Fixing credit card debt problems - Part 3

10. LAST RESORT BANKRUPTCY

This really only works to your advantage IF you don't own real estate, shares, etc. IF you own property you may be forced to sell it all up when you go bankrupt. The period of your bankruptcy in Australia is generally three years but they can extend this if they believe you have not made a genuine effort to satisfy your creditors BUT it does stop the generally unpleasant bill collectors dead in their tracks.

There is a permanent record kept of your bankruptcy called the National Personal Insolvency Index which people can access on the payment of a fee. There are some restrictions on what you can do during the three year period but you can get full details on this online - just Google in "bankruptcy".

Remember too that during the three year period your creditors are able to take and sell any assets you acquire INCLUDING any inheritances and, strictly speaking, you won't be able to hold a job that involves dealing with money.

By the way, bankruptcy does not always solve the problem. If you are a compulsive spender / big noter / show off, you will be back in the same situation shortly after the bankruptcy period expires - so what's the point? Solve the underlying problems first for a long lasting solution problem to credit card debt.

11. AVOIDING BANKRUPTCY

The best way is through debt consolidation loans. Then making a genuine change in your lifestyle patterns and getting your debt consolidation loan paid off as soon as possible. There are companies that work on your behalf to arrange Debt Agreements between yourself and the credit card companies and others you owe money to. They freeze the interest owed on all your debts (a killer in the whole process) and it will then take, on average, three to four years to pay the whole lot off. It does, again, stop the debt collector in their tracks.

One of the pitfalls, and yes, there are pitfalls (they don't do this for the fun of it) is that if you default on one of the arranged payments, they then will often advise you to go bankrupt anyway and then you will have paid them their fee for two fifths of three quarters of nothing.

Many Australian companies advertise their services - yes, they make money out of you as well, but not as much as the credit card companies, and you get peace of mind to boot. But, you MUST make the payments you agree to or it is a waste of time and only a fool wastes time.

12. RE-ESTABLISH YOUR CREDIT RATING AFTER THE "BIG BUST".

This is really quite a simple affair as the credit card companies can hardly wait to get you in their clutches again. Pay all your phone and telephone bills and rent etc right on time for 6 to twelve months and then go to someone like Radio Rentals and rent a TV for 6 months (whether you need it or not). Pay this every month on time and then you have them for a credit reference in the future.

Do this with a few small store accounts and your credit rating will soon be back up to A+. But of course this time you will be in control of your credit card debt addiction and be able to control it with the value of hard earned hindsight. won't you? If you do take on a new credit card, do the following:

•  Get one credit card only
•  Find one with the lowest interest rate and fees
•  Choose a low credit limit
•  Pay out the entire monthly balance each month so that you don’t incur interest charges

13. IF YOU ARE IN A RELATIONSHIP

If you are in a relationship/family situation, everyone has to be 100% committed to getting out of credit card debt. They all must be rowing in the same direction or a) it won't work and b) it WILL lead to very large arguments as you will justifiably feel that you are the only one who's rowing the debt boat and they are just there for the free ride. Make sure you have everyone else committed to doing the same thing BEFORE you start your get debt free journey.

14. IN GENERAL

People in general ALWAYS TEND TO think that the "good life" is always on the VERY next level up to where they personally exist AT THE MOMENT.

So does having stacks of money (and "stuff") make you happy or is it having more money than the next person what makes you happier? 

Perhaps out of our primeval past comes the urge to show that we're better than others. 100,000 years ago, it would have given us happiness to have more animal skins than the troglodyte in the next cave. This would of course help ensure mating prospects, which would keep our genetic lines going.

This is not to say there is something strange or peculiar about measuring our success with money.

US President Theodore Roosevelt was a pretty smart dude. His words: "happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.”

Thanks to http://creditcarddebtproblems.com.au/ for this information

Fixing credit card debt problems - Part 2

5. HOW MUCH DO YOU REALLY OWE?

Total the money you spend each month paying off those credit cards - wow - wouldn't it be great to have that fun amount to play with every month. Well that's what you will have once you get rid of that accursed debt. Be single minded about this.

Think of all the good things you and your family could do once a little bit of time passes AFTER you pay off those accursed things. And you could pay cash for them - not value plus 18 to 22%. Other people do this so why can't you?

6. WARNING SIGNS OF TOO MUCH CREDIT CARD DEBT: 

a) You don't even know how much credit card debt you are in.

b) You have at least one credit card that is at or over the limit

c) You only make the minimum payment each month on the credit cards

d) You believe you are only one good Lotto win from fixing it all up

e) You use cash advances to sustain your lifestyle

f) You lie to friends and family about your debt or, MORE IMPORTANTLY, you lie to yourself about it.
g) Your credit cards are more than 70% of their credit card limit

7. ASK FOR A LOWER INTEREST RATE ON CREDIT CARDS

Grab a bill from any account charging you more than, say, 14% interest. Dial the toll-free number on the bill and ask to have your rate reduced -- say, to 11%. Tell them that you'd really like to stay with them out of customer loyalty (embellish according to your acting skills), but that you have received offers for much-lower-rate or interest free transfer debt cards.

Expect to be made to feel very uncomfortable, but stand firm and remember that, to them, you are both a customer and a cash cow. That's right - you are their profit centre and if they can't stop dipping in to your pocket every month. they go broke as well. And they don't want now do they? Gosh, how would they ever keep up the golf club memberships?

You also stand to save a bundle. Remember the more calls you make, the more persuasive you'll become and the better you will become at this game. And don't think to yourself, "oh I could never pull that off", you would be amazed how many people do. And they are people just like you. And yes It does work. Just like sex, once you do it the first time it kind of comes naturally.

If you never ring them and ask, you'll never know what they would have said! And what's the worst possible outcome from the credit card company? So they say no.

8. REDUCE THE CREDIT CARD LIMITS

As you pay down the amount owing on each credit card, make a point of reducing the limit to match the amount owed as it gets less and less. In that way, you will not be able to book up more debt on the cards.

Yes, it a pain in the proverbial doing this on a regular basis but as you do it, you will come to realise just how much in debt you are and how much these credit card companies have been taking advantage of your credit addiction to feather their own well lined corporate nests.

9. REMEMBER THIS ABOUT CREDIT CARD DEBT

One of the smartest moves you can make is to tell the credit card companies involved that you are in strife and need help. The last thing they want to do is have to deal with other Australian companies that do Debt Relief Management Agreements or the Official Receiver In Bankruptcy. Those are bad options for any credit card company with only the certainty of loss as a result for them and they will generally go out of their way to help you overcome your problems as there is then still some chance of profit.

Ring them up and tell them if you really are at the desperation/no possible other options stage.

Thanks to http://creditcarddebtproblems.com.au/ for this information