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IN THIS ISSUE #142 |
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Publisher:
Scott Bilker |
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Editor:
Larissa S. Bilker |
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Assistant
Editor: Denise Troy |
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ISSN
1538-6740 |
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Borrowing to Stay Healthy |
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Low- and
middle-income households with medical debt
carried an average $11,623 of credit card debt,
compared with $7,964 for those without medical
debts on their credit cards. Twenty-nine percent
of low- and middle-income households with credit
card debt said medical expenses contributed to
their current balances. Within that group, 69
percent had a major medical expense in the
previous three years. Young adults, age 18 to
34, had the highest level of average credit card
debt among those with medical debts--$13,303.
Young adults without medical debts had an
average credit card balance of $7,450. Consumers
with medical debts are more likely to be called
by bill collectors than those without medical
debts--62 percent compared with 38 percent.
Consumers with medical debt are more likely to
forgo health care because of the cost, the
report added. |
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Letter from the Publisher
by Scott Bilker
Hi,
Ready for this...there are more than 692
million credit cards in the USA. And these cards carry a total balance
of 711 billion dollars! Doing a little math, that's $1,027 per card. So,
if the average cardholder has 10 cards, the average debt is $10,270 per
cardholder.
So ask yourself: "How do I compare to
this average?" Of course, the number $10,270 is high enough. But if
you're at four times that, then you know you have to start taking action
to reduce that debt. Hey, even if you're at $10K, you should always be
looking for ways to lower that number.
If you've been reading this email
newsletter for a while, then you know that my strategy for reducing debt
is to reduce the cost of debt--reduce the interest rates. And there is
no better way to do that than to make the banks fight for your business.
Having credit options is how you make the banks compete.
Or as Uncle Ben might say (for all you
Spidy fans), "With great credit options comes great responsibility."
That means that just because you have credit, it doesn't mean you have to
use it. Only use your credit lines to reduce your debt by transferring
balances between accounts.
Best,
Scott
PS: Be sure to check out the video by Rhett & Link in this issue. It's
great!
Credit Junkie
by Scott BilkerHi,
Mr. Bilker! I'm a big fan but would like
to share and get your opinion on what happened to me when I balance
transferred several accounts. I'm also a credit junkie so am very aware
of the status of my credit reports. FYI, my credit reports have no
negative accounts, and I want to emphasize all my payments are on time
and I never go over the limit.
I paid off many higher-interest rate
cards with some of my lower rate and 0% offers. When I did, instead of
having several cards with less than 50% usage, I had several cards with
0% usage (the higher rate cards) and several with 70-85% usage (the
lower rate cards).
What followed was a dramatic decrease in
my credit score of 60 points due to "using at least 50% of credit limit
on 5 credit cards." This drop caused alarm in the "risk" department at
American Express as they decided to cancel my extended payment option
though my 2 cards with them were left open.
I realize you have so many cards. This
situation probably didn't impact you, but it has definitely impacted me.
I thought it was important to note that even when my overall credit
ratio usage went down and is considered positive, the fact that over 50%
of the credit limits on several accounts was used resulted in such an
extremely damaging score drop.
My question is this: Have you dealt with
this situation with your clients and what have you done, if anything, to
deal with it?
Again, thank you very much! I hope to
hear from you soon!
Carol
Finish Reading Article
"Thank you for saving my sanity" and other reader comments...
"Thanks to your book and website! We are
getting very close to getting all of our credit cards paid off. Your
organization provides a great service!"--Brenda
"Hi Scott, I opened your Talk Your Way
Out of Credit Card Debt, and called Capital One and got my 19.8%
reduced to 14.9%--thanks for your help!"--Joshua LeBeau
"Thank you for saving my sanity about a
year ago with your book. I have since done GREAT advances on my credit
cards. I found you before it was too late."--Eileen
"I wanted to say thanks to you--your
teachings have undoubtedly taken thousands of dollars out of the credit
card companies pockets and put the money into my pocket. I view this as
a grand thing."--Craig K.
"I found your website and am so glad I
did! I was feeling like an irresponsible person because of this debt
situation, but after reading some of your articles and questions from
other readers, I am starting to feel a bit better. Thanks and keep up the
good work!"--Raquel V.
"With one phone call to Citicards and a
minor threat of moving to a different card, they did not lower my
interest rate (14.5%) forever, but offered an introductory rate of
1.99% for nine months. You are correct about making the calls. Also a
good credit history helped."--Rush Kittle
"It is very informative. I looked at my
statement and realized I was paying 17.5% on my 5,700 credit card loan.
I found your site and followed your instructions. It worked. I received
their promotion for 5.2% for the first 6 months and then 11.5%. They
said to call back after 6 months to find out about any new promotions.
Thanks so much!"--Mark Picone
Read about special offer for all three of Scott Bilker's best-selling books
Green Bills and Debit Song
by Rhett & Link
In their first made-for-podcasting
endeavor, Rhett and Link face-off as a flower and a caribou over the
age-old question: "What is the superior form of legal tender?"
This video is hilarious! I love finding
stuff like this about money. It just goes to show how much people are
thinking about credit cards. Let's face it, when a caribou and flower
are giving credit card advice, it's time to pay attention.
Finish
reading article
Household Math™: Mortgage Math
by Scott
BilkerThe interest rate on my
mortgage is 7% APR with monthly payments of $623.00. The balance today
was $59,200.00 prior to the monthly payment being credited on this day.
What will the balance be on the mortgage next month immediately after
the monthly payment is applied to the balance?
Answer this problem
Stop Debt Collectors Cold!
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Stop Debt Collectors Cold! Plus, for a
limited time, 4 bonus reports: |
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--> How to Get Collection
Accounts Off Your Credit Report |
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--> How to Avoid Losing Your Home
In A Foreclosure |
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--> What to Do if You Are Behind
on Your Car Payments |
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--> Confidential Interview With A
Former Debt Collector |
Read about stopping debt collectors
8
Ways to Consolidate Debt
by Gerri
DetweilerNext to winning the
lottery, a debt consolidation loan is a debtor's dream. With one monthly
payment and a fixed monthly payment schedule, you can actually see an
end to those monthly payments.
In reality, consolidating bills isn't
always easy. If you have a lot of debt, it can be hard to find a
consolidation loan at a lower interest rate. And if you're not careful,
you can end up deeper in debt than when you started.
Your goal in consolidating your debt
should be to lower your overall costs. To accomplish this, there are two
things to keep in mind...
Finish Reading Article
More credit, more options!
Credit options are your weapon
against the banks! The key to success is using your credit lines
to save money--not to go crazy spending!
The Credit Repair Kit plus bonus
CD!
by Joe Sainz
What do you
think of when you hear the words "credit
repair"? I think of scam! That's because
many companies have made promises to
"fix" people's credit but then simply stole
their money. However, there are still
reputable sources for people to learn
how to straighten out their credit
reports.
Your
credit report is your financial résumé
and everyone, from lenders to insurance
agents, reviews it. It's vital that there
are no mistakes shown, and if there are,
that they're removed!
There are
many books on the subject, but my
personal favorite is The Credit
Repair Kit. That's because Joe
Sainz offers great practical advice for
correcting errors. Plus, he includes a
Credit Booster CD-ROM with the
book!
If you're
having trouble getting the rates you
deserve because of your credit report,
then you must read this book!
Read more
about The Credit Repair Kit plus bonus
CD...
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