We are now looking at what credit reform 2010 is all about, some of it is positive and some of it is not as positive as we would like as consumers.

1. Restoration of lower annual percentage rate.
If you are late over 60 days and are able to catch back up with your delinquent payments, the new law requires restoration of previous lower interest rates. This is good except that you may have ended up making payments including your catch up amount that equals about 90% of your payments going directly to interest and payments.

2. Payments actually go towards the highest interest rates first.
Many families have been angered and complained about the high interest rate traps that were in place prior to the new law. Families complained that the payments were going towards the lowest interest rates first. We at Financial Crossroads in California feel this is a huge positive; especially for folks that are able to make more than a minimum payment as they are more likely resolve their debt issue on their own.

3. Increased protection on gift credit cards
I am not sure how you feel about giving a gift to a family member or receiving a gift credit card, only to find out that your $100 gift credit card has become worthless or that fees have eaten into the card to make it worth $50 because you only wanted to use it in an emergency. Financial Crossroads is enthusiastic about this new gift card protection as the non-use penalties do not start until after a full 12 month period. In addition to the 12 month protection; one of the other complaints of gift credit card expirations now has increased to 5 years before it becomes void.

The complaints that most families have against the credit card companies is not that they did not spend the money.

The complaint is that even with the new credit card reform laws the credit card companies have an unfair advantage on how they can change payment and interest rate terms without even one missed payment. This sometimes forces families that would like to resolve debts by a normal payment process into situations that force them into bankruptcy, consumer credit counseling and sometimes debt settlement. Although it may be uncomfortable, working with a legitimate debt settlement company like Financial Crossroads in California may be the answer to resolve their debt situation in an ethical and efficient way.

Although Financial Crossroads has looked at the statistics on complaints by industry and notes that credit card companies have the highest complaints of any industry some of the recent reforms are positive.

Here is a recent comment:

“You all have been a big help and were very kind and considerate every time I called in. I feel very relieved that I don’t have any credit card debt anymore.”

- Joan W.

If you would like clarity on options call a counselor at Financial Crossroads in Santa Ana California at (888) 382-2439

Financial Crossroads Ca talks to people everyday who have awoken in many cases to late to resolve the suffocating debt they have found themselves in. Is it too late or do you have options to resolve your debt with some help? The sooner you call us the more likely we will be able to help

Financial Crossroads California talks to folks who hesitate to admit that even they are burdened with more debt than they can handle.  But if you find yourself suffocating in your own debt then it would be wise to find a whole to breathe through before it is too late.  These problems in debt do not fix themselves but they do get worse on their own.  We have been able to help thousands of people through Debt Settlement or in many cases just sharing simple idea’s that help resolve short term debt issues.

There are many reasons for getting in debt and they are often started without you even knowing it.  Anything such as a home or car repair can set you back and start you downhill.  Once you go into debt it can be hard to get out of it, especially if high interest rates are involved.

If you find it hard to keep your head above the water then you need to get help.  Financial Crossroads consults with folks who are serious about resolving unsecured credit card debt. If your are struggling with your credit card debt Financial Crossroads in Santa Ana may have the answer to your current challenges.

Financial Crossroads looks at your debt problem with a holistic approach that is geared towards what is best for you and your family; sometimes Financial Crossroads will advise strategies that involve no change in income or payments, just a smarter strategy with what your current income and expenses are. Other times Financial Crossroads may advise consulting with a Bankruptcy Attorney. Financial Crossroads has also found that Debt Settlement is the best option.

The first thing you need to do in reducing debt is finding out what you owe and the Financial Crossroads can help you out with that.  It is important to gather up all of the information that you owe and get it to the Financial Crossroads as fast as you can.  These Financial Crossroads will work with you and get you a set schedule to get your debt paid off.

 Keep in mind is Financial Crossroads has employees who have outstanding negotiating skills and can get you what you want.  We have lots of experience talking with creditors for our clients and can speak to these debtors in their own language.  We have done this for thousands of people who have faces similar challenges.

What about my credit? On the short term any debt reduction strategy will have a negative effect on your credit. Can you afford another payment currently? Are you planning to make a major purchase such as a house in the next few years?

If you would like to get a free assessment of your situation you can get a no hassle consultation by calling (888) 382-2439

Financial Crossroads

Santa Ana, Ca. 92705

www.financialcrossroads.com

info@financialcrossroads.com

http://www.financialcrossroads.com/blog/

Financial Crossroads California LA weighs in on Capital One Default Rate

According to Reuters Capital One has indicated what all but the blind deaf and dumb realize, times are tough and in fact Capital One said the annualized net charge off rate that it expects never to collect on has become a whopping 10.41 percent.

Capital One shows accounts at least 30 days delinquent — an indicator of future loan losses — were up marginally to 5.80 percent from 5.78 percent.

Capital One is the third-largest U.S. issuer of Visa (NYSE:V - News) branded credit cards, and the fifth-largest issuer of MasterCard (NYSE:MA - News) branded credit cards, Unless you are in the stone age you have either viewed one of the many clever advertisements or been part of their credit card clan or mailing list.

We at Financial Crossroads hope you have not got into the credit card trap in over your head.

In addition to the credit card losses the U.S. auto loans, Capital One’s charge-off rate was 4.27 percent in January, down from 5.68 percent in December, and the delinquency rate fell to 9.61 percent from 10.03 percent.

What does this all tell us?

Many of us have gotten in over our head and may need some assistance.

1.      A credit card company legally only has to give you 15 days notice when changing all of the terms that deal with the credit card. Can anybody say license to steal?

2.      We get relaxed with credit card companies changing our interest rate by as much as ¼%, but do you have any idea that they can alter the terms of your credit card for any reason at all.  If you are late on a payment or miss a payment you can be charged double if not triple.

3.      A purchase that you made long time after you bought it can be changed by the credit card companies.

4.        Any of those discount offers that you accept, they are only good it you can keep up with the payments.

5.       Your credit card interest rate can increase if you miss a mortgage payment; the credit card company can even take another look at your credit and adjust your interest rate to the way that they see fit.

6.       You are helping credit card companies make record profits at this very moment.

7.      If you don’t pay off your credit cards each and every month then they profit heavily off of the interest rates.

If you would like to get a free assessment of your situation you can get a no hassle consultation by calling (888) 382-2439

Financial Crossroads

Santa Ana, Ca. 92705

www.financialcrossroads.com

info@financialcrossroads.com

http://www.financialcrossroads.com/blog/