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Detailed info on credit cards while applying

// August 13th, 2009 // No Comments » // Credit

There are a lot of questions that you have to find out about before being able to apply for a credit card so that it fits into your budget. You will be surprised to know the amount of hidden information in this case and will want to know everything once you’ve got a taste of the hidden clauses. It is good to keep yourself well informed in case that these clauses will help you should anything go wrong in the future. You will of course ask for basic information like whether the card is a card which has 0% interest rate etc but there are more specific details that you need to ask about.  Here are a few questions for your convenience.

1.       What is the annual fee of the card?

2.       Are there hidden charges for the card?

3.       You have to know about Finance charge & calculation methods.

4.       The type of the card that you are going to receive?

5.       Incentives can tempt everyone. Are you going to be able to receive a couple of incentives or not?

These are the detailed questions that you need to ask in order to get a best credit card deals.

Paper vs. Plastic: Cash vs. Credit Cards

// July 9th, 2009 // No Comments » // Money

It’s the interest that breaks your back.

It’s easy to get bogged down by debt especially when you’ve got an itchy trigger finger on spending and can’t resist making that bargain on a new pair of shoes, the trendy bag or giving in to the lure of that bright shiny new gadget.  You may be making that bargain now but if you’re using your credit card to pay for your new pretty toy, you’ll end up paying more than the original price tag.  A little common sense towards managing your finances can go a long way, especially with the uncertain economic climate.

Live Within Your Means – Just Cash It! Avoid bad credit by using cash instead of plastic.  The debt from high-interest credit cards is one of the leading causes of bad credit problems in the United States.  Credit card companies make a lot of money from the over $750 billion dollar debt and it all comes from the over 700 million credit cards currently in use.

Add 20 percent. Whenever you use your credit card to pay $100 dollars for that adorable little purse, $200 for a new iPod or even just a few dollars to indulge your Starbucks coffee addiction, remember that if you don’t pay the entire amount off by the time you get your credit statement, you’ll need to pay for the interest too.  For example, if you’re using a credit card with a 20 percent interest rate, you’re really paying approximately $120 for that bag, $240 for the iPod or adding just a couple of more dollars for the coffee.  You may shrug off a few dollars for the coffee but add them all together in the long run and you might have used the savings to pay for something else instead. (more…)

Reduce Your Debt!

// April 14th, 2009 // No Comments » // Debt

Today, it does seem that the United States got itself in a terrible financial crisis. However, you can bet that history repeats itself. This was not the first time that the United States fell back in deep economic crisis; we have been here before. But like what happened before, the nation will recover somehow.

However, we do not know when that recovery will take place. In the meantime, let us focus on what is at present. Debt is probably the factor that puts us most at risk. For the past years, people have become dependent on credit that they become unaware of the drastic possibilities of a severe debt accumulation to the point of not being able to pay.

The credit card balance of the United States alone brackets at approximately $1 trillion. That implies a debt of about $8,000 per individual yet excluding car finance, advance credits and mortgage debts, loans and other forms of financial obligations such as unpaid medical bills and student debts. Do the math and the debt just seems to go on forever. Luckily, we can we do something about it.

You have two choices. You can get professional assistance from a company that offers solutions to debts or you can choose to deal with your problem yourself.

There are many companies that have experienced negotiators who can negotiate lowered interest rates thus, tremendously decreasing the amount of your debt. This is called debt settlement. Many companies offer debt settlement services. In addition, some companies offer debt consolidation loans. Although it is not cheaper if used long term, it can provide you with easier-to-manage monthly payables having used the loan to cover your existing debts.

Dealing with the problem yourself may seem difficult and scary but it would only take discipline and proper planning to be able to do so.