Credit repair yourself involves putting the brakes on runaway credit card debt. Stacy T. of Detroit, MI, spent herself into deep credit card doo-doo!
…to the tune of $36,798.00 in debt on 12 different cards!
That’s $36,798.00 in credit card debt! Ouch!
What, you’re wondering how Stacy, a Realtor, could get her hands on 12 cards? Easy! Start with one card, use it responsibly and soon these dumb-ass banks will stumble over each other to send you any kind of card you want.
They’ll Hand Out Cards To Anyone With a Pulse!
Without asking, they even will send cards to your dog Fido, your 7-year-old son Max & the neighbor’s cat that suns itself outside your front door.
It’s true! And they’re happy to increase your credit limit too. What’s that, you think that “easy credit” door has slammed shut?
With some credit, yes, you’re 100% accurate. With credit cards, the banks continue to flood many people’s mailboxes with offers. Just today in the mail, I shredded three different card offers.
And tomorrow, I’ll shred 2-3 more…and so on the next day…and the next…..
Oops, Stacy’s plastic parade came to a screeching halt when the housing market tanked while her credit debt soared. When she dialed FixMyUglyCredit-911, she desperately needed critical care beginning with these 7 secrets to recovering from massive credit card debt….
THE 7 SECRETS
Secret #1: Low-interest TEASER rates simply tease and torture you!
In the small (really small) print you didn’t read (and wouldn’t have read even if it were in big bold letters), those sneaky credit card issuers tease you with 0% interest rates that (after the promotional period) will adjust to 12.99%.
Worse, if at any time your payment is received late twice in any six-month period, the rate will adjust to 19.99% or higher. Stacy had been playing & losing the “balance transfer” game.
Payne Says: Unless absolutely necessary, stop transferring one balance to a different card.
Secret #2: Filling out a bunch of credit applications KILLS your credit scores!
The solution here is simple: Don’t fill out all of those “pre-approved” unsolicited credit card applications. Be aware of your potential debt… do your homework, check out the deals, and only apply for the cards you need and for which you know you can get approved.
By the way, don’t listen to the people who insist the Fair, Isaac algorithm factors in multiple applications submitted in a short period as a sign you’re shopping for credit, i.e. mortgage, car loan, etc.
Not so. Every one of those credit applications you fill out for whatever reason (i.e. free BBQ set of tools or electric toothbrush or 20% off your first purchase with the card) takes a piece away from your credit scores. Piece by piece (application by application), your FICO scores drop!
Payne Says: Stop filling out credit apps! Put the pen down and move away from the credit app.
Secret #3: Credit card companies want you to pay as little as possible each month.
Of course, the banks rake in billions off your minimum payments + exhorbitant interest payments. They LOVE you for making the minimum each month. If I showed you a chart of just how wrong it is (in so many ways) for you to pay only the minium, you’d break down & cry right here.
Therefore, I’m not going to say any more about it. I can’t handle it when you cry. It tears me up. On this one, take my word. Get this credit debt paid down and stop making minimum payments.
Payne Says: When you stop making minimum payments, you no longer will get a Christmas card from your credit card issuer L This is the sad reality.
Secret #4: Your credit card may not have any grace period at all.
Most credit cards give you 25 days before charging you interest if you’re not carrying any unpaid balance; some give you 30 days. But here’s what you really need to look out for: Others have cut back to 20 or even 15 days, and a few have NO GRACE PERIOD at all, charging you interest all the time on anything that you buy.
Payne Says: Check the small print and choose the longest grace period that you can find, typically 25 days. Never go with a credit card that doesn’t allow any grace period. Don’t do it…I’m watching you 
Secret #5: Late-payment fees may not be the only ones you’re paying.
OMG! In this economic collapse, the banks want your first-born and your tax dollars to bail them out of their stupidity.
But they also want to slip in new FEES that they dare you notice such as the following:
- Fees for closing your account
- Inactivity fees for failing to use a card for a period of time (such as six months or a year)
- An inactivity fee for not carrying a balance (If your card does this, cut it up immediately.)
- Over-limit fees if you charge more than your pre-set credit limit
- Transaction fees each time that you use your card
Payne Says: At this time, I easily could launch in to a tirade over bank account fees….and boy are they hammering us with (new) fees. Be viligant about ANY fee you see on a statement. Challenge every single fee…politely and assertively. It’s YOUR money. Don’t give them any more than you have to.
Secret #6: Do not fall for the credit card company’s invitation for you to ‘skip-a-payment’.
You’re familiar with these, right? Your credit card company around Christmas sends you this warm and fuzzy letter offering to allow you to skip your next payment…in the spirit of the holidays, right?
But, shocking as this may be, they’re not letting you skip a payment because they like you. They’re doing it because the want your money! What they bury in that letter is that you still owe interest – every penny of it – on that money even when you skip a payment. Sneaky, huh?
Secret #7: Do not stand for a high interest rate, especially if you’re a good customer!
Credit companies spend BIG bucks to find new customers . . . so good clients have considerable leverage. You want to use that leverage to your advantage.
IF you are a good customer (paying your bills on time), call your card issuer and negotiate a lower interest rate and waive that ridiculous annual fee. The company knows that you can always transfer the balance to a card with a lower interest rate and tear up the card with the high rates. It costs credit card companies money to replace you as a customer. There are cards with 6%, 7%, 8%, 9% interest rates, and if your credit is good you should be able to get one.
Payne Says: Ask. Believe. Receive. This is the main thinking behind The Secret—and it works!
With credit repair yourself, this is how Stacy reined in her out-of-control credit card debt. Does it amaze you (in a scary way) that a person can rack up over $36,000 in card debt? What’s one tip you’ve discovered along the way for controlling credit cards?
Pleeeeease, do not say, “Cut up those damn cards!” If people think they must cut up their cards in order to stop the spending, then I’d prefer you suggest they cut off their right or left hand.
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YES, it’s called personal responsibility! I received many emails about this post…. Cutting up cards is STUPID for many reasons. While cutting up cards, you also are destroying credit history, if such history exists.
Even if it’s “bad credit” history, it’s history. And bad history still is better than no history.
Please leave your comments here at the blog. Please don’t email me. I want others to join the conversation.
Nonetheless, I stand by my position on personal responsibility. Whether it’s out-of-control spending or eating or whatever, STOP doing it. C’mon, you do NOT need to throw the cake out or cut up the cards.
Show a little self-control by looking at something beyond immediate gratification.
Mike
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