Tag: debt

A Bit Of Tips To Assist People With Getting Out Of Debt Using Balance Transfer Charge Cards

It seems that no matter how hard you try to avoid it, your credit card debt continues to climb. Whether it’s because prices are on the rise or you simply overspend is irrelevant. Every time the card bill comes it looks the same and you never seem the make any headway on paying it off.

However, there is a solution and that is the balance transfer charge card account. The latter is a card that offers a promotional low APR for a set period of time for any debt you transfer from another charge card that does not belong to the same card issuer.

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There are plenty of offers available ranging from 0% to 9%, depending on the financial institution issuing the card. You will find that if the balance transfer credit card comes with other benefits, such as a rewards program or a low purchase interest rate, the promotional balance transfer rate tends to be slightly higher.

So, if you have outstanding card debt on which you are paying a higher rate you will be able to transfer it to your new balance transfer credit card and pay a much lower rate. This will allow you to pay off your debt much faster and save cash on interest costs as well.

However, most balance transfer charge card accounts offers come with a stipulation that the promotional rate is only valid for a certain period of time, ranging from six to eighteen months. Once this period is up, the balance transfer rate will revert to either the purchase or cash advance rate. Therefore, you will need to make sure that you focus on paying off your outstanding debt as soon as possible.

If not, you might find yourself in the unpleasant situation of actually paying a higher interest rate than you were on your old card. You will often find that the best balance transfer charge card account offers come with higher purchase and cash advance rates, with the expressed purpose of tempting you to change to a different card provider.

The idea is to make the balance transfer rate so tempting that you forget to analyze the rest of the offer and charge full steam ahead without taking into consideration whether or not you can pay off your debt within the allotted time.

Remember that lenders aren’t charitable institutions and they need to make a profit. The main source of revenue for a lender is from interest costs and penalty charges, meaning that the more customers they have the more money they make.

Therefore, their goal is to attract as many new clients as possible, which they achieve with highly tempting offers. However, appearances can be deceiving, which is why you need to make sure you read all of the fine print before signing on the dotted line.

On the other hand, the fact that the offer is available for a limited time can also be beneficial because it will force you to focus on paying off all of your debt faster. The fact that most of the repayment will be going towards covering the capital rather than interest costs is another benefit that will make it easier for you to get your debt under control.

Balance transfer charge card accounts are highly effective in helping you to get your debt under control. As long as you read the fine print and use your new card wisely, you will be able to pay off all of your existing debt and save a lot of cash in interest costs.

 


A Few Tips With Regards To Credit Card Debt Consolidation

The charge card industry’s response to recent legislation designed to protect consumers from unfair practices and egregious fees and interest rates on credit cards has inspired some credit card account issuers to raise rates and fees prior to the legislation taking effect in August 2009 and February 2010. If you’re carrying credit card account debt, now is the time to get debt help or make a plan for debt consolidation.

Debt Consolidation and Balance Transfers: Watch Those Fees!

US News & World report notes that several major credit card issuers are raising balance transfer fees. In the past, a three percent fee for each balance transfer was typical, but some companies are raising balance transfer fees to four or five percent of each amount transferred. If your credit is good enough to qualify for zero percent “teaser rates” on balance transfers for a few months, it can still be worthwhile to transfer balances from high APR cards. Using balance transfers judiciously can help you create your own debt consolidation plan without taking out loans requiring your home or car as collateral.

Getting Debt Help: “I Can’t Afford My Minimum Payments!”

In addition to raising balance transfer fees, some credit card companies are increasing minimum monthly payments from two or three percent to as much as five percent of the balance owed. If you’re carrying thousands of dollars of credit card account debt, this increase can render your family budget “toast.” Getting debt help through a credit counseling service may help in negotiating an affordable plan for consolidating debt and paying it off faster. Credit counselors work with you and your creditors to establish a repayment plan that may include waiving fees and reducing annual percentage rates. It will also require closing your charge card accounts, but this is preferable to the consequences of filing bankruptcy.

Thinking Bankruptcy? Please Think Again

Collection calls and threatened lawsuits can drive consumers into filing for bankruptcy protection. Although filing bankruptcy provides legal protection from creditors, it has serious consequences. Before contacting a bankruptcy attorney, here are a few things to consider:

Bankruptcy appears on your credit reports for seven to ten years and ruins your FICO ratings

Your ability to rebuild credit will be limited due to bad FICO scores

You may have to wait several years to qualify for a mortgage loan or consumer credit

High finance charges associated with post-bankruptcy credit can lead you back into debt

A bankruptcy can even make you ineligible for certain jobs

Filing bankruptcy can impact your ability to get a job and car insurance, and should be used as a genuine last resort.

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Debt Management Online Forums – Great Means To Discuss Debt Problems Safely

One of the major reasons behind continuously rising debt issues is want of realization about debt reduction programs because there is a big majority of borrowers who has lot of misconception concerning debt management schemes. For this purpose numerous online discussion forums has been set up where you can locate all information related to this debt elimination process. These discussion forums are thought of the best online resources to solve debt issues where you can locate specialists to obtain best debt advice suitable for solving specific financial problems. In this manner you will have straight contact to these professionals to acquire their valuable help totally free.

Be Regular with Your Repayments to Avoid Receiving IVA ‘Notice of Breach’

IVA is a lawful binding on both sides which means debtor can’t skip any repayment for any reason. In case you experience payment problems even as on an IVA then you must right away update your Insolvency Practitioner (IP) to make few changes or else any short repayment can result in a violation of your IVA plan. In such situation where you skip at least 3 repayments you will receive a ‘Notice of Breach’ from your Insolvency Practitioner telling that you have violated the program terms and conditions so you are warned to clear out the issue within a month otherwise it will result into IVA collapse and you will be confirmed a bankruptcy.

Don’t Hesitate to Enjoy the Positive Aspects of Debt Management Program

Have you ever considered about the enjoyable moments you can take pleasure in by taking up a adequate debt management plan? Of course there is a large section of borrowers who adopted debt management plan and enjoyed its advantages with no financial uncertainties whatsoever. You can too be one of them who can right off his debt exclusive of hurting his credit score, who can keep a credit card to use for emergencies, who can safe a large sum on cutting his interest load, who can wind up debt free and even can file for and get approved for new mortgage whilst being on a debt management program. And all this magic could happen inside 60 months exclusive of having any complication with routine expenses.

Get Authentic Debt Management Help from Authorities Online Resources

If you want to resolve your debt issues with the help of debt management program but have some concerns regarding online debt management scams then you have one dependable solution to get verified information and this solution is to go to government official websites running on this subject. Fair enough government has its own official websites where reliable information are accessible round the clock to assist visitors in finding the reliable guideline for handling debt problems. So if you are residing in UK then you can visit direct.gov.uk to get genuine information about debt related issues now.


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