Are you drowning in a sea of debt? If you are like most people, the answer is yes.
The average household owes over fifteen thousand dollars in credit card debt.
Companies usually charge between twenty to twenty-five annual percentage rates.
That is almost four thousand dollars per year in interest alone.
Making the minimum monthly payment, it would take the average person approximately five to ten years to pay it off completely.
The new laws enacted earlier this year will help protect you from credit card companies that overcharge.
Companies can no longer hike interest rates on existing balances, double-cycle bill, or raise interest rates due to the customers other credit issues.
In addition, a company must allow a reasonable amount of time to pay your bill before it is late and outline clear due dates and times.
There are things you can do which will help reduce your debt and pay it off faster.
The first thing you must do is slow it down.
This means stop charging.
Do whatever it takes to stop yourself from using your charge cards.
Cut them up, put them in the paper shredder, lock them in a drawer and give the key to someone you trust, whatever it takes.
Then, contact a debt settlement company, one that is certified by The Association for Settlement Companies (TASC) and has a good record from the Better Business Bureau.
Also, make sure the settlement company is aware of any new laws that may be in effect in your state.
Some settlement companies can reduce the actual dollar amount you owe.
For instance, a person who owes twenty thousand dollars may be able to work with the company in order to pay a certain amount on the dollar.
You may offer the company sixty cents on the dollar, which would immediately reduce the twenty thousand dollar amount to only twelve thousand dollars.
If the company counter offers eighty cents on the dollar, take it.
That means you just reduced the actual dollar amount owed to sixteen thousand dollars, which is a four thousand dollar instant savings.
Dependent upon what state you live in, there are laws that help protect consumers.
In Illinois, laws exist to prevent collection agencies from harassing you.
For instance, a collection agency cannot call your place of work and cannot call your house late at night.
Collection agencies in Illinois cannot charge more than five percent interest on any uncollected debt.
The Illinois Wage Protection Act states that a collection agency can only collect on debt that amounts to no more than eighty-five percent of your disposable earnings.
So, take time to understand your rights and take control of your credit card debt.
The average household owes over fifteen thousand dollars in credit card debt.
Companies usually charge between twenty to twenty-five annual percentage rates.
That is almost four thousand dollars per year in interest alone.
Making the minimum monthly payment, it would take the average person approximately five to ten years to pay it off completely.
The new laws enacted earlier this year will help protect you from credit card companies that overcharge.
Companies can no longer hike interest rates on existing balances, double-cycle bill, or raise interest rates due to the customers other credit issues.
In addition, a company must allow a reasonable amount of time to pay your bill before it is late and outline clear due dates and times.
There are things you can do which will help reduce your debt and pay it off faster.
The first thing you must do is slow it down.
This means stop charging.
Do whatever it takes to stop yourself from using your charge cards.
Cut them up, put them in the paper shredder, lock them in a drawer and give the key to someone you trust, whatever it takes.
Then, contact a debt settlement company, one that is certified by The Association for Settlement Companies (TASC) and has a good record from the Better Business Bureau.
Also, make sure the settlement company is aware of any new laws that may be in effect in your state.
Some settlement companies can reduce the actual dollar amount you owe.
For instance, a person who owes twenty thousand dollars may be able to work with the company in order to pay a certain amount on the dollar.
You may offer the company sixty cents on the dollar, which would immediately reduce the twenty thousand dollar amount to only twelve thousand dollars.
If the company counter offers eighty cents on the dollar, take it.
That means you just reduced the actual dollar amount owed to sixteen thousand dollars, which is a four thousand dollar instant savings.
Dependent upon what state you live in, there are laws that help protect consumers.
In Illinois, laws exist to prevent collection agencies from harassing you.
For instance, a collection agency cannot call your place of work and cannot call your house late at night.
Collection agencies in Illinois cannot charge more than five percent interest on any uncollected debt.
The Illinois Wage Protection Act states that a collection agency can only collect on debt that amounts to no more than eighty-five percent of your disposable earnings.
So, take time to understand your rights and take control of your credit card debt.