The Debt Consolidation San Diego Holiday Alternative

San Diegans precariously go deeper in debt during the holidays. That's when even debt-ridden consumers engage in nonsensical credit card shopping sprees. Inevitably for most shoppers, the New Year's resolution is filing bankruptcy.

Credit card companies notoriously target compulsive San Diego credit card shoppers with a slew of tricky holiday credit card solicitations. One of them is the "no-interest, no-payment" offer.

Although the "no-interest, no-payment" offer promises interest-free purchases without having to make a payment for 6 to 24 months, if you don't pay the full price of your purchase within the grace period, you will be charged interest on the entire purchase amount dating back to the purchase date.

Of course, the best holiday debt consolidation San Diego solution is to abstain from charging on credit cards. No matter how good the Thanksgiving or Christmas offer may be, insist on buying in cash. If you decide to make a credit card purchase, only buy what you can afford. Also never let holiday shopping distract you from your debt. Know how much you owe on interest rates, fees, and prepayment penalties.

Additionally, whenever possible, pay as much as you can above the minimum payment. The average U.S. cardholder pays an 18% annual interest rate because credit card companies encourage people to pay only the minimum payment. However, the bulk of your minimum payment pays interest charges. Only about 10 percent of it brings down the principal balance.

As an example, by making a $60 minimum payment on a $3,000 credit card balance, your debt would be paid off in eight years. You would also pay $2,780 in interest charges - almost double the debt's original balance. In contrast, paying over the minimum payment will lower your credit card interest rate because more of your monthly payment is applied to the principal.

Another tip, if you have a positive payment history, is to negotiate down your interest rate. Your credit card company will consider lowering your interest rate out of fear that may transfer your balances to another credit card company. But if your payments are late, picking up the phone will invite creditor harassment.

If you are a victim of creditor harassment, the Fair Debt Collection Practices Act (FDCPA) is a law that can protect you against abusive debt collectors. Under the law:

• A debt collector many not contact you before 8 a.m. or after 9 p.m.
• A debt collector many not contact you at work (if the debt collector is aware your employer does not allow such contact).
• A debt collector may not contact you when they are aware an attorney represents you.
• A debt collector may not make false implications of government affiliation.
• A debt collector may not contact you at unusual times or places.
• A debt collector may not deposit a postdated check prematurely.
• A debt collector may not assert false threats of legal action or legal status.
• A debt collector may not repeatedly use the telephone to annoy you.
• A debt collector may not falsely imply that you committed a crime.
• A debt collector may only contact third parties to ascertain your location or whereabouts.
• A debt collector may not harass you, or third parties in connection with collecting a debt.
• A debt collector may not use threats of violence or harm, profane or obscene language.
• A debt collector may not reveal to third parties that you owe debt.
• A debt collector may not publish a list of debtors (except lists sent to credit bureaus).

About Debt Free League:

The complete debt settlement service provider is pioneer of the National Debt Relief Stimulus Plan. The company employs in-house debt negotiation specialists to help people in financial hardships negotiate settlements of personal, medical, and business debts. The average client savings is 50 percent. The company is also affiliated with Libre de Deudas, which services the Hispanic community. Free debt settlement phone consultations are available by calling 800.213.9968.

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