How to Pay Off Credit Card Debt

How to Pay Off Credit Card Debt

How to Pay Off Credit Card Debt

I know, I know, we’ve all been there, and it’s easy to say, but usually hard to do. What’s more, all of this credit card debt didn’t appear instantly, and it’s not going to go away instantly either. We’ll try to show you how to pay off credit card debt in a reasonable time frame, but it’s very important that you have your mind set to do it.

Getting rid of this bad debt may seem next to impossible, but it is absolutely possible. If paying your bills at the beginning of the month gives you a View full post…

Read More... Please comment

6 Ways to Improve Your Credit Score

6 Ways to Improve Your Credit Score

Improve Your Credit Score by Following Our 6 Tips

Has your credit score “tanked” or been reducing for whatever reason? Don’t throw in the towel and just give up. There is something you can do about it if you’re willing to work hard at it. We’re not saying it’s going to be easy, but it will be worthwhile. Follow our 6 tips to improve your credit score, and it will pay off.

No question about it, improving your credit score is worth spending some time and sweat. It’s also a good investment in the long run as you’ll see later on in this article.

How many times have you applied for a car loan or a credit card and been declined? Or maybe View full post…

Read More... Please comment

Credit Card Debt

Credit Card Debt

How to Get Out of Credit Card Debt – Let Me Count the Ways

When your credit card bill (s) come in, do you wonder how you will be able to make even the minimum payment? Does it seem like the balances on those cards never goes down? You’re not alone.

As long as you continue to pay just the minimum payment called for, you’ll be paying on those cards for 20 years or more. We’ll show you how to get out of credit card debt and stay out.

Credit cards used wisely and paid in full each month, can be a big help. But for many, the temptation to buy things you can’t afford, is too great, and soon the card is maxed out, and so is the ability to repay.

If you’re serious about eliminating credit card debt, then read on. It will take serious planning, a lot of discipline, and sacrifices to do this. The first thing that you must do is to know exactly what you have to deal with. View full post…

Read More... Please comment

5 Steps to Repair Bad Credit

5 Steps to Repair Bad Credit

5 Ways to Repair Bad Credit Yourself

The very first step you need to take to repair bad credit, is to focus on paying all of your bills on time. At the same time, begin reducing credit cards and other loans you may have. Using certain credit building tools may help too.

It’s a lot tougher to repair your bad credit than it is starting to establish new credit. You’re now in a more difficult position of trying to convince credit card issuers and other lenders that you can be an acceptable credit risk.

Even though you’ve messed up before and got behind on your payments, you have to convince them that you will do everything in your power to change your ways.

Getting a good starting point is very View full post…

Read More... Please comment

How to Get Rid of Credit Card Debt

How to Get Rid of Credit Card Debt

5 Ways on How to Get Rid of Credit Card Debt

Each month, when all of those dreaded statements come in for your charges to those plastic cards in your wallet, your card issuer usually lets you know that you don’t need to payoff the balance. “Just pay this minimum payment”, they tell you, and before you know it, you have a high outstanding balance. Now you begin to wonder how to get rid of credit card debt.

Unfortunately, now it’s not so easy. For some individuals, there may have been a good reason why they only paid the minimum payment each month. Problems such as unforeseen medical cost, or the family car passed away, or even loss of a job.

But for many others, it was just poor cash management. They didn’t have a budget and didn’t have a clue where all of the money was going. Impulse spending with a credit card doesn’t take long to accumulate a very high balance. The average household credit card debt in the USA is around $16,000, and with the higher interest rates, a lot of cash is going down the drain.

How to get rid of credit card debt should be your primary focus. There’s only one way to begin, and that is to STOP using those credit cards. Don’t carry them with you, because for many, the temptation to buy something may be too great.

Start by listing each credit card with the outstanding balance, interest rate, the monthly payment, and the utilization rate. (More on this rate later) There are many opinions on this, but we and many financial planners, like to use the five strategies that will show you how to get rid of credit card debt.

1. If you’re like most, you have several credit cards with hefty balances. Pick the one with the lowest balance and this is the one that you will payoff first. You’ll continue to pay the minimum balance on the other cards, but all available cash will be applied to the card with the lowest balance.

Totally paying off one credit card will give most individuals a psychological boost and this is what we’re going for. If your goal is paying less interest, then you would pay off the card with the highest interest rate first. If your primary concern is boosting your credit score, then you should concentrate on paying off the card with the highest utilization rate.

Whenever you use more than 20% of the card’s approved limit, your credit score gets dinged. The utilization rate is calculated by dividing the amount owed on the card by the approved limit.

2. Contact each card issuer and request a lower interest rate. If your credit score is good (above 730), and you’ve made payments on time for a while, they will often lower the rate a couple of percentage points. It might not seem like much, but it could amount to several hundred dollars a year in savings.

Sometimes, another credit card issuer may make you an offer for a card with a lower rate. You can let your other card issuers know and they will usually match the offer.

3. A third strategy is a high interest rate balance transfer, and you must be extremely careful in doing this. You can often times find a credit card where they will offer you a lower rate if you transfer a balance to them. This can potentially be a smart move and could save you hundreds of dollars a year.

Be very careful of these offers, though, as the low rate might only be good for 12 or 18 months. If the entire balance isn’t repaid in full in that time, your interest rate can increase substantially. It’s also possible that the new card issuer may charge a fee for doing the transfer, so be sure to calculate this into the transaction.

4. Another possibility to consider is using a peer-to-peer lender. There are sites online that will make loans with a fixed rate of interest that are much lower that credit card issuers. If you’re employed, and have a good credit score, you may qualify for an online loan. That loan would of course, repay all of your credit card balances in full.

5. Another excellent strategy is to make extra payments on the credit cards every month. What this means is to send the money to the credit card company two or even three times each month. Don’t hold the extra money in your account and mail it in once a month. Your interest is calculated on a daily basis, so it’s to your benefit to reduce the balance as quickly as you can.

Here’s an illustration as to how this works, and it will blow your mind. If you had a credit card with a balance of $2,000 with an interest rate of 17%, and you paid the minimum payment once each month, it will take almost 21 years to payoff the balance.

If you paid that same minimum payment when your statement came in and then paid the same minimum payment again two weeks later, the card balance will be paid in full in about 3 years. This is why credit card issuers love people that keep paying the minimum payment every month. They make a lot of money!

There are different strategies available that will tell you how to get rid of credit card debt. If you’re in this situation, then please stop using your credit cards. Create a budget and find out where your money is going. Use all available cash to eliminate debt and one day you may find yourself enjoying debt free living.

Creditors have a limited time in which to file suit over unpaid credit card debt. This guide lists the statute of limitations that is in effect for each state. Check it out here.

Read More... 6 Comments

Common Money Myths & Debt

Some Common Money Myths and Debt

Don't be fooled by some of the money mythsEach of us has our own pre-conceived ideas as to how money plays a part in our daily lives. Because of those ideas, it’s no wonder money myths are so prevalent. What’s more, this hype perpetuates not only from friends and acquaintances, but financial professionals as well.

Some of these sayings remind me of the saying “old wives tales”, and indeed, they may be. This first one is a good example.

  1. Never payoff your credit card balance in full because it will affect your credit score in a negative way.

Wrong – Keeping an outstanding balance on a credit card will not improve your credit score. View full post…

Read More... Please comment

Do I Need a Credit Card

Is a Credit Card Something I Need to Have?

Do I really need a credit card?Have you ever wondered if you really need a credit card? I can hear some saying, this guy must be nuts, who can live without at least one credit card?  There are some though, who are highly disciplined and won’t have a credit card in their wallet.

This can be a mistake, however, because with proper use of a credit card, you can build a strong credit score. We’ll give you some tips about credit cards and credit score, and for the very few of you, some advice to consider.

Do I really need to have a credit card?

We all have different wants and needs as well as personal lifestyles, so on to the answer to the above question. There are some who have managed their finances very well for many years and have not used a credit card. They don’t expect their situation to change, and have even saved a tidy sum for possible View full post…

Read More... Please comment

Hazards of Having A Credit Card – Are You Trapped?

Hazards of Having a Credit Card

Having a credit cardMy grandparents taught me something when I was young; paying for everything with cash keeps you out of debt.  Their philosophy was that it’s too easy to get in over your head and mismanage money if you are using a piece of plastic. They called this debt the hazards of having a credit card.

It is very easy to overuse and misuse a credit card.  Here are the following ways:

View full post…

Read More...

Disposable Credit Cards

Disposable Credit Cards – A Smart Money Choice

Use disposable credit cardsDisposable credit cards are also known as pre-paid cards.  Pre-paid cards do not require good credit to get.  In fact, these credit cards are not even linked to your credit report.  There are multiple cards to choose from; grocery stores, gas stations, pharmacies, Walmart, and Target all carry them.  Pick which one suits your needs, load money and use it wherever they are accepted.

Disposable credit cards are handy when traveling.  I’ve had my credit card number stolen before while traveling so I now go to great lengths to protect myself and my financial information.

These are great options for children or adults that are beginning their journey into learning money management.  While they will not help you build credit, they will not hurt your credit. View full post…

Read More...

A College Student Credit Card – Get One

Why Your Student Needs a College Student Credit Card

Get a college student credit cardCollege is usually a young adult’s first foray into the adult world of responsibility.  Without a strong money management strategy, a college student credit card can cause college students to quickly accumulate debt if they are not careful.

There are several ways, including a college student credit card that can be a great ways for students to learn about handling debt effectively.

If you do not feel your student is ready for a credit card of their own, you can add them on as a user to one of your credit cards.  Your student will then have the responsibility of using a credit card but with additional limitations and liability.  It is important for you to understand the risk of taking a chance on someone else running up debt on your credit.  Make sure that you have the means to pay off any debt if your student cannot.

Another option to teach your college student about money management is to have a debit card for day to day expenses, while a college student credit card can be used only for emergency purchases.  With a debit card, your student will have to keep on budget or risk running out of money before the next pay period.

View full post…

Read More... 3 Comments