July 19, 2009
Fine Print Follies I-What Credit Card Co’s don’t want you to ‘Know-tice’
"Skipping the Fine Print can lead to Ticking Time-bombs"
When it comes to dealing successfully with your credit card debt, NOT being familliar with the credit card companies fine print can really cause you some undesirable results. So, within this series “Fine Print Follies” I will highlight some of that ‘Tiny Text’ to bring it to the forefront where it should be in the first place-not lurking in the shadows of pages 7-12!
Many of us have experienced it, one day, we are keeping up with our credit card payments, even knocking them out in one fell swoop-maybe two. Then, setbacks come, not just one, but a series. Now you find yourself struggling, just keeping up with the minimum payments. Next thing you know, you are no longer getting the payment in (as little as it is) on time. Now you begin the downward decent! This begins a whole list of domino-like consequences and potentially financially fatal ”time-bombs”. Here’s where the credit card companies really “blow you away” - and all that fine print now suddenly seems VERY important!
“Would anyone in their right mind sign a contract that says, ‘Any term can be changed at any time for any reason, including no reason?’ Would you be insensed to know that anyone who’s signed up with a credit card company already has?”
According to an article from Bankrate.com, published May 2009,
“2009 Credit Card Study: The fine print”, by Ellen Cannon
“Any time, any reason; universal default, etc.: American Express; Bank of America; Chase; First National Bank Omaha, or FNB Omaha; and US Bank come right out and say it: We can change your annual percentage rates, or APRs, at any time for any reason.”
And, regarding Rate Increases: “All issuers will change your rate if you violate any part of the credit card agreement, but some are more forgiving than others.”
Well, if that doesn’t get you running to your files to look at the fine print of your credit card bills, I don’t know what will. However, before you break a sweat, many of these credit card companies typically will not raise your rates [significantly] until you violate your agreement in some way or another (i.e. late payments), or the market makes a significant shift. I hope this encourages you to take any credit card debt seriously, and don’t be late, or get behind or you could face some of your own ‘fine print follies’.
I will address additional Fine Print Follies in future postings, so check the tags or categories for additional postings. If you should already find yourself deep into credit card debt, and would like some options for solving your debt issues, feel free to drop me a line at debtsolutions2009@gmail.com
July 13, 2009
The ‘Go To’ place for State Foreclosure Laws
Today’s post will be short and sweet! I want to share a helpful link with you who are in
foreclosure or pre-foreclosure, you know who you are…and those who are not that far along, but maybe you are beginning to get behind in your mortgage payments. If you want to know what the foreclosure laws are in your state, here’s a place where you can find all the relevant foreclosure laws for any state in the US. This site is geared toward the Real Estate Investor, but nonetheless is a terriffic source for getting a summary and links to specifics regarding the foreclosure laws in your state. While you educate yourself about the foreclosure process, I highly recommend that you look into a process that can help you keep your house by lowering your monthly payments. For more information, see http://apsloanmods.com.
Don't let your house slip away, see http://saveorsellmyhouse.com
You can use this process called Loan Modfication even if you are behind on payments or, have bad credit, or are even upside-down in your mortgage.
Enough about that, here’s where you can go to read about foreclosure law in your state: http://tinyurl.com/myavf2
July 12, 2009
Can I get a Loan Modification if I am Unemployed?
This remains a nagging question for those seeking relief from high mortgage payments through means of a Loan Modification. Typically, if the debtor has no employment, they can’t be considered as a candidate for a loan modification. However, according to the US Government’s HUD website, www.hud.gov, (which by the way, only discusses loans that are backed by the FHA, which are not the same as conventional loans like Fannie Mae or Freddie Mac), there is a possibility for the loan to qualify for a loan modification if the person who is named on the loan lives with a spouse who does have a job, even if that spouse is not named on the loan. On the other hand, this is not to say that there is a requirement on the bank’s part to use that income, but it does allow the lending institution to consider utilizing that income to qualify the loan for a loan modification if the bank deems appropriate to do so. So, obviously, this is examined and thus determined on a case by case basis.
My Happy Home
For more information about options you may have if you are behind on your mortgage payments, {which if you are you need to do something fast!}, including how to secure a loan modification negotiated on your behalf by qualified attorneys just go to www.apsloanmods.com.
PS Check out more of my blog-posts for more great information about Credit Card Debt, Bankruptcy, Budgeting and Planning, Debt Consolidation, Debt Settlement, Foreclosure, and we even a category for Humorous posts-{we all need a dose of that in todays economy!!}
July 10, 2009
Ever wonder where to find “Found Money”? Look no more!
Hopefully you are current on your credit cards. However, if you are struggling with credit card debt and keeping your minimum payments made, you should put all your efforts in to creatively finding ways to bring in more money to your monthly budget. One way to do this before you head off to a 2nd job, would first be to cut expenses. It might not be as hard as you think! Put these action steps below into your life, and before you know it, voilà!, Found Money!
- If you are not already, begin tracking your spending- at least for 1 or 2 weeks.
- Then evaluate your spending. Determine the categories you spend on, add them up. Do they seem reasonable to you, or if you are honest with yourself, you probably see areas you can cut back. Now make it a challenge to cut spending overall by say 10%. Take a little out here and a little there. You probably wont really even feel it too much since it will be across the board.
- After you look at your money spent the following week, determine if you arrived at your goal. If so, great! Found money! If not, track all your expenses the next week to see where you are not doing well. Make adjustments.
- Then, once you have reduced your spending by 10%, reward yourself- in a non-monetary way if possible!
- Now, give a second go at it. See if you can take your spending budget down another 10%. This will get you close to a 20% reduction, and you can really take that savings to the bank! Or, in this case, pay down that highest interest credit card first! And, by all means keep paying at least the min. monthly so you don’t end up with a bigger credit card debt than you can handle!
- When you successfully pay off any credit card balance, resist the tempatation to close the account. Generally speaking, it is better for your credit score for you to have that available credit and not be using it, than to close down your account. Just hide the card from yourself- even cut it up and forget about it…
You can find more on budgeting and dealing with credit card debt in other posts in my blog. Also, you can look for posts in other categories on this blog of interest to you and stick around a while. Hey, if you find the posts helpful, DIGG it, or even give me the joy of reading your comments below! My greatest reward is knowing I was able to help another person. Stay cool, and stay out of debt – life is more fun that way!
July 9, 2009
If you start hearing a deafening sucking sound…
Credit Card Lock-Out!
Hold on to your wallets- your credit cards to be exact! Watch out for rising interest rates coming to your card soon! You think it’s hard to reduce your credit card debt now, just wait ’till your APR reaches as much as 20% or more! Not only that, you will notice many credit card companies are raising their FEES as well. You may ask, “What about Obama’s credit card legislation!?” Looks like borrowers will be waiting till February 2011 for that legislation to take effect. Even then, there is nothing in the bill that caps the interest rates the credit card companies can make. If you are tired of fighting the uphill, loosing battle of minum monthly payments on your mountain of credit card debt, you might consider the option of Debt Settlement. Unlike debt consolidation, debt settlement lowers the amount of debt you owe, typically by about 50%. If you need more information on the subject, (and I always recommend making an informed decision), you can email me at ccarriger@sbcglobal.net. Until tomorrow, “Hold on to your wallets!”
July 7, 2009
Start with Simple Steps; Here’s How
Small Changes add up!
Hello all you debt weary souls out there. I want to bring a ray of hope to you today. Consider, if you will, how you got to where you are now, possibly deep in credit card debt, or a mortgage that turned in to more than you intended, perhaps the ARM has adjusted upwards, [something you naively & too optimistically overlooked the possibility of happening]. Many of Americans are now, or have been there. Now for the next steps, steps to begin the journey out of the habits that often create more debt in our lives. My recommendations would be to start off simple. You and whoever else in your household who is responsible for household expenditures should strive to:
- Create a Plan! Take a deep breath (then let it out of course!), and get resolved to change things. This is a mental exercize, and you need to get the mindset that you CAN overcome this issue of debt. Do some online reading about how to accomplish getting out of debt. There are many reliable resources to learn “How to create a Budget (and stick to it)”, or “How to get your Credit Cards paid off faster”, etc.
- Create ‘milestones’ or ‘markers’ as you pay down debt or if you stick with the budget you made for that week. Don’t make the milestones too far off in the future. Reward the small steps, and before you know it you will have taken big strides to eliminate your debt.
- Create a habit of paying for things with cash. You can use a debit card as long as you keep just enough money in your debit account to cover the necessary expenses until the next pay period. Segregate the money you intend to spend on paying down credit card debt, or your mortgage payment, and any essential monthly bills you may pay on line etc.
- Find support for your new habits and lifestyle, whether it be from family, friends, online communities, or other support groups. Also, support each other-praise your family members when you notice them do something that you have agreed together to do to reduce expenditures as a family. Take time to Reward yourselves- it doesn’t have to cost money- or even if it costs, it could be a very economical reward, like going out for a show at the ‘Dollar” Theater.
- Reduce Restaurant Spending: Plan meals at home, and take your lunch to work from home. That is a ‘toughy’ for many of us who are are strapped for time or are just ’chef-challenged’. Also, if you like to buy coffee out-either bring your own, or look for cheaper alternatives, reduce the number you consume daily, OR even declare certain days during the week as a “Coffee-free day”. We could all use a little discipline in our lives! <sheepish grin>
- SMILE! Yep, that’s it, smile. If your face smiles, the rest will follow.
July 6, 2009
5 Debt Management Strategies You Must Know!
Here are some tried and true ways to manage and even curtail credit card debt:
- Don’t buy stuff you don’t have the money for. (Important note: You know you don’t have the money when you look at your bank balance or wallet, and there is not enough money in there.)
- When you want to buy a consumable item, and it cost more than your daily wage, put it back!
- If you are away from home, and it is time for lunch, and you have no cash, and your credit cards are maxed out, maybe it is time to go on a fast for at least one meal. {On the other hand, if you have a friend (or former friend!), that owe’s you some money or a favor – this might be a good time to collect.}
- Even if its been a long time since you’ve had a date, avoid the temptation to succumb to the infamous ‘grocery store pick-up line’. This will usually happen when you are shopping at the grocery store, and you find yourself ‘picking up’ extra items that are not on the list. They really sock it to you when you get into the check-out line! Make like tape, and Stick to the list!
- Don’t go shopping when you don’t need anything. {Never trust yourself when you tell yourself you are just going “window shopping”! Yeah, right, I know a house in Detroit for sale, too!}
Now, if you can do all these things, (it’s not rocket science, now is it!), you will go a long way to avoid creating more credit card debt and having to file Chapter 13 or Chapter 7 Bankruptcy. Why would you want to make the bankruptcy attorney rich anyway- so stay out of debt!
July 5, 2009
How do Obama’s Mortgage Refinance Changes Affect You?
Those homeowner’s who find themselves upside-down in their mortgages have previously hit a wall when attempting to refinance their home mortgage. That wall just got shorter by about 20%. The Wall Street Times reported July 2 ( http://tinyurl.com/m4wzs6 ) that homeowners with mortgages worth up to 125% of their homes value may now be eligible for a refinance loan. This guideline applies to any mortgage loan backed by Fannie Mae or Freddie Mac. However, many other mortgage refinancing obstacles still remain. Of primary note, homeowners can’t be behind on mortgage payments! Also, mortgage refinancing will still take into account a persons credit score, and likley debt to income ratio. Last, but not least, mortgage companies have to navigate through the confusing mess of ‘red tape’ which bogs down the process. As a result, I have a feeling that while a distressed homeowner waits to get an approval on their refinance loan to lower payments, they could begin to fall behind on their mortgage payment, which is what they were trying to avoid in the first place! If you find yourself in this position you might consider a loan modification instead. For a loan modification the criteria does not require you to be current on payments, or have a good credit score, and you can be upside-down in your current mortgage. To learn more on the subjects of loan modification, stopping foreclosure, forebearance agreements, and other options to consider if your mortgage is in default or in danger of default go here: ( www.apsloanmods.com).
July 3, 2009
Don’t be Bankruptcy Cattle. Educate yourself!
Bankruptcy is an action of last resort. This is very detrimental to ones credit report, as it will remain part of the credit report for 7-10 years. Before taking action to file for bankruptcy educate yourself from multiple sources. Initially, the internet is a good source for information, however, watch carefully which sites you get your information from. Consider the source, is it unbiased, is it credible? And by all means educate yourself on the basics before contacting a lawyer so you can ask educated questions. This will let them know you won’t let them get away with minimal representation. Unfortunately lawyers who limit their practice to bankruptcy, primarily Chapter 7 and Chapter 13, can tend to herd clients through like cattle. So don’t become “Bankruptcy Cattle“! Here’s some bankruptcy info from a source I would deem credible, as it is from the US Courts very own website. These are a series of videos, so what could be easier than that? Go get your refreshments, (for me that would be Dr. Pepper and popcorn), sit back and listen and get informed on the basics of Bankruptcy. http://tinyurl.com/qehvr5
July 2, 2009
Debt Free Me
Introducing the place you can come for answers, help and support or just plain and simple inspiration. If you find yourself dealing with mountains of credit card debt that you can no longer climb, an out of control ARM Mortgage, or even an Upside-down Mortgage situation, there can be hope for you. Never give up! There’s always a way out if you just look around in the right places. This blog is dedicated to all those who have a desire to be debt free, yes, I said debt free! No matter what brought you to this place, I hope to offer ideas and helpful information and resources that will assist you in your quest to become debt free. There are many options available out in the marketplace; Bankruptcy (Chapter 7 or 13), Re-financing, Loan Modification, Debt Consolidation, Debt Settlement and more. These will all be covered within these pages. I will share my insights and helpful resources that I hope you will find to be useful in your pathway to be “Debt free to be me”!
