Credit addiction is very similar to drug or alcohol addiction, and the consequences are just as devastating to yourself and to your family. The decision to wean yourself off of your credit card addiction is not impossible, and can be much more pleasurable without the physical withdrawal experienced like other addictions. In fact, you will soon feel free of a heavy burden, making your life easier and more enjoyable.

In many places around the world credit serves a purpose. It can be a blessing in situations where you are faced with a problem and only money will solve it — money that you do not have at that moment. Originally, that is what credit was about. It was a sort of loan upfront so that a person could acquire the necessary service or item that they needed to make their business run smoother or their home life easier. But credit has become a source of stress and hardship for people that have used it for purposes other than necessity.

Credit is a privilege and not a right. Many people face the consequences of irresponsible use of credit that has been extended to them. Although it is true that many creditors extend credit to people whether they ask for it, or even need it, it is ultimately the responsibility of the individual who must refrain from the temptation of accepting unnecessary credit offers. Once the charge/payment cycle begins people soon find themselves out of cash for the necessary items they need. It then becomes necessary to use credit for the majority of purchases because there is no alternative source of money. This is credit addiction. Becoming aware of the depth of debt is the first step to wean yourself off of your credit addiction.

Continue reading this post…

I never had a credit card in my life before this year. I was around for the credit card revolution back in the early to late 80’s but I was about 18 back then. I don’t know how I did it but I ruined my credit a few months after my birthday. It wasn’t too bad, but enough that I was turned down for a credit card I applied for and never tried again. I consider myself lucky because had I gotten one I would probably be in the same debt as all my friends are in today. That’s until I discovered 0 interest credit cards.

All of my friends say if they had it to do over again they wouldn’t have gotten a card until they were 30. They say that that’s when they started to realize that using a credit card takes certain kind of discipline and awareness to use and not be caught up in the whole debt thing. By using only 0 interest credit cards I avoid this debt trap completely.

Today I can get as many credit cards as I want, as my credit is actually almost triple A and I haven’t done anything to ruin it. Actually I’ve done everything to keep it good! One thing I learned or rather figured out before getting my first credit card was that there are a lot of 0 interest credit cards out there trying to seduce you in with a 6 month interest free introductory offer. The beauty of this is that you can get the card and use it interest free for that time. Once the time is up you simply transfer the money to a new card with the same offer (or even more time!) and you never end up paying interest on the card! This way I’m getting credit, and not paying a penny more than I actually spend! I never fall into deep debt because the interest isn’t there. It doesn’t exist.

Continue reading this post…

If you want to collect more money just shut up and listen. Many accounts receivable professionals and people who collect money from delinquent accounts talk way too much.

In training people to improve their collection techniques, I have noticed that collectors, while on the phone or meeting with debtors face-to-face, typically do most of the talking while the debtor is not listening. The result is the collector does not get paid.

One of the key principles of collection management is to get debtors to discuss their accounts. Once debtors are talking about their debts you are well on the way to collecting the money.

So how do we get our debtors to talk? The main thing we have to do is to stop making statements and start asking questions. And, in the broadest sense, there are two kinds of questions we can ask: closed-ended questions and open-ended questions.

Of course, a closed-ended question is one the debtor can answer with a "yes or a "no." For example, if you ask, "Will you send me a check today?", the debtor can say, "Yep." "Nope." "Not in your life." There is no talking required.

On the other hand, an open-ended question is one phrased so the debtor is almost forced to talk. For example, "Can you tell me what’s going on with this account?" Or, if it’s a small commercial account, "How’s your business doing?"

Continue reading this post…

Juggling multiple debts can be difficult, but a debt consolidation credit loan can help you get your finances back on track.

Debt consolidation involves taking out one secured loan to pay off several existing debts. This can help reduce your monthly outgoings as well as simplifying your repayments.

Even if you have credit problems, a loan that suits your circumstances can be found. In fact, successfully paying off your debts can go some way to repairing your credit rating, so a debt consolidation loan with low repayments can help you sort your finances.

The easiest way to find a consolidation loan company is to employ a broker to search the market for you.

They will take the legwork out of finding a loan by comparing hundreds of lenders. The broker will compare:

• Interest rates.
• Terms and conditions.
• Arrangement fees and other charges.
• Repayment terms.

Continue reading this post…

Debt consolidation loans were created solely as a means for putting all the debt together, or consolidating it, and lump sum loan is made instead of separate payments to individual creditors. Instead, the bank takes your debt total, and through many different types of loans, can, with the appropriate credit, aid in the immediate repayment of all creditors. The bank pays off the debts, and you pay the bank.

A very good reason to do this is when the interest rate on the loan is a fixed rate that is less than the typically higher rate charged by credit card companies and other creditors, especially if you have recently begun to pay your credit card bills later and later and the fees for such activity are beginning to mount.

A possible consideration for debt consolidation is a straight loan. This is equivalent to a home or car loan, but with no collateral. You are simply borrowing a set amount to pay a specific debt. Again, the rate should be noticeably lower than the interest rate being paid to the credit card companies. Not everyone who applies for a straight loan will qualify. There are serious guidelines to protect the bank from someone who may default on a loan that the bank has no way of recouping without your cooperation. Usually this type of loan is reserved for consumers with the highest credit rates.

Continue reading this post…