A credit card can be a great ally for those who want more convenience, ease to buy online, travel or install large purchases, but pay attention to expenses because it is very easy to lose control, especially when making installment purchases, and to contract a card debt. credit. Last year, 8 out of 10 Americans had credit card debts and this is increasingly common.
Many people are even so concerned that they are developing depression because of debt. If you are part of this group, don’t worry! Everything has away. The important thing is not to get discouraged, to raise your head and get organized to pay off debts and end this problem.
In this post, we will answer several questions and give you some good tips for you to know how to negotiate credit card debt, how to control credit card usage, how to have a dirty name credit card and what to do to end your credit card debts. once for all!
Credit Card Debt Attachment Goods
One of the most popular concerns for those with credit card debt is whether it is possible to lose assets. Yes, it can happen, but there are few cases and each situation can vary according to the size of the debt, your monthly income and what assets you have.
If you or your family own only one property, it cannot be seized
An asset like this is only pledged in debts of the property itself, such as condominium, IPTU, or installments of financing where, in the contract, the property acts as a guarantee of its financing, this is called a fiduciary alienation clause.
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Cars can only be seized if you have more than one
Unless the financing of the same provides for a fiduciary alienation clause, the same with the case of the property mentioned above.
Another common question is whether credit card debt can block your checking account. The answer is: it depends. Things that you use to work, such as small farms, buildings or small farms, or are the result of your work, such as your salary or money saved in savings, are not pledged. If the bank blocks your checking or savings account on its own, it is an abusive action. However, there are two types of account blocking that are allowed:
Judicial blocking: when during the debt process, the judge allows blocking for payment of the debt.
Preventive blocking: if the bank distrusts the origin of the money, it can block it as a security measure and bring it to justice.
Credit Card Debt Expiration
It is quite common to hear people commenting that after 5 years the credit card debt has expired, but that is not true! What happens is that after that period, your name will no longer be on Serasa’s list. So if you are going to borrow from another financial institution after that time, it is possible to get it. But the bank that issued the card you used will still be able to collect the debt. Also, don’t forget that credit card debt can be charged in court and give you a big headache.
For those who always wanted to know how to have a credit card with a dirty name, one option is to have a prepaid credit card, which is nothing more than an account where you put money through a bank slip or transfer and use the balance that is there in “credit” mode. This makes it easy to buy online, as some sites do not process payments with debit cards or payment slips.
Handling Credit Card Debt?
One thing you need to know is that: paying the minimum amount of the card bill is no use and it only worsens your debt!
The first step in solving the problem is to know exactly how much you owe in total, considering all interest and corrections.
After that, a good request is to exchange that debt for a cheaper debt, such as a personal loan, and then contact the bank to negotiate your debt. Remember: paying off your credit card has a discount on the total debt, yes! Just negotiate properly.
Clear Credit Card Debt
As we said before, to pay off card debts and put an end to this headache, you need to go through 3 steps:
1 – Be aware of how much you owe and how much you can pay:
Here it is time to put everything on paper: start by asking the bank for the Total Effective Cost (CET) of your debt, which is the sum of the debt amount plus all interest, fees and taxes. In addition, it is important that you know exactly how many months you owe and the amount of each invoice.
Then, list all your monthly expenses and understand exactly what costs you can cut and how much you can pay monthly to pay off your card debt.
2 – Negotiate the debt:
When negotiating, the main tip is to do it personally. With the eye in the eye, everything is easier. You can ask for a withdrawal of interest or a fine or at least a reduction in interest rates.
Banks always win by charging fees on debts, but there is no point in charging very high fees if debtors will not be able to pay. Therefore, institutions are usually willing to negotiate the debt and this is the moment when you can take the opportunity to reach a fair value, which you can pay.
3 – Apply for a personal loan:
As the interest on the credit card is very high, the best option to pay is to take out a personal loan with low rates and a good payment period, so you pay the debt in cash and pay the loan in soft monthly installments. A great option is the secured home loan, which is among the types of loans with one of the best rates on the market.
To take out a secured home loan, you need to have a registered residential or commercial property or mixed houses, land or unverified lots. In addition, you need to do a simulation and evaluate your property. Then the request goes through a legal analysis and, finally, with everything approved, it is time to sign the contract and go to the registry office! If everything goes well, the money is with you in 10 days.
It seems strange, but exchanging one debt for another is a common practice and, especially, in this case, it may be a good option! With the loan, you can find lower interest rates and get lighter installments. So you clear your name and commit to only an amount you can afford. Know how to Increase Credit Score
Credit Card Debt Explained with Example
Don’t forget: if you decide to continue using your credit card, do so very carefully so you don’t get into debt again.
The best thing at that time is to use the loan to pay off the debt and also make a reserve fund and use that time to reorganize finances, cut costs, save as much as possible and avoid new debt.