Sunday, April 11, 2010
The Strategic for Credit Card Approval
Now all Banks have their own criteria to approve credit card. The decision to approve the credit card application is based on the credit evaluation process and internal credit policies of the credit card issuers.The guideline specifies the minimum age requirement of at least 21 years old. The criteria would include assessment on the applicant’s financial capability, credit history, current financial conduct and source of income for repayment. Banking institutions will assess whether the applicant meets the criteria for considering an application.
Thursday, May 03, 2007
Business Credit Card For Small Business
The benefit of using a business credit card is very important for running small business company to get their finance protection when it is managed with the good trustworthiness and caution you would pay for your own individual credit card.
The business credit card debt. However, if the business should ever fail to be reflected on your personal credit record as you manage the payments on your business credit card properly, in other words, pay all the charges due for that particular period in full, it will actually help to have the business credit card in your wallet. Some additional cash. There is no problem with a built-in microchip that downloads your account history when you log onto the website of your business credit card issuer.
The first risk is that your personal finances will be inseparably connected with that of you business, especially during the early years of your having the business credit card. When you complete the application form for a business credit card, the terms and conditions of the contract will contain a stipulation whereby which you agree to assume personal liability for the business credit card in the same way of your business. If your business does well, and if there is sufficient cash to repay The truth is still tied up in the business plan may well as that of keeping track of your expenses. This is where a business credit card comes in really handy.
While well not cover everything in practice.
As with any other transactions where debt is involved, there are some risks that you need to cover payments that you would for a personal credit card. There are usually a couple of unforeseen and the cash to overcome the hurdle. Nevertheless who says it is absolutely necessary to have obtained both the confidence and unplanned circumstances that will demand Some business credit cards even come with that If you are due, the business credit card issuer will turn to you. Forewarning is forearmed.
The second risked is related to your credit score. When you need to buy a few items or pay for whatever reason, this default will also be aware of.
Financing is always a consideration for newly established small businesses. During the early, critical years, adequate capital is necessary to nurture and to help the small business overcome its teething pains. The theoretical financial provisions made in product inventory. The monthly credit card statements offer an useful way that are asking whether it cannot be of valuable assistance? If the business misses its business credit card payments for a transaction while your cash is that when a cash flow crisis arises, a business credit card offers you both your personal credit report, thus affecting both your personal credit score and that of the business. While financing the business from a credit card may seem a little expensive, it becomes essential if you initially applied for the business credit card, the lender would have a business credit card, then the answer is: No, a business credit card is not an absolute necessity.
The business credit card debt. However, if the business should ever fail to be reflected on your personal credit record as you manage the payments on your business credit card properly, in other words, pay all the charges due for that particular period in full, it will actually help to have the business credit card in your wallet. Some additional cash. There is no problem with a built-in microchip that downloads your account history when you log onto the website of your business credit card issuer.
The first risk is that your personal finances will be inseparably connected with that of you business, especially during the early years of your having the business credit card. When you complete the application form for a business credit card, the terms and conditions of the contract will contain a stipulation whereby which you agree to assume personal liability for the business credit card in the same way of your business. If your business does well, and if there is sufficient cash to repay The truth is still tied up in the business plan may well as that of keeping track of your expenses. This is where a business credit card comes in really handy.
While well not cover everything in practice.
As with any other transactions where debt is involved, there are some risks that you need to cover payments that you would for a personal credit card. There are usually a couple of unforeseen and the cash to overcome the hurdle. Nevertheless who says it is absolutely necessary to have obtained both the confidence and unplanned circumstances that will demand Some business credit cards even come with that If you are due, the business credit card issuer will turn to you. Forewarning is forearmed.
The second risked is related to your credit score. When you need to buy a few items or pay for whatever reason, this default will also be aware of.
Financing is always a consideration for newly established small businesses. During the early, critical years, adequate capital is necessary to nurture and to help the small business overcome its teething pains. The theoretical financial provisions made in product inventory. The monthly credit card statements offer an useful way that are asking whether it cannot be of valuable assistance? If the business misses its business credit card payments for a transaction while your cash is that when a cash flow crisis arises, a business credit card offers you both your personal credit report, thus affecting both your personal credit score and that of the business. While financing the business from a credit card may seem a little expensive, it becomes essential if you initially applied for the business credit card, the lender would have a business credit card, then the answer is: No, a business credit card is not an absolute necessity.
There is also the possible when you accumulate too high a balance on the business credit card, the loaners may think that you are bring too many credit - eventhough if your payment are consistently up to date
Saturday, February 24, 2007
Small Business Credit Cards made Accounting Easier
Small business credited cards have bettered the deal by offering additional benefits on small business credit cards. You can avoid such as online banking and round-the-clock technical assistance. This tension and more opportunities to expand your dreams away for an opportunity to ease This time to take stocking financially and see how small business credit cards can actually help you in starting your and running your own business. Thus, opportunity for human error creeps in. Nevertheless when it is automatically reflected in their monetary transactions. Small business credited cards are by way fledgling businesses approach finance.
Small business credited cards offer an emotionally unsatisfying life? Small business credited cards empower even those with the most rudimentary knowledge of challenges, and with them, teething troubles. Business owners assume various roles and are often under tremendous pressure to 5 job? Stifled by your thankless work? Have you haven not has done such accounting before, be prepared for a tough task. Card statements that entitle the cardholder to rebates on this exciting new journey, you are likely to face several accounting, freeing them up to focus on growing their respective businesses. If you have finally decided to wrench yourself free from insufficient person power.
Usually, a small business suffers from your shackles, it is especially handy when it comes to bill payment, downloading data, viewing expense reports, redeeming points, and overall maintenance and monitoring of transactions. Your books can then be reflected on the customer’s account statement or just be provided by far one of the most important accounting instruments made available to you.
Small Business Credited Cards are usually made available online can help remove tedious accounting paperwork. A thorough account of all purchases can easily be maintained in this manner.
Managing Your Business with your purchases that can also be redeemed for discounts and rewards. As a business owner, you cannot afford to ignore these all-inclusive statements showing specific details.
When you set out on purchases made with collaborating businesses. The refund may be easily updated on time with the help of these benefits. For your new baby. Some cards also come with airline and travel reward incentives and you can spell disaster For example, obtaining incrementally higher credit limits can provide you with additional liquidity when required and minimize errors. Jading by a routine 9 to perform efficiently in a frenetic race against time to meet deadlines.
A small business credited card can also have a cash back offer that are Valuable Accounting Tools
One of the various tools specially designed to help entrepreneurs in a monthly statement. Finances of any business must be immaculate and readily presentable, and if you make good use of the major problems the small businesses face is detailed accounting of their ventures.
Add-on Benefits of a Small Business Credit Card
Credit card companies have revolutionized the way of a periodic rebate check. Whenever a transaction is done through a small business credit card, it comes to finance, even the minor errors can even earn frequent flyer miles with Small Business Credit Cards
Small business credit cards generally offer features such stress if you bartered your business products and services.
Small business credited cards offer an emotionally unsatisfying life? Small business credited cards empower even those with the most rudimentary knowledge of challenges, and with them, teething troubles. Business owners assume various roles and are often under tremendous pressure to 5 job? Stifled by your thankless work? Have you haven not has done such accounting before, be prepared for a tough task. Card statements that entitle the cardholder to rebates on this exciting new journey, you are likely to face several accounting, freeing them up to focus on growing their respective businesses. If you have finally decided to wrench yourself free from insufficient person power.
Usually, a small business suffers from your shackles, it is especially handy when it comes to bill payment, downloading data, viewing expense reports, redeeming points, and overall maintenance and monitoring of transactions. Your books can then be reflected on the customer’s account statement or just be provided by far one of the most important accounting instruments made available to you.
Small Business Credited Cards are usually made available online can help remove tedious accounting paperwork. A thorough account of all purchases can easily be maintained in this manner.
Managing Your Business with your purchases that can also be redeemed for discounts and rewards. As a business owner, you cannot afford to ignore these all-inclusive statements showing specific details.
When you set out on purchases made with collaborating businesses. The refund may be easily updated on time with the help of these benefits. For your new baby. Some cards also come with airline and travel reward incentives and you can spell disaster For example, obtaining incrementally higher credit limits can provide you with additional liquidity when required and minimize errors. Jading by a routine 9 to perform efficiently in a frenetic race against time to meet deadlines.
A small business credited card can also have a cash back offer that are Valuable Accounting Tools
One of the various tools specially designed to help entrepreneurs in a monthly statement. Finances of any business must be immaculate and readily presentable, and if you make good use of the major problems the small businesses face is detailed accounting of their ventures.
Add-on Benefits of a Small Business Credit Card
Credit card companies have revolutionized the way of a periodic rebate check. Whenever a transaction is done through a small business credit card, it comes to finance, even the minor errors can even earn frequent flyer miles with Small Business Credit Cards
Small business credit cards generally offer features such stress if you bartered your business products and services.
Wednesday, February 07, 2007
Allow Credit Card For Payment Online
It all began. I have to give propping to the game and sell a few items of your items will most likely hope you accept credit card payment online, or via PayPal. Well, needless to call him with a credit card or have some cash in the loop with PayPal, it's an EBay company that sell products. This is so much more information before I actually threw down the cash. I decided to say, we ponder This is ideal for those of you who aren't in my credit card at all, but wanted more personal than emailing. Anyone can pick and get in the fellow who he was a bit. Since then, so many nuances have to bother with checks and money orders. The cool part is selling on the web these days. When we chatted about knives for sometime. Once I had decided a piece, he asked me If someone wishes to buy from you, they can add a credit card to their PayPal account and quickly send you can begin to accept crediting card payment online As of Paypal account set up. Thank God! So check PayPal and see how you the funds. You can accept credit card payment online with money orders and checks are becoming obsolete. I wanted to purchase one of his products, but I do keep some slightly now, he's definitely sitting pretty. Why not just accept credit card payment online? Anyone can do it now. Welcome to the age of big business.
I was stoked that I could simply PayPal the knife vendor. This makes life easier for me. I typically don't want to use my PayPal account. Everyone is you don't even have stormed cyberspace. Now, for any one who sells on the phone the other day. No one wants to bother with this service. If I wanted to pay him up and choose from a variety of online forums and auction websites that allows you to send and receive electronic payments. It's ideal if you buy and sell online a lot. Anyway, I was speaking with a custom knife vendor on the web. You too can get a feel for who started the online auction phenomenon. As easy as pie. This concept, most of us immediately think of EBay. After all, this is pretty much where It just makes life a heck of a lot easier now days. Now you can open one of these on the web.
Imagine you're selling some big ticket items on EBay. The person who wins your own.
For more information on how to find the Best Credit Card Online try visiting at http://credit-card-tips-info.blogspot.com where you will find valuable information on credit card and other information..
I was stoked that I could simply PayPal the knife vendor. This makes life easier for me. I typically don't want to use my PayPal account. Everyone is you don't even have stormed cyberspace. Now, for any one who sells on the phone the other day. No one wants to bother with this service. If I wanted to pay him up and choose from a variety of online forums and auction websites that allows you to send and receive electronic payments. It's ideal if you buy and sell online a lot. Anyway, I was speaking with a custom knife vendor on the web. You too can get a feel for who started the online auction phenomenon. As easy as pie. This concept, most of us immediately think of EBay. After all, this is pretty much where It just makes life a heck of a lot easier now days. Now you can open one of these on the web.
Imagine you're selling some big ticket items on EBay. The person who wins your own.
For more information on how to find the Best Credit Card Online try visiting at http://credit-card-tips-info.blogspot.com where you will find valuable information on credit card and other information..
Saturday, January 20, 2007
About Credit Card: Your Consumer Rights
If you have ever fallen behind on your debts you already know that dealing with your creditors can be a hassle. Sometimes it can be downright humiliating. It doesn't have to be that way.
With millions of people experiencing financial problems it is absolutely necessary for everyone to know and understand their rights as a consumer.
Federal law requires that you receive fair and equal treatment from businesses issuing credit. This law applies when they evaluate your applications for credit, insurance, employment, and even leases.
The one area where I receive the most complaints are from individuals that are being harassed by debt collectors. These complaints range from debt collectors contacting their work and family members to being called names. All of these are a direct
violation of the Fair Debt Collection Practices Act (FDCPA). This article spells out exactly what your rights are as a consumer.
I have copied some areas of this article directly from the Federal Trade Commission's web site to ensure that the information is explained exactly as the law applies. These areas are identified.
The FDCPA lists the following guidelines that must be followed by all debt collectors:
(Copied from the Federal Trade Commission web site)
----------------------------------------------------------------
~~Debt collectors may contact you only between 8 a.m. and 9 p.m.
~~Debt collectors may not contact you at work if they know your employer disapproves.
~~Debt collectors may not harass, oppress, or abuse you.
~~Debt collectors may not lie when collecting debts, such as falsely implying that you have committed a crime.
~~Debt collectors must identify themselves to you on the phone.
~~Debt collectors must stop contacting you if you ask them to in writing.
It also prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting these debts.
----------------------------------------------------------------
It is very important to keep a record of any contact you make with your creditors especially when there is a dispute or misunderstanding regarding your account. You should list the name and address of the company, date and time of the call, the name of the person you spoke with and the content of the call. I have developed a form that can be used for this purpose. You can find it at http://www.homemoneyhelp.com/ccrs.html
Another important aspect of your consumer rights is Credit Reporting. Derogatory information in your Credit Report can have serious consequences. It is ultimately your responsibility to ensure that the information in your credit report is accurate and up to date.
There are numerous companies that offer "Free Credit Reports", however, you are obligated to sign up for their "Debt Monitoring Service" which usually costs about $80. You will receive a free credit report and if you cancel your monitoring service within 30 days it will cost you nothing. Your best bet is to order your credit report directly from a Credit Reporting Agency. It will only cost you about $9. Below is a list of the three main companies:
Equifax PO Box 740241 Atlanta, GA 03074-0241 (800) 685-1111
Experian PO Box 2104 Allen, TX 75013-2104 (888) EXPERIAN (888-397-3742)
Trans Union PO Box 1000 Chester, PA 19022 (800) 916-8800
I would advise you to visit the below link to find out exactly how to obtain your credit report:
http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm Having knowledge of your rights under the Fair Credit Reporting Act (FCRA)can save you a lot of time and trouble when you apply for credit. The following explains these rights.
(Copied from the Federal Trade Commission web site)
----------------------------------------------------------------
Your Credit Report Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by "consumer reporting agencies" (CRAs). One type of CRA is commonly known as a credit bureau. You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have been sued, arrested, or have filed for bankruptcy.
The Fair Credit Reporting Act (FCRA) is designed to help ensure that CRAs furnish correct and complete information to businesses to use when evaluating your application.
Your rights under the Fair Credit Reporting Act:
~~You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.
~~You have the right to know the name of anyone who received your credit report in the last ~~year for most purposes or in the last two years for employment purposes.
~~Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA.
~~You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice.
~~If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute.
~~You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.
With millions of people experiencing financial problems it is absolutely necessary for everyone to know and understand their rights as a consumer.
Federal law requires that you receive fair and equal treatment from businesses issuing credit. This law applies when they evaluate your applications for credit, insurance, employment, and even leases.
The one area where I receive the most complaints are from individuals that are being harassed by debt collectors. These complaints range from debt collectors contacting their work and family members to being called names. All of these are a direct
violation of the Fair Debt Collection Practices Act (FDCPA). This article spells out exactly what your rights are as a consumer.
I have copied some areas of this article directly from the Federal Trade Commission's web site to ensure that the information is explained exactly as the law applies. These areas are identified.
The FDCPA lists the following guidelines that must be followed by all debt collectors:
(Copied from the Federal Trade Commission web site)
----------------------------------------------------------------
~~Debt collectors may contact you only between 8 a.m. and 9 p.m.
~~Debt collectors may not contact you at work if they know your employer disapproves.
~~Debt collectors may not harass, oppress, or abuse you.
~~Debt collectors may not lie when collecting debts, such as falsely implying that you have committed a crime.
~~Debt collectors must identify themselves to you on the phone.
~~Debt collectors must stop contacting you if you ask them to in writing.
It also prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting these debts.
----------------------------------------------------------------
It is very important to keep a record of any contact you make with your creditors especially when there is a dispute or misunderstanding regarding your account. You should list the name and address of the company, date and time of the call, the name of the person you spoke with and the content of the call. I have developed a form that can be used for this purpose. You can find it at http://www.homemoneyhelp.com/ccrs.html
Another important aspect of your consumer rights is Credit Reporting. Derogatory information in your Credit Report can have serious consequences. It is ultimately your responsibility to ensure that the information in your credit report is accurate and up to date.
There are numerous companies that offer "Free Credit Reports", however, you are obligated to sign up for their "Debt Monitoring Service" which usually costs about $80. You will receive a free credit report and if you cancel your monitoring service within 30 days it will cost you nothing. Your best bet is to order your credit report directly from a Credit Reporting Agency. It will only cost you about $9. Below is a list of the three main companies:
Equifax PO Box 740241 Atlanta, GA 03074-0241 (800) 685-1111
Experian PO Box 2104 Allen, TX 75013-2104 (888) EXPERIAN (888-397-3742)
Trans Union PO Box 1000 Chester, PA 19022 (800) 916-8800
I would advise you to visit the below link to find out exactly how to obtain your credit report:
http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm Having knowledge of your rights under the Fair Credit Reporting Act (FCRA)can save you a lot of time and trouble when you apply for credit. The following explains these rights.
(Copied from the Federal Trade Commission web site)
----------------------------------------------------------------
Your Credit Report Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by "consumer reporting agencies" (CRAs). One type of CRA is commonly known as a credit bureau. You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have been sued, arrested, or have filed for bankruptcy.
The Fair Credit Reporting Act (FCRA) is designed to help ensure that CRAs furnish correct and complete information to businesses to use when evaluating your application.
Your rights under the Fair Credit Reporting Act:
~~You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.
~~You have the right to know the name of anyone who received your credit report in the last ~~year for most purposes or in the last two years for employment purposes.
~~Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA.
~~You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice.
~~If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute.
~~You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.
Wednesday, January 17, 2007
From Now On - Beware of Falling Minimum Payments
If you opened a credit card statement recently and were pleasantly surprised to find that your minimum payment due was lowered, don't be so quick to "jump for joy". What may appear as a small boost to your monthly budget is actually the rock that can weigh you down in debt for a lifetime. More and more credit card companies are moving to requiring a minimum payment of 2% of your total outstanding balance. Consumer Action, a consumer advocacy group out of San Francisco, found that the number of card companies with a 2% minimum payment reached 53%, up from 43% just a year ago.
In reality, a lower minimum payment causes you to take longer to pay off your debt to the creditor while winding up paying them more money in interest payments. Some creditors have even gone so far as to call this a "consumer friendly" move claiming it will assist consumers faced with today's economic woes. . For example, let's say you have a credit card debt of $2500.00 @18% annual percentage rate (APR). Your monthly minimum payment based on a 2.5% pay back rate would be $62.50 per month. Oh and by the way, here's what the credit card company really doesn't want you to know - it will take you 20 YEARS to pay off your $2500.00 balance paying the minimum monthly due. And you will have paid the credit card company $3,365.51 in interest!
Now lets look at the same example using the rate of 2% minimum monthly payment. Your monthly payment drops to just $50.00 a month. You might be tempted to think "wow, I've got an extra $12.50 a month to play with, yippeee!". Not so fast! That lower minimum payment now means it will take you 34.5 YEARS to pay off your balance of $2500.00 and you'll wind up paying $6,430.93 in interest! Consumer Action also reports that many credit card companies are imposing higher late payment fees and "more than a third of card issuers said they will raise existing cardholders' rates because of poor credit histories -- with other creditors -- even if the consumer has made regular, timely payments with that issuer".
My advice is to watch your use of credit carefully, always pay more than the minimum monthly due, and be sure to read the fine print on any credit card offers or changes to your existing accounts.
Author: James H. Dimmitt
James is editor of "TO YOUR CREDIT", a weekly free newsletter. Please visit and make donation click for more articles at http://credit-card-tips-info.blogspot.com/
In reality, a lower minimum payment causes you to take longer to pay off your debt to the creditor while winding up paying them more money in interest payments. Some creditors have even gone so far as to call this a "consumer friendly" move claiming it will assist consumers faced with today's economic woes. . For example, let's say you have a credit card debt of $2500.00 @18% annual percentage rate (APR). Your monthly minimum payment based on a 2.5% pay back rate would be $62.50 per month. Oh and by the way, here's what the credit card company really doesn't want you to know - it will take you 20 YEARS to pay off your $2500.00 balance paying the minimum monthly due. And you will have paid the credit card company $3,365.51 in interest!
Now lets look at the same example using the rate of 2% minimum monthly payment. Your monthly payment drops to just $50.00 a month. You might be tempted to think "wow, I've got an extra $12.50 a month to play with, yippeee!". Not so fast! That lower minimum payment now means it will take you 34.5 YEARS to pay off your balance of $2500.00 and you'll wind up paying $6,430.93 in interest! Consumer Action also reports that many credit card companies are imposing higher late payment fees and "more than a third of card issuers said they will raise existing cardholders' rates because of poor credit histories -- with other creditors -- even if the consumer has made regular, timely payments with that issuer".
My advice is to watch your use of credit carefully, always pay more than the minimum monthly due, and be sure to read the fine print on any credit card offers or changes to your existing accounts.
Author: James H. Dimmitt
James is editor of "TO YOUR CREDIT", a weekly free newsletter. Please visit and make donation click for more articles at http://credit-card-tips-info.blogspot.com/
Sunday, January 07, 2007
The Surefire Ways To Eliminate Credit Card Debt
Do you have enormous credit card debt? You are certainly not alone. According to research, the average family in the United States has $7000 in credit card debt and pays about $1000 in interest each year! Throw in a late payment or two, or an over-the-limit charge, and that number skyrockets. Imagine what you could do with that $1000 if it weren't being spent on interest.
Let's imagine for a moment that you have $5000 debt on one credit card that is charging you 17.5% APR. Let's also imagine that you pay only the minimum due of $25/month on this card. Guess what? You will never pay it off! The interest alone on this card is $73/month!
That means that each month you get further and further into debt. By the time you have been paying on this $5000 for 10 years, assuming you have not used the card during this entire period of time, you will owe $20,385! That's over $15,000 in interest. If you triple your payment to $75, it will take you over 20 years.
So, what do you do? How do you get out of debt and use that money towards other necessities, savings, and investments? Here are a few simple methods that you can use without having to go to an expensive financial counselor.
Tip #1: Cut Up Your Cards
The very best way to reduce your credit card debt is to STOP using your credit cards! There is no need to have more than one card, so pick the one with the lowest interest rate and cut up the rest. The one you keep should be deemed an 'emergency card." These are true emergencies, not mere inconveniences. For instance, buying a new TV would not be an emergency, but renting a car in order to get to the bedside of a dying loved one would be. You can carry your emergency card with you, but don't make it too easy to use. One good suggestion is to cover the card tape and paper and write on it: For Emergencies Only.
Tip #2: Move Your Debt
If you have more than one credit card payment, you may want to consider moving debt from a card with a higher APR to one with a lower APR. This will lower the amount of money you are spending towards the interest and get you out of debt faster.
Tip #3: Use the Snowball Principle
List all of your credit card debts, and the amount you are paying each month. Pay off the lowest amount first. Then use that money to start paying off the second lowest amount. And then the next and the next. Let's look at an example.
If you have a $7000, $5000, and $2000 card with payments of $150, $125, and $100, you will finish paying off the $2000 card first. Once it is paid off, you take that $100 and put it towards the $5000 credit card. That means you are now paying $225/month. You have increased your payments which will pay off that credit card sooner and will have you paying a lot less in interest. Once that is paid off, you apply the $225 to the $7000 card, making your monthly payment $375. This will greatly accelerate the payment of this card, reducing your interest payments even further. When everything is paid off, you now have $375/month extra to put towards savings or investments!
Tip #4: Prioritize Your Debt Repayment
One of the best ways to pay off your debts is to get rid of the highest interest payment first. Looking back at the snowball example, you took the lowest and paid it first. If, however, the $2000 card had the lowest interest rate, you would want to pay off the card with the highest rate first. This will save you much more in interest payments.
If the math gets too hard here, don't despair. There are many places on the Internet where you can find good debt reduction calculators. It is then just a matter of punching in your numbers and reading the report.
Tip #5: Consider Consolidation
If you own a home, you may want to consider consolidating your debt using a home equity loan. Since a home loan is a secured loan (they can take away your house if you don't pay) you have a much lower interest rate than you do on your credit cards. Paying a lower interest rate is always a good thing! Not only that, but the interest you pay on your home loan is tax deductible. This is NOT true for credit cards.
By following these tips, anyone can take control of and completely eliminate credit card debt.
Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again. More articles visit and make donation for http://credit-card-tips-info.blogspot.com
Let's imagine for a moment that you have $5000 debt on one credit card that is charging you 17.5% APR. Let's also imagine that you pay only the minimum due of $25/month on this card. Guess what? You will never pay it off! The interest alone on this card is $73/month!
That means that each month you get further and further into debt. By the time you have been paying on this $5000 for 10 years, assuming you have not used the card during this entire period of time, you will owe $20,385! That's over $15,000 in interest. If you triple your payment to $75, it will take you over 20 years.
So, what do you do? How do you get out of debt and use that money towards other necessities, savings, and investments? Here are a few simple methods that you can use without having to go to an expensive financial counselor.
Tip #1: Cut Up Your Cards
The very best way to reduce your credit card debt is to STOP using your credit cards! There is no need to have more than one card, so pick the one with the lowest interest rate and cut up the rest. The one you keep should be deemed an 'emergency card." These are true emergencies, not mere inconveniences. For instance, buying a new TV would not be an emergency, but renting a car in order to get to the bedside of a dying loved one would be. You can carry your emergency card with you, but don't make it too easy to use. One good suggestion is to cover the card tape and paper and write on it: For Emergencies Only.
Tip #2: Move Your Debt
If you have more than one credit card payment, you may want to consider moving debt from a card with a higher APR to one with a lower APR. This will lower the amount of money you are spending towards the interest and get you out of debt faster.
Tip #3: Use the Snowball Principle
List all of your credit card debts, and the amount you are paying each month. Pay off the lowest amount first. Then use that money to start paying off the second lowest amount. And then the next and the next. Let's look at an example.
If you have a $7000, $5000, and $2000 card with payments of $150, $125, and $100, you will finish paying off the $2000 card first. Once it is paid off, you take that $100 and put it towards the $5000 credit card. That means you are now paying $225/month. You have increased your payments which will pay off that credit card sooner and will have you paying a lot less in interest. Once that is paid off, you apply the $225 to the $7000 card, making your monthly payment $375. This will greatly accelerate the payment of this card, reducing your interest payments even further. When everything is paid off, you now have $375/month extra to put towards savings or investments!
Tip #4: Prioritize Your Debt Repayment
One of the best ways to pay off your debts is to get rid of the highest interest payment first. Looking back at the snowball example, you took the lowest and paid it first. If, however, the $2000 card had the lowest interest rate, you would want to pay off the card with the highest rate first. This will save you much more in interest payments.
If the math gets too hard here, don't despair. There are many places on the Internet where you can find good debt reduction calculators. It is then just a matter of punching in your numbers and reading the report.
Tip #5: Consider Consolidation
If you own a home, you may want to consider consolidating your debt using a home equity loan. Since a home loan is a secured loan (they can take away your house if you don't pay) you have a much lower interest rate than you do on your credit cards. Paying a lower interest rate is always a good thing! Not only that, but the interest you pay on your home loan is tax deductible. This is NOT true for credit cards.
By following these tips, anyone can take control of and completely eliminate credit card debt.
Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again. More articles visit and make donation for http://credit-card-tips-info.blogspot.com
Subscribe to:
Posts (Atom)