FinanceDogma – Finance, loans, creditcard and mortgages

April 19, 2010

Solve your financial problems

Filed under: Finance — Tags: , , — admin @ 11:09 am

Credit card debt can unsettle one and all if it is not managed properly. There are billions of credit card users across the globe and more often than not they fall prey to the credit burden in just about no time at all. Credit card debt along with other debt instruments can lead to financial problems. Most of the debt instruments are associated with high interest rates and lesser payment tenure periods. As a result liquidity is sucked off from their financial system and as a result credit burden piles up and reaches newer heights by the day.

Credit card debt burden can be solved in variety of ways. One of the most common ways of solving credit card debt relief is through credit card debt consolidation. It aims at consolidating all active credit and the debt should be paid off as a part of single EMI payment. Hence, payment delays and other hassles are avoided. One of the much appreciated aspects that encircle credit card debt consolidation is that the consolidated rate is competitive and friendlier payment terms are available at the disposal of the debtor.

Apart from credit card debt some of the possible avenues of credit burden include personal loans and other secured mortgage loans. These can white wash the liquidity from any financial system on the go. Credit card debt and other debt forms should be essentially eliminated from the system as these can have detrimental effects on the financial health of any debtor. Unchecked credit card debt can pile up with high interest rates. In all such situations help from credit counselors and debt consolidation companies can provide tailor made solutions depending on one’s risk and other parameters.

In quest to eliminate credit card debt one should engage reliable credit counselors and policy makers. They can offer best in class solutions which are tailor made as per the needs of the debtor. Hence scalable solutions can be attained in shorter span of time. (more…)

April 10, 2010

Is it possible to repay credit card debt all by yourself?

Filed under: Credit Card — Tags: , — admin @ 9:33 am

There is nothing wrong in using credit cards for making payments as long as you’re able to clear the outstanding balance every month. The problem arises when you cannot pay off the existing balance and accumulate debts on your cards. In such a situation, a credit card payment calculator can help you to compute how many months you require to repay a balance if you continue making a fixed payment every month.

Ways to repay credit card debt

It is not always necessary to take professional help in order to repay credit card debts. You can very well do it yourself. Go thorough the following lines to know how to repay your credit card debts without professional help.

* Snowball your payments

It is a method of paying off your highest credit card debt first and then move on to repay the next highest one and so on till you pay off all your credit card dues.

* Transfer high interest debt to a low interest card

With your creditors’ approval, you can transfer your high interest rate debt to a card with comparatively lower rate of interest. Thus, you can pay off your balances relatively fast. You can also get a zero interest or a low interest credit card if you don’t have one.

* Pay more than minimum monthly dues

You can take help of a credit card payment calculator to compute how long it will take if you continue making minimum payments on your credit cards. It is advisable that you increase your monthly payments as and when your financial condition permits you to do so. It will help you to repay your credit card balance quickly and you can save the money that you would have to pay as interest if you continue paying only the minimum monthly dues.

* Liquidate your savings accounts

You can liquidate some of your savings accounts to pay off your high interest credit card debts. Make sure you don’t liquidate all your savings accounts as you should have funds to overcome emergency situations.

One of the best ways to pay off outstanding credit card debts is to borrow the required amount from your family. It is a better alternative than taking out a loan from any lender. However, make sure you repay the borrowed amount as soon as possible.

February 23, 2010

Take Control of your Credit Card Debt

Filed under: Credit Card — Tags: , — admin @ 1:52 pm

Question: Is it so easy to eliminate credit card debt?

Answer: No it is certainly not easy, but it is possible, with the right approach almost anything is.

This is your current position.  You started off with a certain credit card; found that buying things that were once out of your reach became quite easy.  So buying is what you did, and boy was it a good feeling. The purchase didn’t cost that much and the monthly repayments were easily dealt with.  Then there was that certain something else; okay you can afford it, the money is there.  So you got that buzz back, it only made a slight difference to the monthly payment, so who cares.  And on it goes, little by little your credit is run down, the interest charges go up and soon you are at your limit.  But you still crave that spending power.  So you take another and you swear you will use this one wisely.  It is only a short matter of time before you are in the same boat once more, except now you have two cards and a debt that is becoming increasingly difficult to control.

STOP!!!!!

You are heading down a road which is difficult to return from.  Look at what you are doing and realise that this is pure self destruction and no good can come of it.

Pretty soon the bills will go unpaid and the charges will ultimately build up.  Now there is little respite because you have damaged your credit history with the late payments.  There is no way out.  The sound of the phone ringing brings fear, and you dare not go and see what letters have just fallen through the post box.

There is a way to avoid this. First of all you will need discipline and self control, but you can get control back.  Contact everyone you owe money to, explain the situation you are currently in and make an offer that is realistic and which will get them off your back.  If they feel you are not in the position to offer more, they will accept.  They want to see their money coming in and bankrupt clients can’t do this.

Once these offers are in place, you must adhere to them; they won’t like perceiving that you have given them the run-a-round.  Having acted in good faith, you must do the same.

Now this is one for the long haul:  You will not see the problems disappear overnight.  You will find a modicum of control back in your life so build on that. Seek to eliminate all those debts so you can be proud of that achievement.

September 26, 2009

Winning the Balance Transfer Game

Filed under: Finance — Tags: , — admin @ 1:18 pm

On the surface, the balance transfer credit card offers that we receive on a weekly basis seem like a win – win situation. The way this works is that you transfer your high interest balances from other credit cards to a new credit card that offers little or no interest for a designated time. Most balance transfer credits cards offer a low interest incentive for about 6 months.  Many companies will even give you 0% balance transfer for 6 months. In some ways, these credit cards can seem like a great thing, but it would be good for you to dig a little deeper to be sure that these balance transfer credit card offers don’t actually put you in a worse financial spot.

The appealing thing about balance transfer offers is that it enables you to put all or most of your credit card debt on to one card. The perks that come with the offer, such as low interest, can really help out; especially if your current credit cards come with the typical 15% or higher interest. But like any offer, when used responsibly, they can be great, but consider the downside as well. Even though this balance transfer credit card is interest free for about 6 months, this interest will go up if you don’t have the balance paid on the credit card by the time your grace period is up. If all of your debt is on one credit card, then you are paying interest on a much larger balance than you were when your debt was spread out a little. (more…)

March 26, 2009

How credit card works?

Filed under: Credit Card — Tags: , , , , — admin @ 2:06 pm

Most of us knows what a credit card is and how it looks like. It´s a piece of plastic that will allow you to buy things now, and pay for them later. Most common credit cards are called for Visa, MasterCard and American Express.  The card you are using has the size of 3-1/8” x 2-1/8″.

Credit Cards

Credit Cards

There is the shiny strip on the back side of the credit card that is known as “magstrip” and it is the main thing on your credit card. It contains all the details on the card and the amount of credit that you are entitled to. So, when the person swipe the credit card on the machine, the “magstrip” will read the information of your card and send it to the central tracking system. The central tracking system has all the information on the balance details, country, zip code, card owner etc.

To protect your personal information (on credit cards) from identify theft, there is a computer chip embedded in your card that requires you to identify yourself every time you use the card. You really don´t want somebody else to use your credit card to buy stuff for him/her self, right?

With great power comes great responsibility right? Same thing is applied with credit cards. Credit card is a very useful tool when you are shopping but only if you use it wisely. So, remember…be a smart shopper!

February 17, 2009

3 Major Disadvantages of Bad Credit Card

Filed under: Credit Card — Tags: , , , , — admin @ 3:49 pm

By having a bad credit you will not be able to receive good credit card offers. Instead, credit card companies will charge you with quite unreasonable charges. Here is a list of 5 major disadvantages of owning a bad credit card…

High APR (annual percentage rate)

With bad credit comes high APR on credit cards. To be able to lower APR on your credit card, you will need to make your credit card “secure”. In order to do that, you will need to link a good collateral or bank account to your credit card. If you can´t “secure” your credit card it will result in high APRs and low credit limits.

Huge annual fees

Credit card companies are taking a risk when they are issuing a credit card to people with bad credit. They are also aware that people with bad credit are usually desperate to find a credit card which can help them improve their credit history. Knowing this, credit card companies will probably demand high annual fees for people with bad credit.

Low credit limits

Having a bad credit will result in low credit limit on your credit card. What is the biggest problem in having a low credit limit? The biggest problem would occur if you exceed your limit. Your card issuer would charge you with a penalty interest rate, which you definitely want to avoid.

February 10, 2009

Pre-paid credit cards

Filed under: Credit Card — Tags: , , , — admin @ 12:02 pm

Do you want the security of a credit card without the interest rate every time you need to use it? All of the interest rates on a regular credit card can bring you down in debt if you don’t watch what you spend your money on. Some cards offer no interest rates until a certain year, or if you refer a friend you get something, but do you want to refer a friend to an 18.9% interest rate? No one wants to bring a friend into debt, but with the pre-paid credit cards, you don’t have to worry about that.

Pre-paid Credit Cards

Pre-paid Credit Cards

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January 1, 2009

Know about Credit Cards

While using Credit Cards offer numerous benefits, one needs to be careful on choosing a credit card and should understand the right way to spend thru it. Improper usage or spending beyond your limit may lead towards debt. Although a credit card offers the advantage of paying the dues in small amount or a minimum payment, the card holder should understand that paying just the minimum amount due would take years to clear off the dues.

Shopping and Safety

Credit Cards are widely used for online purchases or conventional shopping expenses. It eliminates the need of carrying cash which carries the risk of burglary. Even if you lose your credit card, the Credit Card companies offer the convenience of immediately calling them and disable the particular card. You may no longer be liable for purchases made after reporting the loss of card.

Money at the time of need

Credit Cards offer the benefit of withdrawing money from ATM which is of great help when you are outta money. Even If you don’t possess enough money you could still afford to buy your desired products through a credit card and pay money after few days (next billing cycle).

Reward points

Most of the credit cards offer flashy gifts which could be purchased thru the Reward points. When you make a purchase through your credit card, you gain some reward points. Based on the number of reward points you have, you could redeem it to buy gifts offered by your Credit Card Company.

Choosing the Right Credit Card

Choosing the right credit card is a chaotic job for any greenhorn. You need to compare various credit cards offered by different companies. You need to analyze the APR (annual percentage rate), interest free period, Cash Advance facility, Balance Transfer facility etc.

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