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[L350]Line Of Credit Payments

by L. Sampson, L.

Sometimes things just come up. You have an unexpected expense, or just flat out forget. Many people think this is no big deal, forgetting to make a credit card payment won't hurt you in the long run, as long as you make your payment the next month right? Well actually, missing a credit card payment can actually ruin your financial health. There are three main things that can happen when you miss a credit card payment. Each card is different and some are more or less strict, but this is just an overview of what could happen.

Bye Bye Promo

So you get a new credit card with a great promotional rate like 2% for the first year on all your purchases. So things are going along well, you rack up some charges and then one month something comes up. You can't afford to pay all of your bills, so you figure you will just skip your credit card this time. Well, in most cases, if you do this, you can say good bye to your promotional rate. This rate is a reward for staying a responsible customer, and if you don't stay responsible you can forget about keeping it.

Default Rate

Even worse, if you don't make a credit card payment, the company will often change your rate back to the default interest rate which is normally quite high. So if you think that you are having trouble affording your minimum balance when your rate is at a promotional rate of 2%, try affording it when it is at a rate of 20%.

Credit Score

Most credit companies will report you to the credit bureau for just one late payment. This can lower your credit score by several points and can cause you to be turned down for credit in the future. It seems like a lot for just one late payment and it is, but it is not worth it to risk it all for one payment. It is best to pay the minimum, even if you have to move money around a little and may not be able to do something extra like go to a movie or out to eat. But in the long run it will be worth it.

Credit is what makes the world go around. Without Credit this world would not function and many people would not be able withstand the difficult periods during life when their cash flow dries up because of a lack of work and income. Credit smooths out the potholes in the road to riches. In fact, more than that credit can be the beginning to the road to riches, if you can handle your money correctly.

The problem is sometimes things do not work out as planned and we find ourselves in difficulties that were not intended. With the debt collector at the door, and the sheriff about to throw you out of house and home, it is not a welcome set of circumstances. Nothing worse than seeing a family evicted out of the house they have come to know as home just because of some credit company not liking the fact that their exorbitant interest rates are not being paid.

Interest rates on consumer credit are really deadly. It is bad enough having to pay any interest, let alone paying over 20% in interest on a loan. Some people find themselves paying over 30% in interest for unsecured credit.

Well there is good news for those who want to get out of trouble.

Once, after having learnt that a certain television star had gone bankrupt, I was amazed to hear two weeks later he was no longer bankrupt but had paid his creditors out at the rate of ten cents in the dollar. Now we were talking some serious money even with a settlement of ten cents in the dollar. Wouldn't you like to be able to payout your debtors at a huge discount and then get on with your life, as if nothing had really happened? Well, you can.

Ignorance is such a costly thing, it is astounding that people are prepared to wallow in it. Knowledge, when used properly, gives you a huge advantage and enables you to wield power in circumstances and places you never thought possible. If you have the knowledge you will be amazed what you can do.

Here is some of what you can do, if you know how:

You can prevent foreclosure on your home, if you know how

You can repair a poor credit rating without an attorney (just think what that would save)

You can use the small claims court to remove derogatory remarks from your credit history

You can get a 20 year excellent credit history added to your credit report

You can cut your credit payments in half

You can get unsecured finance to start up or expand a business.

Knowledge is a powerful thing and when used in the right way, not only can you save a fortune,

you can prevent yourself from having a poor credit history, so you can obtain the money for investment purposes and other money-making business ventures. Actually, there is much more that is hidden from the public that is made use of to prosper by those who are in the know. Knowledge is powerful when used in the right way.

Article Source : Pg. 175

About Author

Both L. Sampson & Happy Riches are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

L. Sampson has sinced written about articles on various topics from Free Credit Report Score, Bankruptcy Law and Finances. Visit for information on how to obtain an. L. Sampson's top article generates over 74000 views. to your Favourites.

Happy Riches has sinced written about articles on various topics from Adsense, Options Trading and Finances. Happy Riches knows how to show you how. Happy can be found at or visit his eBay sit. Happy Riches's top article generates over 74000 views. to your Favourites.