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 #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.
Credit Card Debt Trap #3
By Mike Wayman
Hopefully you’ve seen the last two posts on credit card debt traps. The first was a general introduction while the second covered a bit of history. The important thing to glean from these videos is exactly how credit cards negatively affect the financial lives of American citizens and how we can all avoid debt traps. Not only are these traps financially difficult to overcome, they often lead to a negative credit rating.
Read the fine print in all of the credit applications you are considering applying for. Determining if a credit debt trap exists can only happen if you understand the terms of the credit you are applying for. While many people never stop to consider the general terms of a credit card they really should. To me, it seems like we all simply trust large credit companies because we don’t think they would engage in acts that are fraudulent, deceptive or illegal. Think again!
If you are the victim of a credit card debt trap then please give us a call. We may be able to help you remove negative credit from your credit report caused by 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.
