Debt Secrets They Don’t Want You To Know

credit card debtWith household consumer debt at an all-time high, it seems more than ever people are seeking credit card debt secrets to help them get out of their current state of financial hardship. Job losses and pay cuts are also on the rise, which means people simply do not have the funds available in their budgets to get out from under the strain of an enormous credit debt burden. Are there really credit card IpcLoans debt secrets that can relieve the financial stress, or does it really just come down to scam artists touting too-good-to-be-true results from the latest debt consolidation program or financial e-book?

Most people who are in a significant amount of credit card debt have spent a lot of time online researching various options to help their situation. From certain credit advisors who are all to quick to take a huge chunk of your money for bogus advice to costly consolidation programs that can destroy your credit, there is listing after listing in search engine results for the phrase “credit card debt secrets.”

However, taking a good look at your personal debt situation and analyzing the terms of your credit cards reveal the so-called debt secrets to debt reduction that actually work, without costing your more money or further damaging your credit score. Check out these tips below to learn the real credit card debt secrets you need to turn-around your financial situation once and for all:

Make the Ask!

Communication with your creditors is key, especially when you find yourself in a difficult position and unable to manage the amount of your debt. Creditors would like to work with you and create a working instead of getting nothing as is the case with non-payment or bankruptcy. Furthermore, credit companies compete against each other, which means you can threaten to cancel your card and transfer the balance to another company if they are not willing to work with you. So if you have a nasty late fee or an increased APR, call up the company and ask for them to remove the fee or lower the rate. If they do not cooperate, you can hit them where it hurts: moving to the competition!

Change Your Card Type

This is not changing to a different company, but just asking for a different type of card within the same company. For example, some cards offer a platinum or professional brand of card that offers better benefits, including a lower APR or cash-back incentives. In most cases, if you call your company and ask to change to a different card, they will honor your request. It is in their best interest to keep you within the company rather than lose you to a competitor.

Explain Your Financial Hardship

Since we have established that card companies want to keep your business, it makes sense that they will want to work with you even if you have lost your job. Why would they want to work with you when you are broke? Because they would rather have a little of your money than none of it, card companies are often willing to ease your loan terms, eliminating fees and even lower minimum payments to get you through an especially difficult time of job loss or pay cuts. Again, this is better for them than the scenario in which you quit paying altogether or file for bankruptcy.

Keep in mind that credit card companies are businesses. Just like any retail store, they want to keep your business and prevent you from going to a competitor. For these reasons, they are often willing to bend some of their rules to keep you as a customer. The most important debt secret of all is simply communication with the creditor. By respectfully explaining your financial situation and making requests for breaks, you are more likely to employ one of the debt secrets and keep your credit in good-standing, even during a time of hardship.

Additional Debt Secrets

Pay more than the minimum payment: When you’re really struggling with credit card debts, this sounds impossible, but it’s one of several important debt secrets. By paying more than the minimum payment amount, you will reduce total amount of money you pay since you’ll pay much less in interest. This definitely requires sacrifice and dedication, but it will add up to you spending less money and reducing your debt.

Set up automatic payments with your bank: This is another great debt secret for reducing your debt because once it’s set up, you don’t even have to do anything. Most companies allow you to do this online. Just give the credit card company your banking information and tell them how much money to withdraw each month to pay your credit card debts. This is a powerful debt secret that gets you in the habit of reducing debt.

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Eliminate Debt Fast Without Bankruptcy Or Debt Consolidation.

Easy Ways To Reduce Debt

reduce debtWith the average credit card debt of an American household standing at $8,000, you would be forgiven for thinking that you are destined to be in debt until your death. Naturally, reducing your debt is only possible if you are earning more than your monthly expenditure but even households in this situation find it extremely difficult to pay off their debts. In fact, for most households, their debt situation is getting worse as they borrow more money to pay off existing debt. Fortunately, there are a number of easy ways to reduce your debt and take one step closer to financial freedom.

Credit Cards
If you are in severe debt, it’s likely that credit cards are the problem. You need to completely eradicate credit card spending until you have paid the existing balance off. Interest rates on credit cards are extremely high. Even a $300 credit card debt will take over two and a half years to pay off if you elect to pay the minimum. One of the best things to do in order to get rid of a credit card bill is to organize a yard sale where you get rid of all the junk in your home that is no longer needed. The money raised from this sale should be used to pay off those credit cards.

Another quick tip relating to credit cards is to ring up the card company and ask for a reduction in your interest rate. Over 30% of those who attempt this receive significant cuts on their rate. Why? Because these companies are acutely aware that you could initiate a balance transfer to another credit card company. A balance transfer is a great way to reduce debt as you pay no interest on the card for a set period of time. However, there are terms and conditions that must be adhered to. Failure to do so could see you suffer large financial penalties.

If you have car, life, home or health insurance, be sure to regularly check the deals you are receiving. For example, a healthy individual could save hundreds of dollars by setting their health insurance deductibles higher. The same process can be used on other forms of insurance.

Salary Advance
Those who have worked for the same company for years may be able to ask for an advance on their salary. Most organizations will be delighted to help loyal employees out. They usually take a certain percentage of subsequent pay checks but this is interest free. You can use the advance to pay off debts such as credit cards which carry a high interest rate per month.

As you can see, credit cards are the biggest debt danger but you can easily reduce it through research and by using common sense. There is also a host of other simple ways to tackle your debt.