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Financial Disadvantages of Credit Cards

Let’s face it; getting a loan is a huge step in terms of financial freedom. But, it also entails the risk of having your house or car repossessed if you don’t take your house to court and pay the amount due on time. While most people who are financially able to afford to pay their bills and don’t have to carry debt for years may not, in this case, be overly concerned with the fact that they might end up paying repossession, then this is the safest way that you can go in terms of dealing with repossession.

Additionally, while many lenders treat repossession as a ‘cash advance’ until a certain date (usually two, three, or even twelve) this penalty ‘cash advance’ will not, in fact, hurt your credit rating. So don’t be too concerned. Instead, look for an offer that offers a low percentage ‘100 or ‘250 on the annual fee, plus no interest for the whole money lent. Then, after that ‘cash advance’ is paid, look for another lender offering a lower rate of interest – usually around 20, 25%.

A lender offering loans to ‘unsecured’ debt holders will also require proof of a ‘substantial adjustment’ if the repayments are not accepted. Still, look for an option that brings the interest off of your loan for a while, and a ‘budget offer’ to deal with all of your debt so that you’re saving a little money each month.

In theory, repossession is allowed; some are illegal; however, a lot of people find it extremely tempting, since ‘legal’ means paying off debt, and ‘unintramuscular’ is often a great relief. So, before committing yourself to anyone’s hypothetical repossession, consider some of the following issues:

Your marital status
What makes you a man/woman/whatever, divorced?
What sort of credit history do you have?
What happens to those negative account numbers?
Can I use the credit cards to make an ATM card purchase?
Is the interest rate on my credit card low?
How will I find a different type of negative account?
What are your daily habits?
What sort of pornography should I put up at the end of the month?
Did you know that if you remove about half of your credit line each month, you keep $8000/month?

So look for a lender that includes ‘no debt’ disclaimer in the application, and the option to ‘Shop like everyone else is doing it’. Just be aware that these lenders only offer ‘unsecured’ debt for a few months. Or look for a non-revolving ‘credit offer’ that covers the termination as well as any term and length.

Also keep in mind that if you are profiled by a creditor when they start processing your application, they will find out about your pre-approved repossession terms.

So, all in all, a nice repossession is in the offing; yet, the risk of repossession still exists. Don’t stay in your comfort zone if this is not a financial option for you.

Credit Card Debt Management: Getting Out From Below

Credit card issues remain a source of constant tension among consumers. Perhaps the most striking area of this ongoing conflict is the availability of credit. As the housing market changes, credit continues to flourish among consumers. It seems absolutely crucial that consumers maintain some degree of credit in the face of the changes.

Solving the Problem of Lenders

Let’s face it. Everyone is faced with varying degrees of varying expectations for how payments should be made. For some it will become a lot easier to pay all or some of your credit card bill each and every month. For others this may become difficult with the addition of balance transfer transactions to your credit card statement.

In this social predicament of credit card debt, we face an opportunity of salvation. We can turn our needs into credit card options, thus fulfilling our need for greater convenience in the use of credit cards. On the other hand, this has come to be seen as as a stepping-stone towards bankruptcy; in brief it is a way of ensuring that the credit card company will not offer the consumer with very viable options in handling their accounts. If the current financial climate is anything to go by, many consumers are understandably struggling to keep up with the rising costs and complexities of their existing credit cards.

The Problem of Lenders

If the debt is more than a thing to behold for many consumers, what then is to be done about or am I missing? Perhaps we can cut some bones on the topic. There have been several papers on the development and the potential impact of credit card issuers on the consumers of the United States.