Debt is something that is hard to recover from, but it is not impossible. And there are times that you need something that will motivate you to keep your eye on the target. A book I am reading talks about your perfect day. And in most cases your perfect day is going to involve money and it might also involve you being credit worthy. My perfect day is simpler than most, but many people want things like houses on the beach or vacations in exotic places.
These things will take money and debt will definitely get in your way. While there is nothing wrong with looking at the big picture and preparing to meet your goal part of the picture should include a plan for debt elimination. You can work on more than one thing at a time. Eliminating your debt and funding your perfect day fund can be going on that same time. But if you have a goal, it is easier to keep your eye focused on the prize. Reducing credit card debt and bad debt consolidation are two mthods of paying off your credit cards and getting out of debt.
Apr 8, 2010
Jun 18, 2009
Can You Be Sued For Credit Card Debt?
Can you be sued or credit card debt is a question that many people are asking, as it is becoming more difficult for people to keep their bills paid. In the past, collections and credit record listing were about as far as most lenders would go with their collection activities. With the advent of financial problems being more normal, many lenders are going to more extreme measures to try to get the money owed them.
I know a person that was recently sued for a $2000 owed amount on a major credit card. Having worked in both the credit card and collection industry, this is not something that would have been done in an up economy. Procedurally, the accounts would have been sold to a third party collection agency for pennies on the dollar and they, in turn, would have harassed you to death for the money.
If you are summoned to court over debt, the lender will most likely take a judgment against you and this will stay on your credit record for 10 years. But even worse, the lender can and most likely will garnish your wages. This means your employer will be aware of the problem and some employers do not look kindly on this at all and I have even heard of some companies that will not do it at all.
These are very compelling reasons to look for an alternative method for dealing with your credit card debt. Delaying taking action only makes your financial situation more desparate. You do have debt relief options, but you have to know what they are before you can use them. Your first step is to find out what programs your lenders have that can help you. Especially now, many lenders have hardship programs that can help you get caught up and avoid the consequences of not making your payments.
However, some people need third-party assistance because they are either numerous months past due or they have overwhelming. For these individuals, a debt elimination program is required. So, can you be sue for credit card debt--yes you can.
I know a person that was recently sued for a $2000 owed amount on a major credit card. Having worked in both the credit card and collection industry, this is not something that would have been done in an up economy. Procedurally, the accounts would have been sold to a third party collection agency for pennies on the dollar and they, in turn, would have harassed you to death for the money.
If you are summoned to court over debt, the lender will most likely take a judgment against you and this will stay on your credit record for 10 years. But even worse, the lender can and most likely will garnish your wages. This means your employer will be aware of the problem and some employers do not look kindly on this at all and I have even heard of some companies that will not do it at all.
These are very compelling reasons to look for an alternative method for dealing with your credit card debt. Delaying taking action only makes your financial situation more desparate. You do have debt relief options, but you have to know what they are before you can use them. Your first step is to find out what programs your lenders have that can help you. Especially now, many lenders have hardship programs that can help you get caught up and avoid the consequences of not making your payments.
However, some people need third-party assistance because they are either numerous months past due or they have overwhelming. For these individuals, a debt elimination program is required. So, can you be sue for credit card debt--yes you can.
Mar 15, 2009
What You Should Know About Free Credit Card Debt Relief
Do you have credit card debt? Are you looking for free credit card debt relief? It seems like most people are. But you must understand that it is only going to be FREE, if you do it yourself and it can be done, but it takes a plan and a lot of discipline. And unfortunately, not everyone can become debt free without some outside help.
Consumer credit counseling agencies are a great option if you need direction in your quest for debt freedom. They are not free, but they are inexpensive if you find the right one, they will charge a small setup fee (around $50) and a monthly fee that ranges from $30-$50. Now, let's look at a real life example.
If you have $10,000 in debt that has an interest rate of 19.9% and a minimum payment of $200 and you make only the minimum payment, this debt will be paid off in 107 months. That is 1 month short of 9 years. To state it more bluntly, you will have paid back $21,400 before this debt is paid in full.
Now, if you enroll this same credit card account in a debt management program and your interest rate is reduced to 9.9% (many times this number will be lower), with the same minimum payment, you will have the account paid off in 65 months. So, with a $50 setup and $50 per month that the debt management company charges, you are paying $16,300 before you are debt free.
While credit counseling may not be free, it just saved you $4,100 and 42 months. And credit counseling will not ruin your credit the way debt settlement and bankruptcy can. If you are struggling with credit card debt, you should consider talking to a debt management company. They can give you a quote and you are not obligated to use them, but this is a good option for being debt free in five years. Free credit card debt relief is the ideal way to get out of debt, but it is not the only way.
Consumer credit counseling agencies are a great option if you need direction in your quest for debt freedom. They are not free, but they are inexpensive if you find the right one, they will charge a small setup fee (around $50) and a monthly fee that ranges from $30-$50. Now, let's look at a real life example.
If you have $10,000 in debt that has an interest rate of 19.9% and a minimum payment of $200 and you make only the minimum payment, this debt will be paid off in 107 months. That is 1 month short of 9 years. To state it more bluntly, you will have paid back $21,400 before this debt is paid in full.
Now, if you enroll this same credit card account in a debt management program and your interest rate is reduced to 9.9% (many times this number will be lower), with the same minimum payment, you will have the account paid off in 65 months. So, with a $50 setup and $50 per month that the debt management company charges, you are paying $16,300 before you are debt free.
While credit counseling may not be free, it just saved you $4,100 and 42 months. And credit counseling will not ruin your credit the way debt settlement and bankruptcy can. If you are struggling with credit card debt, you should consider talking to a debt management company. They can give you a quote and you are not obligated to use them, but this is a good option for being debt free in five years. Free credit card debt relief is the ideal way to get out of debt, but it is not the only way.
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