Martin Janoušek

603 151 061

603 151 065

gadesign@seznam.cz


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Finally, if you are content with less of your credit card company, could decide to close your account (if it has not already been closed due to a depending balance). A new credit card can increase your credit utilization rate, which is often bad for your credit score. You may be able to consolidate your debts with a personal loan, bank transfer or debt repayment service like Tally. If a new financing offer allows you to get a lower interest rate, it can reduce your monthly payment (depending on your new payment terms). A lower interest rate can also help you pay off debts faster and save money with expensive interest. If consumers want to know how to settle their accounts with credit card companies without compromising their creditworthiness, we generally recommend a debt management program. Debt management provides a budget that will allow you to live while continuing to pay your debts over time. For a small fee, we take responsibility for the one-time payment of all your bills – you only have to pay an account each month to the ACCC and we take care of the rest. We`ll also work to reduce interest rates, finance fees and late fees to help you settle your debts faster. Finally, another strategy they have to take into account, especially if you owe a lot on multiple credit cards, debt consolidation.

Yet this is the subject of another article. First, debt settlement usually requires you to put in place a considerable amount of cash at a time. This makes the debt count attractive to your lender because instead of getting minimum monthly payments for the next few years, he now receives a much higher payment. You need to stop and think about where the funds come from and how that money could be used elsewhere in your personal finances, and you want to make sure that a large payment doesn`t leave you in a tight situation for a few months on the street. Debt settlement companies can potentially save you time and money, but there are potential problems with this approach. First, if you stop paying your credit card company, it will report late payments to credit bureaus. The account can eventually be billed, sold to a collection agency or worse. All of these measures can have a serious impact on your credit. There is no guarantee that your bank will be willing to negotiate.

Sometimes the credit card billing process is efficient and consumers can pay off their debts between 25% and 80% of the initial amount they owed. But at other times, credit card companies may refuse to set up shop and, instead, bring consumers to justice. Other lenders may charge you higher interest rates to compensate for your increased likelihood of default. In some countries, your insurance costs for things like car insurance may increase. The length and severity of these results will be much worse with an insolvency application, so it may still be worth considering the comparison.