Thursday, July 17, 2008


Credit card is the most emotionless way of spending money.
You will not even feel spending over P10,000 per transaction
if we use out credit card specially i you buy it in lay away
12 month zero interest mode.

But once the billing statement arrives that is where we can feel
the crunch. Countless people are now feeling not only the crunch
but also feel the constant follow up of the call centers of the
credit card company to follow you up of your payment and outstanding

If you are in a tight situation and you do not know where you will get
your money to pay off your credit card bill. Continue to read on...

1. Pay more than the minimum.
Bite the bullet. Paying the minimum only prolongs the agony. Besides, it's precisely what the banks want you to do. The longer you take to repay the charges, the more interest they make, and the less cash you have in your pocket.
Remember in paying off your debt it is not in the amount that is more important it is in your willingness to pay.

2. Cash out your assets.
Let us look at your list of assets.
If you own jewelries, property or anything of value that you can sell.
Sometimes we are too emotionally attached to the stuffs we have it is so hard
to dispose and let go.
Maybe the practical question to ask is "Are the jewelries and property earning more interest
than what the credit card company and creditors are charging?" If the answer is no. It is
time to make the hard decision and sell because you will generate more when you sell
rather than keep your dead assets.

3. Talk to your family and friends.
Perhaps your family or friends could float you a loan. Unless they are your enemies it is time to be nice to them and be friends with them again. The best to keep things on the straight and narrow by using a written agreement. You should clearly establish the interest and repayment schedule in writing to avoid misunderstandings and hard feelings.

4. Renegotiate terms with creditors.
This one most of the people are not really aware of.
This is where I am going to spill the beans.
Let your creditors know your situation. Tell them that if you are unable to renegotiate terms, you'll have no other recourse but to declare bankruptcy. Ask for a new and lower repayment schedule; request a lower interest rate; and appeal to their desire to receive payment. Faced with the prospect that you may resort to such a drastic step, creditors will do what they can to protect themselves against a total loss.
Believe me it works!

5. Seek legal advise.

If the creditors are threatening to sue you or harassing you that they will go to your office
and report you to your HR or superiors. It is time to seek legal advise. Yes, we may made dumb
decision in the past that led us to debt. But we are not criminals who are running away from the
responsibility if we have plans to pay back what we owe. Talk to your lawyer and ask for legal options on how
you can walk this out.

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