What is Debt Consolidation
Credit Card Debt Consolidation
Medical Debt Consolidation
7 Tips About Debt Consolidation
Common Debt Consolidation Mistakes
Debt Consolidation
Risks of Debt Consolidation, Types of Debt Consolidation Loans, Pros & Cons
Balance Transfer or Debt Consolidation?
Debt/Credit Calculators
Discussion Forum
Credit Counseling and You
Non-Profit Credit Counseling
Consequences of Credit Card Default
Effects of Credit Card Default
9 Common Credit Card Mistakes
Eliminate Credit Card Debt in 90 Days
Credit Card Debt
10 Expenses You Can Not Afford If You Have Credit Card Debt
Truth About Credit Card Companies
Should I Tear Apart My $300 Limit Credit Card - The Worst Credit Card Ever?
Disputing Credit Card Debt
401k vs Credit Cards: Where to invest?
Debt Settlement Letters
Sample Letters
Write a Powerful Debt Validation Letter
Reputable Debt Settlement Agreement
Debt Settlement vs. Debt Consolidation
Dangers of Debt Settlement
Avoid Debt Settlement Pitfalls
Debt Relief Tools/Debt Management Programs
Debt Settlement FAQs
Is Debt Settlement Money Taxable?
Reduce Medical Debt
Free Bill Consolidation: Does it exist?
Budgeting to Stay Debt Free
10 Debt Reduction Mistakes
Should I Pay Off my Debt or Save Up for a Down Payment on a House?
Bill Consolidation
Three Secrets to Lowering Your Debt
Tips To Lower Your Bills
Government Debt Help
Debt Help During Recession
Debt Relief During a Recession
What Debt Relief Means
Pay Off $50,000 Debt
Worried About Bills?
Money & Debt Videos
Report Illegal Collection Activity
Managing Medical Bills
Medical Debt & Bankruptcy
The Facts on Debt
Debt Quotations
Drowning In Debt?
Who to pay first?
Managing Debt FAQs
Medical Debt Solution
12 Hot Tips for Eliminating Debt
7 Debt Elimination Mistakes
2 Ways to Achieve Debt Elimination - Debt Snowball Elimination Method
Payday Loan Consolidation
Payday Loan Debt Consolidation
Payday Loan Relief
Default on a Payday Loan?
Payday Loans | Consumer Information
Problems with Payday Loan Stores
Bad Credit Loan Relief
How Payday Loans Work
What is Loan Consolidation?
How to get a $50,000 loan
Get an $80,000 Loan
$100,000 Loan for Debt Repayment
Veteran's Home Loan Refinance Options
Government Loans vs. Private Loans
Finding a Government Loan
Student Loan Consequences
Reputable Debt Consolidation Companies
Debt Consolidation Company Reviews
Reputable Debt Management Companies
List of Debt Companies in USA
Debt Companies By City
How Debt Affects Your Credit
What is shown on my credit report?
Improve Your Credit Score
Correct Credit Report Errors
Can Debt Settlement Ruin Credit?
Can Debt Negotiation Ruin Your Credit?
401k Limits
Safe CD Rates
Financial Planning
Banks versus Credit Unions
AMEX Horror Stories
IRS Tips For Audit
Choosing a Tax Preparer
American's not planning for long term care
Understanding Usury Laws
Unemployed During A Recession
FREE Government Grants
Where does money really come from?
About Us
Contact Us
6 Payday Loan Debts Owe
Borrow a Loan to Pay Off Payday Loan?
My husband was out of his job and Payday Loans were rolling over

Debt Consolidation Facts

1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.

What will happen if I do not pay my credit card debt?

Maybe you lost your job recently or your spouse suddenly became ill. Maybe you got in over your head months ago or recently needed to do some home repairs. No matter what your reason is, the fact is millions of Americans are struggling to pay their bills every month. They scrape to meet ends meet. They look for ways to save. But at the end of the month, they still have trouble. The frustration forces many of them to stop paying their bills entirely, especially their credit card bills. And the result is not good. Continue reading to find out why you need to stay on top of your credit card debt, regardless of how bad your financial situation might be.

How credit card debt is affecting America

Credit card debt has become such a problem in this country that some credit card companies are "character profiling" in order to deny consumers higher credit limits. This clip explains how they do it.

Video: What is Credit Profiling?

What the law says about your situation

Unless you have successfully filed for bankruptcy recently, federal laws allow for credit card companies to come after you if you owe them money. Initially, they must either come after you themselves or hire a collections agency to approach you about your debt. They can also report your missed payments to the three major credit agencies as well. If you still refuse to pay them, they are entitled to take you to court to try and force you to pay your debt. At this point, chances are you're not just being stubborn: You're legitimately facing a problem that could affect you for years to come.

consequences of not paying bills

Why you may be forced into bankruptcy

Should you stop paying your credit card debt altogether, you're eventually going to need to consider bankruptcy. Your credit card company will continue to charge you late fees when you refuse to pay until you simply have no chance of fighting back. Before you file for bankruptcy, there are other options. You can consolidate your credit card debt through a legitimate debt consolidation company. You can call your credit card company and try to settle your debt and negotiate a lower repayment of your debt. Bankruptcy should always be used as a last resort, but if you wait too long to consolidate or settle, you'll find yourself in a legal battle against your credit card company.

How your credit card company will react

Because credit card companies want to make money, they are often willing to work with you through a consolidation or settlement program as long as you are having a real problem. You also need to approach them well before you think of stopping payments. They don't want you to file for bankruptcy because they end up losing money as a result of you filing for it. So try and work out another plan before you stop making payments on your credit card debt altogether. In these trying times, many will work with you to avoid you filing for bankruptcy.

The truth about credit cards

In 2007, the documentary "Maxed Out" revealed the troubling consequences that credit cards have had on this country. Here's a clip from the film.

Video: Credit Card Consequences (Maxed Out)

Where To reach America's top 20 credit card companies

Whether you're considering debt consolidation, debt settlement or another option, you need to start somewhere. Don't let credit card debt bring you down. Contact your credit card company now to find out how to get started. Then, make your move towards becoming debt-free for good.

Additional Resources:


American Express

Banco Popular

Bank of America

Barclays Bank Delaware

Capital One




First National Bank

First PREMIER Bank

Japan Credit Bureau


MBNA America Bank (now owned by Bank of America)

Morgan Stanley

Pulaski Bank

Simmons First National Bank

U.S. Bank