Filed Under: Credit Card
The latest credit-land.com’s article reported that there are currently 50,000 American cardholders accounting for as much as $900 in credit card debt. Many of them owe uncollectible amounts which are subject to a write-off and bankruptcy regulations. But the recent news from the credit industry reports of a curious combination of banks and consumer advocates who seek for the government’s approval of their idea to forgive people part of their debts.
To help avoid bankruptcy which puts a stain on their credit and to collect at least some of the amounts due of consumers, banks choose to make it easier to repay large debts.
For consumers who want the forgiveness of up to 40% of credit card debt or ask lowering the credit card costs, some experts advise two main strategies for their good things. One is to ask the bank for a lower interest rate or make a balance transfer application if rejected. The other is to make more than the minimum monthly payments to reduce the principle.
Having credit cards are great, but can lead to a fall if you do not choose carefully. Many of banks in the United States offer 0% interest for six months as an introductory offer to gain new consumers, but if violated, your interest rate changes immediately to the highest possible APR.
Credit card debt help is a necessary step towards easing the strain on relations between borrowers and issuers. The Federal Reserve’s stricter rules defending cardholders’ rights have made credit equally expensive for bad and good risk customers. Even such lending giants as American Express and Advanta Bank increase interest rates for their valuable customers.
It is great if you cope with monthly payments and keep balances low, but the credit crunch might still show up in your card statement. The bank is obliged to notify you of any changes concerning rates and limits a few weeks before the changes occur. But there is no law prohibiting the issuer from lowering your credit limit and boosting interest rates to offset the risk associated with unsecured credit.