There’s no bill repayment process without having some sort of debt. Most finance companies look at your debt history, income, taxes, bills, balances, and any other items that could be a factor in your situation, and they will take the appropriate actions to actually or informally correct it. The question you should ask yourself before you sign any contract is ‘Did I know about credit repair companies before?”
Does this situation really present a danger? Yes. In fact, the Fair Credit Reporting Act (FCRA) requires that these companies present you with information concerning credit repair companies before they make any payments. Any information they provide as to their ethics, legal representation, legal fees, or any other such information should be forwarded to the proper Department of Justice (DOJ) for investigation and prosecution.
To minimize the potential harm to your credit, consider contacting a credit repair company to discuss a contract dispute you have over payment. Check with the business company before you sign on the dotted line and try to avoid referring customers to them in any way. Other companies might be willing to negotiate over an additional credit (not debt) for you as a condition of the agreement.
In order to repair your credit, legally, you can’t make any promises that will harm your credit forever. However, you can make some promises and you will definitely pay for them. If you don’t agree to pay the company, simply don’t contact them. They have no knowledge of your debt, and you can tell them by phone if you have made a payment on your debt in the last two months. They don’t deserve you to extend them favors.
If you have any questions about your credit situation or your rights under the FCRA, you should always speak to a credit repair firm as promised and try to get them to agree to answer questions on your behalf. You can also ask either the company or the DOJ about their experience in making payments to you.
One of the main problems that credit repair companies run on you by the law is that they are out to take your money, and if they do they shouldn’t help you either! However, they really can help you repair your credit. You can help turn a bad situation around and give your credit report back on the American consumer as a great first step. Only a credit repair company can do this.
Copyright – Jeanette J.
How To Lower Your Credit Card Interest Charges
Did you know that when you use your credit card, you pay no interest while you’re making purchases? That is the myth that many consumers keep discarding from the surface of our financial laws.
That money is already being wasted in the collection agencies and other efforts to collect and disburse the money charged to cardholders. The same system allows charge-offs without making any payments at all; they are buried.
Once a credit card is equipped, it’s designed. But only if you can pay off the outstanding balance and don’t exceed the credit limit. Most cards use the classic interest model. Banks (or other issuing banks) charge 20% (=cash advance of 1%) toward any balance under your card and at the rate of interest, the money only goes to pay interest on the outstanding balance.
(1) If your credit card is equipped with a variable-rate phase (which is higher when compared to your regular credit card) or a cash advance, or if you tend to carry quite a balance (say 50-100) you can expect to pay off the outstanding balance up to 23% (=1%).
Note that the variable rate card comes with a slightly higher interest rate.
(2) In the cash advance phase, you pay a $25 per month interest on your new balance. (The interest rate on your new card may vary with the amount paid).
Take note that the entire 21 month interest-period can add up to 30%.
(3) Also, consider the finance charges for higher APR’s.
(4) When calculating APR’s, you’re not limited by your credit history, that is, you’re not limited by your credit standards, and there’s not even any freedom in the total calculation of the interest rate.
A total loss of a significant amount of money is inevitable. And to avoid this debt, we need to keep each of the above-mentioned actions within our financial lifetimes.
Since credit card companies are so heavily involved and thus require us to participate in programs that charge an attractive interest rate, we tend to ignore them, particularly if our payment history is in question.