How fitting is it that the banks now are dropping their overdraft fees in what we would call excessive and overwhelming to the client. Doesn’t matter what the fees were or will be, just note it was absurd that if you overdrew your account by $.01 they charged you roughly $35 bucks in fees. How absurd? Pity party for the financial institutions. What do they do to make up for that lost revenue- you guessed- it increase interest rates on credit cards. Well, we dont have to be a genius to think that if someone overdrew an account it could be 1 of 2 reasons 1. simple mistake 2. dont have money in their account (which then becomes a legal situation as you cant write a check if money isnt available) so, lets stay with scenario 2. These individuals obviously will not be able to afford their credit card and now with 10% higher rates, I say who cares about the bank. Do what’s in your best interest Mr./Mrs. client– SETTLE YOUR DEBT. Contact SYD today at 866 364-9161
Posts Tagged ‘Credit Card Debt’
Overdraft Fees
Wednesday, September 23rd, 2009Market Rally is for Suckers
Monday, September 21st, 2009Well the S&P is up 56% since 3/9/09 and Mr Bernanke is saying the recession is over. Go for it cash back into the market, increase 401k contributions, hmm even plan a vacation. Be Leery!!! have we seen corporate profits rebound, consumer spending, and an active credit market. NOPE- suckers rally.
Banks have been rescued not our economy
Corporate profits have risen from cost custting not increased sales
Banks are not lending to consumers or small business
Unemployment is still pushing higher
Institutions are investing shall we say wisely- trap for the consumers as we tend to follow whats hot.
Cash for Clunkers and 1st time homeowners relief cmon now.
As you can see we are not ready to rebound from the depths of hell. With no economic recovery in sight it is time to utilize what SYD Financial has to offer. SYD can help you relieve yourself of debt and protect your assets by using the features of tax deferred fixed annuities. Do you want to preserve your nest egg for your family ask SYD about their insurance programs.
In summary read what you want, beleive what you see but understand the articles we read in the papers are smoke and mirrors to make us believe we are heading in the right direction. its all about being cyclical and the time is here to settle debts. Contact SYD
Act now
Friday, September 18th, 2009For those of you out there it is imperative to look to negotiate your credit card debt. You ask why? Banks and creditors are in the right place now to get what they can from us the settlement companies. It is rumored to be true that in just a few short months and extending for a period of 5 years that the commercial mortgage industry is going to implode. Banks and financial institutions are going to look to other ways to recoup monies lost or never to be received. You the credit card holder will be directly impacted. Act now and Call SYD Financial for their analysis and guidance.
Bank of America, Citigroup, Credit Card Defaults Soar To New Highs
Wednesday, September 16th, 2009Last month’s improvements in credit card defaults appears to be an outlier. Credit card defaults have resumed their natural tendency to track rising unemployment.
Inquiring minds are reading U.S. credit card defaults up, signal consumer stress.
Bank of America Corp and Citigroup Inc customers defaulted on their credit card debts in August at the highest rates since the onset of the recession, a sign that the banks’ consumer lending woes are far from over.
“The defaults are a wake-up call for those expecting a V-shaped recovery,” said Elliot Spar, options market strategist at Stifel Nicolaus & Co.
Bank of America said its charge off-rate — loans the company does not expect to be repaid — rose to 14.54 percent in August from 13.81 percent in July.
Citigroup, the largest issuer of MasterCard-branded credit cards, said its charge-off rate rose to 12.14 percent in August from 10.03 percent in July.
The charge-off rates for both Citi and Bank of America, two of the biggest recipients of U.S. government bailouts, were the highest yet during the financial crisis.
JPMorgan Chase & Co, the largest issuer of Visa-branded credit cards, said its charge-off rate rose to 8.73 percent from 7.92 percent, while smaller Discover Financial Services said its rate rose to 9.16 percent from 8.43 percent.
American Express Co’s default rate fell to 8.5 percent from 8.9 percent as the company increased its lending portfolio.
JPMorgan, Discover and Capital One Financial Corp reported late payments on credit cards — an indicator of future defaults — rose in August after several monthly declines.
As credit card losses rose to record highs in recent months, credit card companies closed millions of accounts, trimmed lending limits and slashed rewards.
Lenders are also raising fees and interest rates ahead of a new law that increases protection for consumers. The law is expected to shrink the industry and limit subprime borrowers’ access to plastic money.
Unemployment is likely to rise for another year, then flatten out so it is likely that card defaults keep rising for quite some time.
Rising fees will make up some of the difference. However, the millions of closed accounts and reduced minimums will curtail consumer spending going forward. That is a good thing as well as part of the healing process. Yet, along with secular changes in consumer attitudes, curtailed credit does portend weak earnings growth across the board for a wide array of companies.
Debt Settlement Providing Great Debt Relief To Consumers
Wednesday, September 16th, 2009As U.S. consumers cope with large amounts of debt and seek out good, proven methods for relieving this debt, one program has demonstrated its debt relief ability above all others, and this program is known as debt settlement.
(News4Press.com) Chicago, Illinois September 15, 2009 — Debt Settlement – the meaning of this program can be sort of mysterious to many. But what the program is and how it works is really a thing of beauty. But the question has be asked – why is there such an interest these days in debt relief? How did we arrive at this point?
As has been said in the past quite rightly – it’s the economy. We live in a global marketplace now. There is simply no denying this fact. And when one local, regional, or national economy falters it can have a domino effect on other economies of the world. And this is what has taken place.
The interest in debt settlement today stems from the fact that as consumer spending slowed, employers were quick slash payrolls. As jobs were lost, consumer spending slowed even more dramatically. Couple this fact with homes whose values have plummeted during this same time period, and credit card companies who have been raising rates and fees – and you have the perfect recipe for financial stress and duress. And this is what has occurred.
Debt settlement is of such great interest today because consumers are being hammered on many fronts today. They’ve heard of bankruptcy, but have doubts and questions about whether it really is the right thing to do – or does it do more harm than good (the latter is actually and factually the case).
Bankruptcy has many negative consequences, including: the virtual destruction/implosion (any harsh metaphor could be used here, as the devastation to the filer’s credit score cannot be emphasized enough), the inability to obtain future credit for a long period of time, the inability to rent an apartment in one’s own name, the very real possibility of being passed over for a job, as more employers are doing credit checks as part of their routine screening process for job applicants, and being required to pay hefty deposits for new home utility service in the future.
Debt settlement on the other hand is able to achieve enormous amounts of debt reduction and debt elimination without all the harsh consequences of bankruptcy. Debt settlement can in fact typically achieve a 50% – 75% debt reduction instantly, right off the bat. Think about that for a moment – having your credit card debt ELIMINATED by up to 75%! This is the beauty of debt settlement.
SYD Financial offers consumers a free debt evaluation which they can take advantage of at their website as listed below.
SYD Financial’s debt management professionals educate consumers on all the options available to them to get out of debt. SYD Financial helps consumers make the most informed decision possible so that they may get their financial lives back on track.
SYD’s Vision
Monday, September 14th, 2009Debt settlement is a program in which SYD Financial offers their expertise in allowing our clients to settle unsecured credit card debt. SYD takes a proactive approach in their negotiating tactics. SYD will advise you on how to handle your creditors and or collection agents. Understand that SYD works in the best interest of you our client. Debt Settlement is a booming industry and SYD knows the ins and outs of getting your debt settled.
What To Do With High Credit Card Debt
Thursday, September 10th, 2009Many people are using credit cards to pay for their day to day needs and wants. Unfortunately, all those little purchases add up very fast and lead to high credit card debt. What happens when you realize that you cannot afford to make your monthly payments anymore, and fear that you may have to file bankruptcy? Do you wonder if there are any other options?
Look no further than credit card debt settlement. This is a wonderful option for people who have nowhere else to turn for financial assistance. The perfect candidate for this kind of settlement is someone who is in extreme credit card debt. They may be three to six months behind in their monthly payments and know they will keep getting behind if something is not done.
What is debt settlement, you may ask? It is where you can legally reduce your debt from sometimes 35% to 60%. Debt settlement companies will ask that the creditor forgive the rest of your debt and report it as settled to credit companies. With this option, you can sometimes be debt free in as little as 2 years!
The company of your choice will usually predetermine an amount of time for you to save up enough money so they can offer a lump sum to your creditor. The lender does not want you to file bankruptcy; they want to take whatever they can get. It is a much better option to go through a settlement company, as opposed to trying to do this yourself. There is less chance of legal action being taken against you. The settlement companies have built up a relationship with many lenders that will make the process much easier.
Some of the benefits of this option when you are in major credit card debt are that you can get lower monthly payments; you only pay one company, and stop the collection calls. You will also get lower interest rates. Hopefully, if you are indebted to someone, you will look into this option.
Here is another tip. By researching and comparing the best credit card debt settlement services in the market, you will be able to determine the one that meets your specific financial situation. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned credit card debt advisor and money by getting better results in a shorter span of time.
Credit Card Debt, What is the Answer?
Tuesday, September 8th, 2009Credit Card Debt – What is the answer? by Dan Maurer
Credit card debt has been an ongoing problem ever since the credit card was created in 1950. People were going into debt at an astounding rate. It wasn’t very long before the people were in so much debt that they couldn’t possibly pay it all back.
The federal government noticed that Americans were in over their heads. So they invented a plan and called it ‘Credit Counseling’. Credit counseling was created as a means for the average American to find out what steps he could take in order to relieve his debt. The credit counseling companies were supposed to set up a payback plan that would get the average American out of debt within 10-15 years. This plan failed miserably.
Nobody has ever gotten out of debt using a credit counseling plan. In fact, those that joined the plan found themselves in the same amount of debt 10 years later. Credit counseling had failed. So the federal government steps in again.
The federal government paved the way for debt consolidation companies to join the mix. Debt consolidation allows you to take out a loan, using your equity, to join all of your debt into one lump-sum loan with one payment. Sounds great right? WRONG!
Debt consolidation allows you to take out a loan against your equity to pay for a non-equity debt. Sounds great at first, until you miss a payment. Now you’ve lost your house. You used your credit cards to buy non-equity items, and now you’ve lost your equity to pay these things off. You’ve given everything you had to become debt-free, and now you have nothing, but your debt still exists.
The debt problem in America is ongoing to this day, and has gradually gotten worse. It seems that nobody has a way to help. It seems that nobody is able to clear your debt. And now, with the new bankruptcy laws in place, you are in even more trouble trying to become debt-free. So what is the answer?
DEBT SETTLEMENT! You have the option of choosing a debt settlement company to settle your debts for you. This option provides debt relief like no other program can. Instead of paying 100% of your debt total and running the risk of losing your equity, you can now pay about half that amount and not have to worry about the difference.
Credit card companies are very aware of the debt problem in America. They know that nobody is able to pay back these debt accounts. They also realize that if they don’t collect any money, then they will go broke. They need to be able to collect payments to stay in business. With the debt problem being so big, they have to take a few cuts in order to help resolve the problem.
Debt settlement companies settle your unsecured debt (credit card debt) for a fraction of the total debt amount. For example, if you owe $20,000 to a creditor, then a debt settlement company will offer $10,000 to pay that debt off without owing the other $10,000.
Credit card companies are reluctant to take this type of offer if they think that they can collect the whole amount. They use ’scare tactics’ to try to get consumers to pay in full. They will threaten to take your house, your car, your kids, and garnish your wages. These are all smoke and mirror threats, but they don’t want you to know that.
A debt settlement company intervenes and works directly with the creditors, taking the calls for you. They are not scared by these tactics, and they know how to respond to them. That is how they are able to settle your debt for a fraction of the debt amount.
If you need to contact a debt settlement company that will fight for your right to become debt-free, then see www.sydfinancial.com for more information
Getting Out Of Debt and Managing Your Current Debt
Wednesday, September 2nd, 2009It is not easy to think about managing your debt when there seems to be no end in sight or any remedy available to help. Perhaps the best way to deal with that is to design your own budget and payment plan that ensures you will pay off your debt within a specific time frame. Unfortunately this approach rarely works for people with serious debt problems. Often the only way to put a stop to the debt spiral is to use one of the more common debt management strategies.
Debt consolidation
Credit counseling
Debt settlement
While these approaches can help you pay off your existing debts they won’t necessarily help you avoid getting back in debt. The strategy you choose depends on the amount of debt and urgency of your financial situation. Filing bankruptcy is a legal proceeding that has gained popularity recently. Once reserved for the most extreme debt situations, bankruptcy and personal bankruptcy have reached epidemic proportions in many states. If you have tried conventional approaches to getting out of debt then it might be best for you to consider bankruptcy. Remember bankruptcy should be used as a last resort.
The spiral of debt is often reborn after managing or paying off debt. Once you settle your debts, you can prevent future debt by tracking your spending and following a monthly budget that prevents you from spending more than you earn more that you can afford.
This is where the rubber meets the road for many people. Living in debt or living beyond your means becomes a way of life. This culture and its philosophy is often born with your first new credit card, usually around your 18th birthday. Credit card companies insist through their advertisements that your life will be better, especially if you buy the things you’ve always wanted and that you deserved with a credit card. That simple strategy in advertising unfortunately loops in many people to an introduction to debt.
If you have spent a number of years living the life of a credit card abuser or a personal loan abuser you can expect the challenge of living without credit cards to be significant. If you are married it will take a total commitment to living debt free. If you are single it may be even more difficult. We have talked with many people in their 50s who have gone through several debt spirals. The cycle of debt is vicious and relentless. Use caution when you get a handle on your debt not to get back in.
Obviously debt problems almost always lower your credit score. While that will not be a priority when you are involved in managing your debt it is something you should consider once on solid financial ground. Improving your credit score is best accomplished by simply paying your bills on time. That sounds too easy doesn’t it? You will likely find many companies that offer credit repair services. The fact is you do not need a credit repair service if you structure a plan and follow your plan to pay your bills on time. Over time your credit score will improve naturally and prove to lenders that you are indeed a good credit risk in the future.
Once you are managing your current debt you can begin to build your cash reserves again. One of the most common things that we hear from people in debt is that they do not have enough money to pay their bills, how could they possibly save money. Again this is part of the new process you must adopt. Quite simply if you want to save money, pay yourself first. Think about that.
Let’s assume your paycheck is $500 for the week. A modest savings plan of 5% and you would take $25 and deposit them in a savings account or savings instrument of some type. That does not sound like a lot of money but over time you can increase the amount and what you are doing is developing a discipline of saving and not spending. That bears repeating develop the discipline of saving and not spending. Before you know it saving money will be the new priority in your life, and managing your debt will become much easier.
That tendency for people that are in serious is to think of hopelessly. To some extent it does feel that way. You must look beyond the present and to your future. As you know if you are in debt or in that hopeless situation, the stress and anxiety you feel on a day-to-day basis is overwhelming. Imagine yourself and your financial situation without that stress. That may be the motivation that you need to make a concerted effort to getting out of debt and staying out of debt.
Whether you choose debt consolidation, credit counseling, debt settlement or find it necessary to file bankruptcy, you must choose a plan that will get you on the road to recovery.
Do not fool yourself into thinking that you do not have debt problems because you are paying your bills. If you are paying the minimum payments on your credit accounts it is likely you will spend years and years paying off the debt. Generally speaking paying the minimum payments is risky. What if you miss a paycheck? What if you become unemployed? Both of those scenarios are happening to thousands of people every day.
If you can make your mortgage payments, make your car payment and pay off your credit card in full each month then you are among the minority. Essentially if you make your payments on time to your good debts and pay off your bad debts in full each month you may not need to use the debt strategies we have outlined.
Determining where you are with regard to debt is not difficult. Simply ask yourself and answer this question honestly. Am I in debt? An honest answer should provoke an honest action. Whether that is continuing on your present course or charting a new course for debt free living is up to you.
Credit Card Delinquency Wave Reaching Tidal Force
Wednesday, August 19th, 2009This is a story that has been brewing for a while and we’ve tried to cover it when we’re not tracking hedge fund portfolios. So far in 2009, the data surrounding credit card charge offs and mortgage delinquencies has not been pretty… at all. Just now after the close of the second quarter, we see that both metrics have hit the highest rates since the Federal Reserve began tracking them.
Credit card delinquencies (payments more than 30 days late) rose to 6.7% up from 6.68%. Charge-offs (listed as ‘uncollectable’ by the banks) rose to 9.55%, up from 7.64%. The scary thing here is that this trend is accelerating (as illustrated by the graph below, courtesy of CreditCards.com).
(Click to enlarge)
An acceleration in charge-offs and delinquencies obviously means bad things for financial institutions and the economy in general. Much like the impending (and already current) problems in commercial real estate, we’ve likened credit card charge-offs as a ’second wave’ in this economic crisis. The first tidal wave came through and washed out a whole lot in the economy. As people begin to lose work and fall behind on their massive debt repayments, they drown. This creates a second wave of writedowns for financial institutions and another set of problems for an economy trying desperately to recover. The initial tidal wave hits and knocks America down. Then, when America starts to get enough strength to stand up, they will be washed away again with a whole new slew of problems.
This is due to the delayed effect the first wave had on the consumer. After people are laid off, they scramble to find new jobs and dwindle what little savings they have left. (Remember, America’s savings rate has not been the best and we’ve concluded that it needs to rise in order to help get out of this mess). And, the fact that the unemployment rate keeps rising is not helping things either. Once their savings is gone, they rely on credit cards as a flotation device. And, this scenario is only the people who don’t already have credit card debt. Those already suffering under this burden begin to bear an even heavier load until they simply can’t make payments at all.
This effectual lag has slowly but steadily been building for months and the latest charge-off and delinquency data has begun to spike. In fact, we started posting about rising delinquencies back in August of 2008 when we saw delinquency rates starting to near 5%. We then touched on the impending credit card squeeze back in November as well, as we began to look at things in-depth. Nowadays, charge-offs are nearing 7% and in the span of one year we’ve seen a surge in credit card delinquencies of almost 2%. This just begins to show the lagging effect this phenomenon will have.
So, this is nothing new. Charge-offs and delinquencies are accelerating and even the CEO of JPMorgan (JPM) Jamie Dimon himself says that consumer loans and credit cards will be a house of pain for financial institutions. Well, he should know since his firm is in the eye of the rising storm. As such, we penned a piece announcing our downgrade of the American consumer’s credit rating where we examined the potential impact of credit line reductions.
The main thing to take away here is that credit card charge-offs and delinquencies are getting pretty bad and have the potential to go to ‘worse.’ The lagging effect of these charge-offs and delinquencies cannot be overstated as these problems slowly fester. Too many consumers have been struggling and now find themselves caught in the undertow; the wave has been building for some time now. The only questions now are how big will it get and when will it crash down?