Comments on: Credit Card Debt Reduction

By: daniel martin

daniel martin — Tue, 05 Oct 2010 04:26:09 +0000

credit card is very useful this generation.thanks for the information of credit card daniel martin easy loans company

By: Al & Shawna

Al & Shawna — Thu, 04 Mar 2010 23:47:56 +0000

I bought and used 7 steps to a 720. Eventhough the info and sample letters are available online, it is well written and easy to use.

We raised my wife’s credit from 500 to 750 in a matter of months. We were able to buy a beatiful home and now have excellent credit and get approved on anything.

However my main comment is this — I have read several places that the NEW magic number of credit scores is 740 NOT 720 due to tighter lending standards.

Have you thought of changing the book to 740 instead of 720.

Just a thought.

Thanks,

By: Philip Tirone

Philip Tirone — Wed, 03 Mar 2010 05:26:19 +0000

Ric, We very seldom recommend debt reduction companies for this exact reason, the fees are high and many times, it does not solve the problem, only prolongs it. Do a search on this site for our “Virtual Roundtable” around Debt negotiation… there is some great info there.

By: Ric

Ric — Mon, 01 Mar 2010 19:27:16 +0000

Credit card debt reduction is a term also used for plans to pay off your excessive credit card debt at a reduced rate. Therefore, the “term credit card debt reduction” leads to some confusion. I have entered into one of these plans and I’m not really sure that it is worth the cost. In this plan, you are told to not pay on your credit card until it goes to a collection agency so that they can negotiate your pay off terms. This completly destroys your credit score. Mine fell from 720 to 531. Meanwhile you are paying to the debt reduction company to build up your escrow account for negotiation. They get their rather significant fee up front. What is your opinion of these debt reduction companies?

By: Mary Ann

Mary Ann — Sat, 27 Feb 2010 13:12:20 +0000

I have an excellent credit score, I have many credit cards. I don’t buy anything with a credit card that I will not be able to pay for when the monthly bill comes in. I have never carried a balance. I receive many benefits with the cards I have. Credit cards require discipline.

By: Philip Tirone

Philip Tirone — Sat, 27 Feb 2010 07:29:29 +0000

Chris,

I don’t believe in carrying debt – at all. I do believe that everyone should “play the credit game” according to the rules.

Here’s why – many clients of mine plan on buying a home in the future. With a “0″ credit score, you would either overpay of the mortgage buy approximaly 3% points, or have to buy the home without a loan, which most people cannot do.

So I’m clear, I don’t care if you have three credit cards, all with $100 limits, and only charge $30 per month on them. Remember, the amount of debt will not help your credit score, just the accounts.

Thanks for your comment… I love the banter!

By: chris

chris — Sat, 20 Feb 2010 04:23:26 +0000

I don’t agree with your stand. I don’t think credit-cards are a necessary part of life anymore. Everyone has a debit-card or visa-check, so hotel rooms and other stuff aren’t a big problem. As far as building your credit, there are other ways to do it w/o having a credit card. Buying a car(one that you can easily afford and you have put money down on)and/or buying a starter home that’s well within your reach. My wife and I are paying down a substantial amount of credit-card debt and have come to realize that if you can’t pay cash for it, you are not living within your means and there will come a reckoning. Look at the all-time highs of credit-card debt, defaults on that debt, bankruptcies and foreclosures. These are all signs that we as a country have not been frugal enough and have been too concerned with our credit score. My goal now is to have a zero credit score from all three agencies.