I received an email from A New Horizon, a credit counseling and debt solutions company, pointing out that some credit card issuers have loosened their requirements for hardship repayment plans. This could mean that you have a better chance at qualifying for a debt hardship plan if you are looking to repay your debt. However, it is important to consider the following things when going for financial hardship debt plans:

1. You may have to close your account: Many issuers will require that you close your account to take advantage of the lower interest rates or waived fees that come with a hardship debt repayment plan.
2. Your credit score could drop: Depending on the program you end up with, and if your credit account is closed, you may end up with a lower credit score, resulting in difficulties if you plan to apply for new credit anytime soon.
3. Be aware of fees charged by third parties: While some people benefit from having a third party help arrange matters for them, the fact of the matter is that many credit counseling and debt solutions companies charge high fees. It is possible to go directly to your credit card issuer and attempt to negotiate a lower interest rate or access to a hardship program.

In the end, it is nice that these hardship programs exist, but you should be careful before entering one. Read the fine print, and carefully consider your options before committing.

Image source: Daylife

Post from: EveryJoe

Credit Card Issuers Offer Hardship Programs

Some of the things I like about Barack Obama include his quiet confidence and his talk of unity. I also like how he lays out the problem, and talks about a solution. I’m seriously hoping that the vast amounts of money that he plans to spend on economic stimulus will be more than just throwing money at the problem. And it certainly sounds like President-elect Obama means to try to make thoughtful, useful expenditures. He focuses on:

• Infrastructure.
• Health care reform.
• Renewable energy.
• Tax cuts.

My favorite points are infrastructure and renewable energy. Investing in these items will actually help us prepare for the future, as well as put people to work and give them a chance to help stymie the foreclosure problem. I like the idea of actually investing in our infrastructure and developing renewable energy. These are vital elements to our national security, as well as our economic vitality.

Tax cuts are nice, and I am glad that they are expected to be aimed at helping the middle class. It’s more of a “trickle up” approach that will hopefully work better than the “trickle down” approach that has been dominating so far. It would be nice, though, if our leaders, rather than trying to encourage us to spend the money, would advise us to pay off credit card debt and make wise investments, rather than engaging in another round of consumer spending. And, of course, I don’t think that Obama’s health care reform goes far enough.

At any rate, the address was reasonably encouraging overall. But we’ll have to wait until later this month, when the pork starts being inserted into the economic stimulus bill and battles erupt as the new administration comes in.

What do you think of the economic stimulus plan laid out by Barack Obama?

Post from: EveryJoe

What Do I Think About the Economic Stimulus Plan From Barack Obama?

Debt costs you money. Sometimes thousands of dollars. The interest charges don’t bring you anything tangible — or even tangible — in terms of benefits. All interest from debt represents is money you pay to get someone else rich. My guest post on My Dollar Plan offers a way to plan your way out of debt.

image credit: sxc.hu

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here: http://www.b5media.com/b5media-blogs-for-a-cause-and-raises-money-in-support-of-charity/

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion (http://www.accion.org/b5media). Donations are tax deductible.

Post from: EveryJoe

Personal Finance Tip #5: Pay Off Consumer Debt