Credit Card Debt Was An Inevitable Situation As Credit Cards Became The Norm In Almost Every Household

Category: Finance, Credit.

Credit card debt was an inevitable situation as credit cards became the norm in almost every household. Very few people that can say they owe nothing on them and as a consequence these finance companies are now owed thousands of dollars on most of the cards that have been issued, unfortunately people are only now beginning to realize that the damage has been done.

Increasingly people are using their cards just to pay for everyday goods. The easiest action to take is to arrange credit card debt relief whilst you are still in a position too. Once the debtor has decided to do something about the debts incurred they can start looking for a suitable credit card debt relief option. The first thing to do before opting for financial help is to stop using the card all together because if this doesn t happen it will be almost impossible to devise a debt relief plan. Whilst there are a number of debt consolidation options, the three mentioned below are the most common used for people in similar situations. If this method is not available then a consolidation loan may be a debt relief answer where a number of debts can be replaced with just one at a lower monthly installment.

Obviously, the easiest way to proceed is to apply for a credit card with a low interest rate on balance transfers where the debt can be consolidated where repayments can be made regularly within a specified budget. This option does require a certain level of commitment on the debtor s part as once the debts are clear there must be no temptation to use them again. There are times when credit card debt relief is not possible by this route and it is left to negotiation, often by a specialist company. Remember, consolidation by card or loan will only work if the debtor has not already damaged their credit history. They will normally suggest a sum of around half the debt be paid off with the remaining amount canceled by the creditors. This is the last resort for a debtor because once they declare bankruptcy, their credit standing fails and it will be difficult to get further loans.

The last option available to the debtor is to apply for bankruptcy which will clear all the debts and although this may sound inviting it should only be regarded as something done when all else has failed. However, the positive aspect of filing for bankruptcy is it enables a fresh start. Whichever credit card debt relief option you take, remember that this should only ever be a one- off as important lessons about managing finances should be learnt so the situation is not repeated.

Take The Case Of Free Debt Advice For Example

Category: Finance, Credit.

It may be a universally acknowledged fact that anything that comes for free is not valuable.

Take the case of free debt advice for example. However, it can be true always. It does not require any fee yet it is not valueless. Since debt problem is rocketing high day by day and more and more people are coming under its clutch, a lot of agencies have sprung up to provide debt help to them. Rather, if debt advice without paying any penny is taken from the right place or the right person then it will be as good as anything else that costs good money. Though none of these agencies offer their service as an act of charity, many among them can afford to provide free debt advice as they have other means to make profit and compensate the loss( if any) they incur by this act. This does not ensure that all the agencies that are in the business of debt help are equally good and effective in sorting out debt problem.

On average it has been found that people taking free debt advice are getting benefited by what are being suggested by the agencies. There may be agencies that will attract clients in the name of debt advice free of cost and then dupe them with an unsuitable debt management plan. Borrowers should judge the authenticity and reliability of the agency before they approach it or before they start working upon the free debt advice given by to them. This necessitates a close observation of the agency one selects to take debt help from. There are lots of debt help agencies available on the Internet thereby giving the leverage to know about them without wasting much time. Finally, any kind of debt advice( be it free of cost or not) , will be fruitful if one follows it properly.

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Luckily There Are Answers To Managing Your Debt

Category: Finance, Credit.

Debt can be extremely overwhelming, especially if you the amount of money you owe is greater than your income.

One solution, and the most popular one these days, is through debt consolidation. Luckily there are answers to managing your debt. Debt consolidation is a plan that allows you to combine all your bills into one monthly payment. Once your creditors have been repaid, you send payments to the debt consolidation company to pay off their loan to you. This is done with a loan provided by the debt consolidation company that is used to pay off your credit card bills and other debts. By combining your bills into a single low interest rate loan, you are able to eliminate the high interest payments you have been making, thereby reducing the total amount of your overall monthly payment.

Taking on a debt consolidation loan as a way to pay off several monthly credit card payments might not be as beneficial as it may seem at first. If you are struggling to pay your bills each month, debt consolidation may be the right choice for you. Offers for low interest rate loans seem to be everywhere these days, but you should know that it takes a good credit history to qualify for the lower interest rate. Not only that, if you don t have anything to offer as security, your interest rate could be higher. Most likely, if you re struggling with credit, your credit score won t be high enough to qualify for the lower interest rate. Without the lower interest rate, the cost of a debt consolidation loan isn t as attractive.

Some consumers take out a second mortgage on their home, using their home equity to pay off the money they owe to creditors. There are other options for consolidating your debt rather than going through a debt consolidation company. Then they have just one loan to pay back, their home equity loan. Since your home is used as security, you could lose your home if you default on the loan. One thing to be aware of when using this solution is not defaulting on the line of credit. A final option for consolidating bills is to transfer the balances to a single low interest rate credit card. While debt consolidation is certainly an option for making your debt easier to manage, it doesn t come without its risks.

As with debt consolidation loans, you might not qualify for a low interest rate if you have a poor credit history. Before you choose any debt consolidation option, make sure you weigh the pros and cons and understand all the risks involved. No debt management solution is worth it if you end up in a worse situation than you started in.

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Imposing Surcharges On Credit Card Transactions Is Illegal, And It Will Only Lead To Problems

Category: Finance, Credit.

Imposing surcharges on credit card transactions is illegal, and it will only lead to problems. It may sound like the same thing, but there is a big difference.

The secret to beating the credit card processing system is not charging more for credit card sales, but instead is charging less for cash sales. The increasing costs associated with accepting credit cards are leaving many merchants searching for ways to pass along at least a portion of processing expenses to their customers. Discount fees, and other expenses, transaction costs associated with the acceptance of electronic bank cards( credit and debit cards) are putting a strangle hold on to the NET profits of businesses of all sizes. Card originators such as VISA and MasterCard are becoming wary of this new trend and are enforcing strict regulations specifically designed to hinder any such efforts by merchants to impose surcharges on credit card purchases. To help minimize the impact that processing costs are having on profits, many businesses are charging a surcharge to customers that choose to pay for products or services using a credit or debit card. When merchants impose surcharges on credit transactions, they make purchasing on credit a less appealing option to consumers, and many consumers choose to avoid the additional cost by simply paying with cash or a check. Card originators such as VISA, American Express, MasterCard, and Discover have a lot to lose if the practice of imposing surcharges on credit card transactions becomes popular among merchants.

A decrease in the use of credit cards by consumers translates directly into lost revenue for processing banks. You may wonder why so many businesses still choose to place a surcharge on credit transactions, even though it is strictly forbidden in the processing agreement they had to sign when opening their merchant account. Not only do banks lose out on the processing fees that they would have collected from the merchant, but they lose any finance charges that would have been incurred by the customer as well. Quite frankly, many business people choose to ignore this clause in their processing agreement and impose a surcharge anyway. When and if these businesses are discovered, their merchant accounts will be terminated, and they may even be placed on the Terminated Merchant File( TMF) which will make it nearly impossible for them to acquire another merchant account. This approach is not recommended. Card originators and banks have control over credit card( bankcard) transactions, and they can legally ban a merchant from imposing surcharges.

The largest card originator( VISA) has even published information stating that, "You may, offer a discount, however for cash transactions, provided that the offer is clearly disclosed to customers and the cash piece is presented as a discount from the standard price charged for all other forms of payment" . However, they do not have any legal control over other forms of payment such as cash and checks. Most merchant accounts operate on a tiered discount pricing grid and, the secret to, ironically beating credit card processing fees is to impose tiered pricing on your products and services as well. While you cant charge extra for credit card sales, you can charge less for cash as long as all prices are clearly stated to customers, and the cash price is reflected as a discount from the original purchase price. The old saying, "if you cant beat em, join em" applies perfectly. For example: if the price tag on an item states that the item costs$ 10, the cash price must be represented as a discount from that price.

By utilizing a tiered pricing grid, merchants can alleviate the cost of accepting credit cards, while still providing their customers with the freedom to choose their preferred method of payment. The price tag for this particular item should look something like this: Price: $100. 5% discount for cash payment@ $50. 5% Discount for Check Payment@ $50.

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You Achieve This By" Loading" Your Card

Category: Finance, Credit.

If the idea of a credit card gives you pause, you can always try an innovation like the Wired Plastic Prepaid Debit Card. Most credit cards operate on a debt base.

This card allows you the freedom of a regular credit card, but with one significant difference: with the Wired Plastic card, you will not be spending against your future earnings. A transaction is charged to the card, and the user is then expected to pay it off within a certain amount of time. You achieve this by" loading" your card. With a prepaid card, you are responsible for determining what you spend on the card. Loading occurs when you take money that you already have and put it on this card, creating a balance which you will then use as funds. This type of card comes in especially handily for parents with teenagers. You ll never spend money that you don t already have!

Most parents have some type of arrangement with their kids that allows them to buy gas for their car, and other necessities, clothes. Just give them an agreed- upon sum each month, and when it is gone, they have to wait until the next" loading" time. With the Wired Plastic Prepaid card, you can be sure that your kids aren t out spending them into a deep hole. Because this card is offered through the Visa company, it can be used wherever Visa cards are accepted. The corporate punch of Visa also allows users of this card a wide range of payment opportunities when it comes time to pay off the bills. Using it will also qualify the person in whose name the card is issued to receive valuable membership reward points that can be put toward other wireless services such as wireless phone bills or buying wireless products. Over 3, 000 billing companies accept this card as a form of payment.

There are several options when it comes time to load your Wired Plastic Prepaid Debit Card. You can also use the card to shop online, so you can find the products you want 24 hours a day! Loading your card will incur no transfer fee, and you can transfer the money to the card using Western Union, Pay Xone and Moneygram along with 100, 000 other loading location free of charge. Like other prepaid cards, there are user fees that come with the Wired Plastic Prepaid Debit Card. The card works both as a credit card, in which you have to provide a signature, and as a debit card, for which you must use a Personal Identification Number. A one- time introductory payment of$ 95 is required. The Wired Plastic Prepaid Debit Card also allows its users to have easy access to the 24 hour help line in the event that an emergency occurs.

After the initial payment, you will have to pay$ 95 every month to use it. Many companies that won t accept a debit or credit card as payment can be paid using this prepaid card, making it even more convenient.

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There Is No Way To Avoid The Credit Card Finance Charge

Category: Finance, Credit.

There are other fees associated with the use of a credit card besides the actual charge from each purchase.

The common credit card fees you will encounter at some point are the annual fee, late payment fees, the APR and the finance charge. These other costs can add to the total balance on your account that you have to pay. The finance fee is added to it every month while the others are less frequent. This finance charge will be different depending on the APR or annul Percentage rate of the card. The credit card finance charge will be the dollar amount that you have to pay to the credit card provider for the use of their lines of credit to make purchases. This is how credit card finance charges affect you card balance. The outstanding balance will determine how much you will end up paying in credit card finance charges each year more than the APR will affect it.

Your individual credit card company will have its own policies and approach to calculate the finance charge for your card. You need to understand how your outstanding balance is calculated. You must note that there are three types of balances which are used to figure the amount of your annual finance charges. The outstanding balance on your credit card may be calculated during one billing cycle or within two billing cycles. These balances are the adjusted balance, the average daily balance, and the previous balance. When you have done this, you can then calculate the credit card finance charge. Each of these balances has something in common, in that you will need to decide if new or recent purchases will be counted as part of the relative balance.

The finance charges will vary depending upon the billing cycle based on the carry- over balance and the timing of different purchases and payments. With this type of finance charge the cardholder is given a flat rate for the finance charges each year. Many of the credit card companies provide credit cards that operate under what they call a minimum finance charge policy. This will mean that the rate will not vary or fluctuate because of differences in the card s balance each billing cycle. There is no way to avoid the credit card finance charge. Your minimum finance charge is activated when your card has a carry- over balance that goes into the following credit card billing cycle.

It is a necessary cost which must be paid in order to continue using the convenience of the credit line to make purchases. You should have a working knowledge of what affects the charges that are added to your balance that you will have to pay. This means that it is important to have a good idea of how they work with your particular credit card company. What would you do if you are assessed a wrong amount and then pay for something that is not applicable? You must spend some time studying your credit card terms and uses in order to know what to watch for.

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Tips For Choosing A Business Credit Card

Category: Finance, Credit.

Business credit cards are a helping hand for those entrepreneurs who are running their own businesses. When business credit cards were first introduced it was mainly aimed towards corporate executives.

A business credit card not only acts as a line of credit but can also help to provide you enough control in managing your companys finances and cash. However, this trend has changed and nowadays even small business owners can acquire business credit cards fairly easily. A majority of the business credit cards come with a wide range of features including cash advances, airline miles, cash rewards, one- call emergency service, and insurance coverage. Business credit cards have become a versatile tool which allows business owners to utilize effectively over time as their business needs change. The features included in a business credit card vary from one card provider to the other, but most of the credit card companies offer an attractive introductory rate for the first few months from the date of opening your account. One of the major advantages of a business credit card is that it provides a significant increase in financial control. After that initial period the customer will be required to pay a higher ongoing APR and the card also might require an annual membership fee.

The cards allow you to simplify and manage your business expenses well, eliminating the need to use a personal credit card for business expenses. And even thought it is not explicitly stated in the business card features, business owners have made use of business credit cards for start- up funding as well. Another most important feature of a business credit card is that small business owners can make use of these little pieces of plastic to provide financing or emergency" bridge loans" for their business when stuck in cash flow shortages. Nowadays, there are myriad small and medium sized companies which make use of business credit cards as an efficient financing tool. Because of the many opportunities available, it is highly recommended to thoroughly contrast and compare business credit cards to select the ideal card best suited to your specific business needs. There is a wide variety of credit card issuers that offer business credit cards with various schemes and features. Tips for Choosing a Business Credit Card.

Make sure that you apply for a credit limit that you know is within the bounds of your expense limitations, will also take, but equally important into account the growing needs of your business. Before you apply for a credit limit on a business credit, make an estimate of your monthly business expenses and your history of repayment. If you have several employees working under you, you need to determine how many cards your business may need and which employees will require cards for business expenses. Also, make sure that during this process that you determine your business requirements for ancillary services. Obviously, before you issue cards to any employees make absolutely sure that they are trustworthy. That is, if you or your employee has to travel regularly for business needs, then it is a good idea to find out those business credit card issuers who offer free air miles, and hotel discounts, travel insurance.

Most of these offers are designed to entice new customers and after an initial period of six months to one year, the interest rates will increase substantially. Be careful about the introductory interest rates offered by business credit card issuers. So when comparing business credit cards, one of the most important things to check is the regular interest rate versus the introductory APR and which card compares favorably in that regard. So if you are planning to start a new business venture, try to utilize the entire suite of benefits that a business credit card offers that can fund, track and reward your business activities.

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