For you youngsters with credit card debt...

[chode_regulator]

I got a letter in the mail yesterday from GE Money saying my Old Navy card limit was lowered $50. Oh happy day.


Just to illustrate the point.

do you have a lolw balance/not use it much. bc i know thats one of the ways theyre loooking at. cutting back on the hgih avail balance on people that dont use them. though 50 bucks seems kind of a low number.

[chode_regulator]

You could not possibly be more wrong. If you go over your limit they can increase your interest rate imeadiately and without notice. There are many many credit card companies that will raise your rate if you are so much as 1 day late. Now they can't show you late on your credit report until the 30 day mark. The credit bureaus recognize 30 day 60 day 90 day 120 days late. I'm not saying this is every card out there you have to check your contract to see what their "policy" is but you're crazy if you think they can't raise your rate unless the bureau shows you 30 days late. The two aren't connected in that way. If your contract calls for your rate to rise if your late....it will....regardless of what the bureaus recognize.

are you re ed. when did i mention going over your limit. did i not say my response was only to late payment? stop talking about going over your limit. now as far as different companies having different policies, i dont know, bnut i have several cards all with diff companies and none of them have a policy of one late day and you rasie rates. they have told me that it has to be past 30 days. now they can charge a late fee for only a day late. and next time try responding in a color that isnt a bithc to read

[manustarting2gd]

Uhhh...your language is a little disingenuous. Maybe you should explain that you are not actually lowering their DEBT in half, but rather attempting to negotiate a lower interest rate on their debt in exchange for making guaranteed monthly electronic transfers of P & I...Something they could do for themselves without paying your monthly fee. And it will be a big hickey on their credit report for 7 years.

Sorry to inform, you are explaining another program. You are very accurate in explaining debt consolidation. However the program I am presenting is debt settlement. This approach is all about the principal balance being negotiated down.

1st- This is not consumer credit counseling or debt consolidation. This approach is called debt settlement. No interest rate adjustments are involved.

2nd-We work with each of the clients creditors individually and we settle using bulk settlements in which the actual creditors settle lump sums of debt.

3rd-We settle off the principal balance (on average of 40-60 cents on the dollar) and our fee's are actually 15% of the total debt but since its a hardship program, it is included in the lowered monthly payment which will be lower than the minimums they are struggling with already.

4th -Another aspect you are incorrect on is the affect on credit, we do not appear on the credit report as managing the accounts for our clients(unlike Consumer Credit Counseling) the only affect on the credit is the debt going unpaid as we ac ulate money in a settlement account. This will bring your credit score down, but it will not appear any worse than it would if the debt went unpaid without us involved. Once your accounts are settled (1-3yrs) in full you would be able to begin your credit restoration. We even help you get to a credible credit repair organization. Also, if you are in a hardship a good FICO score is only good to get you more in debt. I will say this is not for everyone, I turn those people away who just dont want to pay their bills because of high rates and help those who can't pay their bills but want to.

5th- We allow the creditors debt to age(go unpaid) being the fact that each credit card company has losses built into their business model and the longer the debt goes unpaid the more likely they will settle for a significantly lowered balance amount. If credit cards were willing to work with those that needed help we wouldnt be in business. Unfortunately this isnt the case, if you were to call your credit card company and tell them you needed a lower payment, they wouldn't. We are utilizing the fact that credit card companies would rather settle at 40% of the total balance vs taking a total loss or selling the debt to a collector for 5 or 10% of the balance. Its actually a very simple process. We usually settle the 1st account within 6-9 months of starting the program, allowing the debt to age as needed so the CC company will consider taking less than full balance owed and also allowing funds to ac ulate in your savings account accordingly to settle with. Our programs last from 1-3 yrs and at the end of the program your accounts will be at a zero balance and settled.

Take a look and educate yourself before assuming incorrectly. This alternative method works and not many people know the details of it. This is why I felt ST would be a great place to explain it. This program has an 80% graduation rate and Consumer Credit Counseling and Debt Consolidation have an 80% failure rate.

Please keep your questions coming, If I can help anyone out of a dire situation this discussion would be worth it.

www.freedomdebt.com

http://www.freedomdebt.net/calculator.php

TASC - The Association of Settlement Companies
TASC’s goals are to promote good practice in the debt settlement industry,
protect the interests of consumer debtors

www.tascsite.org

Wall Street Journal Article(marke ch section): http://www.marke ch.com/news/stor...13F1C98E58F%7D

We are the nation's largest debt settlement company and have settled more than 1 billion in consumer debt since 2002. We were a member of the BBB until this year when the BBB decided to remove any debt settlement companies from their listings.

Also, we run shows on Good Day SA about once a month and our program is a relatively unknown program as you can see, many confuse the approach with debt consolidation and consumer credit counseling.


Thanks for considering another approach at debt. Credit card companies just lost a bill which would have helped them forgive old debt, this is yet another reason why our program works.

[spurster]

Ack, that red color in B2B's post was unreadable.

Regarding CC debt, the answer is don't unless it's a last resort. Going without until you have the money to buy what you want is good discipline and saves you tons of money, which means you end up with more money to buy what you want (maybe save for retirement, too, what a concept). My CCs are paid off each month, and I always get a few more CC offers each month to shred.

This is not intended to apply to big ticket items like cars or houses, but you will usually get a less crooked deal on car or house loans as long as they are fixed rate.

[BacktoBasics]

are you re ed. when did i mention going over your limit. did i not say my response was only to late payment? stop talking about going over your limit. now as far as different companies having different policies, i dont know, bnut i have several cards all with diff companies and none of them have a policy of one late day and you rasie rates. they have told me that it has to be past 30 days. now they can charge a late fee for only a day late. and next time try responding in a color that isnt a bithc to read

There are lots of cards, particularly ones that were given out to risky lends, that will raise your rate if you are one day late. Basically being one day late voids your agreement so the penalty is having your rate raised. I would say less than half of the credit cards in circulation have a less than 30 days late policy limited to just a fee. So you got some decent cards. Great. Its not the same for everyone. Next time try and write out a post with at least decent grammar and spelling.

[BacktoBasics]

Sorry to inform, you are explaining another program. You are very accurate in explaining debt consolidation. However the program I am presenting is debt settlement. This approach is all about the principal balance being negotiated down.

1st- This is not consumer credit counseling or debt consolidation. This approach is called debt settlement. No interest rate adjustments are involved.

2nd-We work with each of the clients creditors individually and we settle using bulk settlements in which the actual creditors settle lump sums of debt.

3rd-We settle off the principal balance (on average of 40-60 cents on the dollar) and our fee's are actually 15% of the total debt but since its a hardship program, it is included in the lowered monthly payment which will be lower than the minimums they are struggling with already.

4th -Another aspect you are incorrect on is the affect on credit, we do not appear on the credit report as managing the accounts for our clients(unlike Consumer Credit Counseling) the only affect on the credit is the debt going unpaid as we ac ulate money in a settlement account. This will bring your credit score down, but it will not appear any worse than it would if the debt went unpaid without us involved. Once your accounts are settled (1-3yrs) in full you would be able to begin your credit restoration. We even help you get to a credible credit repair organization. Also, if you are in a hardship a good FICO score is only good to get you more in debt. I will say this is not for everyone, I turn those people away who just dont want to pay their bills because of high rates and help those who can't pay their bills but want to.

5th- We allow the creditors debt to age(go unpaid) being the fact that each credit card company has losses built into their business model and the longer the debt goes unpaid the more likely they will settle for a significantly lowered balance amount. If credit cards were willing to work with those that needed help we wouldnt be in business. Unfortunately this isnt the case, if you were to call your credit card company and tell them you needed a lower payment, they wouldn't. We are utilizing the fact that credit card companies would rather settle at 40% of the total balance vs taking a total loss or selling the debt to a collector for 5 or 10% of the balance. Its actually a very simple process. We usually settle the 1st account within 6-9 months of starting the program, allowing the debt to age as needed so the CC company will consider taking less than full balance owed and also allowing funds to ac ulate in your savings account accordingly to settle with. Our programs last from 1-3 yrs and at the end of the program your accounts will be at a zero balance and settled.

Take a look and educate yourself before assuming incorrectly. This alternative method works and not many people know the details of it. This is why I felt ST would be a great place to explain it. This program has an 80% graduation rate and Consumer Credit Counseling and Debt Consolidation have an 80% failure rate.

Please keep your questions coming, If I can help anyone out of a dire situation this discussion would be worth it.

www.freedomdebt.com

http://www.freedomdebt.net/calculator.php

TASC - The Association of Settlement Companies
TASC’s goals are to promote good practice in the debt settlement industry,
protect the interests of consumer debtors

www.tascsite.org

Wall Street Journal Article(marke ch section): http://www.marke ch.com/news/stor...13F1C98E58F%7D

We are the nation's largest debt settlement company and have settled more than 1 billion in consumer debt since 2002. We were a member of the BBB until this year when the BBB decided to remove any debt settlement companies from their listings.

Also, we run shows on Good Day SA about once a month and our program is a relatively unknown program as you can see, many confuse the approach with debt consolidation and consumer credit counseling.


Thanks for considering another approach at debt. Credit card companies just lost a bill which would have helped them forgive old debt, this is yet another reason why our program works.

If your credit is garbage this might help eliminate debt but by letting the account go into collection the debt is still on the report for 7 or more years in the form of a chargeoff. That or the debt is sold to the next collector. You're almost better off just not paying the debt at all at that point because of the charge off. So I have to ask...

What about the people that have good credit but a lot of debt? You let these accounts that are current go into collection?

Do you negotiate the removal of the trade line completely?

Do you remove duplication of the tradeline in the event that the debt is sold and both collection agency's are reporting it?

Because thats the real difference. I never have and never will negotiate a debt to a lower principle amount without also negotiating that the trade line be removed completely upon completion of the debt payments. In writing.

You can pay the debt off but a tradeline that has a zero balance charge off can still affect your credit score. Its also a real to get removed. Its only slightly better to have a debt paid and charged off to zero than it is for it to be currently in collection and unpaid.

The only difference is that the debt can't be reposted as current once its paid...but it still remains until the statute of limitations comes around. Even then it typically requires you to send a letter of removal.

[BacktoBasics]

I'm sorry about the red gang.

[CosmicCowboy]

They can raise your rate even with perfect payment history. All they have to do is send you a letter telling you your rate just went up and if you don't like it then send us a check for the total balance due.

[Blake]

We are the nation's largest debt settlement company and have settled more than 1 billion in consumer debt since 2002. We were a member of the BBB until this year when the BBB decided to remove any debt settlement companies from their listings.

Also, we run shows on Good Day SA about once a month and our program is a relatively unknown program as you can see, many confuse the approach with debt consolidation and consumer credit counseling.

something about this just doesn't sit right with me.

...and I'm betting there's a good reason why BBB decided to remove debt settlement companies from their listings.

[BacktoBasics]

something about this just doesn't sit right with me.

...and I'm betting there's a good reason why BBB decided to remove debt settlement companies from their listings.

Especially if their answer to getting out of debt is to stop paying on your current accounts to wait for a lower principle amount settlement.

[chode_regulator]

There are lots of cards, particularly ones that were given out to risky lends, that will raise your rate if you are one day late. Basically being one day late voids your agreement so the penalty is having your rate raised. I would say less than half of the credit cards in circulation have a less than 30 days late policy limited to just a fee. So you got some decent cards. Great. Its not the same for everyone. Next time try and write out a post with at least decent grammar and spelling.

yet another person who gets all high and mighty bc i dnt feel like going back and proofreading my posts. wow. real original. i didnt know i was interviewing for a job, or writing a high school paper. should i present a works cited page at the end of each of my posts too?
and the card where i paid late was my first card iever had, itstill only has a low limit on it adn high rate and im sure was a "risk" as i was only 20 when i got it and had never had credit before of any sort.

[Blake]

yet another person who gets all high and mighty bc i dnt feel like going back and proofreading my posts. wow. real original. i didnt know i was interviewing for a job, or writing a high school paper. should i present a works cited page at the end of each of my posts too?
and the card where i paid late was my first card iever had, itstill only has a low limit on it adn high rate and im sure was a "risk" as i was only 20 when i got it and had never had credit before of any sort.

you = average guy with credit card

B2B = guy who works in/around credit industry


so yes, you should present a works cited page if you are even trying to attempt to win whatever argument it is that you are trying to make

[BacktoBasics]

yet another person who gets all high and mighty bc i dnt feel like going back and proofreading my posts. wow. real original. i didnt know i was interviewing for a job, or writing a high school paper. should i present a works cited page at the end of each of my posts too?
and the card where i paid late was my first card iever had, itstill only has a low limit on it adn high rate and im sure was a "risk" as i was only 20 when i got it and had never had credit before of any sort.

I'm right and you're wrong its as simple as that. I think its great that you didn't get a rate hike but thats far from the norm. at least you can admit you're wrong.

I wouldn't have said about your nearly unreadable print had you not been a know it all pompous sarcastic ass in the first place...or....if you were right. Which you aren't.

[smeagol]

I never carry balances in my credit cards. I try not to live beyond my means.

[MiamiHeat]

My credit history is clean! Never been used.

I applied to get a credit card at MasterCard, JC Penny and Sears to start building some credit, and they all denied me.

"Insufficient credit history"

DUH! I am young so my credit history is virgin still.

Anyone have any advice on what to do?

[BacktoBasics]

My credit history is clean!. Never been used.

I applied to get a credit card at MasterCard, JC Penny and Sears to start building some credit, and they all denied me.

"Insufficient credit history"

DUH! My credit history is virgin still.

Anyone have any advice on what to do?

Option 1

See if you can get a small signature loan from your bank. Maybe 1k. My first 3k loan was approved because I used a vehicle that was paid off for collateral. That might be an option too. The next time I went in for a loan no collateral was needed and they gave me the loan almost no questions asked.

Option 2

I've seen a few banks agree to allow someone with little to no credit do this plan:

Customer goes to the bank and applies for the loan on the condition that the customer makes regular on time payments for a determined length of time, say one year but the bank doesn't give the customer the money until the loan is paid in full.

Designed to build trust. You pay the loan for a year and when its paid off they give you money. I've had quite a few customers do this to help build their credit. lol like credit layaway. I'm suprised that banks do this but I've seen it done at least a dozen times in the last year.

Option 3

This is pretty easy option. Conns will sell anything to anybody regardless of credit so long as you can put 30% down. The prices aren't inflated either. Save 300 bucks and go buy a 1k TV or Computer or whatever. The rate is absurd 20%ish but unlike Aarons or Rent A Center Conns does report to all three bureaus and again their prices aren't inflated like Aarons or Rent A Center.

[DarkReign]

My credit history is clean! Never been used.

I applied to get a credit card at MasterCard, JC Penny and Sears to start building some credit, and they all denied me.

"Insufficient credit history"

DUH! I am young so my credit history is virgin still.

Anyone have any advice on what to do?

Same thing I did.

Save $500 and give it to a bank. They'll then issue a credit card with a $500 limit.

You charge, you pay on time. Do that for a year.

The bank then sends you your $500 plus interest and you keep the $500 line of credit.

You charge, you pay on time. Do that for a year.

By the 4th year, you'll have a credit card you can buy a car with.

[BacktoBasics]

Same thing I did.

Save $500 and give it to a bank. They'll then issue a credit card with a $500 limit.

You charge, you pay on time. Do that for a year.

The bank then sends you your $500 plus interest and you keep the $500 line of credit.

You charge, you pay on time. Do that for a year.

By the 4th year, you'll have a credit card you can buy a car with.

Yeah thats a good way to go. Pretty much what I was describing only they don't issue a card.

Secured lines of credit like DR is talking about are a good start.