Debt or bill consolidation is one of the latest methods available by companies to take control of your debts. Debt or bill consolidation is also known nowadays as either debt settlement or debt negotiation. The process behind debt or bill consolidation is simple: you grab a calculator and get the total amount of all your bills put together then present this to a specialist of debt or bill consolidation and from there, the burden is theirs alone.
Debt or bill consolidation became popular during the late nineties over the Internet as companies aggressively advertised about the solution to everyone's financial worries. Apparently not satisfied with their success in the cyber world, debt or bill consolidation companies then jumped to broader advertisements like TV. Unfortunately, being too popular, as always brought about its own downfall and now a number of debt or bill consolidation companies have been the target of lawsuits.
Further research will show you though that lawsuits and being singled out by anti- debt or bill consolidation groups are not enough to stop the companies from proceeding with their work. Take the case of AmeriDebt, for example. When it was ordered to be closed down, it merged into other companies. But of course, if you ask the people behind them, they won't admit a thing.
When considering debt or bill consolidation, make sure that you truly have a trustworthy company in mind. There are a lot of cases of fraud and that's something nobody can afford right now. Since you're required to give out classified information like your Social Security number, bank account balance and so on to debt or bill consolidation companies, you have to ascertain that this kind of information wouldn't be landing on the wrong pair of hands.
There are good things and bad things about debt or bill consolidation. If you go ahead and use debt or bill consolidation to solve your current problems, the debt or bill consolidation companies will assure you that starting on day one, you will never be bothered again by embarrassingly frequent calls from your creditors and an outstanding number of bills that make your mailbox look like an address for Prince William's fans club. So thanks to debt or bill consolidation, you're now free to concentrate more of your time and not to mention money --- since debt or bill consolidation does promise to help you save more while still paying your bills --- on other and more fruitful ventures.
But there are bad things, too. The story of Adam and Eve taught us that not everything we hear and see is true. You have to look a little deeper. And according to some concerned citizens out there, debt or bill consolidation will only lead you to further people. They say that if you're drowning in financial debt, what you need to do is get help from counseling and enroll yourself under a financial fitness program. Learn self control so you can stop swiping that card away every time you pass by a pair of Nikes you really like or a Gucci dress that's absolutely to die for. Do anything but rely on debt or bill consolidation.
So in the end, looking at the pros and cons of debt or bill consolidation,
it's probably better if you use debt or bill consolidation as a last
resort. And when you do use it, make sure that it's something reliable
and trustworthy. Check out Consumer Credit Counseling Services (CCCS) for more
information. It's reputedly one of the best there is.
The Fed Proposes a Rules to Limit Credit Card Fees
The Federal Reserve has proposed a rule that would limit penalty credit card fees - those fees that are imposed when you default on your credit card, e.g. miss a payment. Right now, credit card companies are charging the maximum penalty fee to the majority of their customers. If it's passed by Congress, the new rule could end that practice.
The rule would stop credit card companies from charing fees that are more than the violation. For example, if you go over your limit by $5, your maximum over-the-limit fee would be $5. The rule would stop inactivity fees and prevent cardholders from being charged multiple times for one violation.
You can let the Federal Reserve know what you think about the proposed rule by commenting at their website. Make sure you leave a comment for R-1584.
The Fed Proposes a Rules to Limit Credit Card Fees originally appeared on About.com Credit / Debt Management on Monday, March 8th, 2010 at 02:10:52.
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...(more)Watch Out for Unauthorized Charges From iTunes
Note: This news story came out last year, but many readers are still facing problems with fraudulent charges from iTunes.
A MyFox New York story warns about fraudulent credit card and check card charges that appear to be from iTunes. The first signs of the fraud include charges or pending authorizations from a APL*ITUNES business for $1.00 which might seem to be accurate or an email for gift card receipts that were purchased with your account. The fraud is happening to a wide-variety of people who may or may not have an iTunes account. From the news story:
The high-tech scam has claimed victims from New York to California. At the heart of it all is Apple's wildly popular iTunes. Victims say it starts with an unexpected e-mail for purchases they never made. That's how Rachel Katz from Manhattan found out, "I got two emails thanking me for my purchase."
But by the time victims get the e-mail receipt it's usually too late. The receipts appear to be legitimate, and come from Apple, generated by the user's iTunes account. The receipts show purchases for iTunes electronic gift certificates and charges that hit checking accounts, credit cards or PayPal depending on what the user has linked to his or her iTunes account.
Some of the thieves wait for the $1.00 charge to complete before hitting the account with even higher charges. Sending an initial small charge through first allows the thief to determine whether the account is legitimate.
Many victims of the fraud are having trouble fixing the situation. Neither the banks nor Paypal nor Apple accept ownership. Meanwhile, victims are left without hundreds, even thousands of dollars.
Brett Larson with MyFox recommends deleting your credit card information from iTunes. Instead, he suggests you fund your account with an iTunes gift card. The cards can be purchased from many retailers like Wal-Mart, Target, and Best Buy. Or, you can make iTunes purchases with single-use credit card number available from your credit card company.
I just deleted my credit card information from iTunes by going to Store --> View My Account. I clicked on Edit Payment information and next to "Credit Card" I selected the radio button next to "None."
If you notice an authorization or charges from Apl*itunes, contact your bank immediately. Here are some Tips to Avoid Credit Card Scams and information about disputing inaccurate credit card charges.
via Consumerist
Watch Out for Unauthorized Charges From iTunes originally appeared on About.com Credit / Debt Management on Saturday, March 6th, 2010 at 02:05:33.
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...(more)Are Some Creditors Trying to Hide the True Cost of Credit?
Credit card issuers are now required to include credit card repayment time and cost on the front of your billing statement, but they may be trying to skirt that new requirement.
Credit card issuers are now required to give a minimum payment warning letting you know just how much you'll end up paying in interest if you make the minimum payment on your credit card. They also have to clearly state late payment penalties including late fees and penalty rates. Both these disclosures are supposed to be printed on the front of your billing statement.
The rule applies to printed statements and if you check your billing statement online, you might not see the warnings unless you download the PDF version of your statement. Could this be the real reason why some private-label credit card issuers started charging consumers a dollar to receive paper statements?
CreditCards.com reports that back in December of 2009, retailers who issue through Alliance Data Systems gave cardholders the option to get their statements online or pay $1 for paper statements. Of course, there'll be some customers to pay the fee because they can't or won't check their accounts online. The ones who opt for online statements could miss out on vital information about how much they're paying for credit.
Are Some Creditors Trying to Hide the True Cost of Credit? originally appeared on About.com Credit / Debt Management on Thursday, March 4th, 2010 at 02:42:48.
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...(more)Credit card skimming is a type of credit card theft that allows thieves to steal your credit card information without stealing your credit card. After being hidden in ATMs and other credit card machines, credit card skimmers collect your data in what would have been a legitimate transaction. Waiters, retail clerks, and other customer service representatives can hold skimmers in their hands and swipe when you're not paying attention. Learn more about credit card skimming, how to recognize a skimmer, and how to avoid the theft.
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Beware Credit Card Skimming originally appeared on About.com Credit / Debt Management on Wednesday, March 3rd, 2010 at 00:18:06.
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...(more)5 Ways to Spend Your Tax Refund
It's tax season and for many taxpayers that means a tax refund is due. If you know you're getting a refund, you've probably already started thinking about how you're going to spend it. Buying consumer goods would stimulate the economy, but paying off some credit card debt would stimulate your get-out-of-debt plan. See 5 Ways to Spend Your Tax Refund for some ideas on what you can do with this year's income tax refund.
5 Ways to Spend Your Tax Refund originally appeared on About.com Credit / Debt Management on Saturday, February 27th, 2010 at 00:18:53.
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