Debts

Services CCD

Home improvement, personal debt and business debt are all different things, but they also come under the same umbrella with services debt. Essentially, most of these different topics come under a service that was purchased by a customer, and because the payments had become difficult to pay month by month, the overall credit card debt almost driven the customer to default.

It’s very easy to fall under more than just one of these CCD debts. Unfortunately, it happens to more than it should throughout the years. There will always be someone who cannot make the payments they originally believed they could, and it ends up in the credit card company having to chase debts that should be unavoidable for the most part.

This is not necessarily the worst aspect of this, however. The overall worrying theme of the of credit card debts is the potential loss outside of money itself. The loss of assets, the loss of businesses or even homelessness if you delve too far into debt. This is a more common situation than you may believe. Especially for those who have never experienced credit card debt.

Essentially, services get more people into credit card debt than products, as products have a resale value (for the most part). With services, there is no refund policy, or a way to try and recoup any past spend. You simply use the service, and you pay for it.

There is also not much you can do to negotiate yourself out of debt. But with service debt, you can usually negotiate better terms with your credit card owner. This will usually involve shutting your credit card down completely while repayments are made, but they also will not look to seize. This is the best chance that you will have to clear your debt and minimize any potential financial damages.

Home Improvement CCD

Home improvements can be expensive, but they are also a necessity for many homeowners around Australia. With many of the homes around the country suffering from wear and tear because of the times they were created and the materials that were used in the build process, there are many outstanding issues throughout the country for these homes.

While there are so many homes that need improvement, the actual cost for the improvements themselves are very expensive. The overall costs of maintenance and home improvement can cost quite a lot of money. This increases significantly when you start to factor in the labour costs and the raw materials prices. The raw materials are generally the largest expense, especially depending on the work that needs to be completed.

A significant example of this will be when you start to consider the costs of new paint, flooring and floorboards, or other larger and more expensive materials. The labour cost altogether is the smallest cost of the project. Usually, you would pay 50% of the cost of raw materials on labour cost, meaning that if you want to be smart with expenditure, you will want to watch costs with raw materials.

I have helped more than a few homeowners who wanted to improve their home out of credit card debt. Usually, they spend too much on the raw materials not realising how much the total costs will add up to by the time that they project starts. It is also common to overpay for labour.

One instance that was difficult for the person that we gave advice to had great work done from a tiler Adelaide based company, but unfortunately fell through with their payments. As the tiler had given information to the credit card company that the overall raw materials costs were higher for that year, they were a lot more lenient.

Personal CCD

One of the easiest ways to get into credit card debt is if you can get into significant debt within your business and use your credit card to try and offset any loss. It’s surprisingly easy to get into debt within your business, and even easier to get into credit card debt when plugging holes within your business using credit cards.

When starting a business, the main thing you want to ensure is that you stay in the black month after month. How achievable, realistic or consistent that will be is entirely dependent on the business itself. There is no “how to” guide for running a business that will provide 100% success rates with a product or service. At times, life gets in the way of business, and business gets in the way of life.

But, while you are struggling to get into the black as a new business owner, it may be easy to get into credit card debt while you try to either invest into your own business, or use the card as a way to try and fix previous mistakes within the business itself. This is a common occurrence for new businesses, and even more established businesses could use this same process to increase their own business.

I knew a business owner to had created their own business but had made a few mistakes within their running of the business. These were easy mistakes, such as biting off more than they could chew. This is a very common practice for new business owners. He owed debt to suppliers and distributers, but the largest debt was on several credit cards that he had taken out.

Luckily, he was able to use some of his assets to settle his credit card debt. He sold multiple assets to fund his debts. Sometimes negotiation goes a long way.

Personal CCD

One of the most common reasons that people can get into credit card debt here at Credit Card Debt Negotiations is due to personal debt. While there are some who are better at handling their personal finances, others do not find it as easy. This is a generally common thing that you may not realise just yet! There are many people and many households around the world and around the Australian continent who struggle to manage their finances correctly, especially when factoring in a credit card. This is mainly due to credit cards essentially letting you spend money that isn’t there.

One of the biggest pitfalls that many credit card holders fall into is not being aware of how much money they are spending day by day. This is a common occurrence surprisingly. When it comes to cards, you don’t have a physical amount within your hands to associate your spending to. This makes people spend wildly above the credit they have, and it is the most common to see among young adults who have recently moved out of their childhood homes, or married couples with children.

One of the saddest stories that we have ever witnessed, but the most thankful that we have had for intervening was a single mother who had 3 children and had run into financial debt due to not working. Unfortunately for the mother, she hadn’t been working for the past 4 years beforehand, but she was a previous high earner. So, when her financial status had changed, she hadn’t expected the level of drop in the past. This ended up being a blessing in disguise for her, as once she had fallen into financial trouble, we knew exactly how to negotiate for better repayments.

Despite the situation you are in, there is always a new way to get forward.

Credit Card Debt Negotiations

Credit Card Debt Negotiations is a website dedicated to providing all readers who are in financial difficulties due to their credit card debts sound advice as to how they can navigate their way out. Credit card debt can be debilitating for many, as they are unable to financially protect themselves from any difficulty that may arise or have the income monthly to work their way out of their troubles.

What we aim to do at CCDN is give our readers advice on some of the ways that they can negotiate themselves into a position where options may be afforded to them. Of course, you cannot negotiate your way out of debt entirely. But what you can do is negotiate the down-payment and the monthly repayments into a broken-down system that is much more affordable to you personally.

Throughout this blog, we will offer many examples and instances of where readers have been in severe credit card debt and have managed to pull themselves out of it. Credit card debt is a massive trap for many people, and it can be waded into throughout a variety of means. Some people decide to book vacations or holidays with their credit cards and not keeping track of their overall spend, while others find it difficult to manage their finances and must pay their bills on credit. Some even start a business and use credit to invest and finance themselves.

Whichever method had gotten you into debt, there are ways to get yourself out of it. Credit card providers want to make their money back, so they will always provide their customers who are in debt with alternate solutions to help them. It is also in both parties’ best interests to find a way to finance any debt, and they will be willing to compromise.