Credit Card Relief - August 2011

 

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.

 

Everyone understands that credit scores affect how much you pay when it comes to interest rates on credit cards, home loans and other lines of credit. But did you know your credit score also impacts how much you pay to get behind the wheel?

Most consumers don’t realize their credit score is a big factor when it comes to car insurance premiums. According to estimates from an insurance research firm, 92 percent of insurance companies use credit information when underwriting new policies.

Insurance companies use variables like: outstanding debt, length of credit history, late payments, new applications for credit, types of credit used, payment patterns, available credit, public records, and past-due amounts.

The insurance companies argue that there’s a strong correlation between a consumer's financial history and his/her future insurance loss potential. They claim someone with a credit score of 750 or above is less likely to file an insurance claim.

Your credit score doesn’t just influence your rate, it’s actually a major driver of car insurance prices. It’s just one more reason to try and establish a good credit history.

CarInsurance.com estimates that drivers with credit scores above 750 save an average of $783 a year on car insurance. But it’s not just bad credit that drives rates up. Drivers with little or no credit history wind up paying even more.

Average premium for drivers age 16 to 24 — $3,152

- Credit score above 750 — $2,515

- Credit score of 650 to 749 — $2,387

- Credit score of 500 to 649 — $2,692

- No credit file — $4,191

Average premium for drivers age 25 to 34 — $1,938

- Credit score above 750 — $1,155

- Credit score of 650 to 749 — $1,658

- Credit score of 500 to 649 — $2,023

- No credit file — $2,182

        * Estimates according to CarInsurance.com

There are a handful of no credit check insurance companies out there, but if you use one, expect to pay slightly higher premiums. It’s important to figure out if the higher rate is still less expensive than what you’d get charged for having poor credit.

Contact CCRNow for more tips on managing your debt and repairing bad credit. Click here to learn more about eliminating debt without bankruptcy, or call 1.866.345.3077 to get advice from a trained credit relief specialist right now.