Consolidating credit card debt information

19-Jul-2017 23:40 by 2 Comments

Consolidating credit card debt information

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

This includes collection agencies, lawyers who collect debts as part of their business, and companies that buy delinquent debts and then try to collect them.This includes money owed on personal credit card accounts, auto loans, medical bills, and mortgages.The FDCPA does not cover debts incurred in running a business.Within five days after a debt collector first contacts you, the collector must send you a written notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you do not owe the money.If you owe the money or part of it, contact the creditor to arrange for payment.What’s more, one of the big killers for those with large credit card balances is making only the minimum repayment amount each month.

Credit card providers often encourage this, with short-term 0% APR offers and/or setting very small repayment minimums.

But more importantly, by leaving yourself with a single loan with an APR lower than the collective of your previous debt(s), you’re potentially saving a fortune in interest, and therefore reducing your overall liabilities.

Debt consolidation and credit cards The most common type of debt our customers look to consolidate is that of their credit card; which is why these type of loans are sometimes referred to as ‘credit card refinancing loans’.

If you are unable to make payments on time, you could lose your home.

To decide if debt consolidation is right for you, contact a credit counseling service accredited with either of these organizations: If you have a problem with a lender concerning debt consolidation, you should first contact the lender.

If you believe you do not owe the money, contact the creditor in writing and send a copy to the collection agency informing them with a letter not to contact you.