| A new "Urgent Credit Help" service is available now. Our advisers are ready to answer all of your questions. |
 |
Credit Cards eZine
Acclaimsecuredcards.com presents the Information Center – a new and improved credit card news service. We will inform you with up-to-date articles on credit cards for good credit, bad or no-credit history. Get information on best credit card deals for student credit cards, cash back credit cards and business credit cards. Learn about the top deals on credit cards with the lowest APR deals and other hot issues.
Credit Cards News• Click here to view all News... • Click here to view Credit Card News Archive... |
|
Hasty Credit Card Application Can Lead to Bankruptcy
Many people who make multiple credit card applications are not aware of possible outcomes. So, they end up with a credit card debt. This debt is always much bigger than the original sum of money owed. For example $300 can turn into $1300 because of late payment fee and default annual fee. If you are lucky you manage to pay it off, but if not... You may go bust.
So, bankruptcy is the worst outcome of having an excessive number of credit cards or unwise management of one's personal finances. In this situation the lender's goal is to get the money back. So, they may start offering you credit repayment plans or maybe advising you some credit counseling agencies. The worst thing they can do is selling your debt to collection agency or take legal actions.
It is obvious that if you owe money, you have to pay them back. The sooner the better. If you do not carry out your obligations, or if you do not show any willingness to cooperate the lender will go to the law. And the law will not be on your side.
For a credit card issuer customers' debts are the ever-living source of income. So, be prepared that your bank will get you miss the payment or just be late with it. In this case late payment fee will be applied to your debt which can make it even heftier. In fees and default interest rates banks earn millions of dollars annually.
What else can a bank do to make you pay? Well, of course credit collectors and banks are not allowed to overrun the law, but this is not a perfect world and... Harassment, threatening phone calls, lies are all the tools used to make a debtor pay. You may be threatened with your car repossession or with garnishing your wages. Remember, this can be done only under the court decision.
Now, let us take a closer look at the most possible circumstances under which you may be sued. There are three of them.
First of all, if you are 60 days late with your payments, the lender can start legal actions against you.
Secondly, if you have been working with the same company for many years, it will be a sign for a lender that you will not quit your job. This means you have more chances to pay off the credit card debt and the lender will take legal actions against you.
Thirdly, if you are under 40 the creditor will think that you will be employed and will have more chances to pay off the debt than an older person.
There is one more thing. If your credit card application was secured by a cosigner, the lender will contact him or her and ask for payment.
Well, your ignorance of credit law and unwillingness to pay can result not only in credit debt but also can damage your reputation. I believe there is reason in cooperating with your moneylender in case of credit debt repayment.
Comments• News Comments... |
|
I have never run into debt. But I can imagine how awful it is. It's very difficult to start in life after that. It will take much time.
My friend once had an awful situation. He ran in debt and took great pains to get rid of it.
Post Your Comments• If you have something to say, please leave your comments below.localhost:10.0 |
|
The Latest Articles |
|
Credit DenialsLike any other business, credit companies are aimed at attracting as many customers as possible. However, not every consumer is approved today, after the credit crunch has become the country-wide headache. People with limited credit and spotty credit reports are often rejected today, while applicants with high scores are provided with beneficial terms. According to studies, over 10% of consumers with non-perfect credit have been suffering from denials.
Overlooking the sweet-voiced ads and facing the reality, everyone understands that bank's main interest is in profits. They do not want to issue credit to a debtor or a person with limited credit experience, as it is much too risky.
Credit Cards AbroadNo matter if you travel on business or for pleasure, you need money to take to foreign countries. Most travelers use plastics because they are widely accepted, help to carry large amounts, provide enough safety and convenience. Offers for good credit also provide rewards, while bad credit cards are simply a payment tool in trips. Received in the US, a credit card can be used to pay for purchases and services all around the world. But this convenience is not for free: for every transaction made abroad the bank charges a fee. Foreign exchange fees are different and come on various terms, as not all credit cards can be used abroad. This is why people, who are going to use a credit card in trips, should pay a special attention to foreign transaction fees and find best credit card.
Secured Credit CardsThough credit cards are widely used today, there are still people who do not see any need in them. However, sooner or later every consumer faces a situation when it is impossible to make a payment without a credit card: renting a car, buying something expensive, purchasing online etc. This is a frequent reason why people decide to establish credit.
Credit Card SafetyHave you ever shopped online? If not, you should know that about 80% of Internet users have made purchases online at least once. There are a number of essential reasons for the great popularity of online shopping. First of all, it is quick, which is very important for busy people who are constantly trying to save time. Another advantage of online purchases is convenience. You only have to open a web page and look through the list of products, put them into a virtual shopping cart and make a payment. Your purchases will be delivered right to your doorstep!
However, in spite of all these benefits, many people still feel hesitant and suspicious of online shopping. And they have reasons for that!
