Credit card undoubtedly brings a lot of joy to you and your family especially when you can buy the goodies, which otherwise, you would have waited for. However, once the reality dawns, you find yourself deep into trouble. This is not a story of an individual, but of many millions, reeling under the dual impact of increasing interest rates and decrease in employment opportunities. Can Credit card Debt negotiation help? Let us find out.
The average interest rates for the standard bank credit cards have traveled upwards from 16.5 % in the year 2003 t 19 % in the year 2007 (source: cardtark.com). The Financial Times UK, reports in an article on Feb 2009 that, United States credit card delinquency registered a record high in January 2009 and the situation would deteriorate further. The article further adds that the rate of unemployment has touched the highest mark in last 15 years of 7.2 % in February 2009. Thus the recommendation for credit card debtors, going under the line, is to start thinking about Debt negotiation.
The key also might be an early detection. The fact that you are not able to keep pace with your payment schedule should ring alarm bells. One indicator is when your outgoings are increasing and the incomings are remaining constant or are going down. If you start early on this path of Credit card Debt negotiation, you will definitely reap the benefits early. Foremost, find out how many cards due you have. Experts indicate the first step to Debt negotiation is to understand the total outstanding on all your cards. Having too many cards also hampers the repayments. The “National score index” reports that the overall average number of credit cards a consumer carries in his wallet are four! Do we realistically need four credit cards?
Let us look at how Debt negotiation is helping the creditors. The current scenario is not benefiting the creditors either. An article highlights, that the charge-off rates (debts written off by banks) has increased by 40% from last year in January 2009 and expected to reach 9% in the second half of 2009, as against 7.5 % last year. In addition, “Financial times UK” reports that the fourth quarter earnings in year 2008 showed credit card volumes dipping every year, going down by 8%, 15% and 13%, for the last three years.
The fact of the matter is that, every bank now has a department, which is devoted to the Debt negotiation and debt settlement. This is done to salvage funds from card defaulters which otherwise would be lost if the cardholder filed for bankruptcy. Typically, the settlements through the Credit card Debt negotiation range from 25% and 65% of the outstanding balance on the credit card. Therefore, by now all of you, who would have been thinking of bankruptcy, should make up your mind. The only legitimate and credible way left is that of Debt negotiation on you credit card. Get in touch with a Credit card [...]
Posts Tagged ‘Bankruptcy’
Thinking about bankruptcy due to Credit card bills? Credit card debt negotiation, offers you credible help!
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No Comments »The Alarming Rise In Bankruptcy Filings
When you take the time to view the statistics of bankruptcy you will be alarmed and shocked. In a years time form 2006 to 2007 the number of bankruptcy filings increased by 39,365. On June 30th, 2006 it was recorded that for the year a total of 91,674 people filed for bankruptcy. On June 30th, 2007 it was recorded that for the year a total of 91,674 people had filed for bankruptcy.
The rises in chapter 7 bankruptcies are steadily climbing and are not showing any chance of ceasing. The numbers of those who have filed for bankruptcy are the highest since the new bankruptcy laws of 2005 were set in place. The highest bankruptcy rates by state include Tennessee, Utah, Georgia and Alabama.
Other bankruptcy statistics are just as jaw dropping. Comparing Non-business to business filings you may be surprised. In 2006, the number of bankruptcies was 597,965 for Non-Business cases. Only 19,695 bankruptcies were filed by businesses in 2006.
When it comes to personal bankruptcies over half of those who file have experienced a serious health condition. Two out of three fliers have lost their job and 44% of filers are couples. More women than men file for bankruptcy. Women are rated at 30% while men rank at 26%. Sadly less than 9% of those who file for bankruptcy have not suffered job loss, medical expenses or divorce. These cases are often due to poor financial choices. The top ranking cause of bankruptcy is credit card debt.
You would imagine as we evolve in society that we would have a better understanding of how to control our finances or have methods set in place to help us prevent us from filing bankruptcy. Perhaps future statistics will show a decline in bankruptcy, as financial management courses are available. Only time will tell.
Too often people are led to believe that bankruptcy only occurs due to irresponsibility and poor money management. When in fact one of the top rated causes of bankruptcy is due to medical bills. Studies have shown that out of 1.5 million bankruptcies, half of those were due to out of control medical bills. Three quarters of these individuals were covered by health insurance. With outrageous prices for medication, hospital stays and other medical treatments it is easy to acquire a medical bill in the thousands.
With many Americans struggling to make ends meet while earning money to be considered middle class, medical bills can become a nightmare. Even by making constant payments it is near impossible to pay of harassing bill collectors. There have been examples of people who file bankruptcy who are excellent bill payers, have nice homes, drive nice vehicles and work hard to care for their families. For one woman this was her life until she was stricken with cancer. Medical bills took over her life financially and she was forced to choose bankruptcy for debt relief.
Other instances include an infant becoming stricken with the flu. The child was suffering from a high fever, not drinking fluids or eating [...]
Chapter 11 bankruptcy law
Chapter 11 bankruptcy law applies to partnerships and corporations. It calls for the general reorganization of the business to keep it alive in an attempt to pay creditors to the business. This chapter, just like any other, does not work in case the debtor has willingly skipped court proceedings even after being summoned. It also calls for the debtor to undergo proper counseling on how to handle credit and debt management.
Before any court procedures there must be legal fees paid to the court clerk. This is inclusive of$ 1000 filing fee and $39 miscellaneous administrative fee. There is an allowance for the fees to be paid in installments. This chapter recognizes that the individual and the assets in the business are separate entities. This means that the business debts will only be covered by the assets of the business without recouping the individuals’ personal assets. Under this chapter a petition for bankruptcy may be voluntary or involuntary.
In case of a sole proprietorship, the law does not recognize the individual as a separate entity from the business’ assets and as such, personal assets may be recouped in the debt recovery process. However, in some cases where partnership is involved in the bankruptcy case, individual assets may be recouped in the process of paying off the debt.
For a complete court procedure, a reorganization plan must be filed in court together with a written disclosure plan which shows what the business has in terms of assets. It may at times include the individuals’ assets as well in case of corporations. The disclosed information is thereby treated with confidentiality.
