Another Credit Card Fee Is About to Fly – ABC News.
Pay your bill on time or forfeit the miles or points you thought you earned for making purchases on your card during that month.
To get the rewards back, it’s going to cost you.
American Express Co. is sending notices to customers who hold its cobranded cards with Delta Air Lines, JetBlue, Hilton Hotels and Starwood Hotels, that beginning in January rewards won’t be transferred to loyalty accounts with those partners if you are late paying your bill.
You’ll be hit with a $29 reinstatement fee if you want the rewards back. That fee is on top of the late-payment fee — $19 or $38 depending on your balance. A penalty interest rate, currently 27 percent, would be assessed on future balances.
Who else wants to make $100,000 per year – working from home ?
How to Negotiate a Credit Card Settlement | eHow.com.
If the balance you owe on your credit card has become overwhelming and you fear that paying it in its entirety may prove impossible, settling the debt is a good option. Paying a debt settlement company to negotiate with your creditor on your behalf can be expensive, and sometimes even dangerous. Many debt settlement agencies are scams and take your money without properly negotiating your debts—if they negotiate at all. You can negotiate a credit card settlement on your own and put the money you save on debt settlement toward paying off the debt.
Call the billing department at your credit card company and request to speak to someone about settling your debt. Explain any changes that have recently occurred in your financial situation that will make paying off the full balance difficult. If the representative does not offer solutions, call back and speak to someone else. Credit card companies employ hundreds of representatives and you are unlikely to be assigned to the same person twice.
Mention the possibility of being forced to file for bankruptcy if you cannot negotiate a settlement. Depending on the type of bankruptcy a consumer files, the debt may be discharged entirely. If this occurs, a credit card company may not receive any payment at all for the debt. Your creditors would much rather settle a debt with you for less than the full balance than have the debt included in a bankruptcy filing.
Step 3
Attempt to include the removal of any late payment notations the credit card company has placed on your credit file in your settlement. Settlement negotiations can encompass all aspects of the debt, not just the balance and interest rate. Also, request that the settled balance be reported to the credit bureaus as “paid” instead of “settled.” This will help prevent future lenders from considering you a high-risk borrower and assigning you a higher interest rate on loans.
Step 4
Ask that the credit card company agree not to sell the remaining balance of the debt to a collection agency after the settlement is paid. If the balance is sold, this will negate all efforts you put forth to reduce the debt. Extra fees and charges will be added and the collection agency will place a negative notation on your credit report. This negative notation will damage your credit score substantially.
Step 5
Get all agreements in writing. A verbal settlement agreement is not legally binding. In the event that any mistakes are made or the credit card company does not adhere to the terms of the agreement, having written proof of the settlement terms gives you recourse to remedy the situation. If you do not have a written agreement, you are unlikely to be able to convince your credit card company to adhere to the original offer.
Step 6
Offer a lump sum payment. A lump sum payment, if you can afford it, grants you much greater leverage when attempting to negotiate a credit card settlement. Consumers who are in need of a settlement are usually struggling financially and are at a much greater risk of defaulting on the debt in the future. A lump sum payment ensures that that the settlement will get paid and a default will not occur.
You must attack your debt with quick and decisive blows. The first thing you will need to do is find out where you stand. You must know where you stand before you can determine where you need to go. This step should only take a few minutes but it is an extremely important first step towards establishing a budget. It’s called taking a Financial Snap Shot. For more details on how to take a financial snapshot review this article “First Step To A Budget”.
There are perhaps 1,000 firms that offer debt settlement services, according to the industry’s lobbying group, The Association of Settlement Companies (TASC). About $20 billion in consumer debt is currently enrolled in debt settlement programs, according to the association.
Ads for debt settlement companies are ubiquitous, and nearly always use the same pitch: Consumers have the “right” to have their debts reduced by 50, 60 even 70 percent, the ads say, promising information that “credit card companies don’t want you to know.”
The basic strategy these firms employ is to instruct consumers to stop paying creditors. Instead, they are told to save money in a separate account. After receiving nothing for many months, the settlement companies say, lenders will be happy to take a lump sum payment for far less than the total debt. Sometimes, it works.
The problem for consumers is that high up-front fees and additional monthly fees often mean they have very little to offer creditors after six months or a year in the program.
Read the full story here: http://redtape.msnbc.com/2009/06/debt-settlement-firms-under-fire.html
Credit unions offer much lower annual percentage rates, less punitive penalty rates and engaged in far fewer unfair or deceptive practices than their banking peers. Compare bank percentage rates 12.24-17.99 to credit union rates at 9.9-13.75.
Better credit card deal via credit unions :: CHICAGO SUN-TIMES :: Personal Finance
Investigate any charge on your credit card bill that you are unsure of no matter how small. Small transactions may be part of a larger problem, Stolen Credit.
Quick action can save you a lot of time later. The average victim of identity theft will spend close to 200 hours and $1,200 repairing the damage, according to Atlanta-based Consumer Credit Counseling Service.
So how do you restore your credit if you find that you are a victim of credit or identity theft?
-File a police report. You may need to submit this report to creditors and others to prove the theft.
-Notify the credit bureaus: TransUnion, Equifax and Experian. Once there is a fraud alert in place on your file, you are entitled to a free copy of your credit report from each. Review them carefully.
-Close the accounts that you know or believe have been tampered with or opened fraudulently, and speak to someone in the security or fraud department for each company. Be sure to document each conversation, including dates, times and who you spoke to, and keep copies of all supporting documents.
-When you open new accounts, use new passwords and personal identification numbers. Avoid easy-to-crack codes such as birth dates, phone numbers, your mother’s maiden name or your house number.
-File a complaint with the Federal Trade Commission. The information can help law enforcement officials across the nation track down identity thieves and stop them.
Check out the full story at http://www.royalgazette.com/siftology.royalgazette/Article/article.jsp?articleId=7d9b1ab3003001e§ionId=65
“I told myself we needed something, or might need it,” she said. “I never missed a sale and would buy something just for the sake of feeling like I was getting a good deal. Whether or not we needed it or could afford it didn’t really matter.”
Certified financial planner Julie Casserly says identifying with just one or two of the following traits could be a sign you’re heading toward addiction. If three or more of these signs are already familiar, it might be time for a plastic intervention.
- You never have cash in your wallet.
- When you do have cash, it burns a hole in your pocket.
- You buy things just because they’re on sale, or because they make you feel better if you’re upset.
- You have more than two “branded” or store credit cards.
- You and your spouse or partner argue over money.
- Credit cards balances are growing — and not being paid down — each month.
- Your cards are all maxed out. But instead of paying them off, you open new ones in order to have additional credit.
- You don’t know how much you owe on the cards you have.
- You own several things you’ve never worn, used, etc.
Read the full story at http://www.walletpop.com/blog/2009/11/02/credit-card-addiction-how-to-spot-the-warnings-signs-and-break/
Nov
“Feed the Pig” marketing campaign was introduced to encourage Americans to “get back to basics,” SAVING! It refers to the concept of the simple piggy bank but targeted at consumers between the ages of 25 and 34. Check it out:
http://www.feedthepig.org/
This is a great campaign. This is exactly what American need to do SAVE, SAVE, SAVE.
Oct
Make no mistake; if you are in debt, you are at WAR. You are fighting for your financial freedom. Debt has the ability to destroy you and your family. The pressure of debt has destroyed many lives. As you prepare to fight this battle you must properly arm yourself. Just as any soldier puts on his/her battle gear, you must do the same. The first piece of battle gear covers your head. You must have the right mental attitude to overcome debt. Bottom line is, if you don’t think you can get out of debt then you won’t. The right attitude is the most important thing you can have in your war against debt. If you are unsure of your attitude, ask yourself now “Do I Really Want To Be Out Of Debt?” Then ask yourself “Why Do I Want To Get Out Of Debt?” It could be simply that you are sick and tired of working from pay check to pay check never having any money. Your why must be big enough to motivate you to move forward no matter how tough it gets.
1. Keeping too many cards in your wallet (only carry the cards you really need & use)
2. Charging when you should be cashing (don’t use your card for daily expenses)
3. Not reading creditor mail (they may be alerting you of term or interest changes)
4. Using your credit account as an ATM (no cash advances, budget & make your $ stretch)
5. Not communicating with joint cardholders (discuss card activity with joint holder)
6. Not checking every charge on your bill (verify every charge, banks make mistakes)
7. Throwing away sales slips (keep your receipts for at least 60 days)
8. Paying your bill late (avoid late fees if at all possible)
