Credit Card Guide » Credit Card Debt Reduction

Credit Card Loan Consolidation

Wed, 02 Sep 2009 05:26:35 +0000

When you have credit cards and you start having trouble paying them off because of the high interest charges made on the principal debts, then it may be time to consider Credit Card Loan Consolidation. Debt consolidation simply means that if you have several credit cards, you can merge all of your credit card debts into one which will have a fixed or lower interest rate than when they were all separate credit cards.

Here are some advantages of credit card loan consolidation and why it is a good option for those with multiple credit card debts:

• Debt consolidation is much better than filing for bankruptcy. Why ruin your credit history and credit score permanently when you still have a chance to rebuild it after doing debt consolidation?
• Lower interest rates will be applied to your one loan consolidation as opposed to your several varying loan interest rates when you were maintaining several credit cards.
• Manageable monthly payments will result from this debt consolidation which will be easier on your pocketbook.
• Peace of mind will come to you, now that you only have to pay for one loan instead of several.
• Rebuild your credit score and history as you pay off your credit cards using debt consolidation and close out old accounts that were a source of your debt headaches.
• No you don’t have to worry too much about late charges and default fees since you only have one bill to maintain, instead of several.

There are several ways to do debt consolidation. One is to make a low interest personal loan of a lump sum that will cover all your credit card debts. Pay off all your cards and now all you have to think of is paying off that one loan every month. Another way is through a home equity loan. You can put up your home as to secure your loan and pay off your credit card debts. This way you only have to think of one loan to pay, however, you do risk of losing your home if you default on payments. You could also opt for debt transfer wherein other banks offer to take on your old credit card debts, and transfer into their accounts where you can enjoy a lower interest. Yet another way is to contact a professional debt consolidator who can look for the best deals that can help you with your problem and process everything on your behalf

Card Credit Debt Reduction

Tue, 01 Sep 2009 12:49:08 +0000

When you have overspent on your credit card and have finally reached a point where you know that you can no longer pay it off, then it is the time to opt for card credit debt reduction. One would qualify for this program if they are unable to make debt payments on their credit cards and are close to filing bankruptcy.

This kind of program is also know as the debt management program (or DMP) wherein a settlement is made between you and the bank you owe so that 20 percent to 60 percent of your debt is settled without you paying any more interest. This kind of process is usually handled by third parties who negotiate for you, with your creditors, and try to get the best deal possible so that you can pay off your debt while having savings at the same time.

DMP is usually possible for debts that are unsecured debts. The timeframe which this covers may be between 6 months to 3 years, depending on how much you owe on your credit card. So don’t believe some agencies that may promise you between a 50 percent to 70 percent debt settlement and be mindful of who you deal with. Always read the fine print, and talk to your bank about it if you are really in doubt.

The advantages of availing of card credit debt reduction are:
• You will be able to save money because you pay less of the interest and focus on your existing balance once you are part of the program;
• You can be part of a program that will save you from filing for bankruptcy and completely ruining your credit history and credibility as a borrower; and
• You can pay off a debt that has been bothering you for a long time and finally gain that peace of mind you are searching for.

However, debt reduction of your credit card debt also has its disadvantages. The main one is that by undergoing a debt management plan, even if you did not file for bankruptcy, the fact that you could not pay off you bills will reflect on your credit history and credit score. This would mean that in the future, after undergoing the DMP, you will find that it will be harder getting loan approvals. Or if loans approved, the interest will be very high. The biggest lesson you will learn after undergoing DMP will probably be to act with restraint in using your credit card and make payments of debts properly and promptly.

Back Card Cash Credit

Tue, 01 Sep 2009 12:47:29 +0000

Your credit card may be something that you have used to shop for things for the longest time. But the real question is if you are you actually benefiting from using it. This is an interesting point to think about because you might actually have better cash back rewards by using a different card. Here are some of the best back card cash credit schemes that you may want to compare with the terms and conditions of your current card.

• American Express Blue Cash – You can earn back up to 5% in cash back from supermarkets, gas stations and drug stations all around the country. You can also get up to 1.5% in other places. APRs are great ay 0% when you make a new purchase on particular items and there are also offers at a fixed 2.99% on balance transfer for the first year that you use this card. The catch is that you will receive the 5% and 1.5% cash backs on new purchases after you have spent at least $6500 in one year. You get less if you spent less.
• Citi Cash Returns – For this card you can get a1.2% cash back on all of your purchases for the first year. Then you can earn 1% in the following years. You can also get 5% additional cash back if you make purchases at certain retailers that can include big brand names like Dell, The Gap, Office Depot, and Saks. You will get the checks mailed to you automatically once you earn $50.
• Discover More – With 5% cash back in four different spending categories up to $800 in purchases per quarter, this is actually a great deal. On other purchases made you can earn 0.25% on up to $1500 in annual spending, 0.5% in up to $3000 in spending and 1% over $3000. 0% APRs are accepted for new purchases in the first 6 months. Additionally, you can get 5 to 10 percent cash back incentives when you make purchases through ShopDiscover that includes big brand retailers like Apple, Sears, and Wine Enthusiast. Get better deals if you redeem points from gift cards from the retailers instead of taking the cash back as well. This will give you double points and better offers. For this card you have to request for the cash back and it will be credited to your statement or deposited into your account.