Credit card debt - you could be next

The main reason behind so many credit card casualties (rather credit card debt related casualties) is that many people don’t understand the concept of credit cards properly. They treat credit card as free money that is never to be returned. Thus all the discipline, which would otherwise have been exercised with spending hard-earned money, goes for a toss. That means people overspend and get into credit card debt.

They keep spending till they reach the credit limit on their credit card. Some people go to the extent of treating that like a game and consider it a defeat (or consider their credit card under utilised) if they don’t hit the credit limit quick enough. These unnecessary spends result in a situation where they are not able to payback their credit card bills and end up paying interest on the amount they owe. This keeps building up their credit card debt and they soon find that the interest component has become a regular feature in their monthly expenses and it is there even if they spend nothing on their credit card.

That is credit card debt on the prowl. Soon they find that their current credit card can no longer handle their needs and start looking to get another credit card. With the new power of credit, they let themselves loose again and follow a ‘shop till you drop’ routine. Soon the credit limit of the new credit card is reached too and they again default on payments. This is how credit card debt builds. Soon they learn about credit card debt consolidation and other credit card debt elimination techniques.

They are quick to grab such credit card debt reduction techniques, but that’s not because they are serious about reducing their credit card debt but because of the attractive low APR offers. As if it were booty, they again get back to building up their credit card debt. All the while they are spoiling their credit card rating and they soon realise that no one is ready to lend them money because of their credit history. They can only get a secured credit card now (where you first deposit money into your credit account and then only you get the privilege of spending it (50-100% of it) using their credit card. Credit card debt collection agencies, auction of their goods and bankruptcy is the next thing that hits them and their dream run is blown away in a moment.

The moral of the story – “Understand the concept of credit cards and treat credit card debt with all seriousness”.

Technorati Tags: Credit Cards, 0% Balance Transfer Credit Card, 0% Interest Credit Card

Bad debt credit card - what’s that?

A bad debt credit card is basically a credit card that the credit card suppliers offer to the people who have bad debt. Did that astonish you? Well, don’t let your thoughts run just yet.
You can classify bad debt credit cards into 2 categories based on what you understand by bad debt credit card. The first category of bad debt credit cards is those credit cards that are secured (and are also known as secured credit cards).

These bad debt credit cards require a security i.e. you have to open (and maintain) a bank account with the bad debt credit card supplier. The credit limit on your bad debt credit card is calculated as a percentage of the balance you hold in the bank account you have opened with bad debt credit card supplier. Generally, this is 50-100% of your bank account balance. So, this bad debt credit card enables you to spend the amount you hold in your bank account; only the way you spend it changes (i.e. instead of spending that as cash you spend it using your bad debt credit card).

So bad debt credit card lets you enjoy the convenience and other benefits that are associated with credit cards, even with a bad debt. This security is as such important for the bad debt credit card supplier; after all how can you trust someone who has a bad credit rating.
The other category of bad debt credit cards are nothing unusual, they are the same cards that we know of most commonly; the only difference is in the way you get them and the objective behind getting them.

Here, we are talking about the credit cards that you use as a debt consolidation mechanism i.e. consolidating bad debt (as such any debt is bad). So we can call them bad debt credit cards too. These operate by transferring of the balance you owe on your current, high interest credit cards to these bad debt credit cards that have a lower APR (at least for some initial period). Hence, these bad debt credit cards help you in consolidating your debt and getting some relief from the higher APR that you were experiencing on your current card.

Some people accept both of the above categories of credit cards as bad debt credit cards while others tend to go with one or the other. So, what you regard as a bad debt credit card is really a matter of personal choice.

Technorati Tags: Credit Cards, 0% Balance Transfer Credit Card, 0% Interest Credit Card

Consolidate credit card debt

We know that it’s good to consolidate credit card debt (at least that is what we keep hearing from everyone). In fact, the first step towards addressing the problem of credit card debt is to consolidate credit card debt. Now, what do you do to consolidate credit card debt? Should you just go with that attractive ad in the newspaper that says ‘...the lowest APR in the town is available here’?

The first thing, really, is to keep your eyes and ears open. There are always a number of offers available for you to choose from. The credit card suppliers keep coming with new and more attractive offers asking you to consolidate credit card debt with them. However, you must note that the APR quoted in bold, e.g. 0% APR, is applicable only for a short term (3-9 months). The long term (or the standard) APR is different. So, when you go looking for a credit card to consolidate credit card debt, you must be keenly looking for these 3 things (in terms of APR) – introductory APR, introductory APR period and the standard APR. Let’s see how each one is important.

Introductory APR is probably the most attractive thing to look for when you are looking to consolidate credit card debt. If you consolidate credit card debt to a card that has a low introductory APR e.g. 0%, the first thing you get is a breather/relief in terms of the rate at which your credit card debt has been growing. Based on how long that 0% APR period is (generally you will look to consolidate credit card debt with a credit card supplier who offers 0% initial APR), you will at least be able to temporarily break the growth rate of your credit card debt. More the introductory period, the better it is.

However, you should not ignore the standard APR when you consolidate credit card debt. This is the interest rate that will be applied to your balance after the expiry of the introductory low APR period that was given to lure you to consolidate credit card debt with that credit card supplier. If the standard APR is too high and you know that you will not be able to clear off the entire credit card debt during the low APR period, that credit card is probably not the best for you to consolidate credit card debt to. However, if you think that you will be able to clear off the entire credit card debt during that period, you can make some compromises on the standard APR of the credit card to which you consolidate credit card debt. The card that synchronizes with your current and future financial position (and needs), is the one you should consolidate credit card debt to.

Technorati Tags: Credit Cards, 0% Balance Transfer Credit Card, 0% Interest Credit Card

Credit Card Management - You and your money

Credit cards are no more a luxury, they are almost a necessity. So, you would imagine a lot of people going for credit cards. In fact, a lot of people posses more than one credit cards. So, the credit card industry is growing by leaps and bounds. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’. In order to understand what ‘credit card debt’ actually means, we need to understand the work flow associated with the use of credit cards as such.

Credit cards, as the name suggests, are cards on which you can get credit. Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt. Your total credit card debt is the total amount you owe credit card supplier.

You must settle your credit card debt on a monthly basis. So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You should always pay off your credit card debt by the payment due date. Failing to do so will incur late fees and interest charges. However, you have the option of making a partial (minimum) payment too, in which case you don’t incur late fee but just the interest charges on your credit card debt. One other option you can use to help your self avoid the interest charges, is to find yourself one of those 0% credit cards

If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month’s interest too. Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.

There is another option but only if you are good at making your payments on time and that is to move your higher interest rate credit cards with 0% balance transfers. This allows you to make payments on the balance without paying the interest and often this option is available up to 12 months. What ever you choose, always be responsible with credit, as you are only borrowing against your own future.

Technorati Tags: Credit Cards, 0% Balance Transfer Credit Card, 0% Interest Credit Card
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Before you go for credit card debt help

Generally you will find that there is more credit card debt help available than is actually needed. Just flip through the newspaper and you would be surprised by the number of advertisements related to credit card debt help. Every now and then, there are articles on credit card debt and credit card debt help. Television channels are full of ads related to credit card debt help. There are websites and magazines that are dedicate to credit card debt help.

You also hear about the topic of ‘credit card debt help’ being discussed in parliament. There seem to be policies/laws being formed for credit card debt help. All kinds of suggestions seem to be floating for credit card debt help. Everyone, even some of your friends, have a piece of advice related to credit card debt help. All banks seem to offer credit card debt help in term of various loan types (generally short term loans) at low rates.

So, credit card debt help is readily available and in fact even unwanted credit card debt help or advice will flow into your ears. However, not every one offering credit card debt help is proficient enough to be able to provide proper credit card debt help that will suit you. So you do need to understand some basics about credit cards and credit card debt, before you actually go looking for credit card debt help or before you start helping yourself out with your credit card debt. So you should try and understand how the credit card suppliers bill you, how the interest is calculated on your credit card balance and how your credit card debt grows.

Understanding all about APR, goes without saying. Even if you think that you had gone through all this stuff at the time of choosing your credit card, you should revisit these concepts to make sure that you still know them. If you decide against going for professional credit card debt help, you will need to understand these concepts in even more detail. All these concepts will become handy when you are comparing various balance transfer offers (for example). Moreover, the knowledge of these concepts will also be helpful in making the discussions with credit counsellor more fruitful.

So credit card debt help really starts with developing a better understanding of credit cards and other concepts related to credit cards (irrespective of whether you go for external credit card debt help or not).

Technorati Tags: Credit Cards, Credit Card Debt, Credit Card Debt Help

Get your very own "Mint" credit card

Almost everyone these days has a credit card as it has become in many ways a more secure way to shop in general, and the only fast way to shop online. Getting a credit card is not all that difficult but finding the right card sometimes can be. At Mint Credit Cards, you can apply for a card that has great rates and 0% balance transfers with a small transfer fee until August of 2008 if you transfer this month. That's three ways to save with 0% with the Mint Credit Card.

If you want to be different you can also apply for the MC2 card which is the first card to literally change the shape of you credit. This card has the lower right corner removed which makes it different from the others. Another option is to apply for a gift card from the Mint, which is basically a "prepaid credit card" that can be given as a gift or maybe this is the perfect choice for the son or daughter away at college. By using this card you control the amount that can be spent by them which helps keep unnecessary debt from piling up , while giving them the freedom and choice of a credit card. The gift card can used for birthday and anniversary gifts, or most anything you can think of. Stop by today at the Mint and get your own unique card and start saving today with 0% balance transfer rates.

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Compare cards and save with low interest balance transfers

As we come up on tax time here in the US, we find ourselves in that time of year when we may have over shot the budget with the use of our credit cards. The holidays are now past, but for many shoppers it still has to be paid for. Credit cards now make up a huge share of the amount consumers spend over the holidays. This is why January is the most common time of the year when most peple are applying for new credit cards around the globe. One of the first steps in finding a solution for this issue is not to do it at all but if you've found yourself already in the position, then you might want to consider making some adjustments to your budget.

The budget adjustment I was referring to is the high interest rates that many credit card users will find themselves in. If you have one of these high interest cards, and only pay minimum blalances, it could take 15 years to pay one off! One option to save a ton of money and start paying down your balances is to use very low or 0% balance transfers, where you can move your high interest card balenaces to. This can be a smart move as long as your credit is in good standing and you can qualify to get them.

The savings over a years time are tremendous and if this is you, one the first steps you will want to take is to compare credit cards. This will help you find the best deal you can and then secure one. You can then transfer your high interest cards over to one of these. If youi are consistent about paying your bills on time, this can be a smart move. Not only will this save you money, but hopefully get rid of the debt before the next holiday season arrives.

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Credit card or equity?

When it comes to paying off high interest debt and if you own your home and have equity in it, you have a choice when it comes to combining those debts. A visit to credit cards UK might help you to make that decision. The first choice is to take out that equity loan and is often preferred by many as it is in many cases tax deductible and carries a low interest rate. This can reduce high interest credit card debt by allowing you to have a loan with a much better interest rate.

But, the other option is 0% balance transfers, which when manged properly can often provide yoou with a better option if your credit is good and you are good at paying your bills on time and willing to make more than the minimum payments. One common method is to transfer debt from high interest loans to zero interest cards, and after the introductory period transfer them again allowing you to quickly pay down balances.

Like any system it carries some risk, and if you miss a payment or are late the interest rate could quickly become something above 20%. Study your options before giving this a try and make sure you are comfortable with your choices. If you aren't sure you can get more information and credit card news at credit cards UK. Always study your options before making a decision.

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