Consumers need to keep more CASH in their POCKET and PAY less INTEREST - Golden Financial Services

May 12, 2012 - PRLog -- Put more CASH in YOUR pocket over the long term, learn good credit habits, take a look at poor credit, spending habits and more!   http://nomorecreditcards.com

First you need to evaluate your overall financial situation.   How much money is coming in, how much money is going out and where is it going?  Golden Financial Services provides consumers with free budget analysis reviews and free credit card help information.  Here are excellent tips when it comes to budgeting and improving your financial health.  http://www.goldenfs.org/improve-your-financial-health/

Next it’s time to develop a game plan aimed towards becoming debt free.   If financially you are making good money at your job, then you really need to pay more than the minimum payment on your credit cards, and get the balance paid off.   Paying only minimum payments on your credit cards will cost you a lot more money in the end, when that money could be saved for your retirement, kids College or put towards your mortgage payment.  

Take a look at this example:  Let’s assume that you have a $25,000 balance on a Discover credit card and you are paying $500 each month, as the monthly payment.  Let’s also assume that you have a 12% interest rate.  Paying $500 per month will have you debt free in 31 years and 11 months. WOW!  Just in interest alone you will pay back $23,432.25, which means after 31 years you will have paid almost $50,000.00 to pay this debt off.  Talk about HIGH FEES!  

For a 2nd scenario let’s say that same person pays $1500 each month as the monthly payment.  Now that debt will be paid off in 8 years and 6 months.  Over 8 years and 6 months there will be a total of $4,611.51 in interest paid, plus the principle, equaling a total of $29,611.00 paid to satisfy the balance. Paying $1500 per month to satisfy this $25,000 Discover credit card balance is a much better option to save money, than if you only pay $500 each month.

However this is not a perfect world.  Consumers get overwhelmed with high credit card debt and cannot afford to pay more than the minimum payment, or even minimum payments for the rest of their life.  Now debt settlement could be a viable option. http://www.goldenfs.org/debt-negotiation/

The good news is that if you complete a debt settlement program, you can rebuild your credit again, and much easier than if you had declared bankruptcy.  One way to rebuild your credit score is to simply apply for a new credit card or even a secured credit card following your graduation on the debt settlement program.  Spend $100-$200 each month on that credit card for gas or other random little expenses, and when the bill arrives, PAY THE ENTIRE BALANCE OFF EVERY MONTH. If you cannot pay the ENTIRE BALANCE OFF, then DO NOT spend the money.  Every time you use the card, pay the entire balance off.  After 6-12 months you will notice that your limit increases, or possibly if it’s a secured credit card the bank will allow you to have an unsecured credit card. Continue on this path and your credit limits will go UP, your credit score will go UP, and you will continue to stay DEBT FREE!  Now you’re on the right track again.  www.goldenfs.org/debt-relief-blog/credit-score/

At Golden Financial Services you can get free information, education and the proper assistance helping you to evaluate your overall financial situation, then determining what the best credit card relief program will be for you.  http://nomorecreditcards.com/credit-card-relief-programs/

Consumer complaints against Credit Card Companies can be made very easily.  If you ever have a complaint that you need to make against the credit card companies, the Consumer Financial Protection Bureau (CFPB) basically is a 1 stop shop for consumers to visit, where they can make a complaint and get it resolved.  “The agency's new Web-based Consumer Response Center allows credit card holders to file complaints online or via a toll-free number: 1-855-411-CFPB (2372).”  Examples of the most common complaints against credit card companies include billing issues, disclosure issues, advertising, high fees, interest rates, rewards and collection problems.  Obviously if you ever experience any type of credit card fraud you can also report your case at this Bureau.