The simplest way to beat credit card debt is to avoid it. OK, easier said than done! But seriously, credit card debt is evil. If you cannot avoid it (like most Americans), at least keep it manageable. Following are five tips to keeping your credit card debt manageable, and with a little luck, avoid it altogether.
1. Don't impulse purchase. Said another way; don't buy things the same day you see them. Sleep on it. If still in doubt, sleep on it for a couple of days. I have found that after a day or two of reflection, I usually realize that what I wanted is not necessarily something I really needed.
2. Pay with cash whenever possible. It's not easy, but it's amazing how differently you think about spending money when it's cash versus a credit card. You are less likely to shell out hard earned cash (real Dinero's) for "nice to have" things.
3. Negotiate the interest rate with your credit card company. If you are like most Americans, you get several credit card offers each week. Play those credit card companies against each other. When you get that next offer, call them up. Tell them the interest rate and benefits you get from your favorite credit card company and ask them if they'll match it. Half of the time, they'll meet or beat the deal you are currently getting.
4. Watch your credit card statement. As crazy as it sounds, I have experienced establishments that round up (in a big way!) when you make a credit card purchase. Get a 15 dollar haircut; your credit card is charged 20 dollars. Have a nice 75 dollar meal; your credit card is charged 95 dollars. It seems small in the whole scheme of things, but it adds up. Don't get taken for a few dollars here and there. Save your receipts and verify your credit card statement each month. Don't be afraid to call your credit card company and dispute a charge. If a charge is total BS, your credit card company will do the legwork and contact the vendor to dispute the charge. I have found that in most cases, your credit card company will resolve almost any charge that you do not agree with.
5. Number Five is the most important (and hopefully simplest) tip; Pay off your balance each and every month! This may be an incredible challenge, as credit is all too readily available, but it is essential to you and your family's well being. If you avoid carrying a credit card balance, you avoid paying interest charges to the credit card companies. The credit card companies fool you by offering a low "minimum monthly payment". Don't be fooled. That minimum monthly payment is available only so you drag out your payments and rack up interest payments to your credit card company. It is not in your interest (no pun intended) to pay the minimum monthly balance. Be sure to pay off your balance each and every month!
So assuming you mastered 1 through 5 above, how can you beat the credit card companies? Take money from them! There are a number of credit card companies that offer cash back on the purchases you make. I did a ton of research on cash back credit cards and wrote up my finding on my blog about Getting Things Done. I would highly recommend that once you get your credit card finances in order, you find yourself a high quality cash back credit card and take money from the credit card companies!
Check out another article of mine for details on how I found the best cash back credit card. Also, check out http://www.mygtdstuff.com for more about Getting Things Done!
Showing posts with label credit card. Show all posts
Showing posts with label credit card. Show all posts
Saturday, May 24, 2008
Thursday, March 20, 2008
All You Need To Know About Debt Consolidation
Are you in debt? You may have debts from 5 credit cards. And may even have some personal loans. Do you have a feeling that you cannot afford the minimum payment every month? You may think of debt consolidation in this case.
In fact, some people, who are also in debt, may think that it will be the best option for them. Yes it is true that to some extent it may help since it can lead to a lower minimum payment each month. However, before you decide to go for debt consolidation, you should know what the advantages and disadvantages are.
First of all, let us talk about the advantages. The number on advantage is that you will only need to deal with a single payment each month after debt consolidation. However, if you do not go for a debt consolidation, you may need to deal with 10 different creditors if you have a few loans and credit cards. This will probably help you to handle your debts in an easier way.
As discussed, the minimum monthly payment will probably be lower after debt consolidation. The main reason it that the interest rate will usually be reduced after debt consolidation. The interest rate of credit cards can be as high as 20% p.a. For example, if you go for a second mortgage, the interest rate will be significantly lower. And as a result the monthly payment will also be significantly lower.
Of course there are also some disadvantages regarding debt consolidation. After the consolidation, you may find that you can manage your debt a lot easier. And after months, or a year, you may start using your credit cards again. And this will certainly lead to some new debts.
Besides, debt consolidation can also be something risky in a sense that the loan will usually be a secured loan. This means that you are borrowing the money against your assets. One of the most obvious situation is your second mortgage. You are indeed borrowing against the value of your home. If you are unable to repay, you may lose your home. And this can be more problematic than before.
From the above, you will know that there are both pros and cons for debt consolidation. The key is that you have to think about it carefully before you may the decision. As a small piece of advice, you should also try to cut all your credit cards after debt consolidation so that the risk of having new debts will be a lot lower!
In fact, some people, who are also in debt, may think that it will be the best option for them. Yes it is true that to some extent it may help since it can lead to a lower minimum payment each month. However, before you decide to go for debt consolidation, you should know what the advantages and disadvantages are.
First of all, let us talk about the advantages. The number on advantage is that you will only need to deal with a single payment each month after debt consolidation. However, if you do not go for a debt consolidation, you may need to deal with 10 different creditors if you have a few loans and credit cards. This will probably help you to handle your debts in an easier way.
As discussed, the minimum monthly payment will probably be lower after debt consolidation. The main reason it that the interest rate will usually be reduced after debt consolidation. The interest rate of credit cards can be as high as 20% p.a. For example, if you go for a second mortgage, the interest rate will be significantly lower. And as a result the monthly payment will also be significantly lower.
Of course there are also some disadvantages regarding debt consolidation. After the consolidation, you may find that you can manage your debt a lot easier. And after months, or a year, you may start using your credit cards again. And this will certainly lead to some new debts.
Besides, debt consolidation can also be something risky in a sense that the loan will usually be a secured loan. This means that you are borrowing the money against your assets. One of the most obvious situation is your second mortgage. You are indeed borrowing against the value of your home. If you are unable to repay, you may lose your home. And this can be more problematic than before.
From the above, you will know that there are both pros and cons for debt consolidation. The key is that you have to think about it carefully before you may the decision. As a small piece of advice, you should also try to cut all your credit cards after debt consolidation so that the risk of having new debts will be a lot lower!
The author has great interest in finance. You can check his blog on Financial Planning and Insurance Tips. Be sure to check Individual Health Insurance or Family Insurance and Debt Consolidation IVA.
Friday, February 29, 2008
The Top 10 Ways to Take Back Control of Your Finances
If you're like many people these days you have a least some issues regarding your personal finances. Far too many people are living paycheck to paycheck and are barely keeping their heads above water. These people often find themselves being just one missed paycheck from financial disaster.
Perhaps you are only making the minimum payment on your credit cards each month. You could be one of the unfortunate people who are finding they need to use their credit cards for regular expenses like groceries. Or maybe you just feel like no matter how much you make, you seem to spend it as fast as you get it.
Whatever your situation you probably just want to regain control of your personal finances. There is the way to control your spending, get out of debt and build savings. Yes. I said it. Build your savings.
There is a relatively simple way of taking back control of your money. Like all endeavors, it starts at the beginning. Here are the Top 10 ways to begin to get your finances under your control.
1. Decide to do it.
This can be as hard or as simple as you want it to be. There are many people who will read this article with the intention of taking back their financial future. Too many will read all of the suggestions and then they will do nothing. Don't be one of those people. Make your decision now.
2. Commit to do it.
Unlike the 1st suggestion, this one may not be as easy for some. Only your commitment to take control of your finances will lead to success. You can't wish it, want it, hope for it or just say you'll do it. You must commit to doing it and committing means taking action immediately. Like as soon as you are finished reading this article. You will only succeed by taking action.
3. Make a list of all spending.
No, I didn't say expenses, I said spending. All of it from food, prescriptions, credit cards, mortgage, car payments and car insurance, newspaper and magazine subscriptions, etc. Take your time. It is likely that you will miss a few things the first time you sit down to make your list. Don't worry about that. You can always add in the things you may have forgotten later on.
4. Really know where the money goes.
Now, you might think I'm repeating number 3 but I'm not. The best way to know where your money is going is very simple. For one month you will record in writing every check you write, every credit card purchase and every dollar and cent that you spend. This is the only accurate way to know how much you are spending each month.
5. Separate the needs from the wants. Like step 1, this step will be as easy or as hard as you choose to make it. But it is very simple. Food = need. Fast-Food = want. You don't need expensive clothing, shoes, etc. You want them. If you're committed to this, you'll find that your wants are things you can do without, at least for a while. Master this and you've gone a long way to regaining control of your finances.
6. Make a realistic budget.
And stick to it. It is not about depriving yourself but it is about money management.
7. Pay yourself first.
Yes, you're reading that right. You get paid first. This will become what the rest of the world calls savings. It is to be used for your future or unplanned emergencies should they arise and too often they do. Having some money in the bank can help cushion the blow.
8. Find ways to save on your needs.
If you want control of your spending then rid yourself of any issues you may have about shopping at discount stores, using coupons any buying store brand items over name brand.
9. Reduce your debts.
To reduce your revolving debt such as credit cards, you should either pay off the smallest balances first or pay off the debts with the highest interest first. There are different schools of thought on this, but you have to decide which is best for you.
10. Set goals and when you reach them, reward yourself.
This last one may sound contrary to all the suggestions that have come before, but it is not. As I said in number 6, this is not about depriving yourself. It's about properly managing your money. If you're following these suggestions and succeeding in getting back control of your money then rewarding yourself a little now and then is a good thing. It adds incentive to reach your goals.
And there you have it. The top ten ways to begin gaining control of your personal finances and in doing so, take back control of your life. It's your money. It should under your control.
Tom Schaffer is an ex-Bill Collector who has escaped from the corporate world to pursue affiliate marketing at http://www.jerseyshoremarketing.com. He's using his powers for good helping people regain their financial freedom. One way to do that is http://www.jerseyshoremarketing.com/redirect77.html
Perhaps you are only making the minimum payment on your credit cards each month. You could be one of the unfortunate people who are finding they need to use their credit cards for regular expenses like groceries. Or maybe you just feel like no matter how much you make, you seem to spend it as fast as you get it.
Whatever your situation you probably just want to regain control of your personal finances. There is the way to control your spending, get out of debt and build savings. Yes. I said it. Build your savings.
There is a relatively simple way of taking back control of your money. Like all endeavors, it starts at the beginning. Here are the Top 10 ways to begin to get your finances under your control.
1. Decide to do it.
This can be as hard or as simple as you want it to be. There are many people who will read this article with the intention of taking back their financial future. Too many will read all of the suggestions and then they will do nothing. Don't be one of those people. Make your decision now.
2. Commit to do it.
Unlike the 1st suggestion, this one may not be as easy for some. Only your commitment to take control of your finances will lead to success. You can't wish it, want it, hope for it or just say you'll do it. You must commit to doing it and committing means taking action immediately. Like as soon as you are finished reading this article. You will only succeed by taking action.
3. Make a list of all spending.
No, I didn't say expenses, I said spending. All of it from food, prescriptions, credit cards, mortgage, car payments and car insurance, newspaper and magazine subscriptions, etc. Take your time. It is likely that you will miss a few things the first time you sit down to make your list. Don't worry about that. You can always add in the things you may have forgotten later on.
4. Really know where the money goes.
Now, you might think I'm repeating number 3 but I'm not. The best way to know where your money is going is very simple. For one month you will record in writing every check you write, every credit card purchase and every dollar and cent that you spend. This is the only accurate way to know how much you are spending each month.
5. Separate the needs from the wants. Like step 1, this step will be as easy or as hard as you choose to make it. But it is very simple. Food = need. Fast-Food = want. You don't need expensive clothing, shoes, etc. You want them. If you're committed to this, you'll find that your wants are things you can do without, at least for a while. Master this and you've gone a long way to regaining control of your finances.
6. Make a realistic budget.
And stick to it. It is not about depriving yourself but it is about money management.
7. Pay yourself first.
Yes, you're reading that right. You get paid first. This will become what the rest of the world calls savings. It is to be used for your future or unplanned emergencies should they arise and too often they do. Having some money in the bank can help cushion the blow.
8. Find ways to save on your needs.
If you want control of your spending then rid yourself of any issues you may have about shopping at discount stores, using coupons any buying store brand items over name brand.
9. Reduce your debts.
To reduce your revolving debt such as credit cards, you should either pay off the smallest balances first or pay off the debts with the highest interest first. There are different schools of thought on this, but you have to decide which is best for you.
10. Set goals and when you reach them, reward yourself.
This last one may sound contrary to all the suggestions that have come before, but it is not. As I said in number 6, this is not about depriving yourself. It's about properly managing your money. If you're following these suggestions and succeeding in getting back control of your money then rewarding yourself a little now and then is a good thing. It adds incentive to reach your goals.
And there you have it. The top ten ways to begin gaining control of your personal finances and in doing so, take back control of your life. It's your money. It should under your control.
Tom Schaffer is an ex-Bill Collector who has escaped from the corporate world to pursue affiliate marketing at http://www.jerseyshoremarketing.com. He's using his powers for good helping people regain their financial freedom. One way to do that is http://www.jerseyshoremarketing.com/redirect77.html
Sunday, February 17, 2008
Why Minimum Monthly Payments Will Cost You Big
Sometimes credit cards make life a little too easy. How is that possible? By allowing us to make purchases we really can't afford, and then giving us an unlimited amount of time to pay off the debt. It sounds great in theory, but ask a card holder who's been paying off the same debt for years. They'll tell you that extending your repayment isn't as easy as it sounds.
That is because of the amount of interest you accrue when you stretch out your debt over a long period of time. In fact, credit card companies count on card holders with revolving debt (debt that rolls over from one month to the next). Those consumers pay the fees and interest rates that keep the card companies so profitable.
As a card holder, minimum monthly payments are your enemy. Consider this: a fairly typical household with $6,600 of credit card debt, making minimum monthly payments, would take over twenty five years to pay off their balance - and that's with a decent interest rate! It's nearly impossible to make a dent in your debt by making minimum payments.
Some card holders lament the fact that their debt actually increases each month when they make minimum monthly payments. I've seen this firsthand; fees for carrying a balance, combined with interest, can really overcome a minimum payment. My experience made a believer out of me, and since then I have always paid two or three times the minimum monthly payment in order to stay ahead of the debt.
Senator Dianne Feinstein of California is the proponent of a new bill that would require credit card companies to educate their consumers about the consequences of minimum monthly payments. This would be a huge boon to card holders, as it would illustrate just how long it takes to pay off a balance with minimum payments. Most card holders carry a balance from month to month, and 11% of them make only the minimum required payment. Many simply don't realize what a poor choice this is.
The best way to handle credit card debt is to prevent it. Pay off your balance in full each month. But if an emergency or special event has left you with a heap of credit card debt, there are steps you can take to reduce it quickly. Remember: the longer you take to pay off an interest-bearing balance, the more you will ultimately pay.
To get serious about paying off your credit card balance, pay double or triple the required amount each month. If you get a work bonus or a tax return, use some of it to pay down your balances. Transfer high-interest balances to 0% interest credit cards to make your monthly payments mean something. Just be sure to pay off the balance in full before that 0% interest period ends.
Minimum monthly payments might seem cheap at first, but they come with a hefty price tag. Get your debt paid off as quickly as possible to avoid throwing money away on fees, penalties, and interest.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com .
That is because of the amount of interest you accrue when you stretch out your debt over a long period of time. In fact, credit card companies count on card holders with revolving debt (debt that rolls over from one month to the next). Those consumers pay the fees and interest rates that keep the card companies so profitable.
As a card holder, minimum monthly payments are your enemy. Consider this: a fairly typical household with $6,600 of credit card debt, making minimum monthly payments, would take over twenty five years to pay off their balance - and that's with a decent interest rate! It's nearly impossible to make a dent in your debt by making minimum payments.
Some card holders lament the fact that their debt actually increases each month when they make minimum monthly payments. I've seen this firsthand; fees for carrying a balance, combined with interest, can really overcome a minimum payment. My experience made a believer out of me, and since then I have always paid two or three times the minimum monthly payment in order to stay ahead of the debt.
Senator Dianne Feinstein of California is the proponent of a new bill that would require credit card companies to educate their consumers about the consequences of minimum monthly payments. This would be a huge boon to card holders, as it would illustrate just how long it takes to pay off a balance with minimum payments. Most card holders carry a balance from month to month, and 11% of them make only the minimum required payment. Many simply don't realize what a poor choice this is.
The best way to handle credit card debt is to prevent it. Pay off your balance in full each month. But if an emergency or special event has left you with a heap of credit card debt, there are steps you can take to reduce it quickly. Remember: the longer you take to pay off an interest-bearing balance, the more you will ultimately pay.
To get serious about paying off your credit card balance, pay double or triple the required amount each month. If you get a work bonus or a tax return, use some of it to pay down your balances. Transfer high-interest balances to 0% interest credit cards to make your monthly payments mean something. Just be sure to pay off the balance in full before that 0% interest period ends.
Minimum monthly payments might seem cheap at first, but they come with a hefty price tag. Get your debt paid off as quickly as possible to avoid throwing money away on fees, penalties, and interest.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com .
Friday, December 14, 2007
The Do's And Don'ts Of Secured Credit Cards
It's hard to get away from using a credit card these days. If you want to travel, you must have a credit card to reserve a hotel room. Renting a car? It takes a credit card. Want to get a membership at the new video rental store? Present your credit card, please.
For those with bad or challenged credit, life can be tough without a credit card. Secured credit cards can help to bridge this gap for those without credit or with damaged credit.
A secured credit card works like this: you deposit a set amount into an account (usually between $300 and $500) and that becomes your credit limit. Your deposit, in essence, "secures" the credit card. If you don't pay, your money becomes the issuing credit card company's security against default.
After you have established good credit, you can increase the credit line by depositing more money, or the credit card company might extend you more credit without an additional deposit.
Secured credit cards can be an excellent choice for many people, but there are a few things to know:
* Almost all secured credit cards have an annual fee. But these fees can vary greatly from one issuing company to another. Shop around.
* Many banks no longer offer secured credit cards, but often credit unions do. If you want to go this route, you can open an account at many credit unions for as little as $5 and then look into the secured credit card there.
* Most issuing companies will require that you pay the balance in full each month. They don't take your payment due from the money you have deposited – you must send a payment just as you would for a traditional credit card. These are usually not revolving credit accounts.
If you think a secured credit card is the right thing for you, there are some do's and don'ts to consider. First, the do's:
* DO shop around. Not all offers are the same. Don't take the first offer that appears in your mailbox. Do your own research.
* DO look into getting a secured credit card with a higher balance if that's what you need. In other words, if you have $3,000 to deposit, find an issuing company that will allow you to deposit that much to start so your limit will be higher.
* DO make sure this is the best option for you. If you have never had credit before, or you have severely damaged credit, this might be the only option. But if you think you can get a traditional card, that's a better option.
* DO read all the fine print. Every single word. Some companies charge so many fees, your small $300 deposit might be eaten up in fees before you can ever use the card. Some require you to purchase insurance, for $50 or more a month. But many companies don't do these things and those are the companies you're looking for. Do your research and get the best deal for you.
Although secured credit cards are a good option for many people, there are some don't considerations. These include:
* DON'T be casual about this credit card. If you have damaged credit, using a secured credit card is an excellent way to re-establish your good credit rating. If you have never had credit, this is a way to establish credit so you can acquire traditional credit later.
* DON'T try to go over your limit (or deposit amount). Not only will the charge not go through, but it will be a mark against you. Keep careful records each month you use the card so you know you're not charging right up against the credit limit.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com
Understanding Your Credit Card Rights
When you apply for and are issued credit, your signature on the credit application acts as your acceptance of the terms set forth by the issuing financial institution. Even though it may seem that the issuer has the upper hand in all matters related to using the credit, that's not entirely true.
You have certain rights, many of which are provided under the Fair Credit Billing Act. What's important when exercising these rights is ensuring that you take all required steps in the order and time frame specified. Let' start with the biggest credit problem, billing disputes.
Billing disputes
Billing disputes in which merchants charge cardholders for items not received or items received defective happen all the time. According to the Fair Credit Billing Act, you have a right to dispute such charges by taking the following steps.
Step 1
Within 60 days of the date you received the first statement listing the disputed item, you must contact the issuer of the credit card in writing. Be sure to use the separate address listed for Billing Inquiries. Also be sure to mail your letter which must include your name as listed on the cardholder account, account number, details of the disputed item and what you want to happen (i.e., that the error be corrected).
Step 2
Before sending the letter, sign it and make a copy for your records. Include copies of all supporting documentation (dated receipts, etc.) and use a mailing method that offers proof of delivery such as certified mail. The issuer will notify you within 30 days of receipt of your written dispute and will then investigate the matter.
While the investigation is underway you are not required to pay for the item in dispute nor the corresponding finance charges. If the dispute sides in your favor, you are released from further liability in the matter. If not, you will be responsible for making the payment as outlined in cardholder agreement.
Unauthorized charges
This is another big problem with credit cards. However, as a cardholder, your responsibility for proven unauthorized charges is limited to $50; not the full amount. Unauthorized charges can easily run into the hundreds and thousands of dollars so even though it seems high, $50 is a small price to pay if you're ever a victim of identity theft.
When you cannot pay your bill
When you use credit cards to make purchases you're considered a debtor. If you're ever not able to repay credit debt that you incur, you'll likely be contacted by a debt collector.
In the past, debt collectors used all sorts of threatening and intimidating tactics in their efforts to collect debt. Fortunately, the Fair Debt Collection Practices Act prohibits such unfair treatment of debtors. The Act also determines when and how debt collectors may contact debtors. For example, debt collectors are prohibited from making false statements about you or your debt or about any consequences of you not paying that debt, such as saying you'll be arrested or that your wages will be garnished.
None of the above means you're relieved of your responsibility to repay your debt. It just means you have the right to be treated fairly while debt collection efforts are underway.
For more information
If there's ever any question about your credit card rights and you need fair, unbiased answers including an explanation of your rights, try contacting the FTC at http://www.ftc.gov/. There you can learn about credit card fraud, dealing with lost or stolen credit/debit cards, fair billing rights, unfair or deceptive business practices, internet and phone orders, and more. Information on these and other consumer issues is free.
To better understand your credit cards rights as they relate to complicated issues such as declaring bankruptcy or divorce, consider consulting an attorney.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com
You have certain rights, many of which are provided under the Fair Credit Billing Act. What's important when exercising these rights is ensuring that you take all required steps in the order and time frame specified. Let' start with the biggest credit problem, billing disputes.
Billing disputes
Billing disputes in which merchants charge cardholders for items not received or items received defective happen all the time. According to the Fair Credit Billing Act, you have a right to dispute such charges by taking the following steps.
Step 1
Within 60 days of the date you received the first statement listing the disputed item, you must contact the issuer of the credit card in writing. Be sure to use the separate address listed for Billing Inquiries. Also be sure to mail your letter which must include your name as listed on the cardholder account, account number, details of the disputed item and what you want to happen (i.e., that the error be corrected).
Step 2
Before sending the letter, sign it and make a copy for your records. Include copies of all supporting documentation (dated receipts, etc.) and use a mailing method that offers proof of delivery such as certified mail. The issuer will notify you within 30 days of receipt of your written dispute and will then investigate the matter.
While the investigation is underway you are not required to pay for the item in dispute nor the corresponding finance charges. If the dispute sides in your favor, you are released from further liability in the matter. If not, you will be responsible for making the payment as outlined in cardholder agreement.
Unauthorized charges
This is another big problem with credit cards. However, as a cardholder, your responsibility for proven unauthorized charges is limited to $50; not the full amount. Unauthorized charges can easily run into the hundreds and thousands of dollars so even though it seems high, $50 is a small price to pay if you're ever a victim of identity theft.
When you cannot pay your bill
When you use credit cards to make purchases you're considered a debtor. If you're ever not able to repay credit debt that you incur, you'll likely be contacted by a debt collector.
In the past, debt collectors used all sorts of threatening and intimidating tactics in their efforts to collect debt. Fortunately, the Fair Debt Collection Practices Act prohibits such unfair treatment of debtors. The Act also determines when and how debt collectors may contact debtors. For example, debt collectors are prohibited from making false statements about you or your debt or about any consequences of you not paying that debt, such as saying you'll be arrested or that your wages will be garnished.
None of the above means you're relieved of your responsibility to repay your debt. It just means you have the right to be treated fairly while debt collection efforts are underway.
For more information
If there's ever any question about your credit card rights and you need fair, unbiased answers including an explanation of your rights, try contacting the FTC at http://www.ftc.gov/. There you can learn about credit card fraud, dealing with lost or stolen credit/debit cards, fair billing rights, unfair or deceptive business practices, internet and phone orders, and more. Information on these and other consumer issues is free.
To better understand your credit cards rights as they relate to complicated issues such as declaring bankruptcy or divorce, consider consulting an attorney.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com
Get Rewards That Feel Rewarding
In the modern world, credit cards have become a basic necessity. Between the ease of using them for shopping, whether in person or online, and the necessity of having one in order to do simple things like make hotel and car reservations, it's difficult to impossible to go without one for long. So as long as you have to have one, you may as well be getting some benefit out of it. Different credit cards come with a vast array of rewards programs that can be redeemed for a variety of products and services, so check out the available options and get a card that actually feels rewarding.
If you have the travel bug, or frequently travel on business, you should consider getting a frequent flier credit card. These credit cards earn you air miles for the purchases that you make on your card and, depending upon the card sponsor, may even give you double benefits for spending at specific venues. Frequent flier credit cards can be sponsored either by a bank, or by an airline, and which type of card-sponsorship you chose can change the benefits you will get.
If you chose an airline-sponsored card, you will get benefits like air miles and airport lounge privileges, but only with your sponsoring airline, so you'll want to make sure it's an airline that travels in your area, and where you want to go. On the other hand, if you go with a bank-sponsored frequent flier credit card, you can use your miles with more than one airline.
The most important thing about using a frequent flier credit card is to watch the fine print. Most frequent flier credit cards come with heavy interest rates, so you only want to use this card for purchases you know you can pay off every month.
Flying isn't for everyone, and credit card companies know this, so there are lots of other options for people who want to enjoy credit card rewards close to home with both of their feet planted solidly on the ground. If you have a long commute, or frequently go on road-trips, you might investigate different gas rebate cards. Gas rebate cards give you cash rebates on the gas that you buy for a small percentage of the overall cost of your gas. Some even offer rebates on the oil you use to heat your home, or purchases that you make at applicable gas stations' convenience stores. The percentage of the rebate varies from card to card, but most of them will send you your rebate once a year in one lump sum so that you really see your savings.
As with the frequent flier credit card, though, it's really only worthwhile to get a gas rebate if you don't plan on carrying a balance. These cards typically come with higher interest rate for any unpaid balance, so only use your gas rebate credit card if you know you'll be able to pay it off.
Feeling like you might miss out on rewards because you aren't constantly on the move? There are options for you too! Different rewards cards offer reward points that can go toward anything from Broadway tickets to books. Entertainment cards are usually pretty benefit-specific, so you'll want to pick a card that offers you points at a place where you'll actually be interested in using them.
But always remember, the terms and conditions always matter more than the rewards you might get from a credit card, especially if you plan on carrying a balance. Free tickets to Cats aren't worth getting stuck with a bad interest rate on your debt.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com
If you have the travel bug, or frequently travel on business, you should consider getting a frequent flier credit card. These credit cards earn you air miles for the purchases that you make on your card and, depending upon the card sponsor, may even give you double benefits for spending at specific venues. Frequent flier credit cards can be sponsored either by a bank, or by an airline, and which type of card-sponsorship you chose can change the benefits you will get.
If you chose an airline-sponsored card, you will get benefits like air miles and airport lounge privileges, but only with your sponsoring airline, so you'll want to make sure it's an airline that travels in your area, and where you want to go. On the other hand, if you go with a bank-sponsored frequent flier credit card, you can use your miles with more than one airline.
The most important thing about using a frequent flier credit card is to watch the fine print. Most frequent flier credit cards come with heavy interest rates, so you only want to use this card for purchases you know you can pay off every month.
Flying isn't for everyone, and credit card companies know this, so there are lots of other options for people who want to enjoy credit card rewards close to home with both of their feet planted solidly on the ground. If you have a long commute, or frequently go on road-trips, you might investigate different gas rebate cards. Gas rebate cards give you cash rebates on the gas that you buy for a small percentage of the overall cost of your gas. Some even offer rebates on the oil you use to heat your home, or purchases that you make at applicable gas stations' convenience stores. The percentage of the rebate varies from card to card, but most of them will send you your rebate once a year in one lump sum so that you really see your savings.
As with the frequent flier credit card, though, it's really only worthwhile to get a gas rebate if you don't plan on carrying a balance. These cards typically come with higher interest rate for any unpaid balance, so only use your gas rebate credit card if you know you'll be able to pay it off.
Feeling like you might miss out on rewards because you aren't constantly on the move? There are options for you too! Different rewards cards offer reward points that can go toward anything from Broadway tickets to books. Entertainment cards are usually pretty benefit-specific, so you'll want to pick a card that offers you points at a place where you'll actually be interested in using them.
But always remember, the terms and conditions always matter more than the rewards you might get from a credit card, especially if you plan on carrying a balance. Free tickets to Cats aren't worth getting stuck with a bad interest rate on your debt.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com
Saturday, March 17, 2007
Personal Finance Priorities
I have been trying to understand what is the most important priority for people today financially.
Everyone seems to want more money, and more fabulous things. They want to be able to get whatever they want, whenever they want it. Often, they are willing to do whatever it takes to get them! Our society is geared toward sales and marketing to keep the economy moving along. More money in sales represents more available jobs and a higher standard of living for most people... At least that is what we are all told.
Most people are very hesitant to address their personal financial situation. Yes, they may have problems. Yes, they may need more and more money. But they don't seem to be motivated to take a good hard look at how to fix their existing problems.
People seem to be looking for quick and easy solutions. Getting control over credit cards can take years of sweat and hard work!
One quick solution of course, is to make more money. That is not so easy for most people. Some of us are lucky to see a 2-3% salary raise. And what happens when the money well dries up, or the boss stops giving pay increases? No one wants to know. Maybe no one believes that will ever happen, and maybe it won't!!
Another quick solution is to borrow money. The massive debt machine... Credit is easy to get these days. But what is the long term result of debt? Well, that's tomorrow. No need to worry about that today! This is America. A country built on accumulating wealth, and possessions. I wonder how many people got rich, without paying attention to their personal finances? Not many I would imagine...
Let's see, at last check I can get a 1.5% interest rate on my bank savings account! And, I get .25% on my interest checking account!! Not exactly enough to get rich... So there doesn't seem to be much there to motivate anyone to save money in their bank account. I can understand that perfectly!! Why put money in the bank and only get pennies back in interest each month. It seems kind of pointless...
The BIG payback, is in reducing credit card and loan expenses. According to recent data on Bankrate.com, the standard fixed rate for credit cards is currently (March 2007) at 13.44 percent and the variable is 14.56 percent. However, according to a separate article on MSN.com, banks are increasingly pouncing on cardholders with any kind of chink in their credit report with penalty rates of as much as 35%!
Card issuers can raise rates if any of the following occurs. The number that follows each item, is the percentage of banks using the trigger.
- Credit score gets worse: 90.48%
- Paying mortgage, car loan or other creditor late: 85.71%
- Going over credit limit: 57.14%
- Bouncing a payment check: 52.38%
- Too much debt: 42.86%
- Too much available credit: 33.33%
- Getting a new credit card: 33.33%
- Inquiring about a car loan or mortgage: 23.81%
Simply inquiring about a car loan can result in increased interest rates? Amazing...
Bank accounts don't pay you percentages like those to hold your cash. Stock investments don't return high percentages like those in investment returns. What this means is that the single biggest thing you can do to improve your financial situation, is to reduce the cost of loan payments. In other words, pay them OFF!!
If you follow that simple rule, you can save up to 35% in expenses each month. If you value money, then why would you NOT take action to reduce this unnecessary expense?
BJC has a tool that can help analyze your monthly expenses, and can certainly help in prioritizing your debt payments. It's simple, and it's free. Try it out at the link below
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