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Last Chance To Lower Your Interest Rates- Or Is It ?
Learn About Predatory Debt Management Companies Claiming To Represent Your Credit Card Card Company
If you have a beating heart and a phone number, you have probably received repeatitive phone calls from a pre-recorded message saying something like this, " Hi this Is Heather with Financial Services or "Account Services", Don't worry everything is fine but this is your last chance to lower your interest rates, press 1 to speak to a live representative." So you hit 1 and wait for someone to say, " Hi this is Erica with Account services, are you responding to your lower interest rate offer?"
YOU:"Interest rate on what? My mortgage, my loan, my car, my credit card, what are you talking about? How did you get my number?
THEM:Well sir/ma'am, because you've had a good payment history over the last six months, you're eligible to receive lower interest rates on all your existing visa and mastercard accounts because you are in good standings. Now my job is to verify you are still in good standings, do you have at least $3,000 or more in credit card debt? How much credit card debt do you think you have on all your accounts now?" $5,000? Great. Now to verify you are in good standings, I just need to you have at least one card that has a balance, is not over the credit limit, and is not late. Do you have any cards in good standing? Ok great, I just need you to verify the 800 number on the back of the card and then your card number on the front starting with 4 if its a visa and 5 if its a mastercard."At this point, you should realize you should never give your credit card number out to someone even though all they can do is "check the balance" but in order to check the balance, they only need either your zip code if its Bank of America, or Chase. Many of the credit card companies like Citibank require you to punch in the last 4 of your social security number. What these people do is check to see if you have debt and make sure you have available credit before you get to speak to a "manager", which is essential a closer meant to overcome your objections so they can charge your credit card anywhere from $990 to $2000, and throw in some "free" gas cards which is really just money you're paying for and upsell you some other offers. Then they promise protection from the consumer protection act which protects from any unauthorized fraud, theft, or misuse of the card and promise they are honest people. The problem that occurs with these type companies is that they use existing merchant accounts that already generate a large amount of money on a monthly basis so they can have more chargebacks than a small merchant that would be closed down, so essentially they protect themselves by recording a conversation with you in which they get you to spell your name, credit card number, date of birth, and say " Do you authorize us to charge you the one time fee of $900 or more upon showing you a minimum savings of $3000 or more? I need a clear yes, not anything else" If you don't say a clear yes, they start the recording all over again and give you a "confirmation number" This number means nothing. They say it stays on file with the bank for 3 years, but its really just their recording they play back to your merchant when you dispute the transaction and if you say yes, then the charge is approved because well, you said yes didn't you?
The guarantee to show you a minimum savings is loose because you can pay $20 a month more on your monthly payments over the course of a few years and "save" $3000 or more. Its common sense. All they do is provide a "financial profile" on how to pay your debt faster by paying more even though they guarantee you won't have to make a larger payment. These companies explain how they saving you a minimum of $3,000 to $10,000, whatever your balance is divided by 2 over the next 5 years. They justify this by simply telling you to pay the same amount on your credit card but they cannot guarantee a lower interest rate because you would be "stuck" with a higher interest rate if they guaranteed you an interest rate. Its beating around the bush.
In conclusion,
these companies use "press 1 marketing tactics" will although already are in violation of many do not call and telemarketing rules soon will be more illegal around September of 2009 and they will have to find another way to harass consumers and scam them out of their money. There are much easier ways to get out of debt through disclipined budgeting, working an extra job to pay off your debt, and become debt free the old fashioned way. If you are still struggling with credit card debt and need free advice, feel free to contact us now for a no obligation quote on your financial situation. You can learn about 2 of the options that may be of help to you below.
Sometimes we get so busy we forget what bills are most important, so let's take a moment to review the priorities you have with your finances.
Making rent or a mortgage payment on time is number 1. Making sure you have a place to lay your head at night is obvious enough but many people aren't organized about setting reminders to make that house payment on time.
Next come your utilities. Water, electric bill, gas, allow you to function and live at home. Buying grocieries is much more affordable than even eating fast food not to mention healthier.
Then come any loans you may have, gas for your car, outstanding loans, and learn to cut out expenses on things you don't need. If you have money left over, you will want to try to focus this on paying down your debt.
If you currently have a credit card balance owed to Advanta bank, First Premier Bank, Tiresplus credit card, or Firestone, we have 0% fixed rates to help you pay down your debt fast. In addition Chase offers a 6% rate, US Bank 7.4%, HSBC 9%, Bank of America 9%, USAA 3% and many more lower rates. If you are currently experiencing high interest rates, its best to pay down your debt fast in our credit counseling program without hurting your credit score.
Do I Qualify For Either Debt Management Plan?
Generally a debtor must have more than 5,000 US dollars (USD) of debt to qualify for either program, but in some cases you can have as low as $3,000 for a dmp plan. Since United States bankruptcy laws changed in October 2005, it has become necessary to undergo credit counseling in a long-term debt management plan because personal bankruptcy is not an option. When privately seeking the assistance of a third party debt management service, make sure that they are an actual company which is easily found on any secretary of state website. Being registered with the Better Business Bureau is also helpful to view any complaints they have and why. An enrollment fee is to be expected for debt management services, and there may be monthly fees included in a debt management plan since customer service is such a huge department for these companies to be successful.What occurs in a debt settlement is first a quote of your total unsecured debt. Your state, total debt, and number of months available for a debt settlement payment plan is then calculated. Once an affordable monthly payment can be determined, a calculation of your total debt savings is determined. You would then be set up on a monthly payment plan where your funds are electronically drafted from your checking or savings account into a FDIC non-interest bearing savings account. The benefit of debt settlement is that when you do not have a lump sum saved up, you have zero negotiating power with your creditors. Creditors always want a lump sum, or three large payments that most people in financial distress cannot afford. In addition to setting you up on a payment plan, you are educated on the appropriate ways to deal with creditors, what not to say, and how to demonstrate you are in financial hardship.
Debt Settlement does have a negative impact upon your credit score from stopping regular payments to your creditors, but the people we recommend for debt settlement are already behind on their payments, and thus have already harmed their credit score.
How Is My Credit Score Calculated ?
35% of your credit score is based upon your payment history of making payments on time, that is how it is damaged. In addition, 30% of your credit score is based upon your debt to income. When your debt is very high, especially across several credit accounts, it is not wonder that you are considered a higher risk and that reduces your credit score. So having more than $10,000 in credit card debt and having late payments has already harmed your credit score. If this is your financial scenario, debt settlement is the key to reducing your debt in 4 years or less, thus eliminating that 30% hit to your score, and repairing your credit becomes possibly again through timely payments on accounts you can afford to pay.
For a no cost, no obligation quote on your financial situation, contact us now.
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