Free Financial Planning Advice » Credit Cards

When You Need A Debt Settlement Attorney

Chava — Wed, 16 Dec 2009 19:21:06 +0000

Everyone’s real hope is that this article is never actually needed. Of course, there are times when it becomes necessary. In that case, it is important to understand what a debt settlement attorney is, does, and under what circumstances he or she should be called upon.

Bankruptcy or debt settlement should really only be considered when debt is excessive. Being on top of your bills usually is usually a matter of tightening your belt and some basic financial planning. For assistance, you can turn to a credit counselor. This will not affect your credit. If, however, you are in danger of losing your car or home due to excessive debt, it is time to contact a bankruptcy or debt settlement attorney. Experts in the field, they will be able to assess your situation more fully and advise as to your next step. They will tell you your legal rights and obligations, as well.

Bankruptcy is a very serious tag on your record. Debt settlement is serious as well, but can result in a less drastic credit drop. Though you won’t be given the “clean” slate of filing for bankruptcy, your credit score still has a chance.

Debt settlement attorneys specialize in negotiating with your creditors. It is their responsibility to mediate with each creditor, freeze the late fees, penalties, and premiums building up. The attorney becomes the mediator. Creditors stop contacting you. The attorney also works to remove any misleading, unsubstantiated, or incorrect items on your credit report. With the debts, attorney and creditors establish an agreed payment, usually a lump sum. It is possible to reduce it as much as forty percent of the original debt. One important thing to confirm with your attorney is that he will negotiate removal of any negative listing from your report. This gives you a chance to restore credit ratings. Planning for your future can begin.

Remember that debt settlement is generally available only for “unsecured loans”: credit cards, department store cards, or medical bills. Debts on mortgages, student loans, alimony, and child support are “secured loans” that are usually not solvable with debt settlement.

The debt settlement attorney network is filled with people who specialize in these problems and will work to clear your record and get you back on your feet. Your record may still retain words like “settled,” “settled as agreed,” or “paid as agreed.” But this is usually much more desirable than bankruptcy.

The Zero Percent APR Credit Card: As Good As It Sounds?

Chava — Tue, 15 Dec 2009 08:53:48 +0000

If you’re looking for another credit card, or even your first one, the first piece of advice you will get is to find a credit card with a low APR. What is an APR? How do you find the best rate? Are those zero percent APR credit card offers too good to be true, or are fantasies becoming reality?

The APR is the annual percentage rate. By law, all loan and credit companies are required to report an APR of certain standard amounts. Basically, zero percent credit card offers are a legal impossibility. What you’re actually seeing advertised is a limited time interest rate. For the first six months, twelve months, or perhaps even eighteen months, you might have very low percent (even zero) interest to pay. After that time, however, your zero percent interest credit cards transform into money eating machines.

That other point to realize is that often, the credit or loan company will collect tremendous fees from you in other ways, though not on the initial APR. Balance transfers, for example, even on so called “zero percent credit cards” can cost you a load full of money. In that case, zero percent balance transfers credit cards need to be forewarned against either. Basically, if the fee is not in one place, it will likely be in another. Or at another time. Remember, these companies need to make money somehow.

If however, you currently have large balances on your credit cards or can pay off new purchases quickly, you can save a hefty amount of money with zero percent APR credit cards during that intro period. The question to ask is, precisely what happens when the intro period is over. More importantly, where will your financial situation be? Will you be able to make payments after that time? The best low interest cards are available to people with the best credit. Ruining your credit because the intro period was so tempting would be a terrible decision.

Seeing as you can’t win them all, you need to make a decision when scouting for the best credit card offer. Is the lowest interest rate priority, or the longest 0% APR intro period? If you’re transferring an existing balance, go for one of the 0 APR credit cards. If you can pay off the card before the intro is over, choose APR. For long term charges and no balance transfers, then the lower interest rate is probably more lucrative.

Most importantly, be educated. There is no such thing as a true zero percent credit card offer.