Archive for the ‘credit card debt’ Category
How do I go about consolidating my credit card debt?
May 3rd, 2010 | 
Author: I have a good credit score, last time I checked about 6 months ago it was about 720-730. Recently I have acquired a big credit card debt, about $9,000 on one credit card (with a limit of $10,000) and about $3,000 on another one (with a limit of $5,000) for many different personal reasons. After the whole spending money ordeal was over, I was left with all this debt on my credit cards. Since then, I have cut back on all unnecessary spending, besides the obvious things like food, gas, etc. I have never been late on payments and have never been over the credit limit. I Also try to pay an extra hundred bucks on top of the minimum payment due when I can. Are there any good ideas on how to consolidate these two credit card debts and help me out with all this? Thanks!
First of all, consolidating the debts wont really change anything. In fact may adversely affect your credit score.
You need to do the following:
1. Evaluate you interest rates. If you are paying more than 12%, then think about finding a new credit source to consolidate. With your credit score you are probably getting teaser rate offers in the mail. (Beware of a teaser rate that rests after 6 months, as what you save wont be that much) Look for a credit card that will allow you transfer the balances for a long period at a low rate. Many cards offer rates of 5.99 or less for up to 2 years, but also check if there is a transfer fee. This can be as much as 4%)
2. If you find a good card and rate to transfer, then transfer as much as you can from the higher of the two rates you currently have. If you able to transfer all of 3000 debt, do not cancel that card. (Just make sure you dont use it) Having a zero balance and available credit actually improves your credit score.
3. Make a plan. Figure out how long it will take to pay off each card by taking the minimum payment amount (principal only, not interest) and divide into the amount owed. Lets say on the 10,000 card the principal payment is $277, that means it will take 3 years to pay off that card.
4. If both cards have the same rate of interest, but different pyoff dates, put all your extra monthly payment towards the card with the highest % to the credit line (in this case the 9,000 card as that is at 90% of your limit, vs the 3,000 which is at 60% of your limit). The lower the % owed the better for your credit score.
Finally, do not use the cards. Pay cash for everything. (This is very important if you end up consolidating to a lower interest card. Those cards will apply all of your payments to the low interest balance first, and start accruing a high rate on the new purchases. that will go on until the original amount is paid off).
Dave Ramsey – Credit Card/Debt Collectors are SCUM
My hero, Dave Ramsey, tells of abusive practices and the violation of Federal law incorporated by debt collectors – particularly credit card debt collectors. Most people do not know that they have rights guaranteed to them by the Fair Debt Collection Practices Act (FDCPA) and debt collectors knowingly and habitually break these laws in order to frighten them into paying.
IT IS NOT AGAINST THE LAW TO OWE MONEY!
Do not allow yourself to be lied to (example: “You’re going to go to jail if you don’t pay this” is one of their favorites!) or treated without the dignity you deserve.
KNOW YOUR RIGHTS UNDER THE FDCPA:
Collectors can NOT call you before 8 am or after 9 pm
Collectors can NOT threaten to have you arrested or charged with a crime if you dont pay
Collectors can NOT continue to call after you have indicated you want them to stop (record your conversation with them, tell them you ARE recording it, write the date and time down in a journal, and follow up with a certified letter stating they may no longer call.)
Collectors can NOT call friends, family members or colleagues repeatedly in order to get you to pay (they may call your acquaintances ONCE in order to track you down and may NOT mention that you owe money or give ANY information that would lead someone to believe that they are attempting to collect a debt.)
For more information on your rights under the FDCPA, please visit my website at www.myarrp.com (click on the “Help With Credit” link at the top.)
To the scum debt collectors reading this: We’re mad as and we’re not going to take this any more! We the People are being educated as to your tactics, garnering strength and numbers, and proposing legislation. We’ll be in touch with you…
Duration : 0:5:56
Posted in credit card debt | 
Tags: Act, Advocate, america, American, assistance, bank, cards, collection, collections, collectors, Consumer, credit, Dave, debt, discover, Electric, Express, Fair, Fargo, GEMB, General, help, MBNA, money, of, Penney, Practices, Ramsey, Scum, Sears, Wachovia, Wells | 
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Add credit card debt amount to new home purchase?
I have about 25K in credit card debt. I am planning to buy a 540K house. Currently I have great credit, is it possible to add my credit card debt into the home loan in order to make it a single monthly payment. What is the loan program called? I am shooting for 5 yr. ARM. Me and my wife plan to live there for about 3-4 yrs.
To add I mean to pay off my credit cards with the home loan.
I doubt there is a loan program around right now that will lend over 100% of the homes value on a home purchase. You can sometimes get them on refi’s but they are usually loans that are attached to some type of construction or major improvements.
Value is determined two ways:
In a purchase, the Purchase price or the appraised value- whichever is LESS.
In a refinance- the appraised value.
If this is new construction, the home is probably worth alot more now than when you purchased it. You should have a lot of equity.
Right now, prices are not going up as much as they were, so if this is existing construction, you may have to wait a few months until you have enough equity to pay off the debt.
If you have cash in the bank, try to pay off that debt and get a second mortgage instead of putting that additional money as a down payment.
You can also wait until you close your loan and refinance with a second mortgage paying off your debt- provided there is enough equity in the house.
Sorry to burst your bubble, but let me show you from a lenders perspective.
You have $25,000 in Credit Cards and the average interest rate is probably 15% or greater. You are buying a house that the value is $540K, you want them to lend you $565K for a house they know is only worth $540- at an interest rate of about 6%- less than half of what you are paying on the credit cards now.
If you were to default on the loan, you get to take all the furniture, clothes, handbags, etc that you paid for using the credit cards, however they can only reposess the home that is worth $540K. If they sell it at auction for the full price of $540 (which is doubtful) they would be at a loss after the Realtor takes the standartd 6% commission (approx $32K). That leaves the bank with getting $508K for the house at best, before fees.
This is obviously not a favorable investment for them.
How should I handle my credit card debt since I am foreclosing on my house?
I am going to let my house in California foreclose. I have about $28,000.00 in credit card debt. Should I file for bankruptcy? Should I just not pay my credit cards? Or should I continue to pay my credit cards? Is there a certain dollar amount of income you are allowed to make to be able to file for bankruptcy?
Before you look into BK, you should check out www.debtbills.com. They are an alternative to BK. You will have exeperienced attorneys that will be contacting your creditors on your behalf.
Why It’s Hard To Get Out Of Credit Card Debt
http://www.FreeDebtExam.com
http://www.Debt-Professor.com
The power of compound interest. This is why it’s so hard to get out of credit card debt. If you want free help, take the Free Debt Exam at http://www.FreeDebtExam.com
Duration : 0:3:10
Credit card debt and 1099c forms. Once you file taxes will your credit card debt with company be gone?
I recieved a 1099c form from a credit card company for a settled credit card debt. The amount is for $10,000. I only make $31,000 per year. Will I end up owing on taxes due to being in a different tax bracket?Will the debt finally be gone?
Yes, you owe taxes on the $10,000 settled debt. What the government means that you had a windfall by not paying the $10,000 settled debt.
Can credit card debt transfer to your children after your death?
An older family member of mine has a large amount of credit card debt and their only major asset is the house that they currently live in. From what I’ve read it seems that creditors will liquidate all of their assets including the house in order to try and cover the debt upon their death.
One of their children wants to purchase the house or assume the mortgage from them now and become the new owner. If the house is sold/transferred in this manner and no longer belongs to my older family member with the large debt, will creditors try to come after her child upon her death?
The house is located in Florida.
They better transfer the house before the death of this individual because you are right they will come after the estate of the deceased.
If the child purchases the house from them the seller needs to keep the money out of the banking system otherwise that money would now be the asset. But I’m sure you already know that.
Once the person is deceased the only thing the child needs to do is open the letters send a copy of the death cert. (it doesn’t have to be certified unless they contact them and ask for one) and also include a note that says Deceased has no estate.
I’ve never after 2 1/2 yrs had any of my father in laws creditors write me again.
Credit Card Debt, Bankruptcy,& personal finance for doomers
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Options for people in debt
Duration : 0:19:14
Posted in credit card debt |
Tags: attorney, bankruptcy, Beark, card, credit, Crisis, debt, Depression, financial, Investments, Market, Stocks |
25 Comments »
Who would like to pay off my credit card debt for me?
Kidding.. but if anyone does have extra cash..I’d be grateful for the offer. Actually, I’d like to know advice on the best way to pay off credit card debt. I have about 10,000 in credit debt. Mostly from going through a divorce a few years ago.
I’m going to check your answers because I need the same help!! GOOD LUCK!
When does the statute of limitation start on a credit card debt that is a two year no interest no payment plan?
When does the statute of limitation start on a credit card debt that is a two year no interest no payment plan? Would the start date occur on the payment being 30 days late after the two year period – would this first 30 days past due be a breach of payment agreement? There was no attempt by the debtor to pay this debt after the 2 years promotional period. Credit debt originated in the State of California with a 4 years statute of limitation..
Typically the SOL starts from the date or last activity or last payment — not the breach.
The first missed payment would constitute a breach of the contract. At that point the creditor should have taken action to collect the debt, including filing lawsuit if needed.