Category: Credit

Wake Up From Your Credit Card Debt Nightmare

Are your credit card debts giving you nightmares? If yes read on and see if we can save you some money and help you sleep better at night. It is so easy to get yourself into debt, as all these credit card companies seem to be throwing these cards at us.

Learn to understand your statement if you’re paying more than 15% of your monthly salary to your credit card bill then now is the time to take some action. If you pay the minimum payment and the interest charge takes up a lot of your monthly payment, not much is actually coming of the balance. For example say you pay £100 a month now take a look at your statement and see how much actually goes on interest.

Avoid minimum payments

The minimum payments are a nightmare they are costing you a fortune and will take years to pay of the debt. Credit card companies used to take 5% as a minimum payment of the total money owed, but now ask as little as 2% as people where finding it hard to pay back the 5%. This has in turn created a debt problem for many people.

Here are some ways to help you reduce your credit card debts! Try to stop using your credit card and if you cannot, monitor what you spend. Balance transfers are a good way to save you money, lookout for the ones that offer 0% interest free periods for 6-9 months; this will give you a bit of breathing space. Make sure you check the APR rate once the 0% interest free period is over and cut up the previous card, as you do not want to be tempted again and end up in more debt.

You can move your debt to a credit card with a lower APR

There is nothing that says once the 0% interest free period is over that you must stick with this card, if you watch what you’re doing you could then change to another card that has the same offer on. Just be careful and make sure you have your dates correct, as you do not want to be getting charged for any late payments.

Once you feel that you have got yourself on an even keel the next step is to try and clear up your debt completely. The way we do this is to start with the credit card that has the highest APR rate, pay the most to this credit card and just pay the minimum payment to the rest of your cards, once this card is finished then go the next highest APR card and so on until all your credit cards are paid off.

Not Going Into the Red on Your Credit Card

Many Americans get more and more credit cards just to give themselves better credit status. The problem is, as time goes by, their debts get bigger. This form of debt is crippling our great nation.

Rather than falling into this trap, you need to learn how to avoid it and free yourself from the cycle of debt. Until you do that, you’ll be in a bad place.

The easiest method of doing this is the most obvious, don’t use a credit card. You may scoff at this as unlikely at best, but if you actually think about it and analyze the way you live, you can manage your money so you don’t need them.

Go over your old bank statements and ponder whether you spend more than you earn. Do you make purchases without thinking about the repercussions? If this is so, then you have some bad spending habits that you need to adjust.

Look again at your expenses. What you should do is get a rough idea of what you make a month and subtract all the regular costs, like power, petrol, and food. Once you’ve done that, work out how much remains.

All you have to do now is to not spend more than this when you use your credit card so that you can pay it back at the end of the month.

One of the dumbest things to do is to not pay the whole amount off at the end of the month. This is the way credit companies and banks make all their money, by charging exorbitant interest rates on late repayments.

Reduce The Costs Of Your Credit Cards

Statistics show that the average American family owes over $8,000 in credit card debt. This is a large amount of money, especially when you consider the fact that most Americans make about $33,000 per year. The costs involved with using credit cards can be very large if you’re not responsible when using them. In this article I will discuss steps you can take in order to reduce the costs of your credit cards.

Keep The Credit Card APR Low

The interest on credit cards tend to increase at a rate which is difficult for minimum payment amounts to reduce. In the last decade many people have begun using credit cards to make large purchases and because of this the credit card industry is making billions of dollars a year, and will continue to do so in the future due to the residual income they will receive from payments made by their customers. Since the typical American only makes about $33,000 per year, it is not easy to pay off $10,000, especially when the interest continues to accrue. This puts many people into debt which make take years to pay off.

If you have an interest rate on your credit card which is higher than 19%, you will have an extremely difficult time paying it off. Because of this it is wise to avoid using credit cards which have high interest rates. If you should become late on your bills, call the company and ask if the fee can be reversed. They should reverse this charge if it is your first time being late.

Federal Bankruptcy Law

The government has also recently passed a Federal Bankruptcy law which will make it harder for people to file bankruptcy once they get in debt. If you have good credit, you can easily get a credit card which has a interest rate which is less than 10%. All you have to do is make payments on time and there shouldn’t be any problems. The problems generally start when people fail to make their payments on time. The late fees on credit cards can be as high as 30 dollars. Not making your payments on time can also cause the credit card company to raise the interest rates.

Step One To Lower Credit Card Costs

The first thing you want to do to lower the cost of your credit cards is to find a credit card company which offers the lowest interest rate. You don’t want to pay more in interest than you have to. You also want to make sure you make your payments on time. Setting up automatic debits from your bank account or using the internet to make payments is a great way to insure that your bills get paid on time. If you are making payments with checks, you should stop. They have a tendency to get lost in the mail.

Transfer Those High Balances

You will also want to move your balances from high interest credit cards to lower interest accounts. Many credit card companies offer promotions, and this is a great time to get lower interest rates. You should also use cash as much as possible. Only use your credit cards when it is absolutely necessary. You also want to pay the full amounts of your balances each month if you can. This will keep interest from getting out of hand. It would also be a good idea to avoid cash advances as much as possible.

Keeping a Clean Credit History

Doing these things will allow you to greatly reduce the cost of your credit cards. Being in debt, which you can’t get out of could almost be compared to slavery in some ways. It is ultimately the consumer who puts themselves in debt. Understanding credit cards and being responsible with them is one of the most important factors in getting good credit. Your employment and other factors may depend on your credit rating. Credit is an important part of our society, and it is critical that you understand how to manage it.

Managing the Use of Your Credit Card

Whether you have just received your first credit card or have been holding one for some time now, learning how to manage its use will prevent problems from arising later on. Many people have fallen into the trap of carelessly relying on credit that they end up accumulating more debt than they can handle. It is very important to know what to look out for and to seek debt advice right at the onset in order to ensure that your finances stay on track and your credit history remains unblemished.

For a college student or a fresh graduate on his or her first job, having something to help pay the bills is a great convenience. Trouble lies in how very easy it is to lose track of how much you are actually spending via credit as compared to depending solely on cash. Credit cards are often treated as though the money they offer is free and the repercussions come only after it is too late.

Choosing which bank to work with is a good place to start. Interest rates vary across the market and taking the time to compare various deals will get you the lowest rates possible. No matter how many offers you receive for additional cards, keep in mind that there is no real need to have them all at once. Once you begin paying through credit, manage payments better by settling the full amount each time to avoid a number of surcharges. Most cardholders are inclined to increase credit usage by how small minimum payments seem to be, neglecting to realize how they are setting themselves up for incurring debt that may take several years to clear. Any debt expert will recommend that you observe a simple lifestyle and stay away from buying anything impulsively. Achieving these goals primarily require that you leave credit cards back home and carry cash often instead.

Following a budget or debt management plan certainly helps. While it may look like a lot of work, getting into the habit of listing down both your income and purchases will aid you in visualizing where your money goes and which expenses to put first. Credit cards can be quite beneficial for as long as you are able to smartly manage your usage and stay on top of your finances at all times.

How to Get the Most From Your Credit Card

It is very important to manage your debt wisely. At one time I had several department store cards that had a 19% to 21.99% APR. Fortunately I kept small balances and paid them off as soon as I could.

After educating myself on how to be financially smart I got a new credit card and closed all of my other accounts. I have had this credit card for almost 20 years and it is the only card I really need. I’ll provide some tips for what to look for in a credit card and will provide some leads for those who are interested.

Tip # 1 Shop for a card that will give you the lowest interest rate. It may be possible to find a card with a set rate plus the prime rate. Your rate would adjust up or down depending on the current prime rate.

Tip #2 Look for a card that will serve as a credit line. This is very handy if you need to finance a small project such as a home improvement, car repair, or other project and you do not want to use the equity in your home.

Tip #3 Does the card you are looking for provide cash advances and if so what is the fee for that. I have a card with a credit line. When I need to finance a project I have the company wire money directly to my checking account. This saves me the cash advance fee.

Tip #4 Some companies provide checks with your statement. Many times you can finance a project for a lower fixed rate by using these checks.

Tip #5 Transfer balance from high interest credit cards to low interest credit cards. Often you will get an initial lower rate on balance transfers as credit companies want your business.

Tip #6 Once you have your new credit card you should close your other revolving accounts – with the exception of a gas card. Manage your new account wisely, make larger than minimum payments and avoid having a running balance of over 60% of the credit amount.

Tip #7 Companies want your business. Many cards offer cash back, bonus points, discounts and more on all of your purchases. I have a friend that makes all his monthly purchases via his credit card and he earns $200 – $400 per month cash back. He does make it a practice to pay his balance in full monthly.

In today’s market it is very difficult to obtain personal loans even to consolidate debt. Shopping for a credit line is a good alternative to consolidate debts and finance small projects or businesses. Companies will automatically increase your line every so many months if they see that you are managing it properly.

Getting the Most From Corporate Credit

Corporate credit is important for every business to have. Those huge corporations out there we are all familiar with rely upon it. The diner at the corner where you go for coffee does as well. It doesn’t matter the size of the business or what you sell, corporate credit can help you be on your way to obtaining more.

The sky is the limit when it comes to the growth of any business. However, there can be barriers and road blocks along the way you have to contend with. One of them is often the capital to engage in expansion or taking on a huge project. Yet you know if you do so then you will be more profitable and successful than before.

The use of corporate credit can help you to do just that. It can allow you to take those calculated risks that will make your business prosperous. You don’t want to be operating at the same level five years from now as you are currently. However, the saying that it takes money to make money is very true.

When you have such credit allocated to you though you need to use it wisely. Don’t use it for things you don’t really need. As with your personal credit there will be interest added. Therefore you will be required to repay more than you borrowed from the lender. It doesn’t make sense to do this when you don’t have to.

Also, get yourself out of the habit of paying only the balance that is due each month. A business can become too comfortable that way. Yet it allows the balance on that debt to remain over you for a very long stretch of time. Pay off the debt you have with your business credit as soon as you.

This way you will have more of it readily available when you need it. You will also pay less in interest over the course of time. You want to make sure you are seen in the eyes of the lender as someone very responsible with corporate credit. Right now you may only have a line of credit and a business credit card with small limits attached. However, down the road you will want to be able to access all you need without worrying about them turning you down.

It does take time to build up this type of credit. It isn’t something that will take place for you in a short period of time. However, if you have any type of business in place you need start getting this type of credit into place. You may be rejected several times before you find a good match.