Posts by Dk Newmedia
A common question we hear from people trying to get out of debt is, "I can only afford to make the minimum payment on my monthly credit card statement(s). How long will it take me to pay off my debt?"
Here’s a quick example. Let’s say you owe $18,000 in credit card debt and you’re paying 18% interest. If you managed to pay the $285 minimum monthly payment, it would take about 16 1/2 years to pay it all off. Plus, you would end up paying pay more than $38,000 in interest alone.
Those numbers are overwhelming. It gets even worse if you can’t afford to make the minimum monthly payment. Paying less than the minimum won't stop the credit card company from adding penalties and late fees. They basically treat it like you didn't make a payment. So if you're getting penalized like you're paying nothing, you might as well hold on to your money.
In situations like this it’s time to reach out to the credit card company. Ignoring the problem only makes things worse. The creditor wants to get paid, so they'll work with you to settle the debt. Just keep in mind, climbing out of a hole that big is nearly impossible to do on your own.
If you try and negotiate payments yourself, you'll have to first figure out just how much you can afford to pay each month. Then you still have to try and convince the customer service representative. The problem with this strategy is that they will likely see things differently and try to push for a bigger payment.
Even if you manage to find a minimum payment you both agree on, you have to convince the credit card company to restructure your interest rates. Credit card companies have well trained negotiators on their side and they don’t like the idea of lowering interest rates. This is where CCRNow can help.
CCRNow underwriters will work with you to prepare a detailed financial statement of your income and expenses. Everything is based on your personal situation, so we help you figure out exactly how much you can afford to pay each month.
But it’s the next step that truly makes the CCRNow program unique. Every month you put your money into a safe, secure Member Trust, instead of making payments directly to the creditor. The Member Trust is run by a national bank, acting as a third party trustee. Only you and the Trustee have access to your money.
We also match you with a local attorney, who does the negotiating for you. They handle all of the haggling while you focus only on making payments into the Trust. You don’t have to worry about late fees, interest rates or minimum balances.
As the trust builds up, your program attorney negotiates a settlement with your creditor, usually allowing you to pay off the debt for pennies on the dollar and in a lot less time than if you were making minimum payments.
Facing your financial problem doesn’t have to be scary, and it doesn’t have to take decades to pay down your debt. Call CCRNow at 1.866.345.3077 to speak with a trained enrollment specialist who will answer all of your questions honestly and openly. We will custom build a solution just for you, so you can regain your peace of mind get back to sleeping at night.
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permalinkIn a previous post, we talked about using secured credit cards to rebuild a bad credit history. Secured cards are a good option for anyone looking to establish a good payment schedule and showing lenders you’re serious about making payments on time.
Secured credit cards are a good alternative for anyone who has a credit score so low, they can’t open up a checking account or get a loan from a traditional bank. But there is another alternative. Have you ever thought about joining a credit union?
Just about anyone can join a credit union. There are plenty of ways to do it. There may be a credit union serving people in your town or neighborhood. You may be eligible through your job, a family member, community group, or association.
Credit unions help people pool their financial resources, working as a team to create solutions to meet their financial needs. Credit unions are non-profit, and exist to provide members with a place to save money. That’s why they typically have lower fees associated with all of their products and services. Because they are not-for-profit institutions, credit unions offer better rates on loans and credit cards and higher percentage rates on checking and savings accounts.
Compared to traditional banks, credit unions are also more willing to work with people who have checkered credit histories. Many offer free credit counseling or have products tailored for people with poor credit.
Here are a few tips to keep in mind when looking for a credit union you can join:
-- Start at work. If you have a job ask your boss or HR manager if your company sponsors a credit union, or if you’re part of a select employee group (SEG) that has access to a credit union.
-- Ask the neighbors. Some credit unions only accept members from certain areas. There might be one close by that serves your neighborhood.
-- Check with family. If your employer doesn't sponsor a credit union, maybe your spouse or another family works for a company that does. Most credit unions allow family members to join.
-- Join civic and social groups. Many civic and associations offer credit union membership to their members. These include Homeowners’ Associations, Scouting organizations, and more.
-- Do your research. Check the yellow pages for a list of credit unions. Call a few in your area and ask about membership eligibility.
-- Call the Credit Union National Association at (800) 358-5710 to find the name and number of a person at the credit union league in your state. They can help you find a credit union to join.
Are you struggling to rebuild credit or get a loan? CCRNow can help. We’re a true attorney driven program that can help you get out of debt safely, legally and with peace of mind. We don’t collect any fees until your debt is settled. Click here to learn more about eliminating debt without bankruptcy, or call 1.866.345.3077 to get advice from an enrollment specialist right now.
Are you tired of getting new credit card offers in the mail? Maybe you're struggling to pay down debt and don't want to tempted by the pre-approved offers that keep filling your mailbox.
Not only do these offers kill trees, fill up your trash bin and tempt you unnecessarily, but you also run the risk of having someone steal the paperwork and your identity. But there is a way to stop these credit card offers from showing up.
All you have to do is have your name removed from the mailing lists of the three major credit bureaus. Equifax, Trans Union and Experian are some of the biggest offenders when it comes to selling your name and information to the credit card companies.
Taking your name off their mailing list takes only a few minutes, and you can choose to block credit card offers for two years, 5 years or even permanently.
There are two ways to opt out. The first is to call the Opt Out Request Line at 1-888-567-8688. You can also fill out the form online to block credit offers from being sent to you in the mail. The entire process takes less than 15 minutes and won't hurt your credit score. You won’t have to submit a lot of personal information, just your name, address and telephone number. In most cases you can opt out without providing a social security number. (You can also choose to opt back in at anytime.)
It may take a few months before you see the offers start to taper off as the request works it’s way through the system. But it's worth the effort if you're trying to pay down debt and avoid opening up new lines of credit.
Contact CCRNow for more tips on managing your debt or finances. Click here to learn more about eliminating debt without bankruptcy, or call 1.866.345.3077 to get advice from a trained specialist right now.
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