Credit Debt Trap #9
By Mike Wayman
Understanding the credit debt traps that exist and how to avoid them is extraordinarily important but understanding why these debt traps flourish on a larger scale is helpful as well. So why then are we so dependent on credit these days when just a generation or two ago debt traps were not as prevalent? The answer is that the standard of living in America is slowly getting worse, meaning, it takes far more income these days to live a comfortable lifestyle, a lifestyle without having to depend on credit to afford the basic necessities of life.
Whereas a generation or two ago most people could live on a single income it now takes a dual income household to afford basic transportation, essential healthcare and insurance and basic housing. Not even considering a mortgage, getting by these days is hard. This makes credit not only appealing to the average consumer, but a necessity.
Credit dependance is perhaps the biggest reason that people get in to financial trouble. It is the reason why so many people get behind on their payments. It is the reason why so many people have bad credit. Credit repair cannot fix the larger problem. Understanding how the system works can help you avoid financial problems and, perhaps, this is the most important thing we can all do to avoid financial problems and tarnished credit.
Getting out of the credit system is difficult but for long term security it is becoming a necessity in life. Establishing a budget, living within your means and avoiding credit by any means possible may seem difficult but it will pay off in the long term.
Credit Card Debt Trap #5
By Mike Wayman
Debt traps are not all the same. Let’s say that you’ve fallen behind on debt and now you’re in collections. The collections industry is yet another level of debt trapping that is, by the admission of people in the industry, largely unregulated and the “salespeople” in debt collection often blatantly break the law just to make a buck. They call repetitively even if you’ve claimed bankruptcy. They will even continue to harass you after you’ve had an account included in a bankruptcy. One of the worst parts about these collection practices is that it can harm your credit even more after you claim bankruptcy.
Here’s how collections can hurt your credit even further after bankruptcy. There are a few creditors like auto finance companies and credit card companies that will extend credit to people after a bankruptcy has been discharged. However, one of the most important factors in determining whether or not to extend credit is if the borrower has had a late payment or collection after a bankruptcy. When you get a collection after a bk it really damages your ability to obtain credit in an effort to build your credit back up.
Collections are dangerous, collection companies are out of control and unregulated and you need to deal with collections as soon as possible to avoid problems with your credit after, during or before a bankruptcy occurs.
Credit Card Debt Trap #2
By Mike Wayman
If you’ve saw the last post about credit card debt traps you’ll understand how easy it is for credit card companies to take hold of you financially and absolutely ruin your credit and your pocketbook. This series is dedicated to exposing some of the most common debt traps so that consumers can avoid paying thousands of dollars in interest payments to their creditors and also avoid bad credit.
Understanding the modus operandi of the major credit companies is one of the first steps in avoiding credit card debt traps and avoiding bad credit. The real problem is that most people don’t know they’ve been scammed until it’s too late. You can avoid credit debt traps but some people may need help or advice. Call us any time if you need help with a credit debt trap or if you want to know if you can get some of the bad credit removed from your credit report due to a debt trap.
Credit Card Debt Trap #1
By Mike Wayman
People seek out credit repair for a number of reasons. Not everyone seeks credit repair because they’ve had a serious hardship in life. Some people seek out credit repair services because they’ve fallen in to a credit card debt trap. This video is part one of nine video features on credit card debt traps and the ways that people fall in to them.
If you have been victimized by a credit card scheme you may very well be able to get the negative credit taken off your credit report. Don’t let the credit card companies take advantage of you. Call Certified Credit Repair today for more information on how we can help you.
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.
Good, Average And Bad Credit- Where Do You Stand?
By Mike Wayman
Credit scores can help you understand your personal credit power. As someone with good credit, which people generally agree is anywhere from 720 on up, you qualify for lower rates on loans, purchases, and can receive gifts like miles and other bonuses. Having good credit makes it possible to buy cars and homes with financing. If your credit is too low, your can be denied access to this type of financing, or be forced to using much higher interest rates, which isn’t exactly fair to you, but the lender makes the decision.
With good credit, you can get approved for any kind of financing. With a high score like 850, no one will have trouble lending you money. Some lenders do not require high credit scores, but look out for specific activity on your report. If you believe your credit is low, it may be enough for a car loan or home repair loan.
Having a score between 600 and 700 is considered to be fair or good. Anything below 600 is considered poor credit. Taking the time to manage your credit report to clear out any old outdated activity can help you build your credit. Over time you can improve your score, which helps you to get access to money you may need for emergencies or unexpected expenses.
What You May Not Know About Your Credit
By Mike Wayman
Many people do not understand how their credit score works or how it affects their ability to borrow money, finance large purchases, even obtain auto insurance.
For instance, having no credit at all is not better than having bad credit. It is recommended that even if an individual has no need for a credit card or charge account that they obtain one and use it occasionally. This establishes a pattern of purchasing and repaying on credit without late payments or over-charges. This practice actually improves your credit score, even if you had the cash in your pocket to cover the purchase you made with a charge card. Likewise, it is best to keep an account open, even if you choose to use it infrequently. If a charge account incurs a high annual fee, you must decide if it is worth the cost of maintaining the account.
It is also a myth that only people who have your express permission can view your credit report. Actually, anyone who knows your social security number can access your credit report, including potential employers. Frequent inquiries into your credit report, such as when shopping for lenders for a home or auto loan, also do not hurt your credit score as some mistakenly believe, nor does employing the services of a credit-counseling agency to help manage and pay off existing debt. Knowing these things can help you to manage your credit wisely and succeed in maintaining financial stability.
