Posts Tagged ‘Few Days’

Have you been looking over the credit card articles lately? A good amount of things are getting ugly out there for credit card holders and financial institutions alike. If you have a credit card in the bottom of your pocket, you’ve probably watched your interest rates skyrocket and your credit line plumett. This is true even if you’ve made all of your payments on time and never maxed out your credit limit. On the other side of the coin, credit card companies have posted record losses, and some major retailers have even had to give up on their unprofitable credit card endeavors.

What does all of this mean for the average Joe? Two things are certain: Real credit card reform won’t come along until mid-2010, and while you wait, you’d better make your credit card payments on time, every month, or risk going into default.

It probably seems a bit draconian to send a card holder into default if they’re only a few days or even hours late making their payment, but credit card companies have the right to do this – at least for now. And sky-high default interest rates will keep you from making any headway on your card outstanding balance. If you find yourself in default, what can you do?

Take your business to a credit union. They work under a different (some would say more consumer-friendly) set of rules. Here are a few of the differences between a credit union credit card and a regular large bank-issued card.

The Availability of Credit

The rules of lending are harsher than ever, thanks to the current recession. Understandably, banks have become more picky about what type of borrower they’ll hand out credit to. By contrast, many credit unions are willing to issue credit cards to members with low credit scores.

The Interest Rates

Credit cards from federally chartered credit unions usually have lower base interest rates than cards issued by large banks. They’re also limited to a maximum interest rate usually around 16-18%, even if your account goes into default.

The Reasonable Rules of Default

Unfortunately, some credit card issuers have been known to place charge card holders’ accounts into default status after one missed payment. Even if the forgotten payment was only one or two hours late. Credit unions seem more willing to work with their members. Many credit unions will overlook a few late payments before taking any action. Always check with your bank or credit union to learn their policy on default.

In today’s economy, we need all the help we can get. It doesn’t help card holders to be slapped with 29% interest when they’re having trouble making a payment in the first place. If your bank has raised your rates one too many times, take your business to a more forgiving credit union.

However if you still want a chargecard from a major financial institution, I would recommend Discover. A good amount of the rules at Discover card are a lot like credit unions.

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I read an article from a well respected newspaper a few days ago and was amazed to learn about the scale of the average persons debt from people who live in England. Now I am not just talking about your average mortgage here; this was more to do with loans, overdrafts and credit card debts. You, the reader of this article, may well be one of these people and if you are then it is time to start thinking positively. Why? Well this is what I will be explaining in the rest of this article, I hope you enjoy reading it and that it proves to be of benefit.

Why should I start to think positively about my debt situation? Well to start with you are not alone, as stated above the majority of people in the UK are also in debt. Now the levels of how much people owe varies from person to person, of course, with the average debt reported to be in the region of £8,000.

Lets face it at least you are attempting to do something to clear your debts. Why do I think this? Well you are reading this article for a start, that must be a good sign! Despite the horrendous debt mountain that the average person in the UK has accrued it is widely recognised that the majority of these people are not even trying to make arrangements to pay back the money.

So do you want to eradicate your debts? Maybe even to the extent of becoming completely free from debt? Well here is the next piece of positive advice; this can be achieved for people who are willing to be disciplined at sticking to a repayment plan and who are happy to stop spending so much cash; cash I might add that isn’t even theirs, it is after all only credit.

Now I am by no means a debt specialist. I am in fact a person provides cheap hotel deals and I also work with a company that advises about jobs in foster care. I do however have a certain knowledge of debt consolidation management programs.

To break free from debt we have to make certain sacrifices and cutbacks. If we own our own business we could perhaps contact a company of business cost reduction experts to find about the ways in which we could save money, for example they may able to help us to obtain cheap calls.

A debt management company could also advise on the best ways of approaching our creditors, plus they could organise the potential of having the interest frozen and an affordable repayment plan.

Think positive, you can become debt free.

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