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This digital document is an article from Bank Marketing, published by Bank Marketing Assn. on March 1, 1998. The length of the article is 2822 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

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The high cost of credit card debt.: An article from: Bank Marketing

Credit card debt settlement is what you can get when you do not have the means to pay your debt in full, nor pay your debt in the increments that you were given to pay monthly. You are allowed, depending on the circumstances and the credit card companies, to pay only a certain percentage of your total credit card balance off, rather than the entire thing. Sound like a dream come true? This type of payment requires a little bit more desperation and is a little more difficult than it looks.

Credit card companies will not allow just anyone to get a credit card debt settlement, but if it is necessary, it is possible. Credit card companies will accept a payoff of a certain percentage of your credit card debt as a whole if the circumstances are right and the criteria is met. Here are a few conditions you have to go by before you can get a credit card debt settlement.

A credit card company will look at your credit report and how well you are doing with your credit. If you have bad credit and are not in a position to continue paying your bills, you have made several mistakes on your payments that have racked up your interest rates to a ridiculous percentage, and if you already have several previous late payments, they will probably allow you to pay a percentage of your overall debt to get it paid off. Because of this, you are less of a risk to them, and they will probably, in the long run, be getting the most money out of you that they can.

The reason they will allow or even offer you a chance to get your credit cards paid off with a debt settlement just by looking at how disastrous your credit history is, is because they don’t want you to go bankrupt. By getting you to pay a percentage of your debt off and forgiving the rest, they at least get some sort of payment from you. If you file for bankruptcy, you are left with no debt, and they are left with no money from you. So because you are at high risk of filing for bankruptcy, they determine that they are doing the best thing for their company by having you pay at least a percentage of what you owe altogether.

Going bankrupt is a bad thing for the creditors, unless of course, before you do so, they decide to take your case to court and sue you for not making your credit card payments. In this case, they may deny your request for a percentage payoff, depending on your income and assets. If they do not believe they are going to get much of value out of you by suing you, they won’t do it, and they will probably accept your appeal for a settlement. The credit card company will always go with the option that will get them the most amount of money possible.

Free credit card debt consolidation can help you to pay off your debts. Debt consolidation helps you to reduce or save money, which you otherwise pay by way of interest rates and late fee. It gives you respite from harassing phone calls of creditors and works you out of a debt hole. Above all, you do not need to declare bankruptcy to embrace a debt consolidation program. All said and done, you save thousands of dollars every year by restructuring your debts and lowering your monthly payments on your current unsecured debts.

Handling Debt Consolidation

The biggest concern of the US today is its ever-increasing credit card debt, which now tops over $1trillion. According to ARA, the average American carries about $8500 in debt on credit cards. Numerous sites now provide free personal credit card debt consolidation services to enlighten the consumers about the looming danger of debt and help them to get out of their credit card debt. The goal of these sites, some of which are state sponsored, is to eliminate credit card debt and create a debt free nation.

All unsecured debt consolidation qualify, for consolidation of credit card debt services. Debts created on credit cards, store cards, lines of credit, medical bills, judgments, taxes, collection accounts, charge offs, personal loans and old due utilities are some unsecured debts. It is always easy to bring down your credit card debt by refinancing your house. However, this way you will put your house at risk. Look for the safest alternatives to free services credit card debt, bankruptcy and foreclosure.

The credit card industry has widely disparate interest rates, which means that consumers spend thousands of dollars annually just to pay interest on debts incurred on credit cards. Consumers who are carrying a huge amount of debt on their credit cards or even those with modest credit card debt at high rates are turning to companies like Finance Box. This company helps consumers to consolidate their debt into lower and fixed rate loans.

The Internet is providing fast, convenient and solutions that really work well. Numerous companies like Finance Box work with thousands of lenders on the net. Consumer information received by the company drives through company search engines, which evaluates consumer needs, and match them to a lender, who meets the specific requirements of the borrower. This gives these consumers an edge over the ones who deal with a handful of lenders on their own. Consumers save a lot of time and money spent on many phone calls or personal calls. This process fast tracks the process of free credit card debt consolidation, and the consumers normally receive a call from the matched lending company within 24 to 48 hours.

The Centennial Gold Credit Card is a MasterCard or Visa that has been specifically created for those who suffer from bad or damaged credit. If you are one of the millions of people in this world, who have stumbled upon hard times and it resulted in damaged credit, this may be the answer you have been looking for. In this day in age, especially with the new bankruptcy laws, it may not be the choice for you. With all the fees associated with filing bankruptcy, the hassles, the counseling, the lawyers, and perhaps the reality that you may lose some of your possessions many people are looking for other alternatives to repairing their credit.

While some people may think credit cards are not the way to go when you are trying to repair your credit, it is important to realize if they are used in good taste, they are an excellent way to fix your bad credit. You see, even if you have poor credit, if you ever want to build and repair your damaged credit you have now, you will need some sort of credit to show creditors that you have learned from your mistakes and are on the road to recovery.

The problem is finding someone who is willing to give you a new start. This is where the Centennial Gold Credit Card comes in handy. This credit card is specifically for those looking to repair their credit. This credit card comes with a lower than usual APR, especially when it comes to cards for people with poor credit. However, there are penalties of course, as with most credit cards. If you were to default on your payments or not make a timely payment twice within six months, you will face a stiff penalty. The general APR is fixed at 9.9%. However, if you default twice, it becomes 19.9%.

Furthermore, the Centennial Gold Credit Card comes with a variety of fees and charges during the first year of use. For example, you will be charged a fee of $48 annually and to set the card up you will be charged a $29 fee. Then you will be access a fee monthly, called a participation fee, which costs $6, and a $95 program fee.

However, fees aside, it is the perfect credit card for those wanting to fix their bad credit. Your credit line will continue to rise as you prove yourself credit worthy over time. The card also comes with a variety of benefits such as security and protection against fraud and internet services. However, the greatest benefit is being able to get back on the right financial track after experiencing a set back with bad credit.

Everyday, we hear the news of the debated economic stimulus package. We sit back and wonder how this will directly help us. Each of us has a unique perspective on the stimulus, and we all have different needs for where, when, and how the stimulus may or may not personally help.

Many Americans are asking about a stimulus program to help the average citizen. People today need help with their rent and mortgages. Even keeping food on the table has become a challenge with grocery prices skyrocketing over the past year.

Previous economic stimulus packages have sent rebate checks directly to taxpayers. Most of this money paid directly to the people was simply forwarded onto creditors to pay down debt. So the previous attempts at stimulating the economy simply sent money into the pockets of the banks and credit card companies. The current stimulus plan does not contain any provisions to send money directly to the people, and the debt balance for most people continues to grow.

For a person with overwhelming debt, any stimulus received would be used to pay down that debt. Without the government’s help, many people are finding that they can create their own personal stimulus package by completely eliminating 100% of their debts from credit cards and personal loans. Instead of waiting for help, they are taking responsibility for their own financial future. Of course, personal responsibility is what this country was founded on.

Without debt, and without the monthly credit card payments, hundreds of dollars per month are saved on principal, interest and other fees. For some people, this can be thousands of dollars per year in savings. It could also be the difference between financial comfort and bankruptcy.

A debt elimination program is not applicable to secured debts such as mortgages and auto loans. Student loans and medical bills also do not apply. But without the credit card payments, extra money would be available to help pay for other obligations in life.

The debt elimination program is not for everybody. It is imperative that some time be set aside to understand just how and why the debt can be wiped clean. An elimination program is not bankruptcy, consolidation, or a home refinance. Having a basic understanding of the premise of the program will also remove any fear that someone has in regards to proceeding with this debt relief method.

A person does not need to become a lawyer to understand this process. You just need to be open to some unfamiliar information. This is time well spent considering the thousands of dollars of debt that can be eliminated. There is also no cost to obtain this understanding, for this is not secret information, just hard to find. You will not be spoon-fed this knowledge from our main information sources, such as television, newspapers, co-workers, and our parents.

By taking control of your debt, you will initiate your own personal economic stimulus plan. And you don’t need an act of congress to accomplish it. A little knowledge can set you free.