by admin on February 15, 2010
Lower your Indebtedness by Utilizing Debt Management Skills
It is never too soon to begin to utilize debt management skills to lower your amount of debt. Whether you are already in over your head or just starting to develop your credit history, it is important to have a plan for debt management. And it is important to develop good spending habits.
If you are having a problem with your ratio of debt, the first thing you will need to do is to evaluate the situation. Take a good look at the cards you have, if you have some that you do not use, get rid of them. Check out the terms and the interest rates for the ones you are keeping. If possible, transfer the balance of a card with a high interest rate to one that has a lower rate and better terms. Exercise good debt management and destroy the old card.
Other strategies
Another method for debt management is to pay more that the minimum payment. The minimum already includes the interest payment for the month, so that the extra will go directly to the principal. Adding a little extra can help you to pay the debt much quicker.
Call your credit card company to see about lowering the interest rate. If they will not lower it at this time, ask what you could do to get it lowered in the future. Some companies will help you with debt management. They will lower the interest rate if you are under the credit limit, and making the payments on time. And lowering the interest rate will usually result in lower payments. They may be able to offer other suggestions if you are over the limit, after all they are as interested in getting their money as you are in paying them.
Find help
If you feel that you are in over your head and cannot utilize debt management effectively yourself, there are companies which can assist you. There are debt management plans which can help you to consolidate the unsecured debt which results in giving you a monthly payment your can handle. Following the debt management plan they set up for you can result in making you debt free. However, it is important to recognize that you will need to cease using the cards. And you cannot add any new debts.
Whichever route you take, you will need to implement your own debt management plan to help you avoid problems in the future.
by admin on February 15, 2010
Debt Collection – When Have Collectors Gone Too Far?
Everyone hates to get the dreaded call from a debt collector. Once in a while, albeit rarely, there are those calls which serve to remind us that we truly forgot to make a payment. Or perhaps something went wrong with the auto pay or the bank, but more often than not, the call is just one of a series. Sometimes it is caused by the loss of a job or some other traumatic event and sometimes it is because the person being called has simply decided that they are not going to pay the bill. Whatever the reason, debt collection is without a doubt one of the most hated features of modern society.
Debt collection tactics
When considering debt collection, there are many different tactics that collectors utilize to prompt the consumer to make a payment. But when do they go too far? Well according to the Fair Debt Collection Practices Act, or FDCPA there are a number of things that debt collectors are not allowed by law to do.
The first no-no pertaining to debt collection is to ask the consumer to pay more than the amount of the debt. They cannot add on any extra fees or penalties that your original credit agreement does not already stipulate. Debt collection cannot begin before 8:00 am or after 9:00 pm. They are also prohibited from making calls at times when they know or should know are inconvenient. If a collection agency calls before or after the stipulated time, it is considered harassment. They are also not allowed to make repeat calls during the day or use any abusive, profane or obscene language.
When making debt collection calls, the agent is not allowed to threaten the consumer with violence or threaten them with any action that they cannot take themselves. Such threats would include pursuing law suits, filing criminal charges, garnishing wages, confiscating property, causing job loss or the ruination of the consumer’s credit. Collectors are not allowed by law to inform third parties of the consumer’s debt collection problems. Exceptions to that regulation include the consumer’s attorney, the creditor, the creditor’s attorney, credit reporting agencies, the consumers spouse and if the consumer is a minor, the parent may also be told.
Laws
When attempting making debt collection calls, a third party may only be contacted once, unless the agent has reason to believe the information previously gathered from the third party was false. They are also not allowed to contact the consumer at work once they have been advised that the employer does not approve the calls.
It is important for the consumer to be aware of their rights concerning the debt collection.
