The 4 Worst Things You Can Do For Your Credit

Bad credit will affect many aspects of your life. Some people spend a lifetime building and repairing their credit.  The best fix for bad credit is to avoid taking on too much debt. However, if  you have credit issues, at some point, you have to stop the bleeding. The four WORST things you can do regarding your credit situation are outlined below:

1. NOTHING - Many people do just that when it comes to their debt options – nothing. They pay only the required minimum payment, if they can afford that, and allow their debt to continue to rise to the point where they may never get out from under it... And how's that been working out for you so far?

   Here is a look at what REALLY happens when you do nothing:

   Amount of Your Debt	Total Amount You Will Pay (Including Principle & Interest)	Amount of Time It Will Take
   $10,000	$26,276.59	42 yrs 9 mos
   $15,000	$55,370.41	48 yrs 11 mos
   $20,000	$74,464.22	53 yrs 3 mos
   $25,000	$93,557.98	56 yrs 7 mos
   $30,000	$112,651.77	59 yrs 4 mos
   $35,000	$131,745.58	61 yrs 8 mos
   $40,000	$150,839.39	63 yrs 9 mos
   $45,000	$169,933.22	65 yrs 6 mos
   $50,000	$189,027.02	67 yrs 1 mos
   $60,000	$227,214.61	69 yrs 10 mos
   $70,000	$265,402.22	72 yrs 2 mos
   $80,000	$303,589.81	74 yrs 2 mos
   $90,000	$341,777.43	76 yrs
   $100,000	$379,965.06	77 yrs 7 mos
   $110,000	$418,152.62	79 yrs
   $120,000	$456,340.27	80 yrs 4 mos
   $130,000	$494,527.82	81 yrs 6 mos
   $140,000	$532,712.48	82 yrs 8 mos
   $150,000	$570,903.04	83 yrs 8 mos
   Click Here To Calculate Your Own Savings

   This chart assumes a credit card with a 19% interest and the individual paying 2.1% of the outstanding balance each month. The minimum monthly payment most card companies require is between 2.0% and 2.4% of the outstanding balance. Source: CNN Money

   When considering your debt options, doing nothing is really not an option. The only sound option to help you free up your cash flow problem is debt settlement, and Financial Solutions is here to help.

   Call 1-888-829-3463 for a FREE Financial Analysis.

    

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2. BANKRUPTCY - More difficult today as new laws favor creditors and your credit is stigmatized for at least 7 years and up to 10 years.

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3. DEBT CONSOLIDATION - Even if you are current on your payments, this option is reported to the credit agencies stating you are not able to handle your financial affairs.  Once completed, your credit worthiness is called into question and is often considered as serious as a bankruptcy.  Debt consolidation often stigmatizes your credit report for 7 to 10 years while often not saving you money. Additionally, many of the consolidation firms are nothing more than credit card companies disguising their attempts at debt collection.

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4. DEBT COUNSELING - Like Debt Consolidation, this option reflects negatively on your credit report and states you are unable to conduct your own financial affairs.  Your credit worthiness has a negative 7 to 10 year stain and again, it is common for credit card companies to disguise their collection techniques.

   5.  DEBT SETTLEMENT AND DEBT NEGOTIATION will never be mistaken for a gold   star on your credit history. However, it does have several advantages. You save a significant amount of money, and we do not report to the credit agencies. Many of our clients are able to re-establish themselves in 6 to 18 months after their programs have been completed. Since our activities are never reported to any credit reporting agency, you maintain the ability to handle your own financial affairs.

Debts We Can Work With:

• Credit Card Debt

• Medical Bills

• Department Store Cards

• Unsecured Loans

• Overdue Rent

• Local Merchant Accounts

• Past Due Utility Bills

• Automobile Repossession Balances

• Oil/Gas Cards

• Personal Loans

• Gym Memberships

 √ Americans make over 1.5 trillion dollars    worth of credit card purchases annually.

√ There are 1.3 billion payment cards - including credit cards, debit cards and store cards - in circulation in the United States. The average American home has 13 payment cards.

√ The typical credit card purchase is 112% higher than if using cash.

√ Over 40% of US families spend more than they earn.

√ Americans carry, on average, $8400 in credit card debt. If one were to make a 2% payment every month at an annual APR of 15%, it would take about 30 years to pay off and include about $13,000 in interest.

√ About 18% of all U.S. personal consumption expenditures (PCE) are made on bank credit cards.  If retail cards and debit cards are included, the figure rises to 24%.

√ The average U.S household pays $950 in interest each year.

√ 96% of all Americans will be financially dependent on the government, family, or charity at retirement.

√ Almost 1 in every 100 households in the United States will claim bankruptcy.

√ According to the National Association of Realtors, the average homeowner stays in his home for 7.1 years. With an 8% mortgage, he will sell his home still owing over 90% on his mortgage. If he was to continue this trend, he would never pay off a mortgage in his lifetime. Only 2% of homes in America are paid for.

√ Nearly half of all Americans have less than $10,000 saved for their retirement. 39% of Americans are anxious about their ability to achieve their desired retirement lifestyle.

√ On average, Americans can expect to receive only 37% of the amount they will need to live comfortably from their retirement plan.

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