Credit Card Debt Consolidation

Owe big amounts because of your credit card bills? You can always easily get the help of credit card debt consolidation. But, you need to know about using this service and how you can use it to your advantage.

Here are some of the tips that you need to know about in order to help you recover from your credit card debts. First, of course, to reduce your credit card debts, you need to stop buying and using your credit card. There is no way that you will be able to catch up in paying what you owe your credit card company if you just keep on adding to your bills.

Or, only buy the things that are necessary for you. This will include those that you need for you to be able to go through your everyday life. The necessities will include food and bill payments. But a new bag or a new outfit can wait until you have your own money and not one that you will only borrow from a company.

If this is too hard for you to do, you can always have another alternative. This is in the form of credit card debt consolidation. Several of your credit cards which offer high interest rates can be replaced with a single credit card which has low interest rate. This will entail you to move your balance or balances from different accounts into a single account that will help you manage it easier and with less stress.

You will also get less stress as you only need to pay a lower interest rate for the newer card. The effort that you need to give to your credit card is also reduced. You will only pay for a single account as compared to when you need to pay for several.

But, you need to be careful in choosing a credit card debt consolidation service to have. Make sure that the interest rate that you need to pay for will be that exact amount. There should be no extra charges in terms of interests in other services that they will provide you other than the credit card debt.

Then, after you have had the new account set up, with the lower interest rate, you will have something more that will help you pay off your debt. Slowly pay off what you owe the credit card companies. This can be done by doubling your regular dues. In the end, you will notice that you will have better credit standing.

After you have learned about what you have gone through, you must not fall back to getting more debts again. Credit card debt consolidation can be a hard process. No one really wants to go through it. So, to avoid this the second time around, you should learn about how you can handle your finances well.

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Credit Card Disputes And Billing Errors

What are billing errors?

Billing errors include:

A purchase you did not make or did not authorize.

Charges for goods or services that you did not receive or that you refused to accept.

Payments you made that were not credited to your account.

Bills that contain mathematical errors.

You can also dispute charges you don't remember making and request proof that the charge was made.

How do I correct errors?

You have 60 days from the date of the statement with the billing error, to write to your credit card company.

Send your letter to the address listed on your credit card statement for billing errors and inquiries. Include your name, account number, and the date and amount of the error. Explain in your letter why the billing is wrong. Request proof of purchase if that is the issue.

Send your letter certified mail return receipt requested for proof of delivery.

Do I have to pay the disputed amount?

No. You can withhold payment of the amount in dispute and the finance charge on that amount until the card company investigates the dispute.  You can also withhold the interest payment on the disputed amount.

You must pay the amounts that are not in dispute.

What does the credit-card company have to do?

They must acknowledge receipt of your letter within 30 days.   Within 90 days, or two billing cycles, they must investigate your dispute. They must correct their mistake or explain to you in writing why the bill is correct.  If you request proof of a purchase, they must provide it to you.

If the credit card company doesn't follow these procedures, they cannot collect the amount you disputed or charge interest on that amount. The credit card company cannot close your account just because you file a dispute.

What if they don’t correct the error?

If your claim is denied, or it is a dispute over merchandise or services that are defective or not delivered, you may be able to file a claim under Claims and Defenses.

Can the credit card company take action against me if I refuse to pay?

They can begin normal collection activities, such as referring the disputed amount to a collection agency, or suing you in court.

If you are contacted by a collection agency, send them a letter explaining why you feel you do not owe the money.  A collection agency must stop contacting you if you send them a letter telling them not to contact you again. Send all letters by certified mail, return receipt requested, and keep a copy of the letter for your records.

If they file suit against you, you should seek legal assistance. If you file an answer to the lawsuit, you can appear in court and explain why you feel the billing is wrong.

The credit-card company can only report you to a credit-reporting agency if:

You actually owe the amount you disputed, or

They sue you in court and win.

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Credit Card Debt Management

Credit cards that are used in moderation could be helpful in managing your finances. This means that splurging through the use of credit cards is almost financial suicide.

Here are few tips to manage the way you use your credit card to prevent you from acquiring debts that could lead to your financial death (excuse the pun).

1) Planning. Before purchasing any product using your credit card, make sure to provide yourself with a plan on how you will be able to pay for your credit card bills. Prioritize your needs before your wants. Purchasing grand items that you don't really need might give you that temporary high that impulsive buyers are addicted to. But that temporary high would eventually turn to long-term down feeling due to your piled up debts.

2) Limit. For you to be able to manage your debts and payments, never go overboard when it comes to your credit limit. If it's possible, it will help a lot if you just use about two-thirds of your limit.

3) Statement of account. Keep a record of all your credit card transactions for future reference. In order to prevent inaccuracies of bills and fraud, always remember to check the list of your purchase for the month. If your list and the statement of account do not match, report this to your bank.

4) Piled up debt remedies. There are a number of steps you have to do in order to escape these financial problems.

* Determine the amount you need to pay and provide yourself with a plan that would fix your finances without pressure.

* Consider paying the minimum amount to be paid. Then, ask for debt consolidation options that would make it a lot easier for you to pay your debts. If you don’t know how to solve your financial problems, there are financial advisers that could help you with your credit card management. They might offer you financial assistance through bank loans that would allow you more time to pay aside from the debt consolidation method. But of course, remember to research on the agency before getting involved with them. Don't just go saying amen to whatever they offer since there is a possibility that they could cause the situation to aggravate.

Self-control is the best way to prevent getting debts that you won't be able to pay immediately. But if you're already in the pits, considering the abovementioned suggestions won't hurt.

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