Tag Archives: creditors

Why you Should Pay Off Credit Card Bills On Time

August 18, 2019   Fast Loan

When reading about credit card tips and advices, paying your bills on time is often at the top of the list. And if you think that the reasons are quite obvious, this article will emphasize and highlight the reasons why it is important for every credit card holder to take his payment dues seriously. Why should you pay your bills on time? If you think that occasional late payments are okay, read on and be warned:

The longer you linger with debt, the more risk you put yourself in. Most credit card holders are in the habit of submitting only the minimum payment each month. But doing so means stretching your repayment period for a longer time than you’re supposed to. Of course, your credit card company is okay with it since you are being charged with the interest rate anyway. But if you think this is okay, realize that you’re putting yourself at risk of uncontrolled debt sooner or later.

You are badly hurting your credit. Not paying your debts on time damages your credit history. Timeliness of payment makes up 15% of your total credit score so even just a single late payment can make a big difference. On the opposite, paying on time greatly improves your credit score. And everyone knows that a higher credit score is a pass for better rates with lenders.

Late payments forfeit rewards and incentives. Credit cards with reward programs are very strict with their rules. You may be working hard trying to collect your points in your account but just one late payment can put all your hard-earned points to waste. Thus, not only are you disqualified from earning your rewards, you’ll also get penalized with high interest and late charges.

Late payments mean additional charges. Late payment means you’ll be charged with interest rates and late penalty fees. Imagine how much it would cost you if your credit card charges you with 15% interest plus late fee. You could have saved that amount and use it for more important expenses. Why pay these additional costs when you can save your money by paying your bills early?

Late fees could mean interest rate hikes with your other creditors. Have you heard of the “universal default” clause? If not, then you should be more concerned about late payments. Even if you’re up to date with your debts to other creditors, they can still penalized you by increasing your rates without your notice based upon your one credit card account. However, the new Credit CARD law has prohibited creditors from imposing the “universal default” clause. Still, delinquency for 60 days allow creditors and credit card companies to increase the interest rate of the borrower.

Unpaid bills cause headaches and stress. Seriously, not being able to keep up with your bills on time is a great emotional burden. As your late fees add up, you become more anxious, stressed, worried about how you can get rid of your debts. In consequence, your personal relationships are affected, your performance at work is disrupted, your peace of mind – robbed. So why put yourself through all these emotional burden when you can avoid them?

Read More

Bankruptcy as an Emergency

June 28, 2019   Fast Loan

The current financial turmoil has resulted in a lot more people getting to know the intricacies of Bankruptcy.

With the alarming rate of job losses, salary cuts and persons going out of business, this was only bound to happen. It is a sad phenomenon, but one cannot be just sad about it and let what follows befall upon themselves.

The more people know about Bankruptcy as a topic, the better it is. I must assert here that the Law of Bankruptcy protects and helps you regain control of life which gets stolen by the financial troubles. It is therefore imperative for everyone to at least know about the existence of such a law and who they need to approach in case they face an economic breakdown.

My experiences in dealing with Bankruptcy cases have confirmed the idea that persons try and avoid filing a Bankruptcy as much as they can. Why? I do not know. I presume that a sense of shame and guilt coupled with a total lack of knowledge about the provisions under Bankruptcy lead to this.

However, one must realize that any hesitation in breaching the topic of Bankruptcy should be overcome in a positive sense as Bankruptcy does not happen by itself. It is a form of clever manipulation of figures and words by creditors which gets many of us to the point of total financial breakdown. And if you do nothing about it and to protect your savings, property, etc. then that is the point when shame gets some justification. After all you owe it to yourself and your family to try and save as much as possible of your savings and assets.

Even if you are in a situation where you have defaulted on your payments and received calls from your creditors asking to verify your address, or received default of payment notifications, etc. filing a Bankruptcy can stop short and delay almost all incidents of repossession, foreclosure, eviction and taking of money from your bank account.

Usually such happenings do not take place without warnings. And if you remain alert about the communications you are receiving from your creditors then more often than not you can predict the course of action they might follow.

In such situations it becomes very important for you to seek the advice of a Bankruptcy Attorney.

Only an experienced Bankruptcy Lawyer is best equipped to evaluate your case and advise you the perfect plan of action to be taken for proper protection from your creditors. But then again, do not land up empty handed for an appointment with your attorney. Be sure to carry any and all papers relating to your current financial condition, your source of income, additional credits or loans, tax returns filed, etc. When in doubt it is always better to make a phone call and inquire about the documents you need to carry along with you.

Your meeting with the Bankruptcy Attorney is your first step towards delaying or stopping repossessions, foreclosures, evictions, etc. As soon as your attorney files your papers with the courts (this can be done electronically) it stops short all evictions, repossessions and foreclosures.

Just remember that you can rescue your life savings and assets, even if you file your Bankruptcy in an Emergency!

Read More
« Older posts
Newer posts »