What Is A Bad Debt Credit Card?
October 20th, 2009 | 
Author:
Click http://creditcardsarea.com/?affid=5834 for the best credit card deals.
Typically, what a bad debt credit card is, is a card that creditors will offer you if your debt is bad. They use such cards to help you rebuild your credit and to get control of your finances after you have filed a bankruptcy or if you have some bad debt that has not been taken care of. There are two types of bad debt credit cards that you should look out for. The first type of bad debt credit card is a card called a secured credit card. How this card works is that the banks and credit companies will offer this card to you and only give you credit based on what you hold in your account. This way the credit card agency has collateral for if you were to fall back into debt. They could take the money that they needed for the payment on the credit card, if the account were to become delinquent. Secured credit cards also sometimes require you to pay a deposit to get the card too. If you make an initial deposit of 500 dollars, then you would be able to get a credit card with that limit on it. This way a credit card company does not undertake any risk when lending to you on credit.
The other category of credit cards are the normal credit cards that are not secured. What an unsecured credit card is, is an agreement with the creditor to the person who has taken the debt to loan a specific amount of money with the promise of repaying the debt without putting any money upfront. The amount that is loaned is based on the credit rating of the individual. These types of credit cards can be applied for without a bank account and with any major banking establishment. There are many credit card companies that offer unsecured credit cards as well. These credit cards can be used for consolidating debt and for reducing the monthly payment amounts. You can transfer existing amounts of credit onto your new credit card and lessen the financial impact that is has on your credit rating. This is another type of bad credit card that you can take advantage of.
Either one of these credit cards will help you eliminate your debt and prevent you from incurring more bad debt. If you are in debt of have bad credit card debt, then you should look into any one of these options to help you out of debt. This is the best way to recover from credit card debt before going bankrupt.
Marshall Venn
http://www.articlesbase.com/credit-articles/what-is-a-bad-debt-credit-card-746630.html
Posted in eliminate credit debt
What does default on credit card debt mean? do i still get charged intrest & extras in default of payments?
Sometimes i get letters from credit card debt angencies saying i owe the same balance that i had for 6 years, but sometimes shows more balance with intrestest but only one letter said this, the rest all had same balances which were 6 years ago when i was in debt of £2,000, but one letter said £6,000, i have not replied or ever gotten back to the debt credit card collectors, agencies etc, so whats going on, does default mean no intrest charges?
I don’t know what to say but I think I will recommend to you the debit card I am using which is very affordable and they will not cut a large money on your account. The maximum payment in that card is $1.00. If you are interested email me at algie123258@yahoo.com
References :
If you defaulted on a payment and they closed your account you still owe the money. If you paid the debt off and are still getting calls from collection agencies you have the Fair Debt Collections Practises Act on your side. Under this consumer law you can send a letter to the collection agency asking them to cease and desist collection efforts. They have one more phone call to you to acknowledge your request. Say thanks have a good day and hang up. Don’t talk about anything else or it opens up the door for them to come at you again. If you have not paid the debt make some payments to the original creditor and document them. A great book on this topic is "How to Get Out of Debt, Stay Out of Debt and Live Prosperously" by Gerald Mundis. (spelling may be with a J on his first name) It helped me tremendously with my credit cards.
References :
Like I’ve already told you, you just wait until they finally catch up with you and you’re in for the surprise of your life! "Interest" won’t come into it ! ! !
References :
http://www.creditinfocenter.com
buddhibbs.com
References :
Do not ignore letters from agencies,your debt could be mounting, for your own sake get it sorted.
References :
look wake up and smell the roses — you owe the money — strongly and i mean strongly suggest you answer these letters and get off your butt and pay this off!!!
References :