Credit Debt Banking News | CDBN

My readers often get into trouble dealing with transactions that are unfamiliar to them. Later, they’re keen to save others from making the same mistakes.

Sue and her husband checked their credit scores at Equifax, but didn’t find them as high as expected. They learned that if you cancel a credit card, make sure to let the credit bureaus know.

Gord paid off his mortgage as quickly as he could, but was hit with a big penalty. He now knows there’s an annual limit on what you can prepay and you don’t get a warning when you go over the limit.

Stan opened a margin account to trade stocks, but paid more interest than anticipated. He discovered that if you hold Canadian and U.S. ..read more

Never forget that the big banks are in business to make money for their shareholders. Serving customers is always going to be a lower priority than boosting the bottom line, despite what thr ads say.

No matter what kind of help you seek from a bank, you can be tricked and deceived if you start with the idea that the bank is your friend. It’s not on your side. The overriding goal is to make profits for shareholders.

Canadians trust the banks too much. We think we will get objective help, not tainted by bias or financial incentives. That’s far from the case.

For example, banks push you to buy expensive insurance that covers minimum payments on your credit card if you’re sick or injured. They may ..read more

Last year I wrote about the Credit Card Bill of Rights, and what it really meant for you.  This law went into effect last Monday, so here is a reminder about the key points of the new law and how it affects you.

Overdraft Fees. Overdraft fees can only be charged if you have positively “opted in” and accepted the option to have overdraft protection for a fee.  If your credit card company has not already contacted you, they may contact you very soon.  Declining the option will prevent you from incurring any overdraft fees in the future, but it will also cause your credit card to be denied if you reach your credit limit.

Order of Balances ..read more

Is there such a thing as government aid in free debt consolidation? Many people will tell you that the government will help you pay your debt and they might if it is student loan debt. But if you are looking for the government to give you a check to pay you credit cards, you are most likely going to be disappointed.

If you have credit card debt you are going to have to research your debt consolidation options and select the one that best works for you and your financial situation. You have 2 options for consolidating your debt and they are a loan or a credit counseling service. A loan or a credit card balance transfer is not in your best interest and I would ..read more

Many debt consolidation organizations do not have a set minimum amount that they will work with, but most reputable and experience professional experts in this field will tell you that there are minimum amounts that are set based on a practical study of a person’s situation. This is where employing the services of a reliable professional counselor comes in very handy, and where you can benefit from their experience and expert advice.

If you are not that buried in credit card debts and your debt to income ratio shows that you could probably take care of your financial obligations on your own, then your advisor will present this to you as an option. Taking on a new loan to eliminate your indebtedness is a big step, ..read more