Credit Card Debt Trap #4
By Mike Wayman
Using credit cards is perhaps one if the easiest ways to get yourself in to financial trouble. Not only are the interest rates enormous but the penalties, late fees, and cash advance fees can really get you underwater financially really fast. One of the best ways to avoid these common financial problems is to fully understand just how much the credit card system is rigged in the favor of the credit card issuer. It’s almost as if using some credit cards is like betting your savings at a casino: the house always wins in the end.
There’s a massive amount of stories about people that have fallen in to credit card debt traps and what’s mostly interesting to me is why the credit card industry as a whole isn’t being forced to go through a massive overhaul like the home loan industry lately. While predatory home loans can have a seriously detrimental effect on the lives of consumers many people don’t think that credit cards can be equally damaging. The reality is that falling in to a credit debt trap can seriously damage your credit long term. Many people will need help repairing their credit and we are here to help if you need it.
Not Even Congress Can Get Your Creditors on the Phone
By Mike Wayman
Perhaps this post is a bit different from the rest. The reason is that this story needs to be heard. I think one of the reasons that so many people get scammed in the credit repair industry, the debt consolidation industry and in the loan industry is that the providers of credit, the people that extend debt and loans stop caring about you completely when you experience a hardship.
The moral of the story is that we are important to our creditors only when we make our payments on time. If we experience a hardship, or, as I like to say it, if life happens to people, then there is no one to talk to on the credit provider level that can help. What this causes is the client seeking solutions elsewhere. Perhaps the best way to clean up the financial services industry is to regulate it more. Not necessarily regulate it more in terms of what they offer or how they conduct business, but how they respond to customer care when financial hardship arises.
Will Payday Loans Hurt Your Credit Rating?
By Mike Wayman
Payday loans are a useful and beneficial tool that used correctly can actually help you with your credit. Used unwisely however, it can create more trouble for those with credit issues.
Many people have used payday loans in an irresponsible way and have gotten into a financial trap. Maybe they don’t have the ability to pay back on time, and have to extend the loan several times. Fees and interest rates can reach up to the point where they can’t pay off the original loan. This affects the borrower’s ability to pay other bills on time, and may default on another payment. This can cause your credit rating to reduce and require even more loans to stay afloat.
If you need to pay an unexpected expense, and cannot wait until the next paycheck , a payday loan can work for you. Without a payday loan you may have to default on another payment causing credit issues. If you can borrow and pay back on your next paycheck, you can avoid a credit issue on your record. This should only be used temporarily, and it will cost you for the service, but in the long run will save you from credit issues and late fees.
