Watch out for credit counseling scams

Debt settlement vs credit counseling

Nowadays, credit counseling is no longer the way to go when it comes to regulating your spending. Nowadays, credit counseling is a popular debt management option. Sounds kind of like a guidance counselor?

The industry was known by the general term CCCS (Consumer Credit Counseling Service) and operated under the general guidelines of the NFCC (National Foundation for Credit Counseling).

As the world progressed, the credit counseling landscape has changed with it as well. Even if this is that case, more and more credit counseling services continue to flourish because of the simple fact that more and more people are in debt nowadays. Some credit counseling services could be very helpful though, but the majority just isn't up to par. You may want to look into how debt negotiation works and compare it to credit counseling. Credit counseling you can do with a company while you can do it yourself debt negotiation.

There are legit credit counseling services but you need to watch out for the scam companies.

1.It's better if a credit counseling service is associated with the BBB. You can check with the BBB to see if the company has a good record and if there have been any complaints filed by others. Membership in the NFCC (National Foundation for Credit Counseling) or AICCA (Association of Independent Consumer Credit Counseling Agencies) is also acceptable.

2.  Don't be silly. Many money problems take time to solve so be patient. Be cautious if a credit counseling service promises fast results! This can never happen. Credit counseling takes 5-7 years and debt negotiation works in 1-3 years.

3.  Be certain that the debt management company can help with all of your unsecured debt and don't just deal with a few companies. Make sure that you are able to maximize the services your debt management counseling service is offering you to make sure that you are secured at all times.

Broken By Your Credit Card? Credit Repair Service Can Help

Sure, we all love them but when misused, a credit card can break us. Too often, there is no self-control associated with credit card use, which means you are quickly in debt and then losing sleep over it. If you are tired of being drug down by credit card debt, we have good news. Credit repair services are offered throughout the country, providing services online and in person. Although not every company is honest, the Federal Trade Commission or FTC has developed a number of safety guidelines that help consumers choose a reputable company.

Scam Warning Signs

Just as there are many different options of credit cards, you will find as many, if not more debt reduction companies to match. When looking for a service to help you, make sure they follow federal laws. Most importantly, if a company makes outlandish promises, you should be suspicious. These companies should have one goal in mind - teaching you better money management for life, not using various services to fix the problem temporarily. Therefore, if you read advertisements for quick fixes, rather than financial education, beware. Some of the more common statements made associated with a scam include the following:

Repair your credit " 100% guaranteed (this is impossible) Get a new credit identity (this is illegal) Get all bankruptcies, low credit scores and liens from your credit file eliminated (ditto) No credit problem to bad for us to fix (this means they are stupid)

The bottom line is that credit repair services can help you get out of debt but to do so, they must adhere to federal laws. This means they must also advise you of free steps you can take to correct and better your credit report. Any company that asks for money upfront to obtain your credit report is lying. You as the consumer can ask for a free report once a year from each of the reporting agencies. Therefore, if they ask for money to obtain one means they are trying to scam you.

All you have to do to get a copy of your reports from Experian, Equifax, and TransUnion is to request one in writing, fill out an online form, or call them on the phone. Now, if you want to find your credit score, which is different from the credit report, you would typically be charged a small fee.

The Credit Repair Organizations Act

Because credit repair services are actual businesses, they are strictly regulated by the Federal Trade Commission. To ensure you are protected, a law was established called the Credit Repair Organizations Act, which states that all debt reduction companies must inform you of your rights prior to any money being paid for their services.

Also, a debt reduction company is not to charge you until they have completed their services to you. And, if you catch them making false claims about their services, you should contact the FTC as soon as you can. They are doing something illegal. By keeping these tips in mind, you can fix the damage done to you by a credit card. Credit repair services can help.

Credit Card Skimming May Hit Your Credit

The problem of credit card skimming is now the cause for international losses of over one billion dollars a year.This credit card scam is common in Latin America as well as Europe and Asia, and now it is starting to be seen in the United States.

When you try to purchase something in a store, this type of credit card scam can be accomplished when you give your card to a store employee to scan at the register.That store employee may also be swiping your card with a small machine known as a skimmer as well as using it to pay for your purchase; this skimmer takes your information from your card and stores it in this machine’s system to use fraudulently.The skimmer can retain the information on hundreds of debit and credit cards and then it is used by unscrupulous people to print counterfeit cards.

After your information has been fed into the skimmer, it can be downloaded into a computer and emailed to any worldwide location, as there are skimming rings working all over the world.The skimmers of the past were huge machines that had to be hidden under the counter and this made it harder to accomplish this type of  theft.Some of the technological advances of the past few years has made it a possibility for these skimming machines to be hand-held and thus, invisible to the unsuspecting customer.The skimmers may be purchased much too easily over the internet for around three hundred dollars, but the credit card producing machine is more expensive, coming in at about five thousand to ten thousand dollars.

Another form of this scam can be done by pulling information directly from the credit card terminals; this is done when a skimmer bug is placed into the terminal and later retrieved with credit card information on it.The older terminals are the only ones which can be violated in this way, however, the onset of new credit card terminals has alleviated much of this bugging.

The credit card thieves will quickly skim the information they need from your card’s account and then begin to make their purchases with your credit card number.Much of the credit card fraud is committed through using the internet for purchases because of the increased popularity of online shopping. The internet is also used by the thieves to make certain that the card’s information is valid through the purchase of many low ticket items in order to be assured that the card is active.   

The cardholder is most times just held responsible for up to fifty dollars of the total amount charged on the card, but the real victim in this crime is the merchant who had the employee who did the skimming.After the skimming is discovered the merchant has to pay for the cost of the investigation and is one hundred percent responsible for the losses caused by the criminal activity and is also at risk for the loss of the merchandise.The money used by the credit card companies to offset the cost of investigating charge-back claims by their customers, comes from the investigation fees paid by consumers and businesses.

Before beginning a criminal investigation into this skimming activity, the ones who commit this scam know that a purchase must be made amounting to at least two thousand dollars.

Visit JSNet.org for more information on credit cards and various credit card articles on how to protect your credit cards from fraud.

Avoid Credit Card Debt

Credit cards are a much loved accessory in the easy spending world of modern society but we have been misusing them. That insignificant piece of plastic has got countless people into serious financial trouble. The old fashioned system of pulling a wad of bank notes from your pocket and paying cash for things is long gone. Now we just book up the plastic.

We do not just have one card either, many of us have a fistful of them. All with debt owing on them some with huge debt on them. In fact some clever people manage to juggle these cards. They manipulate them so that one pays off another card and another card pays off the first one. On it goes but of obviosly this is unsustainable.

The problem here is that it is way too easy to lose track of your finances. Before cards you took out the money you needed and could afford to spend and that was all you spent. Now of course you buy on credit and this accumulates and debt accelerates with the horrendous interest rates the credit card companies charge.

There is a better way to use credit cards and avoid credit card debt but they need to be used with restraint. That is a very old fashioned idea. Actually used properly cards are safer and more convenient than cash. However, you need to figure out your financial limits before you go out spending any money. Never spend any more than you can afford to pay back at the end of each month.

In fact there are advantages to using credit cards. You can make use of their money right up to their minimum payment date and keep your cash in the bank earning interest. Additionally most credit card companies run rewards schemes related to your card spending. So that is nice that they give you rewards and let you earn bank interest but their motives are all selfish. They are positively willing you to overspend and enmesh you in their trap of high interest rates. Once in that trap it becomes harder and harder to get out. So be warned, use your credit cards wisely and take those companies for all they will give you. Just remember to always pay off your credit cards completely every month. There must be no exemptions to this rule because it is just too easy to fall into debt

 

You Might Want To Consider A Credit Card Reduction Plan

 

 

Aiming For The Credit Card Reduction Plan

 

When you have finally come to terms with the fact that you have a lot of debt that you must get out from underneath of, there is nothing wrong with trying to get some sort of credit card debt reduction plan.  This type of thing can be done but it is going to take a little bit of work on your end because not all creditors will want to just erase or write off a portion of your debt that is owed to them. There are going to be a lot of different factors involved when trying for credit card debt settlements from your credit cards.

 

It will all depend on the companies that you have to deal with, the amount of money you owe, your previous payment with them, and how far past due you currently are. Generally speaking, those who are several payments past due have a better chance at a credit card debt reduction plan because the creditor has good reason to fear never getting their money. In that case, they would be willing to take what they can get through a credit card debt reduction plan.

 

When You Can't Do It Alone

 

Sometimes you just can't do some things by yourself  There are companies out there that just are not willing to work on any credit card debt settlement with the customer. While this is a sad case, it does not mean that there is no chance of ever getting a break from that credit card. Sometimes, getting the help of a government or non-profit organization is the best way to get the credit card debt settlement that you need in order to get ahead of the game. Just pick up the phone and call each company and discuss each optional plan with them until you are satisfied. Just keep in mind that any fee that is charged upfront will be so worth it to your long-term financial future.

Be careful to also keep in mind that even though the company may do everything in their power to get you a credit card debt reduction plan, it does not mean that they guarantee that it will be done. There is a chance that after paying them for their services that they contact you back stating that your creditors were unwilling to work with them. This would leave you without a nice credit card debt settlement and they would have the money that you paid them for their assistance and they would keep it.Be cautious before you sign up with any one company.  Ask a lot of questions.This is your life we are discussing and your well-being.  Dream about being debt free and go for the plunge.

Understanding Just How Simple It Is To Get Yourself Into Credit Card Debt

Nowadays possessing a credit card is no longer considered to be something of a luxury or a status symbol but is seen as being a necessity and the majority of people has not just one but several credit cards. Consequently the credit card business has grown rapidly in recent years and today the marketing of credit cards is also a huge business in itself. But along with this growth has also come a massive growth in credit card debt.

As the name suggests a credit card merely gives you a line a credit with the credit card company and the limit of that credit will be established at the time the card is issued and reviewed from time to time thereafter. In other words when you use your credit card you are simply borrowing money from the credit card company and can go on doing so as many times as you like until you have borrowed up to your credit limit.

As soon as you start to borrow money from your credit card issuer you will start to pay interest on the money you borrow and every month you will have to pay back at least a portion of the money borrowed. The rules will vary from card to card but, occasionally, the initial interest charged is at 0% and if you pay back the full amount borrowed in a month at the end of that month then you pay no interest charges on that money. But, if you pay back only part of the money borrowed, then you will be charged interest on the remainder of your borrowings until that money is repaid. Interest also varies of course, but it is usual to pay double figure interest which can frequently run to 20% or more a year.

Of course as long as you are sensible and simply make use of your credit card for convenience when you are shopping and pay off the full debt every month then you are okay. But, the majority of people do not use a credit card in this way and a surprisingly high number of people make only the minimum payment required every month, which is often about 10% of the debt outstanding. But herein lies the true danger with credit card debt.

As each month comes and goes you continue using your card so that your debt increases but repay only the minimum amount necessary, which also increases each month. but, because interest is added to your account every month, your account balance actually grows faster than you are spending and this really begins to shoot up after a few short months because you are also paying interest on the interest charges which are added to your account every month. Naturally what happens all too often is that the minimum monthly payments become increasingly difficult to meet and all too soon you are merely meeting your monthly interest charges and not paying back the money which you have actually borrowed to spend.

Used properly credit cards are extremely useful but, if you abuse them or do not understand exactly how they work, then your credit card debt can spiral out of control extremely quickly.

Therefore, before you begin maxing out your credit card and find yourself needing help to clear your credit card debt make sure that you understand exactly how your credit card works. And, if you have already let things get out of control then do not delay when it comes to asking for help in settling credit card debt.

Learn How To Get Out Of Credit Card Debt

Once you have amassed enough credit card debt to be causing you anguish, it is absolutely essential you stop ignoring this problem anymore. The first step to facing up to this is to, under no circumstances whatsoever, carry on using your existing credit cards for any purchases. The cards must be cut up and safely disposed of and although this may sound drastic, it will take away the temptation of increasing your debt problems even more. You may wonder how you are going to be able to pay for items such as gas and grocery shopping, but we will come onto potentially a way around this later in this article.

First of all you need to compare credit cards and work out the exact amount you need to pay off on all your cards. It is important to work out the maximum you can afford to pay each month in order to reduce this level of debt. Just paying the minimum payment on each of these cards is not a good idea as this will only touch the interest already accumulated and not make a significant difference to your overall level of debt.

When you have worked out how much you can afford to pay off on each of your cards each month, you should look at trying to transfer your debts on your highest interest cards to either your existing cards with best credit card rates or applying for a new 0% balance transfer credit card. Applying for a new card may sound dangerous but if you are determined to get out of debt quickly and disciplined enough to only use this one card for essential purchases it may prove very valuable in order to move high interest debt and allow you to pay this off quicker.

It is important to not lose hope and realize that is possible to pay off your credit card debts even if the above tips don’t help you. Seek professional debt advice and draw up a personal plan suitable for your individual needs.