If you’ve ever looked at your credit report, you were undoubtedly surprised at all the information it included. Your complete credit history, employer, not to mention your current and previous addresses. Learn what’s included in your credit report and why it’s so important to lenders. Read: What is a Credit Report and Why Is It So Important?
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This article is part of a series on credit card debt reduction strategies. Visit the links at the end of this article to read about other debt reduction strategies to find one that’s right for you.
Nobody wants to be in credit card debt, but sometimes digging your way out from under a mountain of debt can be discouraging. No matter how much money you pay, it feels like taking two steps forward and one step back when you see new interest charges counteracting your payments. There is a debt reduction strategy that can help you minimise those interest payments though. Today let’s talk about the strategy of eliminating credit card debt by paying off your highest interest credit card first.
Recently, someone asked me about how to stop a debt collector who had contacted him about a debt that had been wiped out 21 years ago in bankruptcy. Fortunately, most debts don’t last forever, and there are perfectly legal ways to stop debt collectors. Here are four:
1. Settle the debt. It may sound obvious, but paying a debt can be a good way to stop debt collectors. Most likely, though, if you haven’t paid a debt, it’s because you can’t afford to. Don’t let that stop you. Many collectors are willing to settle debts, sometimes for pennies on the dollar. After all, they would rather get something than nothing. Just be s
Credit card debt is very different from the kind of debt you take on when you take out a mortgage or a car loan, and not just because it tends to come with much higher interest rates. Here are the four ways in which credit card debt differs from other types of loans, and why you need to be careful when taking on credit card debt.
1. You don’t know what your monthly payment will be. One of the most critical parts of managing debt is to know that you’ll have enough money each month to make your debt payments. With credit card debt, the monthly payment may go up without notice, if the credit card company decides to increase the monthly payment from the more typical 2.5% of the balance to e.g. 5%