I am a Chief Credit Strategist for a local Company here in Atlanta. I'm paid to help people clean up their credit. Here is some free information that many people do not know:
**The reason why everyone can't get out of the hole or even refinance is because credit card companies have created an environment where you never get out of debt. No MATTER WHAT YOU DO. This is part of why you can t refinance your homes and your score always stays low.**
Your credit score drops 50-80 points as soon as you charge more than 50% of whatever your limit is. If your limit is $500 and you spend $251 --- your score has dropped at least by 50-80 points.
Those SECURED CREDIT cards that claim to help you clean up your credit are the worst. They give you a $200 limit but by the time the card arrives in the mail the fees (annual fee, service fee) have already charged up on the card to $175.
Your score has already tanked before you get the card out of the mail box.
Stay away from CAPITAL ONE CREDIT CARDS--- THEY DO THE MOST DAMAGE ON TO YOUR CREDIT - even when you pay on time.
(not enough room to tell you why. Google: Capital One Lawsuits)
**People do pay on time: But since they make enormous amounts of money off of the fees. They play games with your payment to make you intentionally late.
You send your payment in by the DATE IT IS DUE. (say 12/22)But the game is -- your payment is DUE at 9:00 AM on 12/22.
The processing center does not get mail until until 1:00 PM.
So, it's designed for you to get that $29 late fee.**
*WE pay the minimum payment and the minimum payment is always less than the fee. All money goes to late fees first - if you send in $25, your late fee is $29. you are still in the hole -$4.00 --- you will always be behind. The computer will show the received money - but it get's posted to the late fee not your balance.*
**BIGGEST GAME OF ALL is UNIVERSAL DEFAULT**
The credit card companies have created a game with your interest rate it WILL NEVER be LOW - YOU NEVER KNOW HOW MUCH YOU ARE PAYING FOR ANYTHING.
YOUR CARD IS DESIGNED TO BE PAID OFF EVERY MONTH. NOT TO CARRY A BALANCE. The interest used to be tax deductable - but congress took away the ability to deduct interest on consumer loans in the early 80's. WHY carry a balance if you can't deduct the interest?
So, the CREDIT CARD Company's have come up with another GAME with your interest RATES -
If you are late with your payment on ANYTHING - another card, your car loan, your mortgage payment, your light bill. ANYTHING.
They deem you a credit risk and with a 2 week notice - change your interest rate. The card you had with a 7% interest rate, now goes to 18%. Poof! You can pay your credit cards on time but if you are ever late on anything- your interest rate will jump, and there is no cap on the interest rate. It can go up to 33% 38% 40%. People never look - they just send in the minimum payment.
THOSE 0% interest rates are designed NOT to stay that way.
The credit card company's have computer programs algorithms and predictive analysis.
They know that 4 things will happen in everyone's life:
1. Job Loss - Layoff
2. Medical Illness
3. Divorce- Marital Issues
As these things occur in your life they know that it will impact your finances - as soon as you are late paying ANY BILL.
YOUR interest rates on your cards go up. 0% today, can go to 38% at any point in time. AND IT HAPPENS EVERYDAY.
WE are too busy watching BRITNEY SPEARS and PARIS HILTON - to pay attention to what is going on in CONGRESS and the CREDIT CARD LOBBYIST.
**UNIVERSAL DEFAULT IS WHY WE NEVER CAN GET OUT OF DEBT.
DESIGNED By THE CREDIT CARD COMPANY'S TO MAKE SURE WE NEVER GET OUT OF DEBT. GOOGLE: UNIVERSAL DEFAULT.**
**Do not carry a balance ---pay your cards down - not off.
DO NOT CLOSE YOUR ACCOUNT --- YOUR SCORE WILL DROP
PAY ALL CARDS DOWN TO $10**
The Credit Card Company's are strong lobbyist, when ever they try to get rid of Universal Default. The Congress - backs down.
There are many reasons why - we can not get out of credit card debt. The items I listed above are parts of the reason why.
Use this link to find out how long it will take to pay your cards off/down:
Remember, this is defined to for you NEVER to GET OUT OF DEBT.
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You must watch this-
Best Christmas Present Ever:
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Freedom and Peace of Mind come from knowing it's one big game.
And they are playing it with your life.
It's okay to have cards. Just DO NOT carry a balance.