Debt Consolidation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Warning signs of failing credit-card health

Do you generally feel depressed about the state of your credit card health? Have you thought that the only way to improve it would mean cutting up all those cards and throwing them away?

debt negotiationThat may in fact be the best remedy. Here are some warning signs:

  • You usually make only the minimum required payment, and even that is difficult.
  • You often make expensive impulse purchases with your cards that you later regret.
  • All your cards are maxed out.
  • You’re afraid to open credit card statements when they arrive.
  • You have begun paying for almost everything with credit cards because you see no alternative.
  • Your recent applications for new credit have been denied.
  • You’ve at least read about filing for bankruptcy.

Kicking a bad habit

Depending on your specific financial status, your credit score and your need for future loans, you may decide to either cut up the cards and cancel the accounts or cut up the cards and leave the accounts open. Either way, depriving yourself of the opportunity to use the cards could well prove to be smart.

Video: Cut Up Your Credit Cards to Get Financial Peace of Mind

Even responsible users can face penalties

But for now, let’s assume things aren’t that bad. You’re a pretty good credit card user. You understand the downside of charging more than you can afford, falling behind in payments and the damage that can be done to your credit report as a result. You almost always pay off your balance in full each month. However, your busy schedule once led to a late payment. And once you exceeded your credit limit. You paid the penalty fees because you couldn’t see how to avoid it. (It was your fault, after all.) But now you find that your interest rate has doubled.

You can negotiate for waved penalties, lowered rates

The surprisingly pleasant fact is this: You can negotiate with your credit card issuer to get late fees waved and your interest rate lowered. When your card company charges a late fee and raises your interest rate, call and ask to have these actions rescinded. If the customer-service representative finds that your history shows consistently prompt payments, he or she could well decide to help you on a one-time, grace basis for the sake of customer goodwill. It’s always wise to protest a penalty fee.

Review your accounts annually

An annual review of your credit cards is also wise. Check the annual percentage rate. If it’s higher than you think it should be, ask why. Look for recurring fees. You may have signed up for a card that had no annual fee, but one was added later. Call and say you’re ready to take your business elsewhere.

Video: Credit Card Tips for College Students

The perils of letting someone else use your card

If you as a parent loan a card to your child, you are liable for any charges the child makes as well as penalty fees for late repayment -- which you can, as above, try to have removed. Alternatively, you can call the credit card company and ask to have your child added to your existing account as an authorized user. The child will receive his or her own card. Then all you have to do is make sure your child knows enough to keep the card safe, use it responsibly and not let others borrow it.

credit card health

Professional counselors offer help

Lastly, you may want to seek professional advice in the form of debt consolidation.  Here’s a list of several companies that specialize in this service:

Access Financial Services
Charleston, SC
(843) 556-1616

Advantage Creative Funding
Fairfax, VA
(703) 446-4230

Askew Investment
Dallas, TX
(214) 392-3366

Bridge Capital
Las Vegas, NV
(702) 736-8282

Clybourn Financial Services
Wilmette, IL
(847) 853-0600

Creative Financial
New York City, NY
(212) 534-2795

Frontier Financial
Minneapolis, MN
(612) 920-7877

The Harvard Lending Group
Metairie, LA  70001
(888) 438-4300

Heritage Financial
Canton, OH
(800) 430-5926

Keystroke Financial Network
Seattle, WA
(800) 664-1003

KG Financial
Milwaukee, WI  53216
(414) 463-1334

Pacific West Capital
Irvine, CA
(949) 726-8270

Vantage Financial Services
East Brunswick, NJ
(908) 238-6316

Send this page to a friend ...

Enter friend's email address