Author: jani

Credit Debt Solutions Need to be Found

If there is one thing that is quickly hitting people’s perceptions today all around the world, is that credit debt solutions have to found because no one or no Country is immune from the wrath of financial institutions. Learn how to make money online at IncomeIdeas to supplement your existing income in order to prevent the need of credit debt. With the near collapse of the Eurozone and more than one country having to take drastic action to remedy the debt problem; should give us all a clear indication of just how serious the world debt crisis has become.

Personal credit debt management is the only thing that each of us can individually do anything about, so the sooner we all consolidate our debt repayments into a manageable repayment plan, while cutting back on any unnecessary financial outlay, the better off each of us is going to be.

The only alternative to fixing our own personal credit debt problems is to elect better Politicians to our Governments and as the Eurozone Countries are fast finding out, sovereign debt is capable of eliminating Presidents and world leaders with the crisis being far from over.

It may be well and good to reject and remove inefficient and corrupt Government leaders, but this still doesn’t remove or fix our debt crisis. Our sovereign debt crisis is not the result or fault of one Government alone or political party alone, but has been slowly building up over a long time. It is just that some of our existing leaders are not seen as being capable of fixing the problems and their people have lost confidence in them and their Governments. Read more on Google about the latest leader to fall.

The recent G20 meeting in Cannes was little more than a ‘talk fest’ about the world financial institutions and as Greece was the main “problem child” during that time, their problems dominated the conversation. But as Greece is not one of the G20 countries and contributes only about 5% of world GDP, it made the whole meeting superfluous.  What I personally found offensive from this meeting of G20 countries was the offer by some countries like Australia, to top-up the International Monetary Fund (IMF) central bank.

When the IMF was founded, its charter was to make low-interest loans readily available to third world countries for infrastructure and development. Using IMF funds to bail out greedy banks and other financial institutions; is to my way of thinking just another form of corruption.

However, the elections for new politicians in Australia are not due to be held for another 2 years so all I can do personally, is to control my own credit debt levels and make repayments over and above the minimum requirements each and every month.

Paying Credit Card Bills on Time

If you can pay your credit card bills on time every month you will quickly get a good credit report and save yourself a lot of money.

While many of us struggle to make the bare minimum payment each month, as the month’s progress and all we manage to do is pay the bare minimum, then we are increasing our interest rate bill exponentially.

When you pay only the bare minimum each month you are really only paying interest rate and not taking or taking a very small amount, off the principal amount of the loan. If you go on indefinitely paying only the minimum, you won’t be paying anything off the original amount that you borrowed.

All credit card debt is money borrowed. Any money that you borrow has to be repaid to the lender. It doesn’t matter if the lender is a credit card company, a bank or other financial institution or your great-Grandmother; if you borrow money it has to be repaid with or without interest.

This is why when you accept a loan from a financial institution you have to sign a contract (application form) for the loan where it says very clearly the interest rate at which you have agreed to borrow the money and to repay. A credit card application is the basis of your contract with the supplier of the money that you have applied to borrow.

Contractual law can get very involved and messy so be very aware of what you are signing for and make sure you always keep all the paperwork associated with any monies that you borrow from anyone, anywhere, any time.

Here are three ways to use any credit card to lower your credit debt:

1. Don’t use a credit card at all. Yes, you have to have one and some credit card companies ‘make’ you use it to keep a good credit score. Abide by their terms and conditions and you will stay financially healthy. But only use as much credit on your credit card as you can comfortably afford to repay.

This clause on a credit card contract should be made illegal in my opinion. But until our authorities are prepared to make some hard rules for our financial institutions and put some regulations in place for the people, this is a clause in some credit card contracts and if you sign up for one of these cards then you have to abide by the Terms and conditions associated with the contract.

2. If you have used your credit card then pay off the full amount borrowed each month. Always pay more than the minimum amount requested because this pays off the interest rate plus part or all of the principal.

Don’t put more debt on your credit card each month than what you can afford to pay off in full each month.

3. It is advisable to keep one credit card in your name. If you don’t absolutely have to have a credit card, then cancel the account with the Credit Card Company or financial institution and use the scissors to cut it into pieces so you will never be tempted to use it again.

Before doing this, make sure:

A) You have cancelled the credit card with the company and there is absolutely nothing owing on it now or in any future charges and

B) That the credit card that you keep is the one with the lowest interest rate charges.

In today’s world, everyone needs a “piece of plastic” credit card. But there are credit cards and there are credit cards but whenever you use either of them to pay for something, the debt can be very different.

Credit Debt Is Bad for Your Health

Are you consumed with worry over your credit card debt?

If you answered yes to the above, like most of us today, you aren’t alone. But it is bad for your health so you do need to do something about repairing your credit payments before the situation gets worse. And if you don’t do something about it soon, then the chances are increased that you could well become ill.

Bad health from stress and worry is now a recognized result of debt worry. If you became ill, who would be there to pay your debts for you? Could your family survive and still keep up to date with any credit card bills that come in each month?

The best idea is to recognize and admit when you start to see a problem arising. Don’t hide it from your family and don’t ignore that repayments are starting to become a problem. Contact, in writing, your financial institution and see if you can renegotiate your repayments.

The next thing to do is to leave the credit cards at home when you go out so that you don’t add any more credit debt to an already overloaded repayment program.

If you simply and absolutely can’t do without something, like electricity, then you will have to put it on your card (if you can). But if the need for something is not as urgent as that, forget that the card even exists. That will save you money.

Work out a budget and stick to it. Use cash and not a credit card. Cash is still King.

If you don’t know what needs to be included in your budget, have a look through the charges on your credit card. You are bound to see many small payment on there that you should have paid for using cash. If you don’t carry cash on you for these small payments of non-essentials usually, then perhaps a life-style change will be a good idea before you are forced to make a change much bigger than one you and your family, can live with.


Paying Credit Card on Time Saves Money and Reputation

Paying a credit card on time will save you money and it will save your reputation with the credit card company.

By paying a credit card on time you save on interest because with some credit cards the interest accrues each day and if there is an unpaid amount owing, the interest on that makes next month’s minimum payment that much more.

If at all possible, if you pay off just a few dollars more each month than the minimum owing, you will be very pleasantly surprised at how fast paying your credit card debt will happen. Ideally, of course, you should be paying the total amount off each month but that isn’t always possible. But if you are just using your credit card for what were once known to be “running around expenses” and you haven’t bought any large purchases, then if you are budgeting well, these small uses should be coming out of your budget.

Credit cards were once only used for large purchases.

Historically, the credit card was invented for people who just wanted to borrow a small amount of money to buy a fridge or a washing machine. These larger purchases were able to be paid off in a short amount of time. Originally, the credit card was not designed or intended by the banks to become a daily usage monetary system in place of cash.

Once people started having all their wages and salaries paid directly into their bank accounts; which occurred because of the convenience factor and because it stopped the pay-roll robberies, people then started to use their credit cards to make smaller purchases when they didn’t have the cash on them to pay for something. These smaller, unpaid amounts on credit cards, started to return a serious amount of interest based funds back to the banks so they started to encourage more and more use of the ‘plastic money’ because it increased the banks bottom line substantially.  Hence today, most banks around the world regularly announce profits in the billion dollar vicinity each year.

These Billion dollar profits substantially originate from people who don’t or who are unable to pay off a credit card fully each month. Paying a credit card that has many small amounts charged against it, should be easy to pay if you can regularly pay it off every month.

Credit and Debt Management Go Hand in Glove

Managing credit debt is as a hand goes into a glove. Nothing else will do when it comes to a good credit rating but to also be a good debt manager.

hand in glove money

money in gloved hand

If you as debtor can’t manage to do this then the chances are very high that you may not have a good credit rating for too much longer.

In the recent past, credit has been too easy to access for many people who weren’t in a good financial position in the first place to be loaded up with debts that they had no way to pay off. The provision of this credit is now linked to irresponsible lending providers who had more of an eye to their bonuses than they showed towards their clients. Consequently, the global financial system came close to collapse all around the world.

Ultimately though, we are all responsible for ourselves and if we were already struggling financially, then we all should have taken the hard road and not tried to buy our way out of debt.

But then again, hindsight always knows better as to what should have been done instead of what we actually did.

Once a financial institution has extended a line of credit to you for whatever purpose; that is a debt that must be paid.

If money is short and you are having difficulty paying off a credit card debt or a store card debt, then the best idea is to make an opportunity to see a finance officer either at a bank for a lower interest rate loan or at the financial institution you owe the money to, to arrange for a repayment schedule if possible.

Not all financial institutions will agree to this so you will need to show an honest intent. Once they can see that you are really battling to pay off your loans, many of them will decide a little bit of something regularly is better than a whole lot of nothing ever.

However, if the credit has been extended to you or your business as a secured loan, it could be a quite different matter and the financial institution may decide to send you into bankruptcy so they can recover their loan faster.  There are always variables and one of the unknowns to a petitioner for loan leniency is the fact that you won’t know the financial institutions own financial position.

Finances in the world today are set up like a string of dominoes. Once the first one falls over, the rest follow in turn. This is one of the biggest reasons why the world we live in today must have a more regulated world financial system.

In the meantime, as a debtor to a financial institution somewhere, your good management of your own finances will go a long way towards keeping you from becoming just another statistic.

How to Pay off Debt

Knowing how to pay off debt will be essential financial knowledge to have or to learn for anyone or any business who find that their debt to income gap is closing and the repayments are getting harder and harder to make each month.

This tends to be a creeping gap that closes quicker than many debtors are aware until the monthly payments need to be made and they then find they don’t have the ability to make a payment. That signal / scenario is the warning bell to make some substantial changes to their financial management system because it has now become a critical situation.

The way to pay off credit debt is to be knowledgeable about every outstanding debt that is owed to the credit card companies, any and all financial institutions, store credit cards, bank loans and overdrafts, mortgage repayments, contracts for garden care and every other financial commitment that you are responsible for.  And don’t forget to include the essential running costs of utilities like gas and electricity, telephone and transport costs.

Once you have this list compiled and have picked your jaw up off the floor, you will then be in a better position to make a financial plan towards rectifying the problem. And it won’t be easy but it is essential if you are to maintain a credit score and not find yourself listed with credit agencies as a bad debtor.

Once you have made up your mind to stay off the credit agencies bad debtors list then this needs to become your driving force towards your goal of bringing all your monthly payments back into a more manageable repayment zone.

How soon can you pay off your debts will depend on how severe you are prepared to be with budget cuts because you will have to make quite a few. Set yourself a monetary figure and a time frame and this will help you to stay on track. Sit down with every stake holder and explain to them as to the real financial situation so they know where they stand and the part they will need to play. Teenage kids once brought into the family financial loop can be responsible and very helpful even if it is just knowing not to nag for a new computer or play station! Every little bit helps.

Once every stake holder knows what is involved and how to pay off debt it will be a good lesson to everyone involved so that hopefully it will never have to be done again in so drastic a manner.

How can I get my credit card companies to offer me lower monthly payments?

Hi everyone,

I am running into some difficulty making payments on my credit cards. My debt is 35 000 and bankruptcy / debt consolidation is NOT an option since I know they only remedy the symptom.

I want to pay my way out of this, but I need to be realistic and I have accepted that paying the monthly on these is creating too much strain on me, makes me feel like I’m “going nowhere”, and ultimately is leading to neither me nor the creditors getting what they want.

The interest is too high. I’ve tried discussing with the company who recently penalized me with a 5% increase (from 19 to 24) for missing a payment by a week to lower it. They declined and were unhelpful and dismissive.

So I am asking you all who have experience– what can I do to conclusively lower my monthly payment with each company and hopefully the interest rate as well?

I mean it’s either that or they’re not going to get their money at all.

I am open to advice, but experienced answers only please.

Thank you,
My credit score is 590 — was 654 six months ago. Being someone that always makes payments on time, I am concerned.

Online Debt Consolidation – Fast and Convenient Way to Repay Debts

If you wish to get rid of multiple monthly payments and avoid harassing calls from creditors or collection agencies, you can opt for online debt consolidation services. Online consolidation is a fast and convenient way to become debt free.

What is online debt consolidation?

Online consolidation is a fast and convenient way to become debt free .It requires searching websites to find a suitable debt consolidation company and filling out a free counseling form. You do not have any obligation to commit to the program. There are two ways to consolidate bills online. These are:

  • Debt consolidation program

After filling out the counseling form online, a representative of the company calls you over the phone to discuss and analyze your financial situation. If it is found suitable, you may enroll in the program.

The company starts handling all your creditors’ calls and starts negotiating with your creditors to reduce the interest rates and waive late fees. Instead of multiple monthly payments, you need to make a single payment to the company and the company pays all your creditors. Low rate helps you save money on interest and you can thus start paying your bills.

  • Debt consolidation loan

If you have a large amount of debt, say credit card bills that charge a very high interest, you may apply for a loan to pay off your dues. The loans are available for a longer period at a lower rate, thereby making it convenient to suit your budget.

Online consolidation of bills ensures that your creditors are always paid on time and lowers your monthly payments. You can also access your account 24 hours a day. However, you must compare the fees charged by the company with other consolidation companies before enrolling in its service