Eliminating Credit Card Debt

  Eliminating Credit Card Debt  - Credit card arbitration: Things every credit card consumer must know  - Jul 16, 2007  

Most of the credit card owners are not aware of the fact that there is a mandatory arbitration clause with almost every credit card. This means that if you have been wrongly charged by the credit card company, you can't go to courts. Instead, you can put up your case before an arbitrator, who is generally chosen by the bank.

With the rise in credit card usage this arbitration procedure has become very common, this in effect has made the process of disputing debts, very difficult for the credit card consumer.

What is woefully wrong with arbitration is the mandatory nature assigned to it. Though arbitration is a fair and efficient way to handle disputes, the whole process can become entirely lopsided once the fairness of the entire exercise comes into question. It becomes grossly inefficient and favorable to the credit card issuing companies and often the interest of consumers is compromised.

There are few drawbacks to credit card arbitration proceedings.

The customer might not be entirely aware of arbitration proceedings and could be too ill equipped to negotiate contracts.

The proceedings during arbitration are not generally open to public.

The arbitration agency, because being chosen by banks and are dependent on the goodwill of repeat litigants have strong incentives to rule in favor of businesses than consumers.

Though the consumer can do nothing about it there are things which if take care of can help him a lot during the arbitration proceedings. Here are few of them.

Respond to the arbitration group carefully and promptly. All the mails you get should be screened properly and make sure that you don't miss out on an arbitration mail. The deadlines with arbitration are strict and they should not be missed at all.

Get your credit report and check it for errors if any. Get them corrected before your case for arbitration comes for hearing.

Get professional help. Things can get pretty messy during such proceedings and if the amount in your dispute funs into few thousand dollars, an attorney will really help.

The attitude of fighting it out won't help always and it will pay if you try to settle things.

Credit card arbitration proceeding is a necessary evil. Efforts are on to get rid of this nuisance, but until it happens, being vigilant and proactive is the only option with credit card consumers.

  Eliminating Credit Card Debt  - 3 step proactive approach to get rid of credit card debt quickly  - May 11, 2007  

People treat credit card debt like a disease. They don't care about it until things get out of hand and considerably threaten their lives. How to eliminate the credit card debt as soon as possible? If this question is bothering you, read on. In this article we present a simple 3 step proactive approach to get rid of credit card debt.

Step 1: List and arrange

List all your credit cards in a table with their details. The details to be recorded are the outstanding balance, interest rates, minimum payments, and repayment dates. Arrange them in decreasing order of interest rates. Now you have a list with credit card that charges the most on its balances at the top. Move on to the next step.

Step 2. Set up a payment schedule

Add up all the minimum payments of credit cards. From your monthly budget allocate a money which is about double the total that comes after adding the minimum payment. Now, pay the minimum payments of all credit cards except the card with highest interest rate. For this credit card pay the remaining amount of money allocated for credit card payment. If bothered by the varying repayment dates, automate the repayment process using your bank account.

Step 3: Eliminate all debt one by one

Thus, you will end the highest interest rate debt first, now continue with the second highest rate card and so on. Each month you will require less amounts for credit card debt elimination as the debt reduces.

To prevent accumulation of credit card debt in future make sure not to indulge excessively. Keep a track of high interest rate credit cards, and transfer their balance to a low interest rates or 0% intro APR credit cards. Don't miss out on repayments and invite penalties. Try to pay cash for most of your purchases and stay within your budget.

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