing these measures. Further, these credit card debt counseling companies can present more than one solution to you from which you can choose whatever appeals the most to you. These credit card debt counseling agencies can also get your credit card debt settled much quicker than if you were trying to do it all by yourself (and without any credit card debt counseling).
Also, credit card debt counseling could bring to light things which you would not have been able to see e.g. risks with the approach you were thinking to adopt or a futuristic view of things. Moreover, a person who earns his/her bread by practicing credit card debt counseling as a profession would know the tricks of the trade which no one else would even have an inkling of e.g. pitfalls of a particular debt consolidation offer, or advantages of another offer, etc.
There is no doubt with regards to the benefits that credit card debt counseling can bring to you. However, you need to be careful and avoid fraudsters and pick up someone who has a good reputation.
Credit card debt management
Though a lot of people are comfortable with going forward with credit card debt management all by themselves, not everyone is. Some people don’t really want to tread into the territory of financial issues (credit card debt management included). Such people generally prefer going to debt assistance companies for advice on credit card debt management or forgetting credit card debt management done through them. However, even before we talk further on this topic of credit card debt management, it’s imperative to understand that any external person or agency can only do proper credit card debt management for you if you strictly follow the advice/guidelines that they formulate as part of credit card debt management. These credit card debt management guidelines are generally related to controlling your spending (which basically means perseverance and contentment).
Going to a credit card debt management company or a credit card debt management advisor/professional is not meant only for people who are foreign to financial topics but is sometimes fruitful for other people too (who are going with credit card debt management all by themselves). This arises from the fact that these credit card debt management professionals (as any professional) would have more knowledge in that field than anyone else that is not from that field/profession. So, firstly, you wouldn’t know all the tips and tricks that the credit card debt management professional would know (and in fact, this is something that you cannot read and learn overnight). And secondly, it will save you a lot of time; because the person who practices credit card debt management as a profession would know about all the latest offers, etc that are available in the market e.g. balance transfer offers, etc (and hence you don’t need to go looking for all this stuff all by yourself).
All in all, a credit card debt management professional can help get you a better deal than might more than compensate for the fee charged by that professional. If you look around you will find that there are hordes of companies and professionals offering credit card debt management services. However, the key here is that you choose someone whose credentials are already established (or who can prove his credentials to you). One good way of selecting a credit card debt management company/ professional is to check with a friend or someone from your family if they have used any such service in recent times. After all, references are the best way of building trust.
Credit card debt negotiation
Credit card debt is really a menace and a lot of people are facing it around the globe. Credit card debt consolidation and bank loans are well known as ways of reducing and eliminating credit card debt. In all this confusion, credit card debt negotiation almost gets forgotten.
Well, credit card debt negotiation starts right from your credit accounts where you have the most hard-hitting credit card debt. This means credit card debt negotiation has to be taken up with your current credit providers. Before you misinterpret it, let me clarify that we are not talking about chucking off a portion of your debt through credit card debt negotiation. We are talking primarily about using credit card debt negotiations for getting the APR on your current credit cards reduced to some lower figure. So, credit card debt negotiation is about talking to your current credit card suppliers for informing them about your intention to clear off your credit card debt and using your skills (credit card debt negotiation skills) to agree on a lower APR rate with them. Basically, credit card debt negotiation is about asking your current credit card suppliers for help/assistance in clearing off your credit card debt. If credit card debt negotiation is successful, it will save you not only money (due to a reduction in APR) but also the hassle that is associated with looking for a new credit card (to transfer balance).
However, if the credit card debt negotiation, with your current credit card supplier, doesn’t yield the desired results, you will have to look for other credit suppliers who can help you in consolidating your debt. Again, you will need your negotiation skills (rather than credit card debt negotiation skills) to get a good deal from them. If your credit card debt negotiations work out well, you might be able to get a really low standard APR or you might get a longer-term on 0% APR (or you might get both). These are really the most important things and your credit card debt negotiations should concentrate more on these than anything else. The other thing to include in your credit card debt negotiation would be the credit limit and other benefits. Here, you are basically trying out the possibility of getting a better credit card as part of your credit card debt negotiation. For people with a really bad credit rating, getting an unsecured bank loan or getting another credit card (for balance transfer) is really difficult. For them, getting an unsecured bank loan or credit card is what you would term as credit card debt negotiation.
So, don’t hesitate in going for credit card debt negotiation. It is surely an option available for all.
Credit card debt reduction
Getting into debt is easy but getting out of it really a difficult task. This holds good for any kind of debt and includes credit card debt too. Credit card debt reduction needs planning and discipline in the way you spend money.
Credit card debt reduction starts with a reduction in the expenditures you make using your credit card. So, the first trick for credit card reduction is to go shopping without your credit card (carry some small amount of cash). This credit card reduction technique isn’t asking you to stop shopping, instead, it’s just asking you to seriously evaluate the need for anything you want to purchase and not just purchase it on the spur of the moment. So, if you really really need to buy it, you will go back to your home to fetch your credit card thus introducing a delay that is instrumental in killing spur-of-the-moment purchase (and hence helping in credit card debt reduction). It gives you time to evaluate if it’s really worth going back home and getting the credit card for purchasing that item. So, in this case, credit card debt reduction is achieved by preventing the debt from building up further. It’s a very effective credit card debt reduction measure.
The other effective way of credit card debt reduction is debt consolidation i.e. consolidating debt from high APR credit cards to a low APR one. So this credit card debt reduction measure works by reducing the rate at which your credit card debt grows. Moreover, this way of credit card debt reduction also gives you a breather in the form of a short initial period when the APR is 0%. Besides credit card debt reduction, debt consolidation also brings some additional benefits which are basically in terms of rewards, etc offered by the new credit card supplier. Thus this method of credit card debt reduction is really more than just a credit card debt reduction method – it’s a benefit provider too. If you are not comfortable in taking forward this method of credit card debt reduction, you can seek the help of a credit card debt assistance company.
Besides these two credit card debt reduction measures, which are really the most important credit card debt reduction measures, there are other methods too for credit card debt reduction. Another one is to ask your current credit card supplier for help in credit card debt reduction i.e. by lowering the APR. It might work out for you (as it does for some people).
Also remember, that there are people (professionals) out there who provide advice on credit card debt reduction (just in case you need them).
Credit card debt settlement
‘Credit card debt’ is the worst of all nightmares. A successful credit card debt settlement is like getting a new lease on life. Credit card debt settlement is a wonderful stress-relieving mechanism. Once you are done with your credit card debt settlement, you are assured of a much better life. All those nagging phone calls and emails will become history and all that surmounting tension would be gone. That’s why credit card debt settlement is so essential.
You can approach credit card debt settlement in 2 ways. You can either go for credit card debt settlement all by yourself or you can take advice from a credit counseling company or a professional. Any of these credit card debt settlement methods are fine, as long as they work for you and help you get debt-free quickly. If you go for credit card debt settlement all by yourself, you will need to analyze the various options available to you e.g. checking on various balance transfer offers available in the market, checking the short-term loan options with the banks, etc. However, if you want to take credit card debt settlement advice from a professional, you should be able to trust the advisor fully. So you need to check the credentials of the credit card debt settlement advisor/company. There are hordes of people and companies that advertise “credit card debt settlement in one day” or something of that kind that will look just fantastic. Such credit card debt settlement offers/advice are generally not genuine.
Moreover, you need to understand that credit card debt settlement cannot happen overnight (unless you win a lottery or something like that). So, beware of such agencies. That said it’s important to mention that there are a lot of good credit card debt settlement advisors/companies available too who will not only give you genuine credit card debt settlement advice but will help you throughout until you are finally out of debt. Their advice may, in fact, more than compensate for the fee that they charge you for credit card debt settlement. These credit card debt settlement companies/advisors will be able to help you in the best way if you tell them your current financial situation correctly. Your plans are important too, as they might influence the decision on ‘What route for credit card debt settlement would work the best for you.
Moreover, once you are done with your credit card debt settlement, you should also take measures to avoid falling into that pit again.
Eliminate credit card debt
It is easy to eliminate credit card debt. Well, anyone who makes this comment is sure to be labeled as a moron. However, let me remind you of a famous quote “Where there is a will, there is a way”. So that is how easy it is to find a way to eliminate credit card debt. What you really need to eliminate credit card debt is “Will Power”. No matter what method you adopt to eliminate credit card debt, no matter what debt assistance company you approach (for advice on how to eliminate credit card debt), no matter what your friends tell you, “Will Power” is essential if you want to eliminate credit card debt. In fact, this starts from the word go. Just examine the last part of my previous statement “… is essential IF YOU WANT TO eliminate credit card debt”, this statement itself implies that “IF YOU WANT TO” or we can rephrase that as “if you have the willpower to” eliminate credit card debt.
Will power is what you need to control your urge to buy everything from the market. Will power is needed to persevere. Will power is needed to analyze your current financial situation. Will power is needed to sit and plan the ways and means that you can adopt to eliminate credit card debt. Will power is needed to approach a credit card debt assistance company. You also need willpower and patience for researching the market for the best balance transfer plans. So really, willpower is needed for every aspect of credit card debt elimination. Since “Will Power” is the only thing you need to eliminate credit card debt, we can say that it is easy to eliminate credit card debt.
However, this is easier said than done for willpower for anything (be it will power to eliminate credit card debt or something else) is hard to come by. One way of strengthening your willpower, which is required to eliminate credit card debt, is to portray life after you successfully eliminate credit card debt. Portray the peace of mind that you will get after you eliminate credit card debt. How much fun it would be!! Moreover, the sense of achievement would be no lesser either (after all not everyone can eliminate credit card debt). Just think about all these good things and build your confidence and your willpower to eliminate credit card debt. There is really nothing as powerful as willpower. And remember “Where there is a will, there is a way”.
Excessive credit card debt
Most people advocate the case of credit cards, quoting the benefits and convenience that arise from them. However, there is another group/line-of-thought that strongly opposes credit cards. The reason being ‘Excessive Credit Card Debt’, which is one of the most serious problems faced by the credit cardholders and credit card industry. However, you can’t pull the shutters on the credit card industry just because of a few irresponsible people (or even if it’s more than a few). That is not a solution for beating excessive credit card debt. Moreover, you can’t overlook the benefits associated with credit cards.
The issue of excessive credit card debt can be looked at from 2 angles. The first is addressing the excessive credit card debt problem at the industry level and the second is the addressing of the excessive credit card debt problem at the individual’s level i.e. at the credit card holder level. The first method involves increasing awareness of the excessive credit card debt problem to the masses. This is more or less being done currently too. However, there should also be an effort to tackle this problem of excessive credit card debt at an even deeper level. This means trying to devise a mechanism to nip the problem (of excessive credit card debt) in the bud. This mechanism should actually be a part of the overall system. A lot of thought needs to go into devising such a mechanism.
Case studies should be taken up, statistics gathered and a proper forum formed (with representatives from the credit card holders and the credit card suppliers). As of now, the credit card suppliers just seem to be engaged in coming out with new products and getting customers enrolled in those products. There is little attention paid towards addressing the problem of excessive credit card debt in the real sense. Something like attending mandatory seminars on the root causes of excessive credit card debt could be made part of the credit card application process. Another way of dealing with the problem of excessive credit card debt could be: developing a system for the calculation of applicable credit card limits at the individual level i.e. no standard/product-based credit limits.
Then there could be mechanisms for proactively warning the users about excessive credit card debt (based on their credit card usage) or even imposition of early restrictions on noticing the first signs that lead to excessive credit card debt At the individual’s level, the treatment of the problem of excessive credit card debt would include the following of best practices (on credit card usage and avoidance of excessive credit card debt) by the individuals themselves. A checklist or a set of questions could be provided to individuals for recognizing the first signs of excessive credit card debt.
So, the problem of excessive credit card debt can surely be dealt with by putting together some serious thinking at a broader level together with discipline at the individual’s level.
Get out of credit card debt
Can I get out of credit card debt? Yes, you can get out of credit card debt. If you are determined to get out of credit card debt you surely can get out of credit card debt. Though it’s a bit difficult to get out of credit card debt, it isn’t impossible. All you need to get out of credit card debt is determination and planning. Both are equally important (or maybe determination is even more important). Determination doesn’t come without proper reason. So, you need to first ask this question to yourself – “What will I get if I can get out of credit card debt?”, “What difference will it make”, “What’s in it for me” or “Is it really beneficial to get out of credit card debt”.
Use the answers to build your determination. The fact that all the nagging via mails/phone (by the credit card supplier and/or their collection agent), will be gone, should do good to strengthening your determination and should provide you with a reason why you should endeavor to get out of credit card debt. Think about the stress-free life after you get out of credit card debt. Try to link various reasons together and try to see the benefits through them. All these collectively will help in bolstering your determination and prevent it from getting weak at any point in time.
The second thing that you need to get out of credit card debt is planning. The planning to get out of credit card debt will start with making a list of the credit cards that you currently possess and noting the debt and the APR for each of them. The total of all these various credit card debts will give you the total credit card debt. You also need to check if you have been defaulting on payments on some of these credit cards (and hence incurring a late fee). You will need to avoid that and put it on the plan you have prepared to get out of credit card debt.
The next step in getting out of credit card debt is to check your current financial position and make an assessment of what you expect your future financial position to be. Next comes the research to check the various balance transfer offers available in the market; to see if one of these can prove beneficial to you. Use all this information to calculate how much time you will require to get out of credit card debt and how you will distribute the debt payment across your various credit cards (ensuring that you pay off the debt that is hitting you the most and also ensuring that you don’t incur a late fee on any credit card payments).
All credit cards debt consolidation
Is consolidating credit card debt a good option? Well, the answer will more often be yes than no. Consolidating credit card debt is often regarded as the first step towards credit card debt elimination. However, even before you move to take the first step towards consolidating credit card debt, you must understand that consolidating credit card debt (or balance transfer) is an action that you are taking to eliminate credit card debt. Consolidating credit card debt is not a means of deferring the problem for later.
Consolidating credit card debt is indeed a good option in more than one sense. Not only do you get relief from the rapid increase in your credit card debt, but also get other benefits too. Offers for consolidating credit card debt are in abundance and are very attractive indeed. Almost all the offers for consolidating credit card debt have an initial low APR period during which the APR is generally 0% (or some low figure). In fact, this is one of the main things which make consolidating credit card debt a very attractive option. Besides this low APR, the offers for consolidating credit card debt also include things like no interest rate on the purchases made during the first 5 months (or some other initial period) of a balance transfer. This is another thing that lowers the speed at which your credit card debt gallops.
So these are the two most important benefits that credit card suppliers deploy to attract people into consolidating credit card debt with them. Then other benefits include things like additional reward points on the member’s reward program of the credit card you are consolidating credit card debt to. These reward points can be redeemed for other attractive goods/rebates/rewards etc. Sometimes, the new credit card (i.e. the one you are consolidating credit card debt to) might be a credit card that caters more to your current spending needs both in terms of the credit limits and the way you spend your money. For example, the new credit card might be a co-branded one offered by an airline that you have started traveling with very frequently in recent times, and consolidating credit card debt on such a card may open up much more benefits as compared to your current credit card which was based on your needs at the time of you applying for your current credit card. The credit card you are consolidating credit card debt to might open up discount offers to you.
9 steps to tackle the credit card debt problem
Looking for a solution to your credit card debt problem? First of all, you can take comfort in the fact that you are not the only one fighting the credit card debt problem. There are hordes of people who might have an even worse credit card debt problem compared to you; all of them seeking to eliminate the credit card debt problem. So what is the solution to the credit card debt problem?
Well, the solution really is to smash the credit card debt problem with full force and eliminate it. Now how do you do that?
There are many ways in which you can tackle the credit card debt problem. Different people suggest different ways of tackling the credit card debt problem. However, here is a simple step-by-step account of what you can do to get rid of the credit card debt problem.
1. Take stock of the situation i.e. draw up a table with the following fields – Credit card name, balance, payment due day (the day of the month by which you are required to make payment of your credit card bill), APR, reward points earned, redemption offers applicable for your reward points balance, remarks.
2. Fill the table up with data from your various credit cards.
3. Figure out which credit card is contributing the most to the credit card debt problem i.e. highest APR and highest balance.
4. Check if reward points can be used to make partial payments or cover any kind of fees or if the points can be bartered for something you need (spending less means preventing the credit card debt problem from getting worse).
5. Draw a comparison table of offers available for eliminating the credit card debt problem (i.e. consolidating credit card debt).
6. First eliminate debt on the credit card that is contributing the most to the credit card debt problem.
7. Practice controlled and healthy spending habits (after all you are looking to get rid of credit card debt problems and not aggravate the credit card debt problem).
8. Look for alternative means of adding to your income (more money means earlier termination of credit card debt problem)
9. See your debt reduction with time and celebrate the day when you finally put an end to your credit card debt problem.
Remember this is just one of the ways of tackling the credit card debt problems; you might devise your approach for doing away with the credit card debt problems. Any and every approach is good if it fulfills the objective i.e. eliminate the credit card debt problem.
Reduce credit card debt
“Reduce credit card debt and eliminate it before it assumes a horrifying shape” – This is really the gist of the story. So, how do you reduce credit card debt? Well, you reduce credit card debt by preventing it from increasing and by paying off what it is currently. Simple, isn’t it?
Not really. If it was that simple to reduce credit card debt, then we wouldn’t have had so many people with credit card debt-related problems. We would have been able to reduce credit card debt problems and finally eliminate them (or reduce them significantly). There are all kinds of advice available on how to reduce credit card debt, but still, nothing much seems to change. The problem still seems to persist and in fact, worsens. However, it’s not that difficult to reduce credit card debt. As we just said, there is a lot of advice available on how to reduce credit card debt and the only thing you need to do is put that advice, on how to reduce credit card debt, to practice in real life. Well, no one but you will benefit if you reduce credit card debt.
So the first step to reducing credit card debt is to prevent it from taking dangerous proportions. The 2 most important ways of implementing this step are – balance transfers and the use of cash.
A balance transfer is often treated as the number one measure to reduce credit card debt. This is really something that can help reduce credit card debt by slowing down the pace at which your credit card debt is getting built. It also provides you relief in terms of the APR being 0% for the initial 6-9 months (and hence helps reduce credit card debt faster). To reduce credit card debt using this mechanism, you need to transfer your balance from your current credit card(s) onto another credit card that has a lower APR than your current card. Thus you reduce credit card debt by preventing it from increasing so rapidly.
The other preventive measure to reduce credit card debt is to use cash instead of a card (as such, hard-earned cash is difficult to get out of pocket as compared to just a credit card). So you reduce credit card debt by not adding more to it. That is the simplest way to reduce credit card debt.
However, you can reduce credit card debt only if you stick to your resolution to reduce credit card debt; otherwise, it will fail miserably.
Credit card debt elimination
Taking a step towards credit card debt elimination. So you have decided to go for credit card debt elimination and are wondering what the methods for credit card debt elimination are. As they say, let’s take the bull by its horns and lay it all flat on the ground. There are generally 2 recommendations that are most common for credit card debt elimination: controlling the expenditures and consolidating debt. Let’s check both of these credit card debt elimination recommendations and check the list of things that you can do for achieving credit card debt elimination using these recommendations:
1. Control your urge to spend: The first thing to do for credit card debt elimination is to control your expenditures. Here we are talking about the payments you make using your credit card. Remember that the main reason being your getting into credit card debt is uncontrolled expenditures using your credit card. So if you are really serious about credit card debt elimination, this is one thing that will help in credit card debt elimination by preventing the accumulation of further debt. Here is what you can do to control your expenditures:
a. You need to stay away from attractive offers that are put-up by various shops and stores. Don’t buy anything that you don’t really-really need. After all, you are looking for credit card debt elimination, not supplementation.
b. Leave your credit card at home. If you really really need something, then you can fetch your credit card from your house. This will prevent you from yielding to the too-attractive-to-resist sale offers (that are actually there all the year-round). This credit card debt elimination technique, again, works on the principle of ‘prevention is better than cure. This will prevent unplanned expenses from happening.
c. Prepare a monthly budget and stick to it. This is really a very important credit card debt elimination measure. This budget will form the basis of your credit card debt elimination plan. So if you deviate from your budget, your credit card debt elimination plan will go for a toss.
2. Debt consolidation: debt consolidation or moving from high APR credit cards to a low APR one is generally the first step (the first reactive step) for credit card debt elimination. Here are a few things that you need to do:
a. Do not go for the first balance offer you come across. Analyze various offers and choose the one that best suits you. This will be an important thing on your credit card debt elimination plan. Initial APR, Initial APR period, and standard Apr, all need to be considered.
b. Read the fine print on the balance transfer offer and check the terms and conditions on these. These might affect your overall credit card debt elimination plan.
c. Compare other benefits e.g. rebates, reward points, etc, before you actually decide to go for one of the offers.
Credit card debt elimination is about proper planning and discipline. So make your credit card debt elimination plan and stick to it.
Teen credit card debt statistics
What do the teen credit card debt statistics tell? Well, you don’t really need to look into the teen credit card debt statistics to tell what’s going on. The teen credit card debt statistics would probably look very similar to any other. I think I read somewhere about teen credit card debt statistics and those teen credit card debt statistics indicated that a lot of teens in the US had a significant amount of balance on their credit cards; something which they shouldn’t have (considering their limited needs for credit). Though these teen credit card debt statistics would give you a fair idea of how our teens are faring in the world of credit cards it’s really not so important to talk about teen credit card debt statistics as it is to talk about the ways of bettering the teen credit card debt statistics (I mean bettering the teen credit card debt statistics positively).
So how do you better teen credit card debt statistics? Well, the bettering of teen credit card debt statistics would, as you must have guessed, start with education. This education has to start early in the life of the teens. Here we are not talking about just credit cards related education but the education about managing their finances in general. Teen credit card debt statistics cannot be improved without explaining the actual value of money to the teens (and also teaching them how to use it). So, for bettering teen credit card debt statistics, we need to give them an all-around education on managing money and finances. This can start with asking them to maintain a record of their pocket money and how they spend them. Also, engage them in education related to money management (of course, you have to customize the discussion to suit their level of knowledge and maturity). The next step would be to open a bank account for them and teach them the various aspects of managing it. Teach them what debt is and when it is considered bad. A debit card could be the next step for them. Once they start becoming comfortable with doing their bank transactions by themselves, you can get a prepaid credit card for them (something that has a preset limit of $200-250). You could also use a low-limit credit card (with a $250 credit limit) and teach them how to use it.
Thus you can follow a step-by-step approach to ensure that your teens learn the best practices (and hence you can keep them out of those horrifying teen credit card debt statistics, thereby contributing to bettering the teen credit card debt statistics).
Credit card debt consolidation
The benefits of Credit card debt consolidation. ‘Credit card debt consolidation seems to be the most talked-about term in the world of credit cards. Credit cards have indeed been very useful and convenient for us and we, in fact, treat credit cards as a necessity. However, with every good, you have evil too. In the world of credit cards, ‘Credit card debt’ is that evil, and ‘Credit card debt consolidation is often regarded as a medicine for treating credit card debt.
Anyone who has read any newspaper articles on ‘Credit card debt’ would already know what credit card debt consolidation is. However, just for the benefit of others, credit card debt consolidation, in simple terms, is the process of consolidating debt that you hold on various high APR credit cards onto just one low APR credit card. Thus, the main benefit of credit card debt consolidation is realized in terms of APR reduction (and hence reduction in credit card debt growth rate). This is touted as the most important benefit (and sometimes the sole benefit) from credit card debt consolidation. However, credit card debt consolidation comes with a few more benefits as well. Some of these credit card debt consolidation benefits are widely publicized by the credit card suppliers and some not so much:
1. Initial APR: As mentioned above, a lower APR is the biggest benefit of credit card debt consolidation. Since credit card debt consolidation is used by credit card suppliers as a tool to attract consumers, they generally offer a 0% APR for an initial period of 6-9 months of you joining their credit card debt consolidation program i.e. first few months after you get the new credit card.
2. Standard APR: Lower standard APR (i.e. the long-term APR) is the other important benefit from credit card debt consolidation. Though not all credit card suppliers offer a lower standard APR with credit card debt consolidation some do design credit card debt consolidation programs with good standard APR. These credit card debt consolidation programs offer a trade-off between initial and standard APR rates.
3. 0% on purchases: This is another common benefit from credit card debt consolidation. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. This credit card debt consolidation benefit is again applicable only for a short initial period.
4. Easy management: This credit card debt consolidation benefit is not as discussed as others. However, one benefit of credit card debt consolidation (from multiple to single credit cards) is the fact that you need to track and manage a lesser number of credit cards.
5. Other benefits: The credit card debt consolidation exercise might bring you some more benefits in terms of rebates, discounts, and reward points (especially if you move to a co-branded card as part of credit card debt consolidation).
Why use debit cards prepaid
The debit cards prepaid reserve to consumers a lot of benefits, starting from avoiding the risk of overspending. The card is safer than cash and it is possible to reload them easily. They are a valid alternative to credit cards and traditional debit cards.
All the benefits:
- No risk to spend more than the budget. Prepaid cards work with the money you upload, so you can easily decide the budget for the expenses and you won’t spend more. The card balance is always the limit and this is different from credit cards. With them, you can lose the notion of the balance of your expenses.
- Money is safe. The prepaid card allows you to upload the amount you need, so you can leave cash at home or on your bank account. It will be safe to go around without cash. In case thieves steal your card or you lose it, you can block it and preserve your money.
- Easy and fast. You can easily upload money on your prepaid card and use it in all shops, hotels, restaurants, and online shops. It is accepted following the card brand network, plus there are available multiple ways to transfer money on it.
- An alternative to banks. Most of the prepaid cards offer a linked account to deposit your money. It is a normal account you can use to receive money like a salary, you can send money to others, and so on. You will get all the essential services, at a low cost.
- Maintain anonymity. Privacy and security are safe. Debit cards prepaid give the chance to receive an additional level of anonymity and protection for personally identifiable information. So you can avoid risks and protect your money together with the identity, even from creditors.
- No credit check. To obtain a prepaid card you just have to send your data, there is no credit check, so eventual problems you had with banks and credit cards are not considered.
The best-prepaid card
There is a very good prepaid card that you can use for your online and offline shopping and travels. I use it for all my expenses and I am satisfied with it. I already wrote a review, but here I want to list the main features and advantages. Viabuy card is perfect also if you still have debt with your credit card.
Viabuy benefits:
- A Mastercard® for everyone
- Load safely and easily via bank transfer and IBAN
- No credit check, no bank history, no salary slips required
- 100% acceptance rate with EU residence
- Own card account. Not connected to your bank account
- Fully-functional Mastercard® card
- Online account for incoming wages and benefits
- Easy online banking
- No credit check or proof of income required
- 100% online verification
- Card shipped within 24 hours on business days
- Worldwide free payments
- Accepted at over 36 million locations
- Not connected to your bank account and credit card
- Card account monitoring with the app, SMS, and email for full cost control
- Additional security when paying online with Mastercard CVC
- Ideal for holidays and world travel
- Full Prepaid Mastercard® credit card functions
- Safer and more convenient than carrying cash
- Always a suitable currency in your pocket
- Pre-load your budgeted holiday spend
- Online games and role plays
- Online Casinos & Poker
- Chatting, dating & adult content
- Apple’s App Store, iTunes Store & Google Play Store
- PlayStation Network & Xbox LIVE
Conclusions
All problems can be solved but I recommend you pay your debts with banks and credit card companies because they can ruin your life. But to manage your payments prefer a prepaid card, so it will be easier, you will use the money you have and there will be a chance to plan your budget. Also, you will reduce costs. It can be an alternative to the bank account and this will help you to cut commissions.
I hope you found this post useful. Share it and make friends and relatives aware of the opportunities to improve their credit life. In case you want to earn extra money, check out my guides.