Money talks, we (learn to) listen with interest! (Part 2)
Private Label Credit Cards: Prevent your credit card from becoming a threat to your financial well-being.
The contents herein are the result of my own personal observations and bears no reference to any one person or organization. The information is a means of understanding the system and using it to help yourself. So please take time to read and understand it in its entirety.
It can be embarrassing to discuss personal finances with strangers that call you, but understand it is not to harass or embarrass you, it’s a bill collectors job to ask questions pertaining to assisting you with the best possible solutions to suit your circumstance. *Remember the account is yours to dispose off as best you choose so no one can make you do what you don’t want to do and that includes making payments!
Do Not avoid talking to creditors/debt collectors. Asking for assistance is an entitlement as a customer/ client, use it as often as needed. There are payment ‘options’ that are available.
In case of temporary set-backs like, lay-off, reduced work hours, disability etc., and you are aware that you will not have enough money to take care of your CC Bills, do not hesitate to ask for assistance from creditors. Most, if not all of CC issuers/Banks/service providers have ‘payment options’ put in place to help you get over these temporary set-backs. These options are usually a reduced monthly payment of about (between) 1% - 3% of the total balance, depending on the duration, the interest is also reduced to about half or less, on some programs it can even be 0%, than what you would normally pay. (normally interest ranges between 23%-36%). On these payment programs the interest can be anything from 0% - 9% to 15% (approx) and there is No Late fee even though your minimum monthly payment is reduced and less than the amount due. (There will be variations depending on the service provider/s and duration) Duration can be from 12, 24 (upto 48) months or more depending on your situation.
*Eligibility Parameters generally set forth by service providers will be something like or similar to: Out of work, Disability, Loss in income, Natural Disaster, etc., Total balance on the CC must be $300+ the account must be
delinquent (2-3 payments past due), No purchases in the last 60 days. (These could vary with CC issuers). The only catch on these programs is that if you miss a payment or it is delayed you are dropped from the program.
delinquent (2-3 payments past due), No purchases in the last 60 days. (These could vary with CC issuers). The only catch on these programs is that if you miss a payment or it is delayed you are dropped from the program.
Making clever use of these programs will help you get out of debt faster than you think, ie: Only the minimum amount payable each month is specified by the service provider, but anything more than this, is welcome and will not influence the program negatively and will help reduce the balance that much faster. So if you can pay off the balance while on the program you have a winner!
No late fees , reduced interest rates, reduced minimum monthly payments, what else can a person ask for.
No late fees , reduced interest rates, reduced minimum monthly payments, what else can a person ask for.
Check with the Creditor/Service Provider, if there is Insurance on the credit card. (A nominal charge is collected each month towards insurance). Use this, if available, before you consider Debt Consolidation. (In case of
insurance you will be required to make No payments at all)
insurance you will be required to make No payments at all)
It is advisable to seek out these programs and use them before you think of Debt Consolidation. Debt Consolidation (Secured/Unsecured) usually requires a collateral, in other words you will be putting your house, vehicle etc., at risk in order to pay off credit card debts. It is rare that lenders will loan without a ‘security’.
Debt consolidation negotiations usually take between 45-60 days for the offer of intent to be sent to the creditor.
Meanwhile the account continues to reflect as being delinquent and continue to accrue interest and late fees.
Debt consolidation negotiators will usually work with the previous months statement balance and will not include the current dues accrued while the negotiation are in progress, if you are not aware you will end up paying both ends ie. Creditor will continue to charge late fees and interest on the amount due that still reflects as delinquent on the account. A good way to avoid this is to keep the account current while negotiating Debt consolidation. This will require some deft financial handling.
As with all financial products, and when negotiating Debt Consolidation make sure to check out the credibility of the service provider/financial institution.
Debt consolidation. This is a process of “debt displacement” – the moving of debt from many different accounts into one account to save on interest paid or to help with cash flow. Debt consolidation and/or debt management is all about reducing the amount of interest and monthly charges you are paying on your debts.
A debt consolidation loan can be secured (for example, a second mortgage) or unsecured (for example, a personal loan).
* Secured loan. A secured loan is one that is secured by an asset – be it your house or car – which can
be repossessed and sold if you are not able to repay the loan. For this reason, you pose less of a risk to the credit provider, and therefore more favourable interest rates apply than those offered on unsecured loans.
be repossessed and sold if you are not able to repay the loan. For this reason, you pose less of a risk to the credit provider, and therefore more favourable interest rates apply than those offered on unsecured loans.
If this article has been helpful, Please share.
To raise Financial impropriety issues (PLCC, Mortgage, Personal, Student
Loans etc.) you may contact/refer:
Loans etc.) you may contact/refer:
You can inbox me : mercutio.peters@gmail.com
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