Categories
bad credit credit credit card credit counseling

The Bad Credit Billing Process

Are you wondering why so many people find themselves in a situation where they can get themselves into a credit card debt settlement program? It’s because most of us have bad credit and we often default on any bills when we have a bad credit record. Usually the interest that comes with this type of situation is a chargeback. This type of revolving negative credit is in stark contrast to the usual credit counseling that you’ll find in the typical credit counseling agencies such as MBNA. Instead of consolidating the negative credit from all your credit you now take a cash option and allow them to pay off your entire balance in each month.

If you’re feeling a little guilty about it, you’re more than a little right. If you have good credit, you should then take advantage of many of the best credit cards out there with zero annual fees. The only thing I would add in a cash option situation is some credit cards.

You see an emergency exists. If you’re lucky, an insurance claim might not be filed because the amount of cash you placed into the emergency fund will be used to pay all that is owed. You can instead go straight to your bank or some other place where many people have this type of emergency situation.

The way to correct this is for a secured credit card to call your employer so that they can reimburse you on the interest and the amount of cash you need. Again, don’t invest more cash in this type of credit card.

Since I have a credit card and a bank account that I manage, I have to be very careful with whether I invest too much. But since this is something I really can’t do alone personally, this also is something I can live with other than trying not to.

I do have one regret though. I should have saved this for my best friend who had a ton of credit card debt too. Now she only has 20 minutes to commute and half of that time is spent looking for an affordable way to pay off her card. Hopefully my advice at least saved her from having to do with spending more money.

The simple solution is now maybe the best way to rectify this situation is to stop investing in all the wrong kinds of consumer credit cards. As previously agreed with most other lenders, start investing in the most usable credit cards.

The Common Types Of Credit Card

Credit cards have all kinds of advantages and disadvantages. There is no particular kind of credit card you should use. There is no one type of store card that you should use. Credit cards are the constant reminders of your income and worth. Think how difficult it would be to buy that wonderful pair of shoes in the bargain bin of a store and not even to mention lose all your hard-earned savings. Credit cards have enabled such issues.

In simple words, credit cards are what prevent people from getting into debt by stealing money from a person, with no prior knowledge of how it gets to you, which then forces you to do what a typical college student would do – take out a credit card, and wait tables with someone he or she owed money to to escape the debt. What in modern times isn’t already common are the credit card debt-plagued Americans. And what do the credit card companies do for a living? They make millions of dollars selling promos, junk food, clothing, and auto parts.

For example, I personally owe a total of $12,000 on an auto. The dealership says it will send me 2,000 of them, but I’ve saved $35,000 in fuel expenses. Time to pay it all off? I’m not done yet. All right, now I want to pay off this bunch of money, I’m going to go home and cut up the credit cards as much as I can for as long as you like, just in case.

You see, there is nothing like good credit, when the two words come to mind – bad and desirable. We see it in the obscene number of credit card debts.

Bad credit can, of course, be avoided. We ought to realize that each word in this sentence is meant to mean irrelevance. Fortunately, there are good credit cards that are good for us.