Bills: the word does really strike a chord in one's heart, doesn't it? It may remind you of pesky calls from creditors, notices of disconnection and politely worded warnings of legal procedures.. and though you may dearly want to pay them all off, the income you receive doesn't exactly agree with your desires --- hence, the need for the services that debt consolidation companies offers.
There are various services that debt consolidation firms offers but we'll be only centering on the common services just to familiarize you with the workings of a debt consolidation program. It's important to know what services you're particularly interested in to make it easier for you to choose the type of debt consolidation program you'd take.
The first type of services that a debt consolidation company offers is slashing, cutting or lowering monthly down payments. It's a fact of life that in installment plans, the monthly down payments are a bit tough to handle. And then there are the utility bills, the minimum amount required for credit card bills and so on. A debt consolidation company can aid you by providing services that would make your monthly payments tolerable, at the very least.
The second type of services that you could hope of acquiring from debt consolidation companies is reducing or, if you're lucky enough, eliminating interest. It's usually one of the most common types of services that customers ask for from debt consolidation companies because nowadays, interest rates can be the cause of your financial ruin. So if lately your eyebrow's been going up at the amount of money you're paying just to get rid of the interest, then it's time to approach a debt consolidation company and ask for the services that you want.
Reducing or shortening payoff time is the third type of services that one can ask from a debt consolidation firm. This is one of the trickier forms of services but it is possible, with the right debt consolidation company.
Related to the aforementioned type of services is extending the deadline or due date for your monthly payments or bills. Since the debt consolidation company, upon hiring, is to take over negotiating your creditors, they can easily persuade those collectors to give you some breathing space. So yes, if you think about it, going to a debt consolidation company is like hiring the services of a butler or a right hand man, like those two advisers Mr. Trump always has with him in The Apprentice.
Lastly, and more of a summary of all those services, a debt consolidation can help you gain financial freedom. With reduced interest rates, monthly payments and shortened payoff time, you're given the luxury of having a stress free time to concentrate more on your work. Hopefully, you'll be able to work in a more motivated fashion and soon, you might have paid off all your debts.
As I said, the services that a debt consolidation company offers vary and
so it's up to you to choose what you truly need. But remember, these
services do not come for free so you also have to choose the right debt consolidation
company to make business with. But since there are a lot of debt companies
that are being suspect of malpractice, caution is the word for the day.
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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