...How to negotiate with credit card companies to settle debt You have done it all to pay off your debt and you are still drowning financially, beside bankruptcy there is still an option. Informing your creditors about your situation and telling them that you have no other option left beside bankruptcy but you want to avoid at all costs. You can ask for a revised payment plan, lower interest rate. You will have to appeal to their desire of getting paid, as faced with the prospect of total loss in case of you declaring bankruptcy they will try to avoid it as much as you do. This sounds like solid good news but it is not a bed of roses, it is painstaking hard work. You will have to make long frequent calls to the bank for them to understand your position. You will need to be consistent and determined with your efforts if you want your bank to make a settlement. Negotiations isn’t easy, but if you follow these steps on how to negotiate with credit card companies to settle debt you will finally get the settlement of your loan that you wanted. 1. The first step is to decide what type of settlement do you want, there are four main types of settlement plans and you can decide which one suit you best depending on your needs. They are described briefly here for your convenience. i) Lump sum settlement: In this plan you can negotiate to pay some amount of the money owed. Usually the payment can be divided into three installments. ii) Workout arrangement: The bank...
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...couple of hours? Now you are talked into meeting on your college campus with a credit agent from Citibank and wind up selling thirty cards to fellow students. Now this might all sound perfectly innocent, but this is a very real incident that happened to a University of Pittsburgh student named Ryan Rhodes three years ago. Of those thirty students that signed up for credit cards, no one knows how many of those students are managing the cards they received or the resultant debt that comes along with that. Ryan has done 13,000 dollars worth of damage to his credit and was and maybe still is having a difficult time paying off the debt. He would not be the only one in that situation. Students across the country are filling out applications for credit cards on their campuses, and after the damage is done to their credit, just exactly what the cards are for, and what credit debt means. Students are not being told of the dangers of credit cards consequently, young adults are being caught unawares and thrown head first into the credit trap. Credit cards are damaging to uninitiated students and should not be pedaled anywhere on college campuses. High card payments are one of the first things an unsuspecting student has to contend with. The uninitiated spend with reckless abandon, driving up the monthly payment. When this payment can’t be met, damage to the credit score results. Poor credit scores also raise card payments to levels difficult to pay. Not understanding debt and all the intricacies...
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...Part 1 1. How old do you have to be to get a credit card? What requirements do you need, besides age, to obtain a credit card? You must be 18 years old and you must have some kind of income. Or, a parent who has a card account at the bank as well. Also, have the parent cosign the card and open a savings/checking account at the bank. 2. What are some benefits of using credit cards? Card offers protection from theft. You can buy goods/services when you need them even if you don't have the money at the time. They can be used for emergencies. 3. What are some consequences of using a credit card? Credit cards give the belief that you can actually afford things. If you miss your bill, your credit score gets damaged. 4. What is credit history? Your past with credit cards. How you handled them and how you payed your bills. 5. How does your credit history affect what credit cards you can get and your APR? If you don't pay your bills on time, your credit history will be worse and you will have less access to cards while your APR on those cards will be higher because the companies don't believe that they can trust you to pay. 6. How do you think people can get into credit card debt? A situation occurs such as a job loss or a medical emergency and credit card bills are not the family's main priority. 7. Do you feel that consumers are being protected? No, because credit card companies target the consumers that are in debt. They are the real people to make money...
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...Even though credit cards can be a source of paying for college-related expenses; credit card companies should not be on college campuses because most students will misuse the credit card, go into credit card debt and not realize the full financial hole they are in and struggle for years to pay off the debt. The first reason why credit card companies should not be on colleges marketing to college students is that it is very easy for a college student to misuse the new credit card. A college student most likely has limited financial means and a credit card could help today but hurt substantially more down the road. With a limited income, it would be very easy for the student to become financially dependent on the card. A 2009 Survey by Sallie Mae concluded the following. “The economic downturn has most Americans tightening their spending habits, but not all. College students are even more dependent upon credit cards, according to a survey conducted by Sallie Mae, the nation’s leading provider of student loans. The organization released its survey results last week in its National Study of Usage Rates and Trends. The study focused on undergraduate student’s ages 18 to 24 who were enrolled in public and private four-year colleges and universities during the spring of 2008.” [ (Phan, 2009) ] Another misuse of credit card spending occurs when the student is trying to fit into a social crowd among its peers. Many students feel a need to be part of socially acceptable “cool” crowd...
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...Running Head: Americans Should Not Use Credit Cards 1 Americans Should Not Use Credit Cards Christopher McDonald COM/156 Donna Madison-Bell, MS Running Head: Americans Should Not Use Credit Cards 2 With more Americans in financial trouble than ever before and personal debt at an all-time high, most Americans should shun credit card use. Americans are having trouble paying for their credit card purchases and they are taking on more debt than is fiscally sound based on their income. Many people are being mislead by the appealing advertising tactics of credit card companies and most don’t understand or receive the information they need to make intelligent use of their credit cards or make important personal finance decisions. In addition, today’s economy has left many people unemployed or underemployed. To compensate for their lack of income, many people are using their credit cards to pay for basic items like food and gasoline. Because they lack a substantial income, they then can’t pay the credit card companies. Still other people might lack the will power to resist buying items that they can’t afford. Instead of rationalizing that they do not have the cash for the purchase, they use a credit card and worry about it at a later date. Americans now have more personal debt and financial struggles than ever before in the nation’s history, in part because of irresponsible use of credit. A 2007 article in the magazine Mother Jones stated that Americans owe...
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...Report, February 2010, the average credit card debt per household with credit card debt is $15,788 and the number of credit cards held per family is 3.5. This issue has destroyed many lives and keeps causing problems among many American’s today.” It is my personal opinion that credit card usage ought to be reserved for people who have a high income and who reliably make a lot of money. Personal credit card debt doubled in the past four years and personal bankruptcies are at the highest rates ever and still more Americans are spending money that they do not have. There is a potential dark side to plastic with some unfortunate account holders getting out of their depth and building up debts that become a problem and cause of worry Credit Cards have become a problem for most Americans credit card users and there are even cases that students commit suicide because of heavy debts they owe the credit card companies (Manning, 2000) By paying with cash, you can “feel” the money leaving, which is not true with credit cards, where upon flipping a credit card up on a counter, leaves you feeling nothing emotionally. Just as credit cards encourage overpaying for an item, they also allow individuals to buy more than budgeted. First, the charges by most of the credit card companies are rather exorbitant. Apart from that these credit card companies charge their customers on the use and withdrawals of money with the cards, the credit card companies also charge their customers on maintenance...
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...Credit card companies should not be on campus marketing to college students Credit card companies love college students. They are the prime prospects of credit card companies. There are a couple of reasons they like to get you. First, they have a strong hunch that your parents will bail you out if you run up your credit card bill. Second, you have a long credit life ahead of you. This means lots of years of interest payments for the credit card companies. In the past, credit card companies were so hungry for college students; they approved applications even when students didn't meet the criteria. For example, a college student could get a credit card with no job, no verifiable income, no credit history, and even without a co-signer. Recent changes to credit card law now require credit card companies to verify a student's income before giving a credit card them a credit card. Students without income must get a cosigner to qualify. If you see a credit card company on your campus, they've likely paid your college administrators a fee, sometimes millions of dollars, for the ability to market credit cards to you. Colleges also get a kickback from every credit card opened and sometimes a percentage of charges made. Credit card companies pay to sell credit cards to students because they're banking on students making up for it in interest charges and fees. Expect to see credit card company representatives on or near campus giving out free stuff for credit card applications. Law prohibits...
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...Credit Cards and College Students Many students in college are taking out student loans to pay their expenses; add credit card debt to the mix and it is just a bad situation. Almost every college student has seen the ads for credit cards. Credit cards are a way of life for many people. Americans are already bombarded with ads for the latest and greatest credit cards. Is it really necessary to market them on college campuses as well? Many believe that advertising on campus just leads our youth into the same lower credit score issues that past generations have had. People in college may not understand the responsibility that comes with having a credit card, how to use it properly, or know how to read the fine print, and none of this will be taught by the credit card companies that are advertising on campus. Advertising credit cards on campus is only going to increase the amount of debt that students have once they graduate from college and get a job. College students, ages 18-25, do not necessarily have the experience to determine what constitutes an emergency thus producing an irregular need to use a credit card. Many see a credit card as free money that they only have to pay back a little at a time instead of seeing it as a loan. At this age, many are just leaving home for the first time and want to enjoy their freedom as much as possible; they see credit cards as a way to have more opportunities and more money to have fun. What they do not realize is the time it...
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...Credit card companies love to extend credit to college students, especially those just out of high school. Ads for credit cards line campus bulletin boards, flash across commercial Web sites for students, and get stuffed into shopping bags at college bookstores. Why do the companies market their product so vigorously to a population that lacks a substantial credit history and often has no steady source of income? The answer is that significant profits can be earned through high interest rates and assorted penalties and fees. By granting college students liberal lending arrangements, credit card companies often hook them on a cycle of spending that can ultimately lead to financial ruin. Whereas banks require applicants for a loan to demonstrate a good credit history and some evidence of an income flow, credit card companies make no such demands on students. On campus, students find themselves bombarded with offers of preapproved cards—and not just on flyers pinned to bulletin boards. Many campuses allow credit card vendors to solicit applications during orientation week. In addition to offering preapproved cards, these vendors often give away T-shirts or CDs to entice students to apply. Students are bombarded on the Web as well. Sites with heavy student traffic are emblazoned with banner ads like this one: “To get a credit card, you need to establish credit. To establish credit, you need a credit card. Stop the vicious cycle! Apply for our student MasterCard.” Credit card...
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...Guide, ‘Credit: Getting a Good Deal on Your Credit Card’ corresponds well with the subject matter taught in Chapter 6. Credit cards give one a sense of financial freedom. However, if not used carefully, they might add to one’s existing burdens. This guide helps us understand the benefits of a credit card, how to choose a card and get a good deal on it. A credit card comes in handy when purchasing expensive items. The credit card company allows one to use the money as long as the card bill is paid by or before the due date. It bails one out in case of a cash emergency and also enables a person to carry less paper money or bills. Some cards also offer rewards in terms of trips, cash refunds, and discount coupons based on your spending. A person can avail more than one credit card. Credit card companies grant a card on the basis of the applicant’s credit report. However, there are some disadvantages of having a credit card. Since a credit card gives a freedom to spend, it might lead to overspending...
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...Express was the sole credit card accepted at Costco. Additionally, American Express and Costco had issued a co-branded TrueEarnings credit card, which could also be used at other stores. After March 31, 2016, customers will no longer be able to use American Express credit cards in Costco. The TrueEarnings credit card will also be discontinued [1]. From a marketing perspective, this could have several consequences for both firms. What are the implications for each company's brand with this decision? American Express’s brand image has been adversely affected with the termination of its contract with Costco. There are several factors that contribute to the same. • Low confidence of Costco in American Express’s brand: The termination of the contract, albeit from a financial perspective, implies that the exclusivity that American Express had commanded has ceased to exist. Costco clearly sees no benefit in being associated with American Express’s brand, which may result in declining confidence among American Express customers, particularly those associated with the TrueEarnings card. • Declining status symbol: An erstwhile force in the credit card industry, American Express currently faces stiff competition from companies like J.P. Morgan Chase and Co. and Citigroup Inc. who have made inroads into its core upscale market with their own versions of premium deals for consumers and merchants [2]. • Recent termination of agreements with other companies: American Express has...
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...Brief History of Credit Credit has become something that is very much taken advantage of by our modern society. Most people couldn’t imagine not being able to charge something that they want but don’t have the money for at right now. Some people even depend on their credit card for necessities such as grocery shopping between paychecks. The first real public use of “modern” credit was proposed in 1949 and made its debut sometime in 1950 in New York City. This however was not the first time a system of credit was used. According to an article in the Encyclopedia Britannica, “The use of credit cards originated in the United States during the 1920s, when individual firms, such as oil companies and hotel chains, began issuing them to customers for purchases made at company outlets” (Encyclopedia Britannica, 2012). In fact, there is evidence of the use of credit even further back in history. An article by Mary Bellis mentions that: “… references to credit cards have been made as far back as 1890 in Europe. Early credit cards involved sales directly between the merchant offering the credit and credit card, and that merchant's customer” (Bellis, 2011). While this is quite a while back in history, it may very well not be the first use of credit. It is more than possible that some system of credit has been around in select civilizations for hundreds of years earlier than 1890. In any economic system involving money or even some basic trading and bartering systems, credit is possible. ...
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...Phoenix HTT/230 June 9, 2011 Credit Card Research Credit card companies charge a number of fees depending on the type of credit card that is being used. One fee that is commonly charged is called the interchange fee which is what the Card Associations charge a business for any credit card transactions. This fee varies in regards to the type of Merchant Account and how the transaction is sent. The fee will consist of a percentage rate that pertains to the total amount of the bill and also a flat rate per each transaction fee (Shift4 Corporation, 1994-2011). Visa and Mastercard each have their own interchange fees that they charge whenever their credit or debit cards are used to make purchases. These interchange fees are usually kept hidden from the Merchants and are usually combined with other fees such as the Discount Rate but both Visa and Mastercard now have websites that Merchants can go to and see just how much the fees are that they are being charged. The interchange fee is just one fee that businesses must pay when accepting credit and debit card payments. The business owner must pay a processing fee or transaction fee and these fees can range from 2% to as much as 7%. In order to reduce the amount of fees that a business owner has to pay, offering specials and discounts for cash purchases can keep more money in the businesses bank account. If the business finds that they receive a large amount of credit sales, the lower rates the merchant...
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...Overspending One possible effect of providing your teen with a credit card is the potential for large debts. Swiping a plastic card in exchange for goods or services can prove too much of a temptation for some young people. Also, spending money on the Internet is quick and simple with a credit card. Teens can easily access online shopping, Internet gambling and other spending activities. According to Todd Mark, President of the Consumer Credit Counseling Service, in an article on the Connect With Kids website, online shopping allows kids to spend excessively because it doesn't feel "real." This is because it may take days or weeks for the items to arrive and teens may forget what they've purchased in the interim. Anxiety and Desperation Credit card debts can bring about severe anxiety for young people. While making the purchases might have had little psychological impact on the teens, those who have to pay the monthly bills connected to their credit cards might experience negative feelings. A 2008 report by Sallie Mae on "How Undergraduate Students Use Credit Cards" discusses a survey of students in which 45 percent stated that paying credit card bills brings them “high levels of anxiety," while 24 percent stated that credit card bills bring about a feeling of extreme anxiousness. In extreme situations, teens might do things they wouldn't normally do out of desperation. For example, in a May 2010 article on the Daily Finance website, New York Bankruptcy Court Judge, Honorable...
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...Group Holding. In 2005 HSBC held leadership in Hong Kong Market of credit cards. Credit card is very important for customer acquisition strategies. Credit cards were marketed to HSBC customers through direct mail and the retail branch network. HSBC used demographic information about customers' income and life stage to segment the market. They had 2 different types of customers: * Transactors: were customers who used the card as a convenience or to build reward points, but they would pay their balance at the end of each month. * Revolvers: were customers who used a high percentage of their credit limit and carried a balance from month to month. HSBC organizes its customer-facing activities within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Personal Financial Services (retail banking and consumer finance); and Global Private Banking. Credit card market is growing rapidly in Hong Kong for two main reasons: * Growth of e-commerce * The loyalty and rewards programs. 2. SWOT STRENGHTS * HSBC is one of the largest banking groups in the world, with 9,800 offices in 77 countries across four of the five continents (America, Asia, Europe and Africa), more than 300.000 employees, and 128 million customers. We can qualify the company as powerful in terms of size and international presence. * Due to his internationality and size, the company has a strong capital backing. * * Focusing on the internal...
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