Many people in today's economy are in debt they can not see a way out. Their credit is ruined, houses are lost and credit cards are closed, or have overwhelming balances. Sometimes it is because
an illness, but many times it is due to poor financial decisions and loans that have never be allowed. Whatever the reason for your debt, there is a light for the future and a way to stop the calls, letters and threats. It is in how you deal with debts of the past to help you rebuild credit.
1. Request a copy of your credit report. This can be done online from all three agencies.
2. Once you have the sit and go through it carefully. If there are duplicates to write a letter to the credit application for one of them to be removed.
3. Check if there are debts that have already been paid but have not been removed. If you call the company that has placed the debt and ask them to please delete it from your credit report or list as paid in full. May you have to provide receipts. It will take approximately 45 to 60 days to finalize.
4. List of debts in order of quantity. Start with the smallest amounts first. Interest will continue to rely on larger debts, but we will deal with that in a moment.
5. Paying the first for small debts, he began to report on credit as paid in full. This gives you several paid in full on your report immediately.
6. Next begin to repay the debts of a means both for at least two or three to show that the debt paid in full.
7. When you're ready to start paying on the bigger debts call the agencies or companies handle. Ask for interest to be lower or stop and go for long terms of payment. Try to pay off these 3 to 5 payments.
8. On some of the biggest debts, it is now time to make a decision about what money you have saved. Use all the money saved to pay off debts under the greatest interest by calling the agency and offer to pay in full, less the interest. Ask for letters confirming the payment in full.
9. Over most of the debts of whether they will settle for a set amount. Start with a quarter of the debt. If they do not accept it then to spend half the debt. Continue until you reach an agreement to settle the debt that is right for you both. The report, it shows you are settled in full INSTE
Ad paid in full. That's why you save for last.
10. To rebuild credit secured credit card. It is a credit card you can put about $ 300.00 and you will be able to load up to $ 200. Pay in full each month and within six to twelve months, he went to a credit card and you can move the original $ 300.00 to a savings account. Do not overload. It is to rebuild your credit, not to become debt again.
Always check your credit report about every six months for false reports, not paid and the identity theft.
Restoring Your Credit for the Future
Debt Advice On Store Card Repayments
The average store card APR is an incredible 30% with many being even higher. Some of the main reasons for people to manage the levels of debt card store and are forced to seek professional debt advice:
* Call for tenders - It is easy to be tempted by offers to it until the achievement of 10% on your purchases if you take a card store and there. May seem that a good deal when you leave may pay 30% interest on purchases in the future.
* Retail Therapy - There is nothing wrong with buying clothes to make you feel good and look good, but if you do not have the money to pay what you buy, it may be a habit that you plunged into serious debt.
* Lack of knowledge - Very few people take the time to read the fine print when you request a card store as the process usually takes place in the store itself when your attention is not fully focused on what you are reading or signing for. The first time you realize the extent of the interest rate is May, when your statement arrives in the initial post.
* Loyalty - It May be attractive to a store card to your favorite store, if you are a frequent customer and they come with other incentives. However, if you use the store credit, the interest rate on your purchases could be halved by using a credit card rather than a store card. Store cards are a high price to pay for loyalty.
* The vicious circle - if you have a large amount of debt on the cards and are struggling to make repayments in May, it seemed a good idea to borrow money from elsewhere to help keep your head over water. This often leads to a point later, when all of your loans accumulate to the point where it completely crushes you.
The importance of debt advice and the role it can play to help you better financial future should never be underestimated. If your debts affecting your daily life and ability to function normally, you should seek professional debt advice as soon as you can.
Many people leave it too late to get the right help and advice on debt, because it can be difficult to meet. If you can find the courage to tackle the head of your debts as soon as they become a problem for you then the debt advice you receive may be very different from what you get if you bury your head in the sand and hope all goes away.
Contact Debtsolver now to find a solution to your store card debt.To benefit from free debt advice you can trust, call DebtSolver now!
Review Debt Cures Book
At some point, we all attended an infomercial when someone tries to sell us something that is a solution to our financial situation, or simply a product that we do not really need is the whole purpose of these things anyway - to make money.
I was recently flipping channels and saw an infomercial for Debt Cures by Kevin Trudeau. Let's face it, everyone has some kind of debt, and it is the American dream for many of us to be debt. So I enthusiastically watched the program and ordered the book thinking that perhaps I could get some useful information.
First, when you call to order, you must use a credit card to pay and then the operator will try to sell you a bunch of stuff to make more money from you. After repeating myself a half-dozen times with "No thank you" (after all I am trying to eliminate the debt can not undergo further), I finally received the Order of the book. Now, I had the choice to expedite the book at my home for an astronomical amount of money, or I could opt for standard delivery is 2 - 3 weeks. Choose the type of shipment, and even it was an outrageous sum of money for a book.
The book is finally here and I read it cover to ', needless to say I was a little disappointed. So here's the bottom of this book that is supposed to go to help you recover from your debts.
The first three chapters to give you information on how credit card companies and how they work with the federal government. Basically, you say how everything is corrupt and how they are ripping you off blind. We all know about already, just take a look at your interest rates and fees!
The next three chapters explain how to eliminate your debts, lower interest rates, negotiate and deal with debt collectors. There is no magic formula for this, it's mostly common sense. I
ma little disappointed that these chapters have focused on credit cards and not many solutions for other types of debt. Some of these solutions are not feasible for the average person, and if they were, you would probably not need to buy the book. How to deal with debt collection was definitely a useful discussion if you are hounded by debt collectors, you can learn how to deal sensitively in order not to bug you more. If you have a lot of credit cards and debt collectors chasing you, these chapters are worth reading.
The next two chapters of the book address information on your credit report. This is probably the most useful of the book. If you do not know anything about your credit report from these chapters tell you what you need to know, what you seek, and how to fix it.
In the final chapters, the book gives you suggestions on how you can try to create wealth and how you can get free money. Some of the suggestions really depend on your situation and what you are eligible, but May be some things you have never thought of before and deserve a shot.
Overall the book is filled with many stories of ordinary people to overcome their debt using solutions. I liked to have read a lot more solutions to debt problems and working Web links, rather than on credit card companies, government, and personal stories.
The author wrote the book in that the average reader can understand so that you do not have to deal with babble. The author speaks to you in a way that you are pumped and you feel with a little perseverance, you can begin to eliminate some debt, but you must make the effort.
This book offers much information about how to fix your credit and other debt issues, if you are relatively new to the world of credit and I do not know how it works. If you are a beginner and have not yet established credit, it can help give you ideas for establishing your business and stay out of debt. For those of us who have used credit for some time and simply can not seem to get out of credit cards under the May you find some useful tips to help you get started in the right direction.
17 Debt Advice Tips for Australians [Part 2]
Continued from part 1
9 The consumer credit insurance consumer should consider canceling, as not a good value for money. It was pointed out as "junk insurance" by the Australian Consumer Association. ITC adds a considerable amount for the monthly cost of credit, and it would give no advantage to apply for credit.
10 consumers with a mortgage could be paid to re-mortgage and to consolidate their credit card or store in their mortgage debt at a lower interest rate.
11 consumers with their need to give priority to the debt of their monthly payments to ensure that the essential elements are paid first. Failure to pay the mortgage, loan guarantee or lease can lead to homelessness, it is always important to take these materials. Do not pay the lender who shouts the loudest first.
There are 12 government-funded independent financial advisers in all regions of Australia. They can provide consumers with free advice from experts debt. Consumers who need to deal with their creditors to reduce their payments can get help from an informal arrangement through their financial advisor free.
13 If a consumer debt problems have become a true horror story, there are a number of options to relieve stress and burden and make a fresh start.
14 Bankruptcy is an option for those who can not see any way to repay their debts. For $ 400, it clears the slate clean. Creditors are no longer able to sue a client who was declared bankrupt, and the consumer will be released after three years.
The downside of bankruptcy is that it remains on a consumer's credit file for seven years. Their assets, which could include their home, will be sold by a trustee or the Insolvency and Trustee Service. A contribution is taken from bankrupts who earn over a certain level, currently about $ 40,000, to pay their creditors.
15 An alternative to the bankrupt, the debt is an agreement for low-income people with few assets. This can reduce the amount consumers owe to their creditors into accepting a compromise. Debt agreements tend to be used by consumers who are struggling with their credit card or loan payments, and who earn less than $ 58,000 after taxes. They can be administered by the administration of registration, ITSA or a third party. Service fees may be around 20%. While 75% of creditors agree, an agreement on debt is binding on creditors.
16 A more costly alternative to a debt agreement is an agreement to personal insolvency. They are open to more consumers, but may be more expensive because they can not be administered by a trustee or ITSA registration. Both debt agreements and personal insolvency agreements appear on credit reports for 7 years.
17 For more debt advice information, see debt advice published by the Australian Competition and Consumer Commission and the Australian Securities and Investments Commission entitled "Dealing with debt: Your rights and responsibilities."
Description: Many more Australians are in need of good advice debt since the credit crisis. This article contains tips for those facing a cash crisis to those in need to hit the reset button.
17 Debt Advice Tips for Australians [Part 1]
Debt problems come in all shapes and sizes from the occasional cash flow crisis to full on, out of control, debt nightmare that requires professional debt advice.
For Australians experiencing debt problems in the short term a number of steps they are open.
1 A simple debt advice and good tips is developing a budget and stick to make it easy to see what money is and what is leaving.
2 Most consumer credit portfolios and the cards they had for some years. As the older of their credit score often improves with age, which means they may be eligible for credit cards cheaper and could save money if they switched lender. You can spend hundreds of dollars in interest of credit cards this way.
3 Obtain a list of standing orders and direct debits from your bank is a good way to identify non-essential expenditures that could be better used.
4 interest-free loan to buy now and pay later, bids are often expensive and designed for consumers of their hard earned cash. It is best to avoid these transactions, and purchase only what you can pay cash for.
5 pay more than the minimum monthly payment on all credit cards, otherwise you will pay more than you need to interest payments.
6 If you have a mortgage, consider refinancing. If you're careful you can save money on a cheap introduction.
For consumers who are facing more than the debt problems in the short term a number of other measures are available.
7 Consider the consolidation of all credit and debt card store in a loan. Average lending rate is significantly lower than the average and store credit cards. Request of two small loans, rather than a large, it may be easier to get your loan approved.
8 Do not extend the loans of more than 3 or 4 years, this may make the total cost of credit more expensive for only small monthly savings.
Please continue reading part 2
Where do you find credit information?
Online credit cards are big business today. There are tons of credit are companies out and find the right choice for you can be something of a challenge now, he can be with her task. The search for what you yourself is always a good idea to walk in the mall and see a 10% extra for the signature is quite tempting whatever the good of you, but after signing you'll with another bill that you pay at the end of the month.
People like to use the credit he feels safe for them to buy things, not actual cash for most people when they get their credit card. Thinking this way can be a costly mistake and put you on the fast track to get the debt.
Even if you pay the minimum balance on the due date, the amount you need to just change. Payment of the bill on time is a good idea, however, nobody wants to be charged late fees. But just to pay the minimum balance will not affect all of your debts. Pay all is the only surefire way to eliminate your debts credit card. It is a bad idea to transfer the debt to another credit card company unless you can transfer to that which does not pay interest. A good idea if you have trouble repaying the debt of credit card is to stop anything at the expense of the map, to sit down and determine what you have to do and how long it will take to repay the card.
When acting on a large card, Visa, Mastercard, or Discover are accepted wherever you go. Keep in mind that two credit cards, it is usually enough for a person to have two, it is much easier to keep track of where your money is underway.
Most finance companies offer a cash advance at any ATM. These are also tempting, but it should really be used for emergencies as they often come with high interest rates, which are calculated on a daily basis. Taking it may cost you much if not handled in a timely manner.
When deciding on a card, look for one that does not offer bonuses or incentives. These are often used to attract people in a program or an offer that will make the credit card company. When you need a map that has a no nonsense, no annual fee and low interest rates.
Credit cards are very useful when you want to buy something big, because they help you establish good credit history. Pay things on time will always be thinking about you and buying a house or a car will be much easier.
Following these tips will help you build your credit score to good level, helping you to achieve the goals you have set in your life.
Debt Help and Free Debt Advice source
There is no doubt that there is a need for help and free debt advice to deal with the outbreak of the debt of the United Kingdom. Even before the credit crisis the country is dangerously overloaded. Now that the panacea for low-cost re-mortgages was removed from the true scope of the problem begins to emerge.
In addition to these excesses, which have themselves during the period of cheap credit there are also those who now suffer dismissal or reduction of business / rewards / commissions. Debt charities and corporate debt management are stretched to breaking point by the number of people seeking help. This only increases the risk of desperate people facing a large number of companies that could benefit from them.
If you need assistance or debt debt free advice in the UK, then there are a number of options:
1. The Citizens Advice Bureau. With offices throughout the United Kingdom, he is sure to be a CAB near you. The advantage of using the CAB for your free debt counselor, they can advise you on other legal issues that you May If you decide you want to set up a management plan for the debt or VAT, then you must also use the services of a debt management.
2. The Consumer Credit Counseling Service (CCCS). A national debt charity, which will guide you through the process of preparing your financial situation and reduced payments negotiated with your creditors. One of the most respected debt charities by giving advice.
3. A management company of the debt. Choose the one that does not pay in advance the costs and is able to offer both debt management plans and IVA. Payplan Partnership is a highly respected company which is a good first choice (although there are others).
4. A lawyer. Most lawyers will give you a free consultation. This could be useful if you have a debt problem very complicated, for example, involving business partners, but otherwise, it is the least useful. You can quickly find you to pay for your advice and counsel can advise you on the letter of the law rather than the current practice in the industry of debt relief. They most likely will have little experience of simple consumer debt problems and will not be able to negotiate with your creditors.
If you are told you have to go on a waiting list before being seen, then make sure the person you are talking to understand exactly what your situation. Most organizations will be able to put you on a priority list, if your situation is very serious (bailiffs calling at your home or if you are about to lose your house). It is important to understand that if you are bothered by debt collectors that in itself will not be considered as an urgent problem of the debt counseling organization. My advice is to take for free advice and assistance you need to deal with your debt problems. If your company or debt management has a waiting list for 3 months to see a counselor when the money list and wait. At least, we have begun the journey to be debt.
Remember that being unable to pay your debts is not a crime in the eyes of the law. Do not be too hard for you. Try to relax a bit (I know it's hard), and we believe there is life after debt. I am living proof of it! If you can keep your calm, you are much more able to take the right (sometimes difficult) decisions that will solve your debt problem. Do not be tempted to choose a little known, the management company of debt just because your first choice can not see you immediately. There are some disreputable companies working in this field that will make your situation much worse.
Fighting Fire with Fire - Fighting debt with debt
When it comes to debt credit card, most people who drown in the debt agreement, the struggle is to pay more than the minimum monthly payment due. Credit card issuers generally set the minimum at a fraction of the balance outstanding and, more generally, between (2-3 percent). Although this practice has been criticized by consumer advocates and government as well, it is actually a mixed blessing. Hard-pressed individuals such as those on fixed incomes such as pensioners, who inherited debt from college in May some of their children or grandchildren perhaps, may not be in a position to fork range until the lowest minimum monthly due. If the minimum required payments have been increasing sharply, it could be used to make these people - right on the edge.
Conversely, for some people, this minimum is often a little temptation leading to a frenzy of pricing. After all, why not pay an extra mile or so to buy the new TV thinking that it might require an additional payment of only ($ 20 dollars) per month? But more importantly, just pay the minimum due each month, could keep around the debt of more than twenty years.
On the basis of consensus of opinion, and from almost all articles and books ever written on the debt repayment of credit card, the minimum monthly payment is at the heart of the dilemma. So take a look at a new approach and new approach using the minimum required at the base to transform things. Based on the recently published book, "Fight against fire with fire-Charge Your Way Out Of Debt Credit Card", a new methodology is described in defying conventional wisdom with regard to debt relief credit card. Under this "Jump-Start Plan", an unorthodox strategy, but suggests that a disciplined focus to cost the same amount as the minimum payment due - for each credit card.
Although this approach may seem somewhat radical, it certainly deserves the consideration of those who tried and did not comply with other approaches and may even be in one (after the bankruptcy of State) , left, with no real alternatives. By charging an amount equal to a minimum payment due, while paying the same amount this month, the individual is now in lockstep with the debt. In essence, a charge of $ 40 of gasoline for example, and then also pay the same amount in the form of the minimum due, the benefit is it noted, for pricing, it has provided the money would normally have been used in the manufacture of this purchase, which will be set aside and used later in the sum to repay the debt. The financial costs that accumulate in the debt will continue to build until the entire debt is repaid. So, in effect, the small amount of interest due to this new charge is irrelevant. This strategy is designed such that it delivers a (rapid gains in time-frame), reversing a slight increase in monthly expenses.
Putting aside the equivalent of cash for all of the minimum of this strategy, there will be a "piece" of the money at the end of the month, which can be used to repay the credit card that is support or greater interest (APR). For the discipline of individuals who follow the plan outlined above, they will be able to pay their credit cards in a more rapid succession. For example, under the plan, it would be possible to end the debt on the card within a year, on average. Without using the plan, by paying just the minimum due would certainly take many years to eliminate the debt. The magic of this simple approach is based on (minimum) with how to restructure the payments are made without the need for further borrowing. Since many donors are reluctant to accept a client request for repetitive lower rates and higher terms, pricing your way out of debt credit card in May now be a more likely to speak of your way out.
Student Face Credit-card Debt Growing
You have the letter in the mail, the "free" sandwiches at Subway, and all other types of ads in your face pushed for credit cards. With such aggressive marketing techniques, it is not surprising that St. Paul Pioneer Press reported that 43% of young people get their first experience of credit, while their first year of college. Another 23% of students get their first credit card before even entering the field of post-secondary education.
Three of the four college students now have credit cards, and the average balance on the cards are a terrible $ 1585, said Nellie Mae. This level of debt increases each year, but what is the cause? Many students not enrolled for the card free money, or build gradually the balance of hours without realizing it until they have $ 10,000 in card debt credit.
Some colleges are taking steps to keep students in check credit, credit card, by preventing companies try to offer maps of the campus and through educational campaigns to teach students how to use their credit wisely and responsibly. One such program at Smith College, a small school in Northampton, Massachusetts, offers a series of workshops on finance staff to ensure students use their credit properly. There are even schools now offer courses in personal finances to ensure students on track. One such program, Financial Peace for the next generation, teaches students to save, spend responsibly and to pay cash for most everything.
Many universities do not offer specific program to educate students about finances in addition to his normal classes, but here are some tips to keep your credit in check. The first and most obvious piece of advice to avoid the nightmare of having a debt of credit card is simply not to get a credit card. Since most students with large credit card debt build slowly overtime with impulse purchases, and avoid using credit cards for small impulse will help prevent you from becoming more balanced. If you pay your balance at the end of the month, you will have no problems. If you can not pay the balance at the end of the month, at least the minimum payment, otherwise, the issuance of credit cards can increase your interest rate to nearly 30%! Never sign a credit card to just get something free, such as pizza and Subway sandwiches to be passed in an hour anyway. You really only need one, if applicable, credit cards.
Finally, create a budget and stick to it. At the beginning of each month, list all your income and expenses for this month, and stick to it. Make your money work for you, not to disappear from pay check to pay!
My experience: Trouble credit card debt can affect your credit score
It probably has, though if it was an isolated example, and you’ve met all your repayments since then, you should still be able to borrow without too much trouble. Credit information about you is kept in a central agency, Credit Advantage. Every time you apply for credit, the lender can look up your file to check your credit record. Credit Advantage keeps files on everyone who has applied for credit in the past five years. As well as keeping records of when you applied for or inquired about finance, it also keeps records of court judgments and bankruptcies and, more importantly in cases like this, details of seriously overdue accounts and those which have been settled or brought up to date.
If you’ve had a problem in the past, your best bet is to be upfront about it when you’re applying for a new loan. Disclose the problem, and tell the lender how it was settled. The odds are they’ll find out about it anyway, and nondisclosure would be a further black mark.
Credit Advantage only keeps information for live years (bankruptcies and other serious infringements can be held on file for seven years); if you are refused credit on the basis of information received from the agency, the lender will advise you of the fact and recommend that you get a copy of your file.
Credit card debt free, mission possible
If you like Hap and spending, simply cut your credit cards in half? It depends. If you can not simply refrain from using the cards impulsively, cutting off any use of this May be the best idea. More important than such dramatic gestures, but is to put a bit of success in perspective.
For most consumers, the big question is: What is the role credit cards really in my financial future?
The problem with credit cards is that we so often think of them as something quite different from money, plunking a card is much easier to do than taking cash from of a portfolio. Merchants know, television many sales pitches are based on the idea that consumers would not spend $ 29.95 to buy a set of knives, if the knives are in front of him in a shop and that he had only money for the purchase, but would that make purchases by telephone using a credit card. There is something about the impulse buying on plastic and can be trouble. For many of us, it is too easy to justify buying things with credit cards.
Then of course there is the problem your purchases on credit cards can cost you much more than the price indicated on the item. Remember, with most cards, you pay interest on money you borrowing to make credit card purchases. Great interest. I think the only sensible approach to repay the full balance each month and avoid these costs.
Unfortunately, after a month or two worries load, it can be very difficult to do. If you choose to wear a small amount of the debt every month, be sure to shop around for the best rate. Interest charges on different cards can vary a lot others are as high as 18% every year!
Credit cards are very convenient; cabin there is a price to this practice. If you find that the cards are too much of a temptation, it May be appropriate to get rid of them. For many consumers, however, a credit card is a useful tool that can be integrated into a program of sound financial management-a way to make some unexpected purchases within the limits set, or a source of emergency funds.
It is not uncommon for a person to have, say, four credit cards, all the accused to the limit, and barely able to keep their heads above water with the payments. Yet these people are often at the receiving end of advice from other credit card companies to inform them that they were "pre-approved for another card, how, in May, you ask, is What happened?
Stop and think about the situation of the credit card company's point of view for a moment. The company is not interested in promoting the stability or solvency of its customers, at least not until they can continue to be customers. What the company is interested in obtaining a large group of users, who will turn to the cards regularly and pay high interest rates for the privilege of doing so. In short, companies are looking for. . . people who want to use credit cards.
The fact that the customer is a person "charged to the limit on other cards May not have the impact you think it. If you are underway with a number of cards that you use makes them much more desirable as a customer, no less!
To put it bluntly, credit card companies are always looking for those who like to borrow money. If someone from the consumption profile indicates that this is the case, that person may be approached for another card. But the question I put to you is: Even if the company thinks you're the kind of person who likes to borrow money, do you agree?
Convenience of credit card but should use carefully
The first thing is to know exactly how the cards work. Usually there are two main types of credit cards on the market, those that give you up to 55 days interest free if you pay your bill by the due date of each month, and those in which interest is charged immediately but at a lower interest rate. Both require a minimum payment each month, but often the minimum payment barely covers the interest on your bill. The cards are not structured to help you repay your debt, and if you do make the minimum payment, it may take years to pay your bill.
There are also two other types of cards, which are often confused with credit cards, even though they are technically quite different.
Credit cards are offered by groups such as American Express and Diners Club. They look and feel like ordinary credit cards but there is a big difference. With a map of your account must be paid in full each month. There is no credit and if you do not respond to a payment of heavy penalties may apply. Credit cards often have unlimited, so you can spend as much as you want, as long as you know, you have e money to pay the bill at the end of each month.
Debit cards and also the impression that credit cards. but they did not really give you credit. It linked to your bank account, so that when you spend money on your debit card, it is withdrawn from your account. Many people make fun of debit cards, in part because you use your own money and partly because they do not usually give you reward points. But look at their advantages: you can not go into debt for things you can not afford, and no high interest rates. For those who like the convenience of credit cards, hut to have difficulty to manage, debit cards are a much better choice.
Use your credit card wisely for avoid debt
The second step of your journey to financial success is a discussion on the proper management of your credit cards. Credit cards can be very useful if they are used mainly to prevent you from having to carry a lot of money in your wallet. Too many people, however, mistakenly believe that their credit card with the best friend to enjoy the here and now: "So easy to use and never lets me down!" This kind of attitude can easily lead to excessive debt credit card. Unfortunately, what many people do not realize until they have accumulated a heavy toll is that the debt of credit card can be fiercely expensive. Not reduced the debt by credit card of your freedom to create the life you want.
"Make no mistake, the debt of credit card can be as debilitating as addiction and addicted to drugs."
We were very blunt about our negative view on the debt of credit card. That said, we are fully aware that there are many people whose debt credit card allowed just trying to make ends meet, not a desire to spend recklessly.
Whatever your situation, the purpose of this chapter is to encourage you to stop using your credit cards to pay the debt if it is truly a real emergency. The ideal way to use your credit card is solely responsible for articles that you can afford to pay in full when your monthly credit card statement arrives.
Now, here's the good news: You do not need an MBA to effectively manage your credit cards. Be informed, attentive, and a little discipline you a long way. In the following pages you will learn the harsh reality of how much credit card debt really costs. You can also learn more about credit cards and how to avoid pitfalls. Armed with this knowledge, you'll be on the road to managing your credit cards effectively and closer to achieving financial success.
Charge Accounts and Credit Cards in United States
The United States is becoming an increasingly cashless society. People make purchases by check, current account, the bank (debit) card or credit card rather than a lot of money in their pockets or bags.
Most people receive monthly invoices and send payment by check for expenses such as shopping stores, telephone, electricity, gas, newspaper delivery, and household expenses. Increasingly, however, people pay their bills through the Internet using a computer at home and their bank, secure website. Many use credit cards to pay for the petrol and service stations and the cost of restaurant, hotel, and travel expenses. In most supermarkets, a variety of payment options are available: cash, personal check, credit card or debit card.
Many people, however, prefer not to receive the monthly bills. They work on a combination of paying bills in cash and other charges. It is a matter of personal choice. If you use credit cards, be sure to promptly pay, interest for late payment may be high, and your credit rating may be affected if you do not pay your bills by the deadline indicated on the bill .
Many credit card companies charge an annual fee and interest rates that vary from one company to another. It is important to verify the amount of interest rate and the amount of the annual fee, then select a card that will cost the least. Competition between banks and credit card companies is enormous. Take your time choosing a card, and read the information closely. Some companies advertise that they charge no annual fee and some appear to offer low interest rate on the deferred amount on the card, the buyer, but beware! Read the fine print, most of these bargains are not at all offers. The low interest rates only last May, a month or two, then spend an hour well above the market rate. The most common are Visa, MasterCard, American Express and Discover. They can be used in most shops, restaurants, hotels and service stations. Some shops, however, do not accept American Express. When you receive your credit card, be sure to sign the back of it in the space provided.
Most stores offer charge accounts, they will ask banks and other credit references. Approval of the accounts may take a few minutes to a few weeks. When your application is approved, you will receive a credit card (sometimes called "credit card") which can not be used in this store. Cards speed up the procurement process. In addition, you can return goods and obtain a credit on your account (you will generally not receive a refund in cash).
There are disadvantages to having a credit card or debit card. If you lose, and he chose someone, or if someone steals your wallet, it can run up heavy charges on your account. If this happens to you, call the store or credit card service and to report the loss immediately. Then, write at once and tell them again on the day and time of your phone to report the loss. Keep a copy of the letter. You will not be liable for any charges on the card after the time you first it. Some people carry their credit cards if they go shopping, others when they wear out, but whatever you do, always be on guard for possible scholarship snatchers or pickpockets. Visa and MasterCard are generally not a victim of theft responsible for more than a fixed amount.
ATMs (Automated Teller Machines) are replacing the withdrawal of banking services and, in some cases, even the deposit money. When you use an ATM, do so from a car if possible - for safety reasons. When on foot, use the normal security precautions and make sure nobody sees you enter your PIN (personal identification number). Also, vending machines generally pay a transaction fee unless your bank account is in the same bank that owns the ATM.
Credit card offers: The criteria for choosing credit card
The first question to ask (and answer honestly!) Is: Do I pay less than the amount due on my credit card more months? The second question: Do I still get cash advances on my credit card?
If the answer to any of these questions is yes, you should seriously consider obtaining a debit card or credit card with no interest-free period. Your main objective should be to find the card with the lowest interest rate possible.
What many people do not realize that not paying your bill in full, or to obtain cash advances, removes many of the advantages of credit cards interest free days.
Why is this? Interest on cash advances into action immediately. There is no interest free period, so you pay the higher interest of the minute, the cash is in your hot little hand. To add insult to injury, there is often a transaction fee for cash advances as well.
That's okay, "you say." I just want the cash advance to tide me until pay day for two days of interest will not break the skein. " But there is another outlet. You can not choose to repay the cash advance and leave your other purchases outstanding. Banks calculate these things so that your refund is applied automatically to all previous purchases. Let's say you already spent $ 200 on your card. You get a cash advance of $ 200 today, and go to your bank tomorrow, with $ 200 to repay. No go. The $ 200 used to repay your previous purchases, what you end up $ 300 on purchases and cash advance $ 200 still outstanding. You will then take all of 700 to ensure that your cash advance has been paid.
There is a similar trick used when you do not pay the full balance of your credit card before the due date. This is because the interest-free period only applies if you pay your card bill in full. If you have no interest in kicking and may be retroactive. Instead of simply charge interest on the amount still outstanding after the due date (which seems the logical thing to do), some banks backdate the interest of the date of purchase. This occurs even if you pay your bill, but leaving only a small amount even $ 1 movement.
Some credit card providers only from the date of your return, which is better. And some, even better, as interest on the amount outstanding after repayment (if you pay part of the bill by the due (the end).
But it gets worse. If you are stuck paying interest, some providers charge interest on all purchases that have been debited from your account is whether they appeared on your statement or transaction after the statement was published. If so, you must pay the total amount due on your card and not just the amount on your statement.
Credit card debt story: Common credit card Pitfalls [Part 3]
Continue from part 2
The new map "BAIT AND SWITCH"
May you have signed a new card with low interest rates, yet the map is actually in the letter from the credit card company is proving to be a much higher rate. Believe it or not, credit card companies can legally do so. The reason is that in the fine print, these offers often state that the low rate is only for people who "enjoy". Always check the effective interest rate on your card, after getting in the mail.
Misplaced TRUST
It's sad but true. The world is filled with people hoping for a little male people unsuspecting. The following list contains some basic precautions you can take to protect yourself against unwanted intruders:
• If you receive e-mails or phone calls from a credit card company, do not answer or give any information. This could very well be a hoax. Call your credit card company using the phone number on your card to validate that a genuine e-mail or phone. The credit card company will not be offended by your done.
• Credit card companies often try to sell you a bunch of add-on services such as credit card disability insurance and anti-theft monitoring account. You do not need any of these add-ons.
• Shred (or tear in Teeny, tiny pieces) all our credit card unsolicited or "control" you receive by mail. Do not just throw them intact, because thieves can through your fish waste and try to register to use the cards or checks under your name.
• If your card is lost or stolen, report it immediately. You are solely responsible for $ 50 if you report no card within twenty-four hours of discovery.
If we have done our job in this chapter, you, not the credit card companies, will have power over your credit cards.
Above all, you can avoid becoming a part of fear but real statistics when it comes to credit cards. Here are just two:
• The average American has more than fifteen plastic cards (including debit, credit, store cards and gas), according www.cardweb.com
• Approximately 60 percent of Americans do not pay their credit cards in full each month. Among households with at least one credit card, the balance is on average more than $ 9000, according to figures from the Federal Reserve.
Remember, charging things on your credit card you can not pay in full at the end of the month will cost you big time. Only pay your minimum monthly payment cans easily double the cost of everything you buy.
Credit card debt story: Common credit card Pitfalls [Part 2]
Continued from part 1
INTEREST RATE CHANGE THAT
The interest rate on a credit card is not always remain at its initial level. There are several ways credit card companies can legally raise your rates. Your action plan is to be aware of these and watch out for them in the daily use of your cards. Here is a list of the most common reasons for higher rates:
• Your rate of 0 percent teaser expires: There is a reason they are called "teaser" rate. If you have a low teaser rate, call toll-free number on the back of your credit card and when that rate expires, because your new interest rate will probably skyrocket. Ideally, you must pay or transfer your balance forward. Sorry, but by transferring your balance from 0 per cent card to another is not a smart long-term strategy because it does not answer your problem of having too much debt. The smart strategy is to work hard to pay all your debts credit card. Also know that the teaser rates on balance transfers often apply only to the balance transferred to new charges on the card could have a much higher rate and get paid last. Always ask about it.
• You are late in paying your credit card bill: Say you put your credit card bill in the mail two days before it expires. Unfortunately, the mail is slow this month and it takes three days to reach the credit card company. Not only you will be charged late fees, but your interest rate and would probably increase. It is not uncommon for a low introductory teaser rates of 0 per cent to a penalty rate of over 20 per cent because your payment is late. So please, do not ignore the bill, even if it means opening while drinking a glass of wine or eating a bowl of ice cream to relieve pain.
• You are in arrears in the payment of all other bills: Yes, credit card companies can check periodically to see if you've been late on any of your other bills and use as a reason to increase your interest rate. While the phone bill pay on time, too.
• "Simply because," with fifteen days notice: It is a sad reality, but a real credit card company can change your rate of only fifteen days written notice. That, to whom they sent the small print, with your original card.
Cash advances and "FREE" CONTROLS
Credit cards usually have interest rates for goods and services you purchase with your card, then a much higher rate for cash advances and those "free" that periodically checks arrive in the mail. In addition, interest on cash advances and free checks began returning to the minute that you use. The key is that you should not use your cards for one of these "amenities", unless it'sa real emergency. As for cards retail, there is a reason why credit card companies to send you free checks. Once again, this is not for you.
Please continue reading part 3
Credit card debt story: Common credit card Pitfalls [Part 1]
The next step toward taking charge of your credit card is to know the pitfalls and how to avoid them. These are the classic pitfalls:
1. Having too many credit cards
2. Think your interest rate is set in stone
3. Using your credit card to withdraw money from an ATM, or use of these controls that are free in the mail
4. Being a victim of the new card "bait and switch" you think you get a card with a low rate, but the card that arrives in the mail has a much higher rate
5. Being too confident
Let's talk about each of these traps and how to avoid them in the next article.
Too many credit cards
We like to draw too many credit cards from the collection of credit card, or 3C syndrome. Yes, this includes credit cards and traditional cards retail store! The problem with the 3C syndrome is twofold. First, with too many cards, you have until the end of May in total spending more than you think. Secondly, with so many bills, you increase the chances of not paying one time. Pay overdue financial harm your reputation, late fees, triggering expensive and often lead to higher rates of interest on arrears. Like eating chocolate, when it is the number of credit cards to have, moderation is best.
If you have too many credit cards today, you are not alone. Here's your plan of action to reduce plastic battery:
• If you are able to repay your entire balance at the end of each month, take the two cards (at most three, if you need to work costs), which are free of charge and / or ' have the best benefits.
• If you go to a balance on your card (even for a few months), forget the benefits. You must identify your two existing maps with the lowest interest rates.
• Pull out the scissors and the remaining cards as you have photos of your ex-boyfriend. You are cutting your cards to avoid charging them. However, until you repay your entire balance (s) and formally close the account (s), you must continue to make monthly payments.
• Once you have a zero balance on the cards, it is time to officially close.
As for cards retail, frankly, we just neither're or fans. They generally have interest rates very high. In addition, as you will learn in the next chapter, the application of these cards can damage your financial reputation. May be if he tried to open one to get 10 percent off your next purchase, we invite you to take a pass. We believe that the potential decline more than offset the time that the price of a break. There is a cat because retailers want you to open one of their store cards, and it does not make life easier for you.
Please continue reading part 2
Teaching kids for budjet their credit card debt
Like many other children like my children to have new things they see when they see it. My oldest boy is still working angles, trying to make money, it expects grandma and grandpa for future Christmas and birthday, months before their arrival in order to finance its purchases now. I must admit that I fell for this beginning. Wanting to be a good parent, I would put forward the money for all sorts of things.
After some time, however, it occurred to me that I do my son a disservice. I was her desire for immediate gratification and the introduction to the world of credit facility. My two boys have become part of buy now, pay later culture that is as American as apple pie, hot dogs and hamburgers. They have little or no sense of deferred gratification. If my loan has continued, they could very well have become part of many who are in debt credit card to them. My ex-wife had fallen into the same trap.
Realizing the error of our ways, she and I decided to implement a new policy: more loans in future birthday and Christmas money as collateral unless the boys have received at least 75 percent of the total purchase price. We had no complaints and, oddly enough, no request.
If you have a child and you were allowing instant gratification, you want May to adopt a similar policy. It will serve your child well later in life, when credit cards are beginning to appear in his mailbox. You May also want to spend some time talking about how credit works in the real world is how fast you can run a large balance and how long it will take to repay the debt card credit, particularly if you fall for the trap minimum monthly balance of credit card companies hope that you catch. That is how they make their money.
The minimum monthly payment is the smallest amount you can pay a credit card company and to be a cardholder in good standing. Generally, the minimum monthly payment is equal to two percent of the balance or $ 10, whichever is greater. Interesting to note that some statements refer to the minimum the cardholder amount due. "It's up to you to believe that this amount represents the payment. This is not the total amount due.
The minimum monthly payment is a credit card companies use to keep you in debt, as long as possible to make the most money out of you as possible. If you have had experience with this regime, you know they are also lower minimum monthly payment for the balance of credit card declines.
If you choose to pay the minimum each month, you'll pay much more interest if you pay the card quickly. For example: A person who makes a minimum payment of $ 80 on a balance of $ 4,000 to 21. cent annual interest rate will take nearly ten years to repay the loan. The interest cost is $ 5592 with the owner to pay a total of $ 9592 - more than twice the cost of the original loan. Make minimum payments more results in finance charges if the card is repaid quickly. In fact, debt credit card usually takes three times longer to pay as any conventional loan of the same value.
Some credit card companies even allow the cardholder to skip a payment without penalty or two, especially at holiday times. Although this May seem like a great idea, keep in mind that interest will be charged during this period, and even more in finance charges will be due before.
In summary therefore, the minimum monthly payment is not intended to get you out of debt quickly. It is a way to make the most out of your hand.
Not that I do not have credit cards. I got my first credit card at age 51, not by need, but because many car rental companies will not accept debit cards (my usual way of processing these transactions) . I use my credit card wisely, on a pay-as-I-go basis, the liquidation of the balance each month, but gained little mileage on Frontier Airlines at the same time. I explained this to my children and leave them in the secrets of my system for the management of money, which is very good "buy only what you really need, pay as you go, to avoid credit, and if you need a loan short repay as soon as you can. "I told my boys, for example, that if you make an extra payment each year, 30-year mortgage you can reduce the payment period from 30 to 20 years, saving tens of thousands of dollars in interest! They liked the idea.
Carry a credit card debt Balance - Is it good?
Despite what you heard in May, carrying a large balance of credit card is not the normal in America. Federal Reserve statistics,
• A quarter of American households have no credit cards.
• Another 30 percent or so pay their balances in full each month.
• Of the 45 per cent, half of the balances under $ 2200.
• Only 1 household in 14 has more than $ 10,100 in debt from credit card.
• Only 1 household in 50 has more than $ 20,000 in debt from credit card.
Obviously, statistics aimed at showing the "average" American carrying $ 9,000 or more in debt credit card is misleading. These figures take all the money owed on credit cards at the end of the year and divide by the number of households with at least one card. The statistics are not correct for the fact that many of the balances due on December 31 will be paid next month. They do not compensate for the fact that large balances owed by some are distorting the average for the greatest number.
So if you have taken comfort in the fact that your credit card balances were not that bad compared to the rest of the country desolate. Any balance is made to your financial health, more balance, more time you're with your peers.
Eliminate debt: lighten Your Credit Card Debt
Do not let guilt stop you from taking positive measures. The average family with credit cards leads to a huge debt of $ 8000. It is easy to fall into the mind. But moving in the right direction now can help you achieve other financial goals.
Leave all but a card at home. Keep a card with one of the best rates and terms-ro better track your spending. If you are the type who likes to compare your cards' spending limits, you will also contain the damage to a card.
Use your debit card. Train yourself to use your debit card instead of your credit card when you are short of cash. You avoid running balances, no monthly fee, and because the money comes from your account, you'll think twice before buying something.
Know your customer. Credit card interest rates can vary from zero to 28 percent. If you do not know why your interest rate is very important, here's an example: Suppose you have a balance of $ 1,000 and your interest rate is 22 percent. It will take 12 years to pay this balance if you make only the minimum payment of 3 percent. Meanwhile, you can pay $ 1234.17 in interest. The same balance to 12 per cent interest would be 8 years to pay you, and you only pay $ 407.54 in interest. It's not much, but it represents a saving of over 50 percent.
Do not miss the deadlines for payment. Typical credit card late fees are $ 25 to $ 30 range. if you pay your bill by the due date or one or two before, call the credit card company. Some let you pay by phone with an account number to check, others have Web sites that pay you electronically (and instantly).
Lowering the interest rate on your current card. Call your credit card company and tell them you want to cancel your card because a competitor offered a lower interest rate. They can offer lower rates on your site, and if they do not, you have canceled the credit card.
Get a map of lower interest. Unless you are already paying the lowest rate available, consider transferring your balance to a low rate of the card. Pay attention to what is called the rate of introduction, though. They usually last for four to six months and then can switch to 15 per cent or more.
Credit card debt story: Don’t crying on your debt
Many families spend much of their income to their creditors to keep distance. The result is less money available for retirement savings. Thus, your home loans, auto loans, credit cards and paid, and you'll have more financial leeway. Making this change is easier if you start planning the transition and in advance.
The Consumer Federation of America said that the average balance of households that include a credit card debt from one month to over $ 10,000. Credit card debt is the least desirable, because interest rates are very high and the interest you pay are not tax deductible. My advice: Put away the plastic. Think of the real cost of your purchases, including debt service.
Consider refinancing to a lower interest rate to free up money to save for retirement. But do not take money from your home unless the equity that you will use to repay the debt the higher costs. And do not tap into your equity to get money to invest, unless the investment has advantages and virtually no downside. If you find one like that, call me!
Of course, getting rid of debt is about making hard choices and that means you will not get anything you want. Maybe you will not be able to travel overseas or help your child buy a home or a new car every two years. This would imply sacrifices.
If you adjust to a tighter budget now, it could have a double-edged advantage. First, you'll be able to save more for retirement. and, secondly, once you're used to living with less, you'll need less income in retirement.
Whatever your decision, you want your partner on board. If we resents deprivation is a recipe for trouble.
The true cost of credit card debt
Lets take a look at Elizabeth, who was an ulcer thinking about his $ 5,000 debt to a credit card. Elizabeth is quite typical of cards, 18 percent with an annual interest rate and a minimum monthly payment of 3 percent of the unpaid balance on the card. She decided to bite the bullet, stop charging anything on the card, and repay its debt. His initial plan was to pay just the minimum payment each month. Elizabeth felt very proud of this game plan ( "Hey, at least I'm not ignoring the law.").
Just pay the minimum monthly payment would be winding through Elizabeth forking over a total of $ 9850-nearly double the amount of $ 5,000 debt credit card. To add insult to injury, it would take an enormous its thirty-four years to repay.
What Elizabeth did not realize that not all of its required minimum monthly payment would go towards reducing its debt. Trying to pay your debt by making only the minimum monthly payment is a bit like trying to lose weight through strict diet throughout the day and eat five to donuts right before going to bed. It is difficult to advance progress. With credit cards, which holds you back is the part of the minimum monthly payment that goes to the credit card company for interest charges. This is the amount shown in the shaded column in the table, and it adds to much of the change. This interest is primarily the fee as the cost of credit card in exchange for you to borrow money from them. The money from your monthly payments will first repay your interest, and only then that the outstanding amount towards your original debt.
"What does this mean for Elizabeth is that it will pay its purchases beyond the time they found their way into the city dump."
So the next time you think of the $ 100 pair of trendy jeans on your credit card and not pay your minimum monthly payment, remember that the jeans could cost you $ 100 but not $ 200 . Just pay the minimum monthly amount required to double the cost of everything you buy. Understand the real cost of debt credit card will help you decide if this additional purchase worthwhile for you.
"A woman is financially sophisticated: Credit cards are not free money"
Moreover, if Elizabeth paid only $ 50 more per month, every month. During the minimum payment required, it would pay its debt to less than five years and reduce the total interest payments to $ 1950. It's still a lot, but this is not the huge $ 4850 she had to pay interest costs if it does the minimum monthly payment required.
If you are interested in calculating the digits of your situation, you can visit a website such as www.bankrate.com or www.dinkytown.com and use calculators credit card (or an engine web search like Google or Yahoo and type of credit card calculator "to find other sites). Enter your current outstanding balance, your interest rare, and your minimum payment required or the maximum amount you can afford to pay each month and the calculator tells you how long it will take to repay your debt. If you do not know the interest rate you pay, look at your last credit card bill. If you do not have a old bill, please call the telephone number on the back of your credit card and ask the representative of your interest rate. We strongly recommend you do so.
Credit cards function explains
Although the loan is a service of a bank, you are probably aware that all banks have the ownership or possession of a credit card. For example, Barclays Bank, Barclaycard own, part of the Visa card, TSB, have their card trust, which is also part of the visa, while Lloyds, Midland and National Westminster and the Royal Bank of Scotland has a share in Access.
Credit cards are plastic cards issued to persons, not necessarily customers of banks, which are in front, the person's name, credit card number, expiration date. On the back of the card holder's signature and the basic conditions of the issue. It should be recalled at any time that this card is the property of the credit card company.
To obtain a card, a person must complete a form containing their name, address, marital status, employment and wages and many other facts so that the credit card company in May to assess its solvency and the credit limit should be given. Once the card has been issued, the holder of the use May (1) to withdraw funds from a bank or at the counter or by a dealer or (2) for the purchase of goods and services from any point of sale.
When the customer receives funds from a bank in May, it do so in the limit. This is considered a loan that attracts not only the costs of handling, but the current interest rate, which at the time of writing is somewhere in the region of 2 percent per month, between 25 and 30 for cent per year. The rate is often much more important than a loan or an overdraft.
However, with a credit card used to purchase goods and services, it is possible to get up about six weeks for credit, without interest. For example, when purchasing goods at the beginning of a month and pay by credit card, it is likely that the regulation should not be made until the middle of next month. This interest-free credit is very attractive for people who have gained control of the discipline of their expenses and pay their bills as they are incurred.
Not only the credit card can be used in shops, supermarkets, and so on, but in hotels and restaurants, when ordering goods by mail order. The card can also be used abroad, in fact, co-author has used his card quite extensively on vacation in Europe and is more than two months before the appearance on the amounts of the statement - very useful free credit extended.
The credit card companies get their profits from two main sources:
1. Interest on credit card holders who do not pay the amount due on the date indicated.
2. A charge for the retailer between 2.5 and 5 per cent on turnover. Thus, if a retailer present checks to the bank to credit his account for £ 10,000, and the agreement is a commission of 5 percent, then the credit card company will be at the end of the month to pass a direct debit £ 500 to the retailer the current amount.
In addition to credit cards, many banks are maps showing greater financial and automatically carrying more credit, insurance and other additional factors. These concessions may vary slightly from one bank to another.
Very many people use credit cards as a means of obtaining credit. Whether it is an acceptable way of borrowing is a subjective decision. In general, it seems that it is easier to obtain funds from a credit card company than a bank. This is apparent from the bad publicity through the media, suggesting that the credit card companies often lend money to those who can least afford to repay.
I’m addicted to plastic card – What can I do?
If you are constantly stretching the limits of your credit cards, and offers higher credit limits or a new card seems too good to the case, it is time for drastic measures. Stop using the cards until every hundred due is paid. Cut them up if you must. Rest assured, they will always give you a new frame when you are in control.
Tot what you need and budget to repay as soon as possible. Remember, you will continue to hit with interest rates until every cent is paid hack.
You can use the marketing efforts of the issuers of the card to your advantage if you are ready to be disciplined. Credit card issuers are constantly promoting their offer through cards such as "the transfer of sums owed on your existing credit cards to our new card now and we'll give you a low interest rate for 12 months, plus a lot of reward points.
Take Suzi. She is about $ 3000 because of his credit cards and payment of interest is about 15 percent. If they take one of these offers, Suzi can reduce its interest rate to less than 10 per cent and "win" 3000 points reward for his efforts. But to really make this good, Suzi should immediately cancel all his cards and resolve old not to use the new card until every penny is paid.
If you are really problems with your credit cards, you may also consider debt consolidation. It is a strategy where you take out a personal loan at a lower interest rate to pay all your bills your credit card. Because the loan is structured to be repaid within a time limit (usually two, three or five years), you are obliged to reduce your debt each month. But again, this only works if you are serious about breaking the habit. There is no point in consolidating debt, if you spend big off your credit cards again.
When you have paid your debts, think carefully about how you will avoid the same problem in the future. One idea is to limit yourself to one credit card with a credit limit that you can manage. Or arrange a direct debit from your bank account each month to ensure that your account is repaid in full. If there is no money to cover the payment, you will be struck with dishonor fees, which is a great encouragement to make sure you have enough money set aside to cover the bill.
Your friends: Interest-free credit card
There is another way to approach your debt. Interest-free credit cards. There are a few credit cards on the market that offer introductory period during which no interest is charged. If you decide to use this route, be careful. It requires some planning. It also takes time to develop, so if you want to try, 1 strongly suggest you set up your monthly payment on your level of debt as described above and try this plan. You do not know how many credit cards you will be approved or how much credit limit you will be given, or how long your balances will be eligible for the offer, without interest. Credit cards are not replacing your debt repayment above. They are a tool to help you with it.
First send all application forms, you can get your hands on. Many will come through your mailbox, and you can search other offers for the use of the Internet. You can even ask for cards of the same on the Internet. Then you must open a savings account at your bank.
With each credit card you receive, enter your credit limit and the date on which interest begins to accrue on the map - and reduce your card. These maps do not give you more pocket money, but to be used as an aid to repay your debts.
Then you can work out how you can use non-interest spending that has just become available to you to pay your debts. Different credit card companies have different limitations on how you transfer your account balance in May, but you should be able to transfer money to another credit card to a bank account or directly to an account ready. May you use your imagination to transfer the money to where you want. For example, Barclaycard will allow you to transfer money to another credit card, but not directly to a bank or loan account. In this situation, the transfer of money to a credit card that you know you can transfer money directly into a bank or loan account (an example of such a map is the map of the egg ). Credit card companies often subject, if you use their card to hold the money (and so should you, because these cards do not pay you interest when in credit, unlike a bank), so if you exercise on top to ensure that, as you head Barclaycard to pay on your Egg Card, you direct the eggs to make a payment equal to your account loan. Keep track of these accounts to ensure that the money arrives. You can follow via the Internet or by telephone, it is easier for you. Use all your cards no interest in this way to pay as many debts as possible. Be sure to file a written proof of each of these loan providers to show when you have repaid the debts.
Make sure that each month you send an entire amount of your monthly disposable income in your savings account to ensure that when the interest-free period is nearing its end, you have enough money in the account to allow you to repay the credit card debt in time for each card provider starts to charge you interest. To determine the amount you owe, see the last month before the date on which interest begins to accrue. If you do not have enough money in your savings account to repay the credit card in full by that date, you ask again in May for another credit card with an initial interest-free period and the use to pay the first card. Ensure newcomer through map in sufficient time to allow you to transfer an amount payable in your first card before the date on which interest begins to accrue.
With each, interest free credit card you will be asked to pay a minimum amount each month. Be sure to pay these amounts. Open a file to keep track of these payments and balances on each of your interest free credit cards.
Using interest-free credit cards, it is not easy. It may take time and effort to keep track of everything. However, this time and will save you the effort of paying interest on your loan each month, which will help you pay your debts sooner.
Even if you are debt free, you can continue to take interest-free credit cards and transfer balances in a savings account to make money through the interest, you may also transfer the money in an offset account where your balance be deducted from your loan and save you interest on mortgages.
The long chronicle of Debt part4
And then, suddenly, painfully, the end will come - it was the 1990s.
Something happened in 1990. It is difficult to imagine how things could be as well a dozen years and very bad in the next. Perhaps there is a rule which says that the surplus that the decade ahead will be bad as the first was good. If this is true, we are in for a ride in the next ten years! In any event, it has been and remains perplexed.
Companies have started to reduce on behalf of more globally competitive. People saddled with debt incurred from reckless spending in the 1980s, suddenly find themselves unemployed. One of the qualities associated with the debt emerged: patience.
They learned the hard way that the debt is very patient. It constantly hangs around the outer edges of the evaluation of your financial plan until it detects a weakness, and moves to kill it.
And to go to kill he did. Many people have not only lost their jobs, but some also lost their homes, unable to pay their mortgages on unemployment insurance. Since much of their disposable income has been servicing the debt outstanding, they have no savings to fall back on. The divorce rate has skyrocketed. Bankruptcies have been at record levels. It was horrible.
These are the insidious consequences of thinking in the short term, instant gratification, the elements of the "E Factor". The bottom 80 - percent of the population in terms of financial capacity, are affected by this disease in varying degrees while the top 20 percent seem to have more control over their expenditure. 20 per cent of group seems to be able to recognize the difference between a need and necessity, and not easily influenced by advertising gimmicks, designed to appeal to their weaknesses. This group knows that the wrong decisions taken today can have long-term like they know that wise decisions can accumulate over time to pay dividends.
I am certainly not suggesting that we all live our lives to respond to needs. After all, life is to be loved, and I think some people go too far in their savings, to gather wealth never have a chance to enjoy. Can not be a middle ground? Can we live and enjoy life, while continuing to save for later, our years? I think we can.
It is a matter of choice, I think. Nobody forces us to pay the debt. It is our own choice. The choices we make in our youth, our environment and accumulate to produce a result in recent years. Sometimes the result is magnificent, it is certainly for those in the top 20 percent of the group. Sometimes the result is tragic, and too much of this is the case.
There is a saying: "If you take a step forward, you can see enough to go further."
As we age, we can see our last years in the home (just everything else is off-topic). I can tell you, at the age of forty-eight hours, I can now see quite clearly sixty. I do not mind admitting that it is a little scary. Suddenly, the cumulative effect of errors that I did in my youth (and let's face it, we all do them) is looming. As the saying goes, regret weighs tons, discipline weighs ounces. "If I had injected the early disciplines, I would not be carrying this heavy burden." This is the complaint of too many people.
A difficult to learn, is not it? The past can not be changed. I have seen too many terrible consequences of debt, and I wonder why, as a society, we can not do better.
Other part
The long chronicle of Debt part1
The long chronicle of Debt part2
The long chronicle of Debt part3
The long chronicle of Debt part4