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4 problem of credit card debt and How To Solve Them

Faith Works Debt Relief offer services like debt settlement program, debt negotiation program, debt consolidation program and much more. Call us 1-561-232-3760<br>

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4 problem of credit card debt and How To Solve Them

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  1. Common Credit Card Problems And How ToSolve FAITH WORKSFINANCIAL Credit cards are designed and marketed to be a tool ofconvenience.

  2. To help you, we’ve created a free checklist outlining the steps to solve each credit card problem. Click Here for your freechecklist. Got it? Let’s get toit!

  3. Problem -1 I Have Too ManyCredit Cards Americans have an average of 2.19 cards in their wallet. The average number of accounts held by FaithWorks Financial debt settlement clients is 6.3. It isn’t conclusive, but this might indicate that holding too many accounts can lead to financial difficulties. “Which one is close to thelimit?” In addition to being a higher risk for trouble ahead, having too many credit cards adds complication to yourlife.

  4. TheSolution Consolidate ThemYourself If you have one credit card with a high limit and (hopefully) a low interest rate, transfer as many of the small balances onto that account as you can without going too close to the credit limit. Ideally, you should leave at least 20% of the limit open to show responsible use of your available credit. If that isn’t possible do not let it stop you. It is better to have a low credit score problem than an unmanageable debt problem. SnowballIt This one will take a bit more time, but the snowball method is a proven way to pay off your debts from the smallest to the largest. Since you are prioritizing by balance instead of interest rates, you will see accounts paid off more quickly.

  5. Problem -2 Cosigned For Someone Other Than MySpouse If you’ve co-signed and the individual defaults on the account, your good credit is atrisk. You probably understood that was a possibility at the time, but as soon as you can reduce your liability youshould. Not only is your relationship with the individual at risk, but this item or line of credit is doing a dance on your credit reporttoo. Cosigning- all risk and no reward. Here’s how get your name off thatloan. It is factored in to your debt to income ratio, your number of open accounts and your overall credit history, all of which play a role in determining your creditscore.

  6. TheSolution Request a CosignerRelease Contact the lender and notify them that you would like to complete a “cosigner release”. This process effectively releases your liability from the loan. They may have certain requirements to complete this, such as a certain number of payments having been made, a recheck of the primary borrowers credit score, or the balance being paid down below a certainthreshold. Refinance Out Of TheSituation If the cosigner release was unsuccessful you or the primary borrower can do a bit of a credit dance. This is not something that is advised for someone trying to get out of debt, but it can be an effective way to limit the liability from cosigning. Readmore...

  7. Problem -3 MyInterest Rates Are TooHigh According to Bankrates weekly creditcard interest rate round-up, the average interest rate is currently 13.04% for fixed APR’s and 15.65% for variable rates. Using Bankrates interest rate calculator, let’s see just what that interest is going to add upto…. ikes… paying the minimum payment ona $10,000 account with 13% interest will take almost 30 years, and cost $11,267 ininterest. Clearly, that’s a problem. So, what to do aboutit? It is factored in to your debt to income ratio, your number of open accounts and your overall credit history, all of which play a role in determining your creditscore.

  8. TheSolution Group 1- Arrange reduced interestrates ontact your creditors one by one and let them know that you are experiencing a financial hardship and (if you feel it an honest statement) that you are afraid you might default in the near future if you cannot get things in a more manageable position. Ask them if they offer any hardship programs for their customers, or if there is any way for you to have your interest rate reduced in order to lessen the burden. Group 2- Get SomeHelp Yes, you can try the above step to consolidate on your own, but it’s unlikely that all of your creditors are going to offer assistance. With high rates and little savings to fall back on, you’re one missed payment away from financialdisaster.

  9. Problem -4 IOpenCredit Cards Too Impulsively If you tried to click on either of those, you should really keep onreading.

  10. TheSolution Perform a creditfreeze. There is a cost to do this; usually about $5 per bureau depending on the state. Here is where to start for each: 1.Equifax 2.TransUnion 3. Experian Don’t worry, it isn’t permanent. You can call anytime to request a temporary “thaw”, or you can lift the freeze entirely. ExtraPerk This is tremendously helpful at preventing identity theft and can be worth while even if you manage your credit cards like an all-star. Aren’t planning on opening a new line of credit anytime soon? It could be well worth $5-$10 for the peace of mind knowing that nobody can open anything in your name.

  11. Do you have any questions? Send it to us! We hope you learned somethingnew.

  12. ContactUs 1035 Gateway Blvd., Suite201-124 Boynton Beach, FL33426 +1-561-232-3760 info@faithworksfinancial.org 1-888-670-5760 https://faithworksfinancial.org/

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