At Last!
August 4, 2008
Finally, after several years of being in debt in different credit cards I am now free from all my obligations with these banks.
I am now able to close my credit cards within this week. I know I will encourage by thier representatives not to close any cards but I am now very willing to do so. It will also prevent me from using my cards without limits.
Though It was a big help to me but I no longer want to use any cards for my purchases. Now, I will just save money when I need to buy something. I can also monitor my expenses with the money I have unlike with credit cards that was easily to use.
Now, Im absolutely free!
Ranting on my auto loan
July 31, 2008
Not loans are created equal, and that is the tough truth I learned today. Just to share with you, I got a lump sum from the company I work for to be used to buy a car. As I canvass for the car that suits my need, I centered on one that is fuel efficient and would not cost me a lot – a subcompact. The car costs about $12,500 here in our country, and the lump sum I got is about $10,000. I was initially tempted to put the $10,000 in stocks, but I will not risk my money versus the declining trend in stocks. Oil could have been an opportunity, but I am a bit new with commodities. (But that is another story!)
Anyways, so what I did was get an auto loan to cover for the shortage and plan to do pay by lump sum in the hope of having my loan restructured, either shortening the loan term from four years to three years or reducing the monthly amortization dramatically. But in our country, such scheme only applies for housing loans. What happened then to me was that my lump sum was treated as advance payment for the next two years. Too bad I did not clear it with the loan officer. At any rate, I am now free to pay the loan in 24 months and by the time I resume payment, the monthly amortization will be smaller against my monthly income. Now that’s a good thing!
Balance Transfer
July 31, 2008
I just finished watching the news and there was a segment there about paying up your credit card debts. I think the information given by the banker was really helpful, and some people might have overlooked the idea.
So, here’s the thing. There’s this regular employee who has a credit card with 42% annual interest rate. So, the 10,000 that she owed when she bought items for her home increased to 100,000 because of the interest rate. Up to now, she still hasn’t paid the debt in full. So, the banker said that she could do “balance transfer”.
What she has to do is she should find another bank that offers lower interest rate on their credit cards. Use the credit card to payoff the previous loan. In effect, she will have to pay lower than the total amount to be paid to the other bank.
While this move might help you in paying off a credit card debt, it still would not erase your bad credit score. So my take on this, buy only things that you can afford.
E-Statements
July 17, 2008
I just recently subscribe to an electronic statement of my card. Before I was thinking if this feature of credit card is safe or not. I was really hesitant cause I don’t want to blame myself when the time comes so I do some researches and even ask some people who had applied thier cards to this e-statments too. Due to the conviction that this e-statements were safe to use since none of those whom I asked told me any bad experiences from it, I also subscribe to it.
Now I can say that I am beginning to like this feature cause I can check from time to time my card transaction and I no need to wait for the post man on the delivery of my card statements. I can now even check my statements whereever I am. I just need to enter my password and the security PIN that the card compan tha gave me and that’s it.
E-Statments really is one of the best way to track trnasactions whenever, wherever!
An Insight About Credit Card
July 17, 2008
I am loving this site now! It has lots of good advices and information about credit cards that one should know. The card holders must really have time to read the post here cause most card holders gave their time just to share thier insights and experiences about the different credit card company. I myself love the articles on balance transfer cause I often use that option when I am not having having enough funds to pay for a certain transactions that I had made with the cards. Balance tranfer should really be thought of and must always be paid on time properly cause once you failed you’ll only double the possibility of having more interest than the principal. Also one card holder must really have to consider all his earnings before using a card never spend more than what you earn. That was the best lesson I got here.
10 Things You Might Not Know About Credit Cards
July 11, 2008
Here’s some helpful information on credit cards… clears up some confusion about using unsigned cards, and extra charges for expected tips.
5) Merchants Cannot Charge A Surcharge For Using A Credit Card, However, They Can Offer A “Cash Discount”
You may have noticed that gas stations are starting to offer a different, higher price for credit cards. This isn’t technically allowed— unless it is marketed as a “cash discount.” In other words, if you fill up your car and find that you’ve been charged more than advertised because you paid with a credit card — that’s not allowed. If, however, you decide to pay with cash because you saw an advertised “cash discount” to the “regular price” — that’s ok. A subtle distinction, but an important one.(There is something called a “convenience fee” that some institutions are allowed to charge if they do not typically accept credit cards in their normal course of business. The example VISA gives is a utility company where the customary way is to pay by mail or in person. The rules for charging this fee are somewhat complicated and there are loopholes, etc.)
Via Credit Cards: 10 Things You Might Not Know About Your Credit Card
Credit Card Handling
July 10, 2008
Credit cards have it pros and cons. Once have it you must know the good and bad side of having it. Many of those who have this has no knowledge of the entire usage of thier cards. That leaves them to a big debt and even to misery in life.
I have known some people who have mismanaged thier credit cards that ends to having almost over a million debt. Though their credit limit was just a praction of it. While I also known some who have managed thier cards well enough.
Once you had your credit card be able to determine what willbe its function to you. Once you have set its function then you better stick on to it so you will not find yourself looking and finding other ways just to pay your bills.
You must also try to maintain on the credit limit or much better spend the amount were you can afford it to pay without any hassles. This is were many people goes wrong. They see thier credit cards as thier extra money to buy stuff that are not important to them. So better know which is important and which are not.
Once you use your credit card start to save some money to pay for your bill. In this way it will be easy to pay the bill when it arrives your mailbox. Don’t think about the salary that is about to come before the due date cause it will only put you more in using the cards so often.
Try to minimize the use of your cards. If you can try to use it when your cutoff date has past so that you have more time to save for the bill.
These were just some few tips that I have tried and it was effective to me. I just taught of sharing this to everyone to help them in the proper usage of their credit cards.
Just remember, credit card purchases were not free so better be careful on it.
Collection Agencies
July 6, 2008
I have been religiously paying for my credit card balance these past few months. However, last June, due to unavoidable circumstances, I have not been able to pay but I have noted to myself that I will resume paying again as soon as I get my paycheck.
After that, I have been receiving calls again from collection agencies. They once again resumed calling my office, which is useless because I rarely go there because I work from home. They also call at home and started threatening me again. I calmly spoke with them and explained the situation. They made me feel like I was running away from my financial obligations and even wanted me to pay the full amount at a specified date. There was no way I can do that and if only I have the money, I would have paid the credit card company a long time ago so as not to incur additional charges and for me to experience all of the hassle.
When our conversation ended, I explained that I have already made payment arrangements and it was just unfortunate that I failed to pay for June. I just told them that I’ll pay as soon as I have money. Sigh. It was really a hassle and I promised myself that after I pay off my balance, I’d never get a credit card again. Ever.
Some Facts About Credit Cards
June 27, 2008
1. Consumer debt is nearing 2 trillion dollars. How much can the American consumer handle?
2. Household debt grew 10.4 percent in 2003 while savings dropped 38 percent.
3. Even with interest rates at an all time low many credit card issuers still charge 18-29% interest. Although many accounts are set up at a low interest rate, one late payment can often trigger a drastic increase in the interest rate.
4. The amount of fees charges by credit card issuers has grown fourfold since 1996 from $1.7 billion dollars to 7.3 billion. Fees charged by credit card issuers include late fees, over limit fees, and balance transfer fees.
5. Credit card issuers mailed out over 3.2 billion credit card applications in 2003.
6. Personal bankruptcies are expected to hit 1.6 million in 2003, double what they were in 1990.
7. Personal bankruptcies are growing at the rate of 7% per year and at that rate a national crisis is inevitable.
8. Americans have an average of 13.5 credit cards per household with credit card debt per household exceeding $9,000. Many consumers, however, have credit card debt exceeding $50,000 and some as high as $250,000.
9. In a recent survey of 5,000 consumers conducted by Consolidated Credit counseling services 43 percent stated they had a debt-to-income ratio of 50 percent or more. Nearly two thirds (63%) said their debt load was making their life miserable.
10. Teenagers and college students are a prime target of credit card issuers even though they most often do not have a job or income.
11. Persons just coming out of bankruptcy are prime targets of credit card issuers as they have little debt and can’t file a chapter 7 bankruptcy again for six years.
12. Small businesses are increasingly lured into using credit cards and unsecured lines of credit to fund their businesses. Unfortunately, this type of quick and easy financing is expensive and may eventually overburden the small business.
13. The mini-storage business, where Americans store all these things they purchased on credit and really didn’t need, has increased fortyfold since 1960. There are now 30,000 of these facilities in the U.S. charging over 12 billion dollars in fees.
12 Amazing Facts about Credit Card Debt
June 27, 2008
Who says debt is a boring topic to read about? It shouldn’t be considering how many Americans are in debt. The growing trend in personal debt is staggering. So gathered below are 12 interesting facts and statistics about debt and credit that will make you think about your finances.
1. Late library fines and unpaid parking tickets can hurt your credit score.
2. In 2006, the credit card industry took in $55 billion in credit card fees and $90 billion in
finance charges. Makes you want to pay your credit card bills on time.
3. National debt of countries In order of debt:
a. United States 10 Trillion
b. United Kingdom 8 Trillion
c. Germany 4 Trillion
d. France 3 Trillion
e. Italy 2 Trillion
4. U.S. consumers racked up an estimated $51 billion worth of fast food on their personal
credit and debit cards. That is equal to 10.2 Billion Big Mac meals, 3 billion pounds of fries
and 1.7 billion gallons of coke.
5. At least one in 10 consumers has more than 10 credit cards in their wallets. That’s equal
to 304 tons of plastic or 61 Elephants.
6. 51 percent of the US population has at least two credit cards. That’s 305,000,000 plastic
cards which would span 16,223 miles, 65% around the world. You could create a wide
enough path to walk over the Atlantic Ocean.
7. It took the city of Montreal 30 years to pay off its Olympic debt of $2 billion, held in 1976!
8. A $1,000 charge on an average credit card will take almost 22 years to pay, and will cost
more than $2,300 in interest ($3,300 total) — if only 2 percent minimum payments are
made.
9. All though the first credit cards were merchant specific cards starting in 1900 with several
hotels, the first true credit card was invented in 1950 by Ralph Schneider and Frank X.
McNamara. The Diners Club charged participating restaurants 7% interest on each
purchase and charged a $3 fee a year to the card holder. This was the first card that
could be used at different locations. Chase and Bank of America (Visa) came out with
their first credit cards in 1958. They became most popular when the magnetic strip
became available in 1970.
10. U.S. Visa cardholders alone conduct more than $1 trillion in annual volume.
11. Closing a credit card account in full will have a negative affect on your credit score.
Length of history on an account is 15% of your FICO score.
12. Average Household Credit Card Debt is $8,400.00
