The “Fair Debt Collections Practices Act” (FDCPA at U.S.C. Sec. 1692) defines a “debt” as any kind of obligation, or an alleged obligation that a consumer is “deemed” to pay – the financial “obligation” arising due to a transaction(s) in which money, property(ies), insurance or services are used, hired or bought for personal, family, or professional “purposes”. The “debt” can also include the money owed for the purchase of commodity and/or consumable product(s), and/or also for medical care or medical product(s). If you have serious credit card debt problems, or you have defaulted in the past and your dues are mounting, ideally you would be planning to redeem your debts as soon as possible. However, the financial conditions of debtors play an important part in deciding how the redemption process will take place. It is important to be debt free, and to lead a comfortable and a happy life. However, the repayment activity of outstanding credit rarely works out as per plan, and the debtors often face difficult times dealing with their debt problems. Severe debt issues can lead to many types of problems. Companies offer programs related to debt settlement, debt elimination, debt negotiation and debt solution which can effectively reduce your total outstanding debts. Prevention is always better than cure. It is important to know the “warning signs” which lead to a particular disease – the disease of “uncontrolled debts”.
Symptoms indicating you are suffering or likely to face debt related problems
1. Running out of funds before the month ends?
2. Worried about bailiffs “knocking” on your door?
3. Not sure how much debt you owe?
4. Afraid who is on the phone every time it rings?
5. Ignoring your bank or credit card statements and not opening up credit related correspondence?
6. Losing your sleep and worrying excessively about the state of your finances?
7. Afraid your property will be repossessed?
8. Spending more cash than you earn every month?
9. Having a CCJ and unsure what it is?
In case you answer in the affirmative to any of the above questions, it is time you started thinking seriously about your debt conditions and how to eliminate them through an effective debt elimination plan.
If and when you decide to take on serious steps to eliminate your credit card debts, it is necessary to think about a few things before you “actually” start working on the issue. The following recommendations can help you a lot if you desire to eliminate credit card debt and start planning your future.
1. Avoid using your credit cards
The first major step to undertake is stop using your credit cards. All your credit cards. And this rule should be enforced for all cashless transactions beginning immediately. Purchasing commodity items 債務重組公司 such as gas and food with your credit card can be very “convenient”, but it is guaranteed when you are short of time, as the case generally is, you won’t be checking your “outstanding” balance before “making” the payment. And your debts are very likely to increase. When you have an outstanding condition, the “due” amount can easily go out of hand. It is recommended you start using your debit card or cash for your purchases. Individuals tend to be much more “frugal” when they “feel” they are spending hard cash. People spend much less when they stop using credit cards.
2. Reduce your net payable interest rates
Majority of the credit card companies charge in excess of 20% in terms of interest rates. These higher interest rates can be negotiated for lower rates, and your net payable interest amount can be significantly reduced. Even reducing your net payable rates by 10% or 12% is quite common while seeking debt help. It is possible to avail your credit card debt settlement if you play your cards right and negotiate with your creditors to reduce your debts.