Knowing When to Contact the Credit Card Company

Today, it may seem as though you never have to actually contact your credit card company. A lot of things associated with your credit card account can be done through a smartphone app or your banking app. You can view your available credit, your account balance, check the payment status, or make a payment. You can even use these apps to request that the credit card company increases your credit limit.

While accessing this important information using apps and online is convenient, there are instances in which you should still pick up the phone and speak to a customer service representative. Actually speaking to a customer service representative can help you get the answers you need to your questions in real-time. When speaking to the representative in any of the important situations outlined below, it is important to call the number on the back of your card, or on the website of the credit card issuer.

You Lost Your Credit Card

Any time you lose your credit card, it is critical that you speak to your credit card issuer as soon as possible. If you do not and someone obtains your card and uses it, you will likely be held responsible for those purchases. When you report a lost card right away, on the other hand, you will likely not be responsible for purchases made after the time you reported it.

Although you cannot look at the back of your card when it is lost, head over to the credit card issuer’s website to obtain their phone number. The representative will ask you to verify the last purchases you made with your card and then they will deactivate your card before sending you a replacement card.

Your Credit Card Was Declined Unexpectedly

Having a credit card declined is upsetting, and it is natural to wonder why a transaction did not go through. However, there are a number of reasons a credit card may be declined. It is true that sometimes, you may simply not have enough available credit for a certain transaction. Other times, though, it may be a simple matter of a retailer’s credit card system not working. Any time your credit card is declined, it is critical that you call the issuer right away to determine why your card was declined.

You Do Not Recognize Certain Charges on Your Statement

Most credit card issuers will work with you to prevent identity theft and other types of fraud. The majority of credit cards today come with zero fraud liability. This means that when there are fraudulent charges on the account, you are not generally responsible for paying for them. Zero fraud liability also protects you in the event that someone uses your credit card number even when they are not in physical possession of your card.

You should review your credit card statement every month to verify that you are the only one using it to make purchases. When you do not recognize certain charges on the statement, do not hesitate to contact your credit card issuer. Again, they may issue you a new card so no additional fraudulent charges are posted to the account.

You Are Traveling Internationally

Credit card issuers become very suspicious when charges are made to your credit card from another country. To ensure that you can use your credit card while traveling internationally, always call your credit card issuer to alert them to the fact that you are traveling outside of the country. If you do not, the credit card company may mark a transaction as fraudulent, even when it is not.

Waiting to contact the credit card issuer until you are already out of the country comes with risks, as you never know what kind of cell phone reception you will have while traveling. When speaking to the customer representative, also make sure that your credit card will work in the area you are traveling to.

You Do Not See a Payment You Made to the Account

Again, you should be reviewing your credit card statement every month. This is to ensure that no one is making fraudulent charges, but also to make sure that your payments are being credited to your account. If you do not see a payment you made on your statement, but it has already cleared your bank account, call your credit card issuer to make them aware of the payment.

This is of particular importance if the credit card issuer has applied a late fee to the account because they have not yet received your payment. At this point, the credit card company should investigate the situation, apply the payment to your account, and waive any interest or late fees associated with the misapplied payment.

You Are in Financial Hardship

When you cannot pay your bills, it is natural to want to hide from them. Unfortunately, ignoring them will not make them go away and, in fact, could even make the situation worse. Any time you are struggling to pay your credit card bill, call the company that issued the card and explain your situation. You may be surprised at how willing they are to work with you.

You Want to Close the Card

There may come a time that you just want to close your credit card account. Maybe you cannot afford it, or maybe you have found a better card. In these instances, it is important to call your credit card issuer and inform them that you are closing your account. The credit card company can advise you of the remaining balance you need to pay, and they may even offer advice on how it will impact your credit score with reporting bureaus such as TransUnion.

Call Our Credit Card Defense Lawyers in Florida if a Creditor Has Taken Action

Although there are many times you should call your credit card issuer, you should also call a credit card defense lawyer in Fort Lauderdale, FL if a company has threatened to take legal action against you. At Loan Lawyers, our skilled debt defense attorneys can advise on the defense strategies to use in your case and give you the best chance of a successful outcome. Call us today at 954-807-1361 or contact us online to schedule a free case review.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free legal consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

 

The post Knowing When to Contact the Credit Card Company appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/when-to-contact-credit-card-company
via https://www.fight13.com

An In-Depth Look at Loan Modifications to Stop Foreclosure

Even before the COVID-19 pandemic, Florida was one of the hardest-hit states when it came to foreclosures of residential and commercial properties. Florida continued to struggle after the housing crisis of 2008, long after many other states in the country had largely placed the crisis in their rearview mirror. Today, the pandemic has only exacerbated the problem and has placed Florida once again at the top of the list of states struggling the most with foreclosure.

While many property owners in Florida are already falling behind with their mortgage payments, others are just scraping by and are facing the very real possibility of foreclosure in the coming months. Fortunately, there are many options property owners have to stop foreclosure, and one of the most popular is the loan modification. So, what is a loan modification? Why are they so popular, and what do you need before applying for one? The answers to these questions and more are found below.

Loss Mitigation During Foreclosure

It is often difficult for property owners to believe they have options when they are facing foreclosure but, truthfully, there are many. Lenders that handle and manage loans, often called servicers, have a lot of incentive to help property owners keep their property. When a property falls into foreclosure, it creates a lot of work for lenders and servicers, and there is no guarantee they will make their money back from the loan. As such, they are more willing than many people think to work with property owners to avoid foreclosure.

The options available to stop a foreclosure are collectively known as loss mitigation. Loss mitigation is an umbrella term that refers to any action by which the property owner and the lender or servicer work together to stop a foreclosure from happening. Although there are many types of loss mitigation, the three that are most popular are loan modifications, forbearance agreements, and payment plans. Of these three types of loss mitigation, loan modifications are becoming increasingly popular.

Why Are Loan Modifications So Popular?

Loan modifications are becoming incredibly popular for many reasons. One reason is that a loan modification is an option that is the easiest to personalize to a borrower’s financial situation. A loan modification is simply a renegotiation of the loan’s original terms. With a loan modification, any term of the loan can be changed, including the interest rate and the length of the loan. The purpose of a loan modification is to better accommodate the financial situation and repayment capabilities of the borrower. Through a loan modification, payments become more manageable for the borrower and can help prevent them from falling into foreclosure.

Borrowers also find loan modifications more enticing than other options because one term of mortgages that are almost always changed during a loan modification is the interest rate. When the interest rate on a loan is changed, it can save the borrower thousands of dollars in the years to come, particularly when a borrower has several years of repayment left on their loan.

Additionally, loan modifications do not bring any of the potential consequences that other options, such as a short sale, does. With other foreclosure defenses, the lender may still obtain a deficiency judgment that places an additional financial burden on the borrower. A deficiency judgment is a court order that is legally binding and requires the borrower to repay the amount left on the loan.

For example, if a borrower tries to avoid foreclosure through a short sale, the home is sold for less than it is worth. In this case, the lender can then petition the court for a deficiency judgment that requires the borrower to pay the balance that is left after the sale. There is no deficiency judgment in a loan modification and so, the borrower only has everything to gain and nothing to lose when choosing this route.

When a borrower has already fallen behind in making mortgage payments, those payments can also be worked into the loan modification. While the length of the loan is typically extended in a modification, it also makes the monthly payments more manageable. When the payments that are already past due are worked into the modification, it means the borrower is no longer considered behind or in default, but that they are current with their loan, which can help improve their credit score and more.

How to Obtain a Loan Modification

Loan modifications are very helpful for borrowers, but they must obtain one before they can reap the benefits. The first step in obtaining a loan modification is to contact the lender or loan servicer and ask for an application. When you receive the application, it will likely outline everything you will need to provide along with the completed application.

Generally speaking, you will have to provide details about your finances including the income you earn, the expenses you incur on a regular basis, and any other details that may be relevant. You will also be asked to provide certain documents that prove certain elements of your case. These may include the fact that the property is your primary residence or place of business, an explanation of the financial hardship you are experiencing, and the regular income you will earn in the future that will allow you to make timely payments under the new terms of the loan.

In most cases, it is best to work with a foreclosure defense lawyer that will help you through the process, negotiate with your lender, and give you the best chance of success with your case.

Call Our Foreclosure Defense Lawyers in Florida Today

Loan modifications are a great option for anyone facing foreclosure, but they are not always easy to obtain. At Loan Lawyers, our foreclosure defense lawyers in Fort Lauderdale can help you through the process to help you secure the more manageable payments you need to avoid losing your property. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation so we can review your case.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

The post An In-Depth Look at Loan Modifications to Stop Foreclosure appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/an-in-depth-look-at-loan-modifications-to-stop-foreclosure
via https://www.fight13.com

Steps to Take if You Have Maxed Out Your Credit Cards

When credit card issuers give someone a credit card, they place a credit limit on the account. The credit limit is the highest outstanding balance a person has and, essentially, how much they can spend on the card. Borrowers are generally advised not to spend so much on a credit card that they ‘max it out,’ or spend every available cent on their card; doing so lowers a person’s credit score, as the credit reporting agencies will factor in the amount of credit a person is using when determining the score.

When borrowers max out their credit cards every month, it is also a signal that they are spending beyond their means and making purchases they cannot afford. Maxing out a credit card is one of the most harmful things a person could do to their finances. For this reason, it is important that all borrowers not only try to avoid maxing out their card, but also the steps to take when it happens.

Stop Spending

In many cases, once a person has maxed out their credit cards, they are unable to spend any more on it because the credit card issuer will not allow it. However, that is not always the case. Sometimes, a credit card issuer will allow additional charges to be added to a card, which will only add to your overall balance and cost you more in the end.

Many people stop taking their credit card out when they are shopping after they have maxed it out, but there are other ways you may be spending on your card that you may have forgotten about. For example, you may have a subscription that automatically charges your credit card, or you may have your credit card set up for one-click purchases. Review your last credit card statement and look for any charges you may have not considered so you know which payments to stop.

Make More than the Minimum Payment

It is easy to think that only making the minimum payment each month will keep you and your account in good standing with the credit card issuer. That may be true, but making only the minimum payment will hurt you in the end. For example, if you have a card with a $5,000 credit limit, and the annual interest rate is 20.21 percent, it will take over 45 years before it is paid off if you only make the minimum payment. During that time, you will incur more interest and increase your minimum payment, which will cost you much more.

To determine how long it will take to pay off your card in full, use a credit card repayment calculator that will show you how long it will take. Then, change the minimum payment to the amount you can afford to pay every month to determine how long it will take to pay off your card using a higher amount. A budget is critical when determining how much you can afford to pay off so if you have not created one yet, now is the time to do so.

Create a Payment Plan

Once you know how much you can afford to put towards your credit card every month, you can then create a payment plan. It is not necessary to make a payment plan with the credit card issuer, but having one written down can help keep you accountable and see in black and white how much you should pay every month. Of course, even though you may have a payment plan, you should always pay more than what you have allotted if you receive a tax refund or other source of income that can be used to pay down the debt.

Lighten Your Debt Load

Not everyone who has maxed out their credit cards has a low credit score. If your credit score is still considered fair or good, you may be able to transfer your current balance to another card. Many credit card issuers offer a zero percent APR on balance transfers for a certain period of time, which will maximize the impact of your payments. When interest is not added to your balance every month, the full amount of the payment you make will reduce your credit card balance, giving you more room within your credit limit.

Another viable option for lightening your debt load is to apply for a personal loan. If you are approved for this type of loan, you can use it to pay off your credit card. You will still owe the same amount on the personal loan, but you will also have a fixed monthly payment and a fixed payment schedule. Personal loans also typically have a lower interest rate and a shorter repayment period. When using a personal loan to pay off your credit card, try not to use your credit card so you do not max it out and have two debts you have to pay, instead of just the one.

Ask the Credit Card Company for Assistance

Calling the credit card company is often the last thing a person wants to do when they have maxed out their credit card. However, calling the credit card issuer can be very helpful. The company may be willing to lower your interest rate, so more of your payment goes towards the balance instead of paying off interest charges. Some credit card issuers also offer hardship options when a borrower is unable to make even minimum credit card payments.

Call a Debt Defense Lawyer in Florida

When a person has maxed out their credit cards, it is usually not long before a creditor takes legal action, particularly if the borrower has not made payments in awhile. If a creditor or debt collector has threatened to take legal action against you, our debt defense lawyers in Fort Lauderdale are here to help. At Loan Lawyers, our skilled attorneys know the defenses available in these cases and will use them effectively to give you the best chance of a favorable outcome. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation and to learn more about your legal options.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post Steps to Take if You Have Maxed Out Your Credit Cards appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/steps-to-take-if-you-have-maxed-out-your-credit-cards
via https://www.fight13.com

President Biden Extends Moratorium on Foreclosures

When the pandemic first hit in early 2020, the Trump administration placed a moratorium on foreclosures and evictions. While the moratorium was extended last year, it was set to expire on January 31, 2021. Fortunately for homeowners who are falling behind on their mortgage payments, President Biden signed an executive order on the first day of his presidency that is going to extend the moratorium once again. Now, the moratorium on foreclosures and evictions is set to last at least until March 31, 2021.

While the news is a relief for hundreds of thousands of homeowners around the country, there are certain things everyone should know about the new order, what it means for their mortgage payments, and the requirements with which lenders must comply.

What Does the Moratorium Order Cover?

Like the moratorium order that was in place prior to the extension, the executive order applies only to federally-backed mortgages. Still, there are over 11 million mortgages guaranteed by Veterans Affairs, the Department of Agriculture, and Housing and Urban Development, which means the order still brings relief to homeowners throughout Florida and the rest of the country.

Prior to the executive order, the Federal Housing Finance Agency had already extended moratoriums on single-family foreclosures and real estate owned evictions until February 28, 2021. This moratorium prohibits mortgage loans backed by Fannie Mae and Freddie Mac.

While these moratoriums have resulted in foreclosures being at record lows, it is estimated that delinquent mortgages are still 1.8 million above pre-pandemic levels. It has also been estimated that approximately one in 10 homeowners is behind on their mortgage payments.

Like the past moratorium placed on foreclosure proceedings, the latest executive order applies only to foreclosures and evictions based on non-payment. Foreclosures based on non-compliance with other terms, such as noise restrictions, are still able to go forward. In the event that a property is abandoned or vacant, mortgage servicers and lenders can still foreclose on a property.

Forbearance Requirements

Homeowners who have a federally-backed mortgage can still expect lenders to provide them with relief as outlined in the CARES Act by offering them forbearance of the guaranteed loan payment for up to 180 days. In addition, when a borrower makes a request, the initial forbearance period can be extended an additional 180 days. Lenders should also offer potential solutions that may be available once the forbearance period is over. Lenders should also notify borrowers that a lump-sum payment for the arrears is not required.

When a borrower has used a forbearance option, the lender should not apply any accrual of fees, interest, or other penalties that exceed the amount calculated if the homeowner had made all contractual payments in a timely fashion.

Once the forbearance period is over, lenders should also work with borrowers to determine if the homeowner can continue making regular payments. When homeowners are able to start making payments again, they should be offered an affordable repayment plan or an extension to defer any delinquent payments to the end of the loan. In the event that the borrower is not able to start making regular payments again, the lender should evaluate the homeowner for all available loss mitigation options.

Common Foreclosure Defenses in Florida

While the extension of the foreclosure moratorium will bring much-needed relief for many homeowners, it will expire at some point in the future. Additionally, the order only applies to federally-backed mortgages, leaving homeowners without a guaranteed mortgage still at risk for foreclosure. Fortunately, there are still many foreclosure defenses available for these homeowners.

Some of the most common defenses used in foreclosure cases include:

• Lack of standing: For a lender to be successful with a foreclosure lawsuit, they must prove that they have proper standing to bring the legal action. This means that the lender is the holder of the title or the note and has something to lose if the borrower does not pay their mortgage. It is often difficult for a bank to prove that they have proper standing to file a lawsuit because they often bundle and sell their mortgages, which results in them no longer having standing to file a foreclosure lawsuit.
• Lack of adequate notice: Most mortgage loans require lenders to notify the homeowner that they have defaulted on their loan prior to filing a lawsuit. This condition is usually found in paragraph 22 of the mortgage loan and typically states that lenders must provide the homeowner with a minimum of 30 days notice, and provide them with options to bring their loan current.
• Unclean hands: Lenders are not allowed to use fraudulent or illegal actions to force a homeowner into foreclosure. For example, a lender cannot tell a homeowner that they do not have to make payments for two months, and then foreclose on the property when those payments are missed. When lenders use such strategies, they have unclean hands, which provides an affirmative defense for the borrower.
• Failure to comply with the Florida Consumer Collection Practices Act: Florida law requires that lenders notify homeowners every time their mortgage is transferred, and the notice must be given within 30 days of the transfer. When lenders do not comply with this law, it can serve as a foreclosure defense.
• Failure to record mortgage payments appropriately: Federal law requires loan servicers to apply payments and charges to mortgage loans. When lenders and servicers fail to properly credit payments, they cannot successfully win a foreclosure lawsuit.

After reviewing the specific facts of a case, a Florida foreclosure defense lawyer will advise on the most appropriate defense.

Our Foreclosure Defense Lawyers in Florida Can Help with Your Case

If you are facing foreclosure, or have missed some mortgage payments and are worried about losing your home, our foreclosure defense lawyers in Fort Lauderdale can help with your case. Our skilled Foreclosure attorneys know the best defenses to use in these cases, and we will put our experience to work for you. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation and to learn more about how we can help.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

The post President Biden Extends Moratorium on Foreclosures appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/extension-moratorium-on-foreclosures
via https://www.fight13.com

How to Pay Off Holiday Debt Quickly

A recent study has shown that Orlando is among the cities with a large number of residents who are stressed about their debt load. While the study revealed that Orlando was the only Florida city that made the top 10 cities where residents are most concerned about the amount of debt they are carrying, the trend is very likely to continue throughout the rest of the state as everyone continues to battle the pandemic.

The study did attribute the rise in concern over debt to the pandemic, but it is likely that holiday spending also has many people worried. With so many people losing their jobs during the COVID-19 crisis, more people were relying on credit, which means they also went further into debt. Fortunately,  there are ways to pay off holiday debt, and rather quickly too, so you can stop worrying about it for the rest of the year.

Evaluate Your Debt

Not all debt is the same, and you should not treat it as such. When being strategic about paying off your holiday debt, you must understand the type of debt you have and the nature of that debt.

Some of the most common forms of debt are as follows:

• Credit cards: Often the first type of debt a person thinks of is credit card debt. You are likely paying an annual percentage rate (APR) on your card every month (unless it is a brand new card), which can add to the debt.
• Retail cards: Retail cards are like credit cards but they are specific to one specific store. Many people sign up for retail cards during the holidays and if this is the case you may have a zero percent deferred-interest plan. If you do not pay off your balance by the time this plan expires, you will be charged full interest on the initial purchases you made.
• Personal loans: Unlike credit cards and retail cards, personal loans typically require that you make a fixed monthly payment and they also have a set APR.
• Financing: Financing that allows you to buy now and pay later is very commonly used when online shopping. These plans sometimes come with a deferred interest option and, similar to personal loans, the amount you are required to pay each month is typically fixed.

When evaluating the debt you owe, itemize all of your debts, the total amount you owe, the interest rate you are paying, and the minimum payment due. Once you have done this, you can then determine how you want to pay off the debt.

Budget to Make Payments

No one likes to talk about creating a budget, but you cannot think about repaying your debt without budgeting for it. The ideal way to conquer holiday debt is to pay as much you can afford towards it, even if it means making some small sacrifices in the meantime. Consider how much income you are earning, and how much of that you need for regular bills and expenses. Take a second job or pick up some side work if there is an opportunity, and use any holiday bonus you may have received to pay down your debt.

Determine How You Want to Pay Off Your Debt

You likely want to pay all of your debt off as soon as possible, but it is also unlikely that you can pay it all off with one lump sum.

As such, there are two common methods for paying off debt. These are:

• The snowball method: When using the snowball method, you make the minimum payment on all of your debts. If you can afford to pay off more debt, that additional money is then put towards your smallest debt. Once that small debt is all paid off, you can then move on to the next smallest debt. You can get rid of a debt one at a time, but because you are starting with the smallest debt, you can do it relatively quickly, which can give you the momentum you need to get more excited about paying off even more debt.
• The avalanche method: The opposite of the snowball method is the avalanche method. With this method, you tackle the highest debt first, while still making the minimum payment on all other debts. Once you have paid off the biggest debt, you move on to the next biggest. The advantage of paying off debt with this method is that you will not accrue high interest fees while you are paying off debt.

You may also consider opening a new credit card that offers a zero percent APR for balance transfers. Then you can move your debt with the highest interest to this new card and have a certain amount of time to pay it off without incurring additional interest charges. This option is typically only available if you have good credit.

Stick to the Plan

Too often, people are very eager to pay off their debt and find that they have a lot of discipline when doing so during the first few weeks or months. Over time, paying off that debt becomes a lot less exciting and so, many people simply do not stick to the plan. It is important to overcome this debt fatigue and make sure that you continue on with your plan until all of your debt is paid off.

One of the best ways to ensure that you continue paying off your debt is to set up automatic payments through your bank. Set the same date for every month that a minimum payment will come out of your account so that it’s predictable and expected. You can also set up automatic transfers so that when you deposit your paycheck, a certain amount is automatically transferred into a savings account, which you can then use to pay off your debt at the end of every month.

Struggling to Pay Off Debt? Call Our Debt Defense Lawyers in Florida

While the above tips are very useful when trying to pay off your debt, unfortunately, they do not always work. If this is the case and a debt collector has taken, or has threatened to take, legal action against you, our debt defense lawyers in Fort Lauderdale are here to help. At Loan Lawyers, we have the necessary experience to fight back against debt collectors, and we want to put that experience to work for you. Call us today at (954) 807-1361 or fill out our online form to schedule a free consultation and to learn more about how we can help.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post How to Pay Off Holiday Debt Quickly appeared first on Loan Lawyers.

from Loan Lawyers https://www.fight13.com/pay-off-holiday-debt-quickly
via https://www.fight13.com