Ac Credit Card Warning
Nov 2, 2010 Uncategorized
Ask yourself: does the credit card work for you or do you work for your credit card? Most people’s response to that question will depend on how they use their “plastic friend” as credit cards are often known. As many people with burned fingers will tell you, they didn’t realize that things had gotten so bad until very late, because most credit card offers try so much to sound like they are actually running a charity. Well, they aren’t.
But this is not an anti credit card campaign. They have their uses – in the USA, for example, if you want to rent a car, you have got to have a (major) credit card. But, think about this scenario:
You receive an offer in the post that sounds great, maybe it’s a new TV or fridge. But it costs $2,000. You have a credit card with a $5,000 limit so you immediately purchase the item. Typically, here is how your repayment schedule will play out. Most credit cards charge a minimum percentage of the total balance (usually 2 percent) per month. Assuming the interest rate is 18 percent and you choose to repay the minimum amount of $40, $30 of that will go towards interest and only $10 towards the principle!
Does it sound worrying? Well, it doesn’t have to be. The moral of the illustration is to use the credit card very, very carefully.
Credit Cards Dos and Don’ts
There is a lot of truth in the saying that credit cards are not a substitute for not having money. Every time you use a credit card this should be the theme replaying in your mind. And you would do good to remember the following too:
Dos.
1] Always plan for the purchases that you need and those that you only want. You need the essentials, but you just want everything else. The ability to make a distinction could assist you plan more wisely.
2] If you are caught up in financial difficulties, it’s always a good idea to talk to the credit card supplier who might adjust your payments. If you just default, that only helps to build up a bad credit history and you might find yourself being denied credit in the future.
3] Unless it is an emergency, staying within your credit limits will help you a great deal. If you must spend over the limit, ensure you are within manageable levels, say within 30 percent.
4] If your letterbox is chock-full of information on credit cards with more favourable deals than you are currently enjoying, you could always approach your issuer for a better deal. They want to keep you as a customer, so they will listen.
Don’ts
1] Do not use your credit card to make household purchases. It’s very expensive in the long run.
2] Do not only pay the minimum amount necessary. You will end up paying exorbitant amounts of interest. The quicker you can clear the debt the better.
3] Never use the credit card to purchase things you can’t afford.
If you are considering changing or getting a Credit Card, check out the free advice on our web site about using Credit Cards wisely. Check here for free reprint licence: Ac Credit Card Warning.
Tags: Advice, Auto, banking, Credit, Credit Cards, debt, Finance, Funds, Loans, Money, mortgage, other, self help, Shopping, Uncategorized
Don’t Fall Victim To Cash Advances
Oct 8, 2010 Uncategorized
The very simple and convenient ways, by which providers are making cash advances available to people who need money on a short, temporary basis, is creating a social phenomenon called “cash advance dependence.” Many individuals do not even realize that they are slowly becoming dependent on these small, monthly, temporary cash advances.
These people are creating an insecure, destructive ‘safety net’ for themselves. However, they do not fully realize it or are even aware of it. The best thing is to admit to yourself that you have a problem and get yourself out of it. Just going from loan to loan, month to month is a very fragile method of running your life. Just think, if you skipped a couple of payments elsewhere and ruined your credit status, this credit line would soon vanish too.
People are now discovering just how simple it is to obtain money with the modern methods of easily obtaining cash advances. In some cases, this even means that some people are taking out cash advances even when they are not suffering a financial emergency, which is what cash advances were originally intended for. Some people are even using cash advances just for a birthday present or an expensive night out.
Honestly, it is a fact, that too many people are using the cash that they get from cash advance loans, to go on a short holiday, buy a new car or something like that. This is obviously not the right way of using this financial implement. Moreover, it is in fact an abuse of the privilege that one obtains from being able to draw a cash advance. It is also totally injurious to one’s learning of how to deal with money properly.
The “no credit policy” of the majority of local stores is also one of the reasons why people are becoming cash advances victims. It means that people feel that they need to borrow money from a cash advance company, which means in turn that they end up with a much higher debt to repay. If this train of events goes on unfettered, it can result in some people having to file for bankruptcy, in turn transforms the problem from being just a personal one into a much larger, social problem.
The most important thing you can do is to get out of debt as soon as possible. You should seek help from a financial adviser from your bank or seek help from a private financial adviser. Their job is to help you take a step in the direction of making regular payments and be able to enjoy your interest free, hard earned money, which will also help you get back on a better and healthier track with your financial life.
Having said all that, cash advances are not to be blamed for our own human weaknesses, the lack of financial education is the real problem.
Do you need to find out more about a 30 day payday loan? If you do, please go along to our website for more information: Cash Advances This article, Don’t Fall Victim To Cash Advances is available for free reprint.
Tags: car loan, cash advance, Credit, Credit Cards, Credit Repair, debt, debt consolidation, Finance, Food, Loans, Money, mortgages, other, Shopping, Uncategorized
Low Interest Rate Credit Cards
Oct 6, 2010 Uncategorized
If a credit card is used properly, it is one of the most powerful financial tools. But not everybody can afford to pay the expensive interest rates that most credit card issuers offer. This is where low interest rate credit cards can assist people who plan to keep a balance on their account and not to pay the full amount monthly. However, what does interest or APR mean for when talking about low interest rate credit cards?
Basically, APR is the charge for credit as an annual interest rate. APR stands for “Annual Percentage Rate” and may be used to compare different credit and loan offers. The APR on credit cards is usually calculated monthly based on the current amount on the credit card.
The monthly interest is calculated as if the current card balance would stay the same over a year; the interest on the amount over a year (APR) is calculated and divided by 12 to give the monthly interest. It is a must that all lenders tell the client what their APR is before signing any agreement.
Although the arrangements and terms may differ from one lender to another, it is better for people to get low interest rate credit cards because the lower the APR, the better the deal for those who like to spend more money shopping wherever and whenever they want.
Why choose low interest rate credit cards? Low APR credit cards are a good choice for those people who are into stricter financial budgeting. Being the most important attribute of a credit card, APR determines the balance over a period of time.
As far as low interest rate credit cards go, the amount of interest one has to pay on his or her credit card amount is determined by its APR. So, the lower the APR is, the better it is him or her because it means they have to repay less interest. APR’s on low interest rate credit cards can be either ‘fixed’ or ‘variable’.
If you are planning to have low interest rate credit cards, there are many cards that offer low APRs to be found online. These low interest rate credit cards are selected using a factoring scheme that ordered these cards by computing a number of their attributes to place the best deals at the top.
One of the questions one should pose when looking for low interest rate credit cards concerns the charges: whether they vary or are fixed. If these charges are variable, they might affect the repayments and if these rate are fixed, the repayments stay the same. Searching for low interest rate credit cards should also include inquiries on the possibility of any charges that are not included in the APR like optional payment protection insurance or an annual fee.
If there are any, make sure that you know what they are and when you have to pay them. Lastly, searching for low interest rate credit cards should include questions on the terms and conditions of the credit and how these conditions suit you.
If you are seeking for low interest rate credit cards, you could start seeking for a credit card that could save you hundreds in interest with a low interest credit card and low cost processing. Most low interest rate credit cards offer 0% APR for the first few months on purchases, cash advances, and balance transfers.
Low interest rate credit cards sometimes offer rebates on certain items purchased. They also offer $0 liability on unauthorized purchases, and no annual fees. Some low interest rate credit cards have very good introductory rates for purchases. They also offer good deals if one carries high balances on other cards and need to transfer the balance.
Indeed, having low interest rate credit cards can be useful and convenient, and can even help create a strong credit history that will help you with future activities like home-buying, paying for higher education, and even getting a job. But, before you apply for low interest rate credit cards, think about the advantages and disadvantages especially with regard to the current financial situation you are in.
If you are thinking on swapping or applying for low interest credit cards, have a look at the free advice on our web site on using Using Credit Cards wisely. This article, Low Interest Rate Credit Cards is available for free reprint.
Tags: Advice, Auto, Credit, Credit Cards, Credit Repair, debt, Finance, Funds, Loans, Money, mortgage, other, self help, Shopping, Uncategorized
