Once you’re in their web, then you are financially drained with high interest charges, over-limit fees, late fees, disappearing grace periods, double cycle billing, and every other possible way in which to keep running your bill up. So you end up continuously paying and paying and paying. Not to mention the ongoing harassment over the phone, which make you quiver and dive for cover every time the phone rings. This is known as the “credit treadmill”.

            The average adult American carries around $20,000 in unsecured credit card debt. This is structured by paying the minimal monthly payments that take years to pay off. Pay very close attention to the numbers below, they will reveal to you just how long you’ll end up running on the treadmill. Having charged up now $20,000 in credit card debt if you were to make the standard monthly minimum payments at an 8% interest rate it would take you 259 months to pay off your debt. This is equivalent to 21.5 years, and you would have paid back $7,194 in interest.

            Wow! That’s a very long time, but look what happens if you were to stumble once while on the credit treadmill, the picture looks over 10 times worse. Let’s say you make just one little slip up and miss a payment or two, the credit card company suddenly jacks your interest up to a default rate in the high 20 to 30% range! Using 28% as an example, the same structured monthly minimum payments for $20,000 of debt you were carrying now will take 2,463 months, which is 205 years, and you will pay back $275,117 dollars in interest. The second scenario is right where the banks want you.

            The major credit card companies are slowly bleeding Americans’ wallets to death over the course of their lives. Last year the credit card industry made a mind boggling $17.1 billion in controversial penalty fees alone. This is a ten fold rise in these types of fees over the past decade. In 1980, Americans rang up credit card debt to a staggering $69 billion a year. Now in the past year 2006, American credit card debt is at $1.8 trillion a year, and there is no sign of slowing down.

            Every year millions of Americans end up naively jumping on the credit treadmill. In the beginning, you feel good to have all this credit and think, “it’s no problem because I won’t let this get out of hand.” How could you know what was going to happen though? Even if you read the very tiny fine print on the credit agreement, it is so deceptively written that a Harvard graduate would even have a hard time deciphering its meaning.

If you are on the treadmill and are starting to feel a bit uneasy, or to the point of fear, the best thing would be to speak with a reputable credit counselor or debt manager. But if your concern has turned into fear of loss, such as your personal assets, then it is best to speak with an attorney whom is experienced in negotiating with these credit card companies. 

• Know what the statute of limitations is for the state in which the debt was incurred. If the statute has run, a debt collector has no recourse other than to continue to call you and write letters. You can request they cease & desistf rom further collection activity on the debt, and they are legally bound to do so.
• Understand that if the statute has run and you attempt to negotiate the debt, or make a partial payment, you can restart the clock on the debt, and may end up being sued.
• Keep an eye on your credit report. It's illegal to re-age debts, but it happens. If an old debt does show up on your credit report, you'll need to write to the credit reporting agency to dispute the negative items.
• If the statute of limitations hasn't run, you may want to try to negotiate and settle the debt with the collection agency.

Debt Consolidation Podcast Readers are always asking about debt consolidation programs. What are they and what do you need to know about them?

Debt consolidation programs are usually just a big loan that pays off other smaller loans. They can be very beneficial to borrowers, but these programs also have their pitfalls.

When to Use Debt Consolidation Programs

Debt consolidation programs are good for a few situations. If you are paying several different loans off, your life may be easier if you consolidate everything into one loan. You’ll only get one monthly statement and make one payment.

Also, you’ll find that your monthly debt payments decrease if you use a debt consolidation program that stretches your payments out over a longer period of time. This means that you’ll pay out less each month and you can free up some cash.

A tempting (and sometimes successful) strategy is to use a debt consolidation program to manage various high-rate revolving debts. As an example, you might have numerous credit card balances with high interest rates. With a debt consolidation program, you might be able to get a handle on that debt and lower the interest rate that you’re paying. In general, credit cards have higher rates and secured loans (such home equity loans) have lower rates.

Things to Remember About Debt Consolidation Programs

Using debt consolidation programs can help you or hurt you. You should be very aware that all these programs do is shift your debt – a debt consolidation program does not eliminate your debt. You owe the money and will have to pay it back sooner or later.

One pitfall of a debt consolidation program is that you may feel like you have less outstanding debt. For example, you’ll notice that your credit cards once again have generous amounts of available credit. If you use this credit you’ll only dig yourself into a deeper hole.

You should also be aware that you may end up paying more total interest if you use a debt consolidation loan. If you stretch out your payments over a longer period of time, it is possible that your total interest cost will be higher. Of course, it may be worth it to you if you can more easily manage your cash flow today.

Finally, remember what you’re risking by using one of these programs. Often, you’ll use a home equity loan or a home equity line of credit to consolidate your debt. The consequences of falling off the payment schedule can include the loss of your home in some cases. Credit card companies can’t take your home. However, if you pledge your home as collateral in a debt consolidation program then your house is fair game.

How to Find the Best Debt Consolidation Programs

There are a variety of choices, and you should shop around to find one that fits your needs. If you need some ideas on where to start, try this plan:

Local credit unions or banks that you already have a relationship with. These are reliable sources that are likely to give you a fair deal. Banks that you don’t already have a relationship with. They might offer you a good deal in order to win your business. Mailers offering debt consolidation programs. These lenders already want your business – they’ve mailed you an offer because something about you fits into their desired profile. An internet search for “debt consolidation”. Just be careful and be sure you don’t get scammed. In addition to shopping around, you can ensure that you get the best deal by managing your credit. Loans are hardest to get when you need them the most.

Do you feel like you’ve been sucked into the Black Hole of the Credit Card World? The average America knows the feeling all too well and finds out too late that the ladder to climb out of their hole has been greased by the Credit Card industry and Congress. The Credit Card industry is sucking in thousands of Americans each week, year after year and drains them financially for 30 to 40 years. The fraud that is taken place against all Americans is getting the blind eye treatment by Congress! There is something that can be done, as I will mention later in this article, but first understand how it has happened.

The Big Banks, just like Big Tobacco, start off with the young and innocent. They give them a little taste of the good life by giving them a Credit Card with let’s say a $300 credit limit. So they think, “No big deal, I can manage it, how can hurt me?” Ahh… that would be true if it was only one Credit Card, but just like one potato chip, I bet you can’t just eat one! Many Americans become what I will refer to as “Credit Card junkies.” Just like addicts who stick themselves with a needle full of heroin in their arm, they too thought they could manage it. In pursuit of that elusive great feeling they got from their first Credit Card, sorry I mean fix, their life spirals out of control quickly. Once their name gets on the list, just like the drug pushers on the street these Americans become an easy target. The Credit Card companies start flooding them with tons of mail each week and just like vultures watching and waiting to pick their bones clean.Americans as of 2006 are in 11.5 Trillion dollars of personal debt, which equals $38,765 for every person including babies! You may ask, “How did we get to this point!” The major Credit Card companies with the help of the Central Bank a non-government company aka The Federal Reserve kicked the debt spiral into high gear starting in 1981. During the period of 23 years (1981-2004), as the federal funds interest rate was driven south, from 19% to only 1%,  the total debt ratio exploded upward many times faster than economic growth - - to today's record high 437% ratio.If you feel like you have been sucked into the Black Hole of the Credit Card World, watch this video. Then contact us as soon as you can! Debt Reduction Law Center is the company that can work for you to go after these credit card companies! Boston Legal TV on Credit Card Companies

]]> http://www.debtconsolidationpodcast.com/634/sucked-into-the-black-hole-of-the-credit-card-world/feed/ http://www.debtconsolidationpodcast.com/129/low-rate-debt-consolidation-get-out-of-that-deep-hole-of-debts/ http://www.debtconsolidationpodcast.com/129/low-rate-debt-consolidation-get-out-of-that-deep-hole-of-debts/#comments Thu, 02 Mar 2006 04:56:39 +0000 Debt Consolidation Podcast http://www.debtconsolidationpodcast.com/129/low-rate-debt-consolidation-get-out-of-that-deep-hole-of-debts/ Listen to this Debt Consolidation Podcast article

 

Debt Consolidation Podcast is sponsored by US CONSUMER ADVOCATE.

Debt Consolidation Podcast offers news, articles, and information to avoid bankruptcy. Subscribe right now to our Debt Consolidation Podcast to learn the secrets that you can use every day to become financially independent.

Now let's listen to this weeks feature article.

Low Rate Debt Consolidation - Get out of that Deep Hole of Debts

By Steve C, Clark

Taking out a loan has become a norm nowadays. Many people now take out loans to fulfill their needs. People take out a loan when their needs surpass their income. Many people have multiple credit cards which lead to further indebtedness. Sometimes the rate of interest is so high that it becomes very difficult to repay the loan. When you are unable to pay monthly installments, you are in a severe debt problem.

Debt trap is like a maze – it is very difficult to come out of it. Once you become a victim of a high interest loan, you keep on taking out new loans to repay the old ones. It is often quite difficult to keep track of so many loans and this may lead to bankruptcy.Therefore, you must try and repay your loans instead of declaring yourself bankrupt.

One way to avoid bankruptcy is to avail a low rate debt consolidation . Low rate debt consolidation helps you keep track of your debt. Low rate debt consolidation can help you consolidate your debt.Low rate debt consolidation is basically taking out a new loan to replace your existing loans. The primary aim of low rate debt consolidation is to reduce the interest burden. The rate of interest on a debt consolidation loan is lower than the rate on existing loans and credit card dues. A reduced rate of interest can help you discharge from your loan obligation. Another advantage of low rate debt consolidation is that you have to repay your loan to just one creditor which is much easier than to keep a track of multiple loans.

A low interest debt consolidation can bring sanity back to your life.Your low cost debt consolidation means you have more cash in your pocket.Low rate debt consolidations are also available for people who have a bad credit history .Low rate debt consolidation can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment – one calculated to be well within your means.Low rate debt consolidation can help you pay off your debt sooner. Consolidating your debt reduce your payments simply by having a lower rate. By paying the same monthly payments, you can pay off your debt rapidly..Thus, a low rate debt consolidation can reduce both your interest costs and your monthly repayments, putting you back in control of your life.

Low rate debt consolidation do not reduce the amount you owe. Instead, they lower the interest rate you pay.The whole idea behind refinancing your debt is to lower your monthly bills so you have more money in your pocket at the end of the month. A low rate debt consolidation will give you only one payment per month. designed to fit your monthly budget and take the pressure off your bank account. You may be surprised to find that the time it takes to reduce your outstanding balances is dramatically less than your alternative and could save you thousands.

Steve Clark can tell you how to look better, live better and breathe better by giving you tips to improve your finances.He writes on loans. His ideas can help you rejuvenate your money.To find Secured homeowner loans,bad credit homeowner loans,low rate debt consolidation visit http://www.easyhomeownerloans.co.uk/.     Article Source: http://EzineArticles.com/?expert=Steve_C_Clark

]]> http://www.debtconsolidationpodcast.com/129/low-rate-debt-consolidation-get-out-of-that-deep-hole-of-debts/feed/ http://www.debtconsolidationpodcast.com/105/how-to-eliminate-credit-card-debt/ http://www.debtconsolidationpodcast.com/105/how-to-eliminate-credit-card-debt/#comments Fri, 27 Jan 2006 02:34:46 +0000 Debt Consolidation Podcast http://www.debtconsolidationpodcast.com/105/how-to-eliminate-credit-card-debt/ Listen to this article Debt Consolidation Podcast is sponsored by US Consumer Advocate. Debt Consolidation Podcast offers news, articles, and information to avoid bankruptcy. How To Eliminate Credit Card Debt (c) Noel Hynes, 2004 There is almost nothing more troublesome than having too much debt to pay each month. Consumers incur debt for many different reasons. Sometimes illness, accidents, or just bad luck can make it seem impossible to get finances under control. Other times it is simply because we spend more money than we earn. The first step toward taking control of your financial situation is to learn how to eliminate your credit card debt. Develop a budget. Start by listing all sources of income. First list fixed expenses such as mortgage payments, insurance premiums, and auto loans. Next, list the expenses that vary from month to month such as utility bills, recreation and clothing. If there is any hope of controlling your credit card debt you must create and stick to a budget. There are different kinds of debts. Mortgages and auto loans are debts secured by collateral. In the event of default on a secured debt, a lender may foreclose on your home or repossess your car. Unsecured debts are loans with no collateral and often have variable interest rates and are assessed a fee for late payments. In the event of default on an unsecured debt a lender may report to a credit-reporting agency, contact the debtor repeatedly by mail or telephone, and in general make life miserable for those who find themselves in financial trouble. If you are among the millions who have found themselves in a financial crisis, consider your options - budgeting, debt consolidation, or bankruptcy. Which works best for you? It depends on your level of self-discipline, how much debt you have, and your future financial prospects. While eliminating debt may seem next to impossible, your life does not have to go from bad to worse. Self-help may be the easiest, cheapest way to eliminate debt. First, stop charging now. Incurring more debt will only compound the problem. Make a list of all your credit card bills starting with the smallest. Pay as much above the minimum payment as you can afford on the card with the lowest balance. Continue until this debt is paid in full, and then proceed to the next card. Systematically paying off your credit cards one by one will reduce your debts dramatically. The fastest way to eliminate credit card debt is to put every penny you can towards paying off your credit cards. Do not underestimate the effect an extra five or ten dollars paid repeatedly over time can have on eliminating debt. You may be able to reduce the amount of your combined monthly payments and lower the interest rate by obtaining a home equity line of credit or a second mortgage. Think carefully before taking this route. Your home becomes collateral with these loans. If you make late payments or miss payments you could lose your home. These types of loans may provide certain tax advantages but the fees can really add up. The same goes for debt consolidation. You eliminate or reduce interest rates and the amount of your monthly payments, but the length of the contract and the fees can be more than your original debt. As a last resort, bankruptcy could be considered. A bankruptcy remains on your credit report for 10 years, making it difficult to obtain credit, get life insurance, or buy a home. However, it can be a fresh start for those who cannot otherwise satisfy their debts. Noel Hynes is the owner of http://1st-for-credit-cards.com

]]> http://www.debtconsolidationpodcast.com/105/how-to-eliminate-credit-card-debt/feed/ http://www.debtconsolidationpodcast.com/58/an-overview-of-student-loan-debt-consolidation/ http://www.debtconsolidationpodcast.com/58/an-overview-of-student-loan-debt-consolidation/#comments Wed, 04 Jan 2006 02:57:22 +0000 Debt Consolidation Podcast http://www.debtconsolidationpodcast.com/58/an-overview-of-student-loan-debt-consolidation/ Listen to this article

An Overview of Student Loan Debt Consolidation By Angela Rogers.

Debt Consolidation Podcast is sponsored by Debt Reduction Law Center. Debt Consolidation Podcast offers news, articles, and information to avoid bankruptcy.

Now on to our featured podcast article of the week.

A student loan debt consolidation loan allows you to combine your federal student loans into a single loan with one monthly payment. The repayments of a student loan debt consolidation loan can be significantly lower than the payment required under the standard 10-year repayment option. Under the Federal Family Education Loan (FFEL) Program, banks, secondary markets, credit unions, and other lenders provide the student loan debt consolidation loan. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government provides the student loan debt consolidation loan.

Most federal education loans are eligible for inclusion in a student loan debt consolidation loan, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. However, private education loans are not eligible for inclusion in a student loan debt consolidation loan.

To find out which loans can be included in a student loan debt consolidation loan contact the Direct Loan Origination Center's Consolidation Department if you’re applying for a direct student loan debt consolidation loan. Contact a participating FFEL lender if you’re applying for a FFEL student loan debt consolidation loan.

It is worth noting that you are still eligible for a student loan debt consolidation loan after you graduate, leave school, or drop below half-time enrollment. You can also get a student loan debt consolidation loan while you're in school. You must, however, be attending at least half time and have at least one Direct Loan or FFEL in an ‘in-school period’ which generally means that you have been continuously enrolled at least half time since the loan was disbursed. There are a number of conditions that need to be met for you to qualify for a student loan debt consolidation loan, especially if you are delinquent or in default and your loan holder will be able to give you all the necessary information.

If the same holder holds all the FFEL loans you want to consolidate, you must obtain the student loan debt consolidation loan from that holder, unless you haven't been able to get a loan with income-sensitive repayment terms that are acceptable to you. To be eligible for a William D. Ford direct student loan debt consolidation loan, you must have either a direct Stafford subsidized or unsubsidized loan that will be included in the student loan debt consolidation loan or have at least one Federal Family Education Loan (FFEL) program Stafford subsidized or unsubsidized loan.

Angela Rogers is the editor for http://www.debt-helper.info - Your guide to debt help and debt consolidation.

Article Source: http://EzineArticles.com/?expert=Angela_Rogers

You can hear more podcasts articles by clicking our debt consolidation podcast category located in the right sidebar.

Have a Great Day and visit us again soon!

]]> http://www.debtconsolidationpodcast.com/58/an-overview-of-student-loan-debt-consolidation/feed/ http://www.debtconsolidationpodcast.com/23/credit-counselor-vs-debt-settlement-lawyer/ http://www.debtconsolidationpodcast.com/23/credit-counselor-vs-debt-settlement-lawyer/#comments Wed, 21 Dec 2005 05:44:04 +0000 Debt Consolidation Podcast http://www.debtconsolidationpodcast.com/23/credit-counselor-vs-debt-settlement-lawyer/ Listen to this article

The average American is a mere three paychecks away from facing huge, potentially devastating financial difficulty. Each year, more than a million Americans turn to credit counselors to try to help themselves regain control of their financial burdens. But just how the credit counseling business works is a mystery to most consumers. What's involved when you hire a credit counselor?

Regardless of what their commercials would have you believe, credit counselors don't renegotiate the overall amount of your debt–that is, the total principal balance you owe to your creditors. Instead, they negotiate with the various lenders to decrease your interest rates. For instance, let's say that you're paying somewhere around 18 percent on the charge card you want help with (some stores still charge as much as 21 percent). A credit counselor will contact the cardholder and negotiate a lower interest rate–sometimes as much as half the original rate.

If you are looking to renegotiate the overall amount of your debt, debt settlement is the route for you.

A reputable debt settlement lawyer offers many wonderful services including assistance from a certified counselor who will help you create a personalized budget and possibly a debt management plan; working with creditors to eliminate interest, finance charges, late payment penalties, and other types of fees; distributing payments to each of your creditors enrolled in your settlement; and, most importantly, giving you lots of free educational materials.

Next week we will offer our first podcast with lots of debt consolidation and debt settlement information sponsored by Debt Reduction Law Center

]]> http://www.debtconsolidationpodcast.com/23/credit-counselor-vs-debt-settlement-lawyer/feed/ http://www.debtconsolidationpodcast.com/20/podcasting/ http://www.debtconsolidationpodcast.com/20/podcasting/#comments Wed, 21 Dec 2005 04:31:36 +0000 Debt Consolidation Podcast http://www.debtconsolidationpodcast.com/20/podcasting/ Listen to this article

Podcasting is a term used to describe a group of technologies for distributing audio or video programs over the Internet using a publisher/subscriber model. It differs from earlier online delivery because it automates the transfer of digital media files to the user's computer for later use. Podcasting enables independent producers to create self-published, syndicated "shows," and gives broadcast radio or television programs a new distribution method. Subscribing to podcasts allows users to collect individual programs from a variety of sources for listening or viewing at the user's convenience. In contrast, traditional broadcasting provides only one source at a time, and the time is broadcaster-specified. "Streaming" media files from the Internet removes the specified-time restriction, but is still limited to a single source. "Aggregating" programs from multiple sources is a major part of the attraction of podcast-listening.

Any digital audio player or computer with audio-playing software can play podcasts. From the earliest RSS-enclosure tests in 2000 and 2001, feeds have been used to deliver video files as well as audio, and other media such as photographs and text are transferable by podcast. The term "cast," however, still refers largely to audio distribution.

Podcasting's essence is all about creating content (audio or video) for an audience that wants to listen when they want, where they want, and how they want.

]]> http://www.debtconsolidationpodcast.com/20/podcasting/feed/ http://www.debtconsolidationpodcast.com/3/debt-consolidation-podcast/ http://www.debtconsolidationpodcast.com/3/debt-consolidation-podcast/#comments Wed, 14 Dec 2005 23:00:06 +0000 Debt Consolidation Podcast http://www.debtconsolidationpodcast.com/3/debt-consolidation-podcast/ Welcome to our new website at Debt Consolidation Podcast.

We are excited to offer you a new community related to your financial health.

Please apply to become a member of our debt consolidation fourm so we may help answer your questions.

Thank you , Debt Reduction Law Center

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