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Top Credit Question: How Can I Settle This Credit Card Debt?

Dear Credit Karma,

We have a credit card with a balance of $13,000.00. We are only making minimum payments, but we are trying to settle with the credit card company to only pay half. How much it will it hurt our credit score? We both have a 760 credit score.

From, Alejandra

First off, it’s great that you are trying to figure out how to pay off your credit card balance beyond paying the minimum. J

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Need To Know List: 5 Credit Card Changes & 5 Credit Card Warnings

Disgruntled credit cardholders have long been grumbling about ridiculous $39 late fees and arbitrary interest rate hikes. But before you go ballistic on your credit card issuer in a way even Steven Slater could be proud of, it might bring some peace of mind to know the final stage of the CARD Act just kicked in to ease harsh credit card penalties and issuer abuses.

Know the following changes to save some money and maybe your sanity too.

1. Late Payments. No more late fees as high as $39. Issuers can’t charge more than $25 for a first-time late payment. I

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Many Americans receive a thick summary of their yearly credit card transactions each year and toss it in the trash without a second glance. However, they may also be throwing away a valuable opportunity to instill better financial habits and control their spending Fox Business reports.

Your year-end credit card summaries provide you with a breakdown of where you spend the most money. The breakdown usually consists of restaurants, entertainment, transportation, and other sectors. By examining the breakdown, you can get an accurate reading of your spending habits and make an informed decision about where you need to cut back.

This approach may be especially beneficial if you’re a newlywed. W

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When the Credit CARD Act of 2009 was passed it gave credit card issuers plenty of time to implement the changes. A few minor changes went into effect last year, then many more this past February. Now the final rule limiting unreasonable fees is set to go into effect on August 22.

One change that may affect you immediately is the provision which not only requires your credit card company to give you a valid reason why before they increase your interest rate, but demands that they re-evaluate any rate increases made since January 1 of 2009.

Under the present rules, they don’t need a reason other than “I want to.”  Now the reason must be tied to your use.

Taking it one step further – if they do increase your rate “for cause,” they must re-evaluate that increase every 6 months and reduce it if the reasons for the increase have changed, making you a better risk.

Another sweeping change involves late fees. Right now, y

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There are many reasons to want to get new plastic: maybe you want another open credit line, or need a back-up credit card, or are interested in bonus rewards or cashback. Whatever the reason, getting a new credit card is exciting, but can also lead to a bad decision of getting the wrong card, getting hit with surprise fees, or damaging your credit score.

If you’re in the market for new plastic, consider these three simple points first.

1. Is it the right kind of credit card for you? You might want a rewards credit card to earn you points or cash back, but if you’re prone to carrying a monthly balance, rewards cards have a notoriously high interest rate that will cost you. Low

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One effective strategy for rebuilding your credit is getting a new credit card and using it properly to establish a new, more responsible credit history. However, you should not get just about any credit card. You need to find the right card even if you have poor credit at the moment. It may be difficult but you can find one. Be realistic; do not expect to find credit cards with the same features that you enjoyed before, when you still had very good credit. Realize that credit cards approved for people with poor credit usually have low credit limits and are charged higher interest rates. Read all post…