June 4, 2009
- New Credit Card Legislation Expected To Have "Dramatic Effect"
The CFO of Capital One Financial Corp. was recently quoted as saying, that "new credit card legislation is expected to have a dramatic impact on the national lending landscape."
Sweeping changes meant to protect debt-ridden consumers from surprise credit card fees and charges could cause quite a few unintended changes to other credit card holders. As we mentioned yesterday, some of these changes could include reintroducing annual fees, increasing other fees, and reducing or eliminating popular cash-back or rewards programs.
Nearly 80 million Americans have credit cards and over 1/2 of those carry a balance, so these changes will certainly impact a great many households.
Really, the only way to avoid being caught in this financial game of cat and mouse is to pay off your credit card debt as quickly as possible. That way you're beholden to no one and you're not subject to any fees, questionable rate changes, or other games credit card companies play.
To learn more about the Money Merge Account® system, which is a tool created to help every single person with any kind of debt to pay off their debt as quickly as possible, simply visit The Money Merge Account link above.
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June 3, 2009
- Credit Card Companis Take Aim at Low Risk Borrowers
While credit cards have long been a good deal for people who pay their bills on time and in full, it seems as if those times might be in jeopardy.
You see, while credit card companies imposed punishing fees and penalties for those that are late with their credit card payments, they offered their disciplined, 'pay on time' customers cash-back rewards, frequent-flier miles and other perks to reward their fiscal responsiblity.
However, with Congress taking steps to limit the penalties on riskier borrowers, a source of billions of dollars in fee revenue for the credit card industry, and in an effort to make up for lost the lost income source, it appears as if the credit card companies might being going after those people with sterling credit.
Many banks are expected to look at reviving annual fees, plus curtailing their cash-back and other rewards programs, as well as charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.
If all of this is true, it truly is a sad, sad statement about our economy and the impact debt has on our society!
The only realy answer is to begin now to eliminate your credit card debt AS QUICKLY AS POSSIBLE. If banks do begin removing grace periods and rewards programs, the benefit of credit cards is quickly lost.
Although that may not be a bad things as more people will be forced to do what our grandparents did…pay for things when they actually have the money in hand!
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February 7, 2009
- Credit Card Companies Can Make Up Their Own Rules
According to a PBS Frontline report, there is no limit on the amount a credit card company can charge a cardholder for being even an hour late with a payment.
"In 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted the existing restrictions on late penalty fees. Back then, fees ran to $5 or $10, and usually did not exceed $15. After the Court's decision, fees soared, reaching upwards of $30. Since then, the amount of revenue the companies generate from fees (including late charges, over-the-limit fees, and charges for returned checks) has doubled. Duncan MacDonald, one of the lawyers who worked on the Smiley case, predicts penalty fees could rise to $50 in another year"
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January 19, 2009
- Banks Willing To Forgive Consumer Debt, But Not Forget
While many forecasts expect the current financial downturn to only get worse in coming months, many banks appear willing to take a little as 70% of the amount of debt owed in effort to get "whatever they can". But before you rush off to call your bank to tell them you're only paying 70% of the debt you owe, remember, they're not doing it for you. They're doing it for themselves and they're going to make you pay one way or another.
Even though you might be able to eliminate 70% of the credit card debt you owe, banks will do everything they can to ensure your credit report reflects this 'debt settlement'. So if you're staring at a mountain of consumer debt and don't know how you're going to get caught up, you might want to carefully consider approaching your bank about a debt settlement.
Remember, this should NOT be construed as financial guidance or advice. You need to consult with a liscensed professional regarding all financial matters, but just know there are options available. Unfortunately, there are consequences as well that none of us has control over.
If you're like to eliminate your debt using a powerful system that won't impact your credit rating, will have very little to no impact on your lifestyle, and can help you get rid of ALL your debt in as little as 1/2 to 1/3 the time, then we invite you to check out the Money Merge Account® program from United First Financial®.
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December 17, 2008
- Help Fight Fraud
Here's a pretty funny little cartoon I ran across:
This cartoon comes courtesy of Steve Rhode of GetOutofDebt.org.
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December 13, 2008
- American's Have $971 BILLION of Credit Card Debt
According to the Federal Reserve G.19 Release from November 2008, American's owe a total of $971 Billion to credit card companies. That ends up being $3,184 of credit card debt per person, or $8,299 per household. And in spite of the troubled economy we're facing, the amount of consumer debt rose 1.2% in the month of September, up from a .4% increase in the previous month.
It certainly points to the fact that no matter what the talking heads want us to believe, American's are spending money. In fact, in 2007 the amount of credit card debt rose 7% over the previous year and points to the sad fact that as a country and as consumers we're WAY TOO reliant on credit cards.
One of the challenges we're currently facing as a country is crippling credit crunch that lead to the governments $700B bailout just a few short months ago. As more and more banks began tightening their credit requirements and started pulling back on the amount of credit extended, we've all felt the impact. Unfortunately, until we're able to get a handle on this staggering amount of consumer debt, we'll continue to live in fear.
The only way we can truly be free from the emotional ups and downs that comes with living under the weight of an average of $8,299 of credit card debt per household is TO ELIMINATE OUR DEBT!
The mission of the Fiscal Freedom FightersTM is to help you learn how to get out of debt. This is the only way we can regain our prominence as as country and eliminate much of the stress and fear that comes with debt.
To learn more about how you can get out of debt in 1/3 to 1/2 the time, Contact Us to learn about a revolutionary money management program that acts as you're full-time financial advisor that's with you 24-7-365.
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