Credit card or debit card, even better cash?
August 31, 2009
During the time of recession, I personally believe that we are still going through the recessed economy right now. We should be aware the plastic cards we are carrying right now. Every time we using it, we should be consider how much can we really pay for it, and what is our budget, and our limit to it. Pre - planning before you shop become one of the necessity and wise shopping for all of us right now. Also, we should learn the risk of our plastic cards, especially debit and credit cards. They don’t just come to you for free. Those banks would never help you.
Ever since the recession, more and more people steer toward the using of debit cards. People might already aware the high interest of credit cards, and the late fee charges are always outrageous. That doesn’t mean debit cards are risk - free. With debit cards, you must aware how much you have in your checking account. If you balance is low, a purchase of $6.00 hamburger might turn into $40 of overdraft fee. That is the ridiculous charges from most banks. So, make sure you check on your checking account from time to time.
With credit cards, Needless to say, the high interest rate, and other hidden charges can be harmful. Don’t over use your credit cards, it can harm your credit score, and your rating. If you have extra cash, pay with cash. Or if you can, pay off your balance due every month to avoid the interest charges every month. The credit card can eat you up with that interest.
Be a smart shopper, and avoid the use of credit cards if you can. cash is the king, and it is always up to you make the smart decision.
Reward Cards
August 27, 2009
Credit cards have become more common placed than ever. The average american has as many as 8 credit cards in their name. That seems ridiculous, espescially to those with less that 4, just think that the average being 8 means some have well over 8. Obviously this is a problem, one benefit that credit cards offer, primarily to those with excellent credit, is cashback and other rewards. Anything from gas to food and airline purchases are rewarded. Best Buy gives double reward points to customers using their card at their stores. By using some of these more targeted cards with great offers, the use of credit becomes more beneficial than detrimental. This is only true, however, if you are paying your balances off prior to the end of your billing cycle, otherwise the high interest rates that come with carrying a balance can erode these benefits, and then some!
Credit Card Outrage
August 22, 2009
Nobody will argue with you that credit card companies are in the business of charging obscenely high interest rates. After all, the interest rates generate the majority of the income that credit card companies make. What about the average consumer though? The person who makes just the minimum payments as that is all he or she can afford. The high interest rates have made it so paying down credit card debt is nearly impossible. As a result, over the course of time consumers use their credit cards again and again, consistantly maxing out their credit limits. The credit card companies appreciate this steady business so they take steps to keep it coming with incentives such as cash back. They even take steps to increase this stable income by raising credit limits on customers with a good history of using their card and making payments on time. This is a death trap for the consumer, instead of making minimum payments on maxed credit cards with upwards of 27% interest rates, we should be working towards paying off these cards. Easier said than done of course, there’s always a new toy or outfit that we want. Hopefully we don’t suffer severely from credit card debt if and when these companies go under and require their loans to be paid in full. That could be a disaster!
New rules for the credit card
August 19, 2009
Many of us might facing a some sort of debt recently, and we was so much headache in trying to pay off all of them. Meanwhile, we are still struggling to keep up our bills, and also the credit debts. It seems that debt payment never ended, and our whole salary was contributed to pay off debt, and keep up the utility running. Barely, we have meager amount of saving each month.
From statistics, most Americans are struggling with credit card more than anything else. So, there will be new rules for the credit card charging its customers from the federal government. First of all, the bank has to notify its customers 45b days beforehand, to let them know the changing terms and conditions of the card. The 15 days rule will no longer exist. That will be good provision, because you have more time to consider to accept or reject the proposal. Mostly, the change terms related to your interest rate. If you choose to reject it. You must pay off your total due amount with the old terms still valid.
Second of all, You have 21 days to pay your bill from the day they mail you the bill. No more 14 days rule here again. They can’t send you any bill before it is due.
With all these changes. You have more time to pick what you choose if your bank change the terms and condition. And you have more time to come the money to pay your bill.
Get rid of cedit card debt fast
August 17, 2009
In order to get out of credit card debt, you have to be willing to make some small and large sacrifices. Depending on how deep your debt is; it may take a while longer to clear all your debt. Firstly, you should stop having the need to use your credit card all the time. In order to get rid of debt; you have to minimize the use of each credit card you have on hand.
Secondly, if by chance you pay off all your credit debt, you might want to cancel your cards if you want to avoid debt happening ever again. You can keep them as well; just be more careful on how much you spend and record your stats. Thirdly, set a budget that you can actually abide by. Make sure there will no more slips up.
Lastly, you can make bigger payments on your credit card if you have the money to. This allows you to get done with paying off your debts faster than you would by paying the regular amount.
Credit debt is still high, we have to keep on working on it
August 15, 2009
It seems that our economy is on its way to recovery, and many people saving a little more for themselves instead of spending it for something you don’t really need in the moment. We have learn to spend our money wisely instead of recklessly. It is what we learn from this economic recession. A great lesson to learn, and an action must be taken by everyone who wants to secure their financial future.
From reports, the statistics shown that our consumer credit debts has shown sign of decreasing, and many people might working on their way to pay their debt on time. But still, the debt is still high, and it might take a while to recover from it. The unemployment is still high, reaching the 9.4% figure. Some prediction indicates that it might reaching to 10% for the rest of the year. This is not a good news, but people should save wisely for emergency necessity. Moreover, the consumer sales are down, it can be assume that our people learning the lesson to pinch their wallet as tightly as possible. Why spend on something you might not need at the moment, while you have huge amount of debt on hand? It won’t be a wise move.
We all have to work on our credit card debts, because our previous misbehavior which affects our current situation. We need to use our money for something we really need, instead of keep on borrowing. You have to think about the fact, when borrowing money, you have to pay interest, and you have to take responsibility to pay it all back. If you can spend that much, with your payment.
Debt Consolidation as a Viable Tool To Rebuilding Credit
August 15, 2009
We have all been warned about how unrestrained usage of credit cards or other loan offerings can land us in serious debt. Yet when it comes to the level of global recession and heavy debt that companies and individuals alike find themselves in, it pays to begin the process of rebuilding a good credit. And this is easier said than done. While debt consolidation presents a fairly workable platform to establishing better a credit profile at the individual level, it is also a pothole of scams and unethical players.
In fact if you are looking to consolidate your debt you may be well-advised to procure a fresh loan with which to pay off your debt if it is particularly unmanageable. While several companies promise to write-off loans and credit accounts in the name of debt consolidation, they are but using loopholes in the system rather than actually relieving you of debt, since they promise no guarantee of freedom from debt. In other words, you may be paying as much or more in fees and charges than your debt write-off may be worth, and in the end you have niggling doubts about moral principles too!
Bottom line, find why your credit ratings are falling, track bills, chuck the temptation of carrying multiple credit cards and budget! And if you must consolidate, figure your options and handle debt in legal terms. You may still be able to truly minimize debt, and keep it off your shoulders forever!
Rebuild your credit after bankruptcy
August 12, 2009
During this economic recession, a valuable lesson has been learned. Majority of American carried a great amount of debt without being able to pay them off their shoulders. This one of our bad habits persist for long, long time, and we never thought about what if we don’t have any financial source keep on pouring in every month, how do we gonna survive the debt we owed; and how we gonna survive the next month. Not to mention how ruined gonna be of our credit history, and our credit report.
Many people already filed bankruptcy after the start of this economic recession, and many people just desperately trying to get back on their feet again. It is possible to rebuild your credit if you can better manage your payment to your loan, and pay your monthly payment on time without default. Your credits will gradually built up again after your bankruptcy is discharged. Why not learn from your past mistakes on your mismanagement of your debt and your loan. Try to come up a better way to manage them, and making sure yourself would be able to keep up the payment every month when it comes. It is essential, and important for your future credit history.
Ignorance is not an excuse
August 10, 2009
Just this morning I was surprised that there are people who does not know or aware that once you did not pay the whole balance due to your credit card it will reflect charges on the next statement! I am hearing this argument to my supervisor with the card representative because he was surprised about the finance charge on his statement. He was even fighting that he pays the minimum amount due and that he is not liable for the finance charge. Well, I think he must read the terms and condition regarding credit card payments. Besides it was always printed at the back of the statement just to remind the debtors about the agreement they signed. Ignorance of any law doesn’t really excuse anyone. Now I presume he learned his lessons and will start paying the exact amount of his credit card debts and not just the minimum amount due.
A home equity loan can temporarily help you out?
August 6, 2009
Under economic crisis, many people might have temporarily financial inconvenience at the moment. They might not be able to come up the money to keep up the bills, and the credit card debt, or mortgage loan. It might be a huge headache for you, if you can’t keep up with all these bills. Have you ever considered take out home equity loan to solve your temporary inconvenience for the moment? If your home is worth something at least, maybe it is a good idea to do so. Otherwise, you might strand yourself to those bills that you won’t be able to pay.
There is a situation you might also need to consider carefully before ask for a home equity loan. If you owe too much debt; for instance, your house is worth $200,000, and your debt is about $140,000. You won’t be able to get a loan easy from those banks. Because right now, to take out a home equity loan from a bank is harder than ever. Especially your debt ratio is higher than 75% of your house worth. You might want to resort the community bank, or credit union. They might allow you to get 5% of that loan.
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