About Credit Card Debt
There are two main kinds of credit card debt, secured
and unsecured. It is important as a consumer to be able
to distinguish between the two kinds, as the consequences
and repercussions for defaulting on payments will vary
drastically between the two.
Unsecured Credit Cards
Unsecured credit cards are the more common form of credit
cards available to consumers. These cards do not require
the consumer to back/guarantee the card with any funds
or collateral. These cards are quite easy to get, even
without good credit.
Most banks and lenders cover their risk of offering
unsecured credit cards by requiring annual fees or charging
very high levels of interest. Also, the cardmember agreements
have very strict terms of usage, and the smallest oversight
on part of the consumer can result in late fees, penalties,
and high interest rates.
If you find that you are having difficulty in managing
your credit card debt, and you have the willingness to
pay, just not the ability, CALL TODAY! 1-866-987-3328.
Secured Credit Cards
Secured credit cards are very different from unsecured.
Secured credit cards require some sort of collateral
backing, often in the form of cash or a type of asset/property.
This requirement will often make them more difficult
to get, as many consumers may not be able to meet the
collateral requirement. An additional deterrent for many
consumers is the fear of payment default, and the collateral
backing serving as a form of payment to the creditor.
In the event that default or non-payment occurs, the
creditor has the right to recover the collateral as a
form of payment. Therefore, unlike unsecured credit,
the consumer stands to lose whatever collateral they
have used for the account.
Store Cards
Many of us have been offered the discount at the register
if we sign up for the store credit card. Offers of 20%
off or in some cases more, can be very enticing, and
have resulted in many people signing up for these cards.
The initial benefit is quickly washed out if prompt payments
aren’t made, and the teaser discount quickly turns
into huge amounts of interest that will follow you around
for months or years.
Store cards can come in both secured and unsecured forms.
Some store cards use the purchased items as collateral
in the event the consumer is not able to meet the financial
obligations of repayment. This is usually the case for
stores that sell big ticket or luxury items. However,
many store cards are unsecured and have similar cardmember
agreements as other unsecured credit cards.
If you find that you are having difficulty in managing
your credit card or store card debt, and you have the
willingness to pay, just not the ability, CALL
TODAY! 1-866-987-3328.
|
