Credit Cards are bad. Period. There isn't any other way to say it. Charge cards, along with interest only loans (which I'll save for another day) really are a true plague. The only reason why you need to not give up credit cards is should you enjoy throwing money down the deplete. I will attempt to outline for you ways credit card companies prey on individuals. Not just people, but people who're already in debt over their mind. Below you will find a couple actual life examples of the low life practices credit card issuers use every single day. I will detail for you personally why most Credit Counseling Services tend to be bad, and should not even be looked at as a viable option. I provides you with sources for how to truly get free from debt and some people/organizations that might help. In the end, I truly hope you need to do learn something from this page. I hope that it gives you the willingness to get free from debt and stop throwing your hard earned dollars down the drai
n. Throughout college Personally, i had one credit card which I vowed will be used only in situations when I was from money and something came up which i just couldn't misss out on. Nicely, for a young college kid both of these situations came up quiet often. We, like most of my part-time operating friends, ran out of money frequently also it seemed like there was something happening every other day that I just couldn't lose out on. The credit limit on my Visa had been $2, 000. By the time I graduated from college I'd about $1, 200 on it. A number of my friends ran up $10, 000's of credit debt. I started a full-time job and repaid my card right away. One of my unfortunate friends is stuck with $9K left on the card with an annual rate associated with over 18%... He also has a brand new apartment and is currently making $26K each year. This is just one example associated with how it starts. He hadn't planned on having much debt. But it happened. He would knew his banking accou
nt was getting low and right there alongside his debit card was his Visa. A year later I got married and triggered my wife's student loan and credit debt of just over $1, 000. This is when I first realized how low credit card issuers can go. My wife requested a hang on her account for 4 months just before our wedding. Things were tight and she requested if she could postpone paying for that period of time. She was told that would end up being fine, but she didn't get the reps name or perhaps a confirmation number. Fast forward to 5 several weeks later after our honeymoon. When We opened the bill I almost put up. The balance was $1, seven hundred. A $700 increase in 5 several weeks time. I called the credit card company immediately and after going through many loops to become authorized to talk to them with respect to my wife I found out the issue. The hold was never put about the account and they have no record of my spouse ever calling. How can I dispute that without any re
cord of it myself. So, my wife's account incurred some severe late charges over the 5 month time period. But it doesn't stop there. I asked the rep what the apr for her card is... 34%.. After getting out of bed from fainting, I quickly called my charge card company and asked about any stability transfer deals. Luckily they had the deal for prime - 2%, and so i transferred the entire amount and we're still paying onto it today (almost gone though! ). I'll briefly touch on a couple more types of the tactics used by credit card issuers, then get to a true action plan for getting away from debt. Credit Card companies literally accept almost any person. You may balk and that considering, well I have been declined and so on. What most people don't know is how the companies actually only check a sample of credit file.
A high percentage of credit reviews go unchecked, thus people in debt as much as their ears often qualify for a brand new card and the hold they've dug will get deeper and deeper. Credit Card companies are notorious for using great promotions (bait) to obtain people signed on. There are some things you ought to be cognizant of before taking any of those deals. If you're reading this page the kind of deal you would most likely want to consider is a balance transfer deal. Most balance transfer promotions offer 0% for x time period. The only time you should even consider one of these simple promotions is if the transfer quantity is minimal and you are absolutely confident you'll have no trouble paying it off inside the year. The rate after the promotion usually increases to 15% or greater and you'll find themselves in the same position you're currently within. You should be patient and look for a deal where the balance transfer rate remains exactly the same throughout the life
of the move. You should also only go with the promotion if you're able to get at least the prime price, even better would be prime -- x%. Lastly, it is implicit how the payments be made on time, each month. Otherwise the rate will increase tremendously and you're screwed, again. So, you've gotten yourself into this mess and you need to know your options... You only possess a few options, but you should feel comforted to understand that these methods are prove. You most likely have heard commercials on the stereo, or even seen some on TELEVISION for credit counseling services, promising to consolidate your financial troubles and lower your down payment. What those commercials fail to tell you is that most those companies are actually owned through... the Credit Card companies... Another thing the commercials don't let you know is that using a service like that is seen as an step above filing bankruptcy as far as your credit rating is concerned. Here are some options that will
help you to get out of the hole, without damaging your credit history for 10 years. Debt Snowball You've likely learned about it before, or you may even understand what it is already. That is good. The key point here is that you need to put it into action. As Dork Ramsey, the originator of this method said ""This is the toughest of all of the Baby Steps, " he writes. "It is really hard, but it is so worthwhile. " For those of you that have no idea what it is, here is a short summary: Keep in mind that this excludes your house mortgage, as well as any other real-estate or business loan that totals a lot more than 50% of your annual income. Make a summary of your debt (lets say there are 5 in your list), putting it in order using the highest rate debt first. Pay the minimum payments on 2-5 and pay around you can possibly pay on #1. Once you have paid off number 1, the amount that you could pay on #2 will increase automatically (snowball effect). To learn more concerning the D
ebt Snowball method and for inspiration on getting through this method I highly recommend Dave Ramseys publications, which are available at Amazon. comIf you feel that you'll require guidance from a third party to get free from debt and shred you credit cards a few handful of credit counselors that truly have your very best interest at heart. Be sure and look for Dave Ramsey's website to find the actual closest counselor today.
Chris Jones may be the director at Credit Card Insight [http://www.creditcardinsight.netl]. CreditCardInsight. net [http://www.creditcardinsight.net] supplies a wealth of information on credit credit cards, credit repair [http://creditcardinsight.net/credit-card-consolidation-services.php], and debt loan consolidation.
View this post on my blog: http://creditcard.valuegov.com/credit-cards-an-epidemic/
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