Destroy That Outstanding Balance With a Credit Card Debt Settlement

Douglas Manning — Tue, 13 Apr 2010 01:55:41 +0000

Negotiating a credit card debt settlement is a way to make an agreement with your credit card company regarding the outstanding balance on your account with them. You agree a monthly payment plan, with no new interest to be added, the account gets closed, and at the end of the repayment period, you are debt free.

It’s not that hard to arrange. You simply call the credit card company and ask to speak to the department that deals with debt settlements. If they are unclear, you say that you wish to make an plan as to how to pay off the remaining balance, by way of a settlement.

However, before you do this, you will want to know how much you can afford to offer each month. Draw up a spending plan. To do this, take a piece of paper or a computer spreadsheet package like Excel or Open Office and list your income and expenses, by item. Total these and see how much, if any, you have left at the end of each payment period.

You may also need to embrace frugality, which means to be smart about what you purchase and at what cost. There are some good ways to cut back on your spending.

Some people clip discount coupons from the local newspaper and glossy magazines, but you want to be careful that you are not just getting a discount on the expensive branded product and that the own-brand at the supermarket is still cheaper. Some things you can just reduce expenses on by buying in bulk.

A credit card debt settlement is one good approach to take to get a handle on your finances and take back control. Making that call is a little off-putting, but you can make great strides in putting yourself back onto a good path when you do. Don’t wait.

SuccessHound.com

Apply For A Credit Card: Know Your Credit Score

Douglas Manning — Wed, 26 Aug 2009 01:12:13 +0000

Credit cards today are a necessity.

You need one to stay in a hotel or rent a car. You will need to have a minimum of one credit card in order to establish revolving credit with the credit bureaus.

Perhaps you have accumulated too much credit debt and need to consolidate it onto one lower interest card. In any case, you may find it necessary in the near future to apply for a credit card. With so many different offers around in the new credit environment, you need to educate yourself in what to look for.

Credit Card Offers: Offers, Offers Everywhere – Not A One To Take

You can find offers to apply for credit cards everywhere from online to in your mailbox. If your credit rating is good, you can apply with your bank or any major credit card company.

Surprisingly, even if your rating is not so good, there are actually even more credit card offers out there. Your email inbox is probably flooded with sites claiming to find the card that’s right for you. Companies can charge a lot more in interest and fees of customers that have a lower credit score.

Know Your Credit Score

Your first step in applying for any type of credit should be to know your credit rating. When you know what type of credit risk you are, you will make a better decision about the card that is right for you. When you have a good credit history, you can stay away from credit cards that have large annual fees, monthly service fees and even internet payment fees. When you are educated about your own credit rating, you will know what you qualify for, so you can walk away from these credit cards.

Know The Credit Card Terms

If you are more of a credit risk to a lender, you may have to pay the fees while you build up good payment history. There is a lot of fine print when it comes time to apply for these types of credit cards. There can be many clauses in the interest rate disclosures for these, so read them carefully. You may be quoted one low interest rate up front, but the fine print may say that should you make one payment late, your interest rate could double or even triple.

Beware Of Gimmicks And Fees

Many cards will sign you on for a 0% interest rate for a limited time on new cards or balance transfers, the accumulated interest will all be charged to your account. There are also those cards that will increase your credit limit every few months or so. In that fine print you will generally find that the increase in your credit limit may be $50.00-$100.00, but there will be a fee of $25.00-$75.00 to do so.

At the end of the day there are any number ways to apply for a credit card, but knowing your own rating is what will help you find the best credit card for you. Using your new credit cards responsibly will build you a solid credit rating, and that is a must for a successful financial future.