Credit Spark

Tips for Negotiating Credit Card Debt Settlement

Credit Spark — Mon, 26 Jul 2010 10:19:18 +0000

One of the best ways to get out debt is through negotiating credit card debt with either the credit card company or the collection agency. You can try to settle any unsecured debts, such as credit cards and medical bills, for only a portion of the total amount. Depending on which you are dealing with, your tactics will be quite different because of the circumstances.

When the debt is still with the credit card company, they are usually reluctant to settle. This is especially true if you have been paying on time. From their perspective, it doesn’t make a lot of sense if someone makes his/her payments regularly but suddenly cannot afford it anymore. As such, you are looking at minimum 60 days since your last payment before they start listening to you. This means you have to be patient and to contact them continuously so they know your financial difficulties. However, don’t miss payments for the sole purpose of trying to negotiate credit card debt settlement because if it goes to collection your credit will be severely crippled.

So what if it’s already in collection? Well, it’s not all doom and gloom. In fact you most likely can settle at approximately 25% because most debt collectors acquire your debt at mere cents on the dollar (3 to 11 cents depending on the age). Your original company at this point has already decided it’s better to sell it for pennies and receive a tax benefit than trying to get the money back. This is good for you as collection agencies will be eager to settle if you can prove you are close to being bankrupt. Regardless, they still comes out making a gain. However, don’t assume they will just give in easily because they definitely won’t.

Negotiating credit card debt yourself usually gets a better deal because you won’t need to pay any fees for others’ services. If you are not comfortable with credit card debt negotiation though, it’s not a bad idea to hire a professional debt settlement attorney to do the work for you. For those who want do it themselves, always keep track of everything from every discussion with every person. Correspond through registered mail is the ideal way when dealing with collection agencies, while phone correspondence is fine with credit card companies. Remember to use your main leverage, that is the fact your creditors would get nothing if you declare bankruptcy and to present to them evidences of why you are in trouble. Finally, don’t forget to negotiate a favorable credit rating like “paid as agreed” or “settled” rather than “charged off”. This is extremely important as a a ruined credit report is not a whole lot better than bankruptcy.

What Affects Second Mortgage Rates?

Credit Spark — Sat, 24 Jul 2010 13:35:07 +0000

Many factors have the possibility of influencing second mortgage interest rates. When thinking about getting a second mortgage, it’s important to find the lowest rate possible, so that makes it worth while to understand some of the common factors that can affect second mortgage rates.

Special Promotions

It is a very common practice for lenders to run special promotions that provide lower than normal interest rates for a short period of time. This is called the “introductory rate”. For instance, during the first six months of a new mortgage, the introductory rate might be 2% lower than the going rate. When looking at a promotional rate, be sure to understand two things: the date that the introductory rate expires, and what the payments will be on the new increased rate, after the promotional period expires.

Type of Loan

There are many types of second mortgages, and the structure of each loan will have a definite effect on its interest rate. For example, a 3/1 adjustable rate second mortgage will have a different interest rate then a 30 year fixed-rate mortgage. Therefore, as you compare interest rates on different quotes, be sure to compare loans of the same type only with each other.

Lender Policies

Each bank will have a different profit margin that they needed to realize on each loan that they make. That is why you will see rate variations when receiving quotes from different lenders. Because of their differing policies, it is very important to receive quotes from as many different lenders as possible in order to maximize your chances of obtaining the lowest interest rate.

Market Forces

The Federal Reserve determines a prime interest rate that affects all of the other interest rates in the market. The prime rate heavily influences the interest rate of second mortgages. Other market forces also shape second mortgage rates. For example in good economic times the market usually drives interest rates up. But in bad economic times, rates usually go down. This is not only true of a refinance second mortgage, but also for all kinds of mortgages in the market.

Two Points to Remember When You Consider Rewards Credit Cards

Credit Spark — Sat, 24 Jul 2010 06:09:08 +0000

If you are considering a rewards Master Card or Visa versus a traditional credit card, here are a couple of things that you should consider. Many times, consumers would be better off to apply for a credit card with a low rate and good terms rather than a rewards card that he or she will never actually use.

However, with the popularity of rewards cards, many consumers can find a rewards credit card that will offer significant advantages even with less than optimal terms if they can actually use the rewards.

Let’s take a look at how to evaluate each type of credit card and avoid getting in over your head.

Apply For A Credit Card With No Frills

When consumers fill out that credit card application, they often fail to look beyond the low or 0 interest credit card offer. However, the credit card holder needs to consider the total cost of carrying a balance on the card month after month.

In fact, for the consumer that carries a balance, a traditional credit card with a reasonable rate of interest and other terms will more than offset the fickle and fleeting benefits rewards card – particularly where the consumer probably will not use the “rewards.”

If you fall into this category of credit card user, it would be wise to compare several credit card offers before making a final decision.

Evaluating A Rewards Charge Card Application

I have a buddy that flies all of the time. As a matter of fact, he’s logged over 50,000 miles in one year.

He uses a rewards credit card that offers additional frequent flyer miles and thus qualify him for deep discount, or even free, airfare to the destination of is choice. Because he does not carry a balance, the interest rate on the card is not of any concern to him.

In his case, Frank is much better off carrying his rewards credit card than worrying about a traditional no frills credit card.

Choose Which Credit Card Offer Is Best For You

Everyone should evaluate credit card offers in light of their unique circumstances. Often, it is not wise to rely on the conventional financial advice of picking the credit card application with lowest interest rate and “best terms.”

On the other hand, those who carry a balance or anticipate a large installment purchase may be better off looking for 0 balance transfer credit cards with good terms and a low APR – particularly if it is doubtful that they will take advantage of the rewards offered under the rewards credit card.

In summary, each consumer has to decide for himself whether or not to apply for a credit card with rewards or choose a no frills traditional credit card offer.

Candlestick Chart – Helping Investors to Track Future Stock Prices

Credit Spark — Sat, 24 Jul 2010 00:14:06 +0000

Since market timing is the biggest factor that contributes huge profits to stock investors, it is important to learn more about it. Buying low and selling high is the instrument in making more money in the market that is why perfect stock market timing can attribute towards getting it. However, certain fluctuations are difficult to predict. It is hard to know when the stocks are priced at the lowest for the investor to buy and when it is valued at its highest to finally sell. Technical analysts sometimes choose to base their forecasts on charts that show price trends of stocks from time to time. The most commonly used is the candlestick chart and it is advisable for the investors to be familiar about this.

To gain a full understanding of candlestick charts and how you can utilize these for your decision when to buy or to sell stocks, you have to be familiar about how it is created. Candlestick charts have been introduced by Japanese rice traders and these are said to be modifications of the bar chart. Thin lines attached either at the top part or the bottom part of the candlestick body shows the price ranges of stocks during a particular period of time. One important characteristic of this chart is the ability of the investor to learn about the daily activities of the stock market by just understanding the legends contained in the chart, say for example its color and size. The legend states that when the black or red color appears on the candlestick, the stock is priced lower, which indicates a loss. When white or green appears, gain is being represented because the price is valued higher.

After being familiar with the chart, investors might think that this can already tell them everything about the daily activities in the stock market. However, there are things that the chart cannot tell. That is why it is still advisable to make more research rather than depending fully on the candlestick chart.

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