Can Credit Repair be Done?
Yes, even without a MasterChef. Yes, this is true for any credit repair. No, you can’t repair your bad credit by going to a MasterCard or worse. If you have bad credit, it’s because you made an error on your credit records and you couldn’t repair it yourself. Yes, going without a credit card will solve the credit problem and fix your payment but nothing compared to what you are going through financially.
It is often helpful to have a copy of your credit record (usually in a safe place) for yourself to look at when you are trying to get your bad credit repaired. This way no bad credit credit decision is affecting you more than a few dollars.
The Truth about Credit Card Debt
There is not often a day in our lives where we don’t have credit card debt. Whether you’ve seen it or not, the cost of credit cards has exploded from $300 billion in 1980 to over $1 trillion. In fact, approximately one third of all Americans carry a balance of over $800,000 on one credit card, which is more than any other type of debt.
What the companies want you to DO is collect that balance in full each month. When the interest rate is charged, it is the credit card companies who are accumulating that interest and it goes onto everybody else’s credit report.
Remember though, that if you DO not pay the balance in full each month you could be in debt for life.
As a result of the credit card debt explosion, not only are you paying back more each month, but the interest rates are also increasing. The average credit card debt’s interest has doubled in just the last two years alone.
A look at recent trends in credit card interest shows us that those interest rates are set to a four-year high by 2026. Any additional increases in rates will be applied to those making between 5% and 15% of their income.
With today’s market, many of those who have balances just barely survive. Those who have debt over $6,000 will have to make even less money by the end of their thirtieth year of age. That means they could pay an average of $9,000 in interest! What then, do you do if you have so many, many credit card debts?
Remember that debt consolidation is not a quick cure for all credit card debt. For a brief period, it can be worked on. After that brief period of improvement, the only way you’ll be able to pay off the balance is if you take action right away.
The federal government has issued consumer financial responsibility. If you don’t take action now, you might get a bad check in the mail for handling most of your debt.
The Truth about Credit Card Debt and Relief From It
There are many things you can do to make credit card payments work for you. Here are a few tips you can look into to help you get the most out of credit card debt relief.
Ask for more than just the minimum payments. If your new credit card account carries one payment more than the minimum required amount, you might want to do nothing more than pay it off. If you have your credit card balance due after the 30-day deadline, you can expect to see only pay the minimum payment and then realize you don’t even need to pay the balance! Credit card debt might take you a couple of months to pay off, and it might take many more months to pay off because of the unexpected charges. Ask your monthly payments to be the first payment on the balance you maintain.
More than just the minimum payments. Most people just pay the full balance every month instead of the minimum required amount. However, many do not pay the minimum amount. So ask your card company to pay the full balance each month. Ask your bank or other creditor to agree to the full minimum balance payment and continue to work with you until you pay off the balance. Again, most times you can work very, very well when you work with your family or with your friends, but keep in mind that your personal finance is very different. Your personal finance is different if you have other family members or those who work for their employer. Paying the full balance every month is not a simple task or for most people.
Need other help from your bank? If so, it is highly recommended that you get advice from a reputable company.