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Posts Tagged ‘consumer collection agency’

In the last article I gave you some tips on how to use your credit cards in a smart way. These tips covered education and interest rates. Now I will write about late fees. We have all made late payments, and most of us have gotten stuck with a late fee. Credit card late fees can vary from fifteen dollars to as high as thirty nine dollars. And as if this weren’t enough, if you are late on a payment, most credit card companies will raise your interest rate on top of your late fee. Experts tell us that nearly a third of credit card business revenue comes from late fees. But want to know a secret? Most credit card companies will waive your late fees if you call and ask them to.

Debt elimination involves three steps:

1. Stop acquiring new debt.

2. Establish an emergency fund.

3. Implement a debt snowball.

Here’s how to approach each step.

Stop acquiring new debt (This step can be accomplished in a morning.)

This may seem obvious, but the reason your debt is out of control is because you keep adding to it. Stop using credit. Don’t finance anything. Cut up your credit cards.

That last one can be tough. Don’t make excuses. I don’t care that other personal finance sites say that you shouldn’t cut them up. Destroy them. Stop rationalizing that you need credit cards.

* You don’t need credit cards for a just in case. * You don’t need credit cards for convenience. * You don’t need credit cards for cash-back bonuses.

In the last two series of stories I wrote about identity theft having to do with debit and how to prevent it. This is the last article of the series.

DO be aware when there is an opportunity for anyone you don’t know to look over your shoulder to track or memorize your PIN number. Also, seriously reconsider your method of payment before you use your debit card at a restaurant, where the waiter takes the card and you can’t actually see him swipe it, or at gas stations, where surveillance cameras can record you punching in your PIN.

With consumer debt at an all time high, owing a debt can seem very overwhelming. A great deal of people have looked into the world wide web and have seen advertisements alleging that they can offer debt relief as a quick fix. As alluring as these ads may seem, it is important to be on the lookout for the validity of the claim.

Many of these claim they can offer a quick fix, but that quick fix might be bankruptcy. And while bankruptcy is one way to attack your financial problems, in most cases it should be a last resort. The fact that you claim bankruptcy will stay on your credit report for ten years which means that your chances of getting credit, jobs, a place of residence, or insurance are significantly lowered.

Bad debt can feel like a monkey on your back. It’s always on your mind, and sometimes the stress can be crippling. You may be able to take solace in the fact that you are not alone. There are thousands of people just like you in the United States that are going through the exact problems.

Filing for bankruptcy may seem like the best choice at the present moment. It can help you to get around loan payments. But before you jump the gun, think long and hard. If you end up filing for bankruptcy, this will stay on your credit report for ten years and any attempt to improve credit, obtain a job or residence, or car will be futile.

The most recent research on the American economy alleges that incomes are dwindling for those just starting out. The Collections Industry has reason to believe that this paradigm shift will be permanent.

First of all, young adults represent the highest uninsured demographic of any group in the United States. 30% of young adults go without health coverage currently today. Despite the fact that the majority of uninsured young adults are employed, a good deal of uninsured young adults work in low wage jobs and for employers who offer limited or no health care coverage.

With this much young adults already struggling to pay everyday expenses, debt collectors should step back and take a look at this situation. Uninsured young adults are two times as likely as those with private insurance to have no education beyond high school. That limits their future earnings potential.