Credit cards are a great way to improve your credit score; however simple missteps in your credit card use can ruin your credit and leave you with unmanageable debt. Many people first encounter credit card trouble when they opt for short-term benefits and ignore the big picture. Cardholders are frequently enticed by flashy marketing campaigns and as a result, ignore the fine print terms of their cards.
Below are four common cardholder mistakes:
1. Credit card companies frequently offer signing bonus points to prospective cardholders. The majority of consumers do not read the fine print stating that a certain amount must be spent in a certain amount of time to receive these benefits. Consumers should be weary of increasing their spending to receive bonus points.
2. Credit card companies that use bonus points most likely have higher annual fees. A commonly used marketing tool is to waive this fee for the first year of card use. Consumers tend to disregard the fee since the first year is free and may not be able to afford it later.
3. If a cardholder is racking up interest on a card and having a hard time paying it off, it is not uncommon for them to transfer the balance to another card. Many consumers do so in order to receive a 0% introductory rate. In some cases, consumers skim the fine print and do not realize the interest on the card will be retroactive. Transferring balances from one card to another can also have a negative impact on consumers’ credit scores.
4. Department stores have been offering up discounts at the register in exchange for signing up for a store card for years. Oftentimes feeling rushed, it is common for consumers to overlook the fine print and sign off on inflated interest rates. Store card interest rates are rarely anything less than double digits; therefore consumers should forgo the discount!
To read more on this story visit: http://money.msn.com/credit-rating/4-costly-credit-card-missteps?page=2
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at www.miamibankruptcy.com.
Tag: consumer debt
Equifax Reports Good News for 2011
In 2011, Equifax reported that of the 585 million consumers and 81 million businesses, Americans’ delinquency debt rates were significantly declining in all areas but one- student loan repayments, which were at an increase of 1%. This is good news for the US economy, meaning that there is a decline in the amount of past due credit payments. Not only that, but there is also an increase in the number of credit cards issued by lenders to subprime borrowers (borrowers with credit scores below 660). In October of 2008, overall consumer debt was at its peak of $12.4 trillion. In October 2011, there was an 11% decline.
During 2011:
• Bank Credit Card payments 60+ days past due declined by 29%
• Auto Finance payments 60+ days past due declined by 19%
• Auto Bank payments 60+ days past due declined by 23%
• Consumer finance 60+ days past due declined by 23%
• First Mortgage payments 30+ days past due declined by 13%
• Home Equity payments 30+ days past due declined by 10%
• Retail Credit Card payments 60+ days past due declined by 15%
To read more on this story visit: http://www.marketwatch.com/story/us-consumers-paid-down-debt-on-time-in-2011-equifax-reports-2012-01-30?reflink=MW_news_stmp
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
Is converting your Chapter 13 Bankruptcy to a Chapter 7 the right option for you?
There are two main forms of bankruptcy. In a Chapter 7, all or most of your consumer debt is eliminated, but some of your assets could be repossessed, including your car. In Chapter 13 bankruptcy, you set up a three- to five-year repayment plan that is based on your income and ability to pay.
Are you struggling to keep up with your Chapter 13 payments? If you have recently lost your job or become ill, Chapter 13 Bankruptcy may no longer be the right option for you. You have the right to convert a Chapter 13 bankruptcy to a Chapter 7 bankruptcy at any time if you become eligible. Many of our clients are surprised to discover they never have to go to court or see a judge in order to convert their Chapter 13 filings to Chapter 7.
Contact Kingcade & Garcia, P.A. at 305-285-9100 to arrange a free consultation if you have any questions on this topic or are in need of converting your Chapter 13 bankruptcy to a Chapter 7. It is extremely important that you hire an attorney who is experienced in the field of bankruptcy and focuses exclusively on representing the interests of individuals and families in bankruptcy matters. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.