Tag Archives: CreditCardDebt

Why Store Credit Cards Might Be a Bad Idea

A store credit card can seem like a great option for shoppers who frequent certain stores. What is the harm in getting additional credit, when you will make the money back through the awesome discounts the store salespeople are offering, right? The reality is, most people will lose more money than they will gain by signing up for a store credit card. How Do Store Credit Cards Cause Debt? Easily obtainable: Store credit cards are often issued to people with financial troubles who may not even qualify for a regular credit card. Retail associates may not be trained in explaining the true extend of the financial burden that the card entails. This causes serious debt problems for those who are already financially vulnerable. Many retailers may not even check a borrower’s credit history. Excessively high interest: The majority of store credit cards charge an interest rate on purchases that is…
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How Do I Know It’s Time to File for Bankruptcy?

No one plans for bankruptcy, but many people can fall into a situation where bankruptcy is their best option and not even realize it. The stress and accumulated debt aren’t going anywhere, so it can be precisely what the doctor ordered. When asking yourself if it’s time to file for bankruptcy, here are some red flags to look out for. Signs That it’s Time to File for Bankruptcy You’re behind on your mortgage – The possibility of losing your home is definite cause for immediate action. As the most valuable asset you possess, your home is not something you can afford to lose. It’s worth what bankruptcy costs when it means holding on to this investment. You’re moving debt from one credit card to another – Making an occasional credit card payment using another one can be an apt financial move. It can help you to avoid higher rates on…
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4 Reasons You Shouldn’t Ignore Debt Collectors

There are several likely outcomes that stem from trying to ignore debt collectors, and none of them are advantageous. To put it frankly, ignoring your debt won’t make it go away. Here are the most likely scenarios that ignoring your debt will lead to, though. Why You Shouldn’t Ignore Debt Collectors Your credit suffers – A collection account is likely to appear on your credit reports whether you work with debt collectors or not. If you attempt to speak with a collector, however, you will at least have the chance to present your side of the story and maybe work something out with them. Your debt grows – Failure to pay your debts could result in the collector adding interest and collection costs to your debt. It all depends on the contract you agreed to when you took out the loan or signed up for the given credit card. Generally,…
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