The Ultimate Debt Consolidation Refinance

This week, I'd like to share some customer experiences with one of the most
popular new strategies in debt consolidation refinance. Over the last few
months, a select few in the mortgage banking industry have developed
programs which allow borrowers to accomplish the 3 greatest goals of debt
consolidation: Get Cash to Pay Off High Interest Debt, Lower the Overall
Monthly Minimum Payment, and Boost Cash Flow to allow borrowers to save up
money in a short amount of time. The benefits are nearly indisputable:
Higher Credit Scores, Lower Monthly Minimums, and Greater Flexibility. But
one of the biggest criticism of debt consolidation is that borrowers who
consolidated their debts were still not saving enough money after the
refinance, and needed to tap into home equity repeatedly to achieve their
final goal. What if I told you that there is a new loan product available
today which allows you to do all of these things, but also allows you to
Make No Payments for 90 Days, with 0% interest due over the introductory
period?

David in California said what many of you just said, that's too good to be
true! If you can do that, sign me up! David had a typical Southern
California situation, he works in sales, makes a decent living, has a young
family of 5 and about $30,000 of credit card and other debt, which cost
about $1100 a month in minimum payments just to cover the finance charges on
his revolving debt. But David, like a lot of people in California, has seen
solid appreciation year after year in the real estate market, and his home,
which he purchased for about $350,000 in early 2003, was appraised for over
$500,000 a bit more than 3 months ago. He owed $300,000 on the house, on a
traditional principal and interest mortgage with a minimum payment of $2100
a month. Because of the relatively high level of consumer revolving debt,
David's credit scores had gone down to about 630 even though he was making
all of his payments on time.

When David called us, his loan officer walked through each of David's credit
card bills a with him, and together they determined that David was paying
and average interest rate of over 27% on his credit card payments, because
his credit card companies had raised his rates as his overall debts had
increased, which had hurt his credit scores badly. To make matters worse,
David, like a growing number of Americans, wasn't saving any money. If he
got sick, had a slow quarter, or was otherwise unable to work for any
meaningful amount of time, he would be at risk of financial ruin.

We looked at the whole situation, and used this new debt consolidation
mortgage refinancing strategy to show David how he could pay off all $30,000
of his revolving debt and take out an additional $20,000 or so to provide a
small cushion, partially to be used for value-adding home improvement.
Remember, David's old minimum payments were: $2100/month for the mortgage +
$1100/month for a total of $3300/month, his credit was getting worse each
month and he had no cash in the bank. After refinancing, David's new minimum
monthly payment was consolidated and reduced to Less Than $1300 per month
Total! And he now had $20,000 in the bank which he wisely put into a high
yield savings account earning 5.25% until he needed it. This monthly minimum
payment being $2000 a month lower is amazing in and of itself, however what
makes this product revolutionary is that for the first 90 days, David had
Zero Percent Interest and No Payments due, allowing him to save substantial
money each month. He socked it away each month for
3 months, and now 90 days after his debt consolidation he's managed to save
an additional $10,000, which combined with the $20,000 he cashed out means
he went from almost nothing in savings to over $30,000 in the bank earning
solid interest.

But what about David's credit? Now, it's only been a bit more than 90 days
since the refinance closed, but I am happy to say (as is David!) that his
three scores are now 667, 684, and the high score is 703! Why? His debt
ratio is down, and his debt to income ratio is way down too. Combined with a
little advice from our credit specialists, the debt consolidation refinance
has been the difference for David. He went from a total minimum payment of
$3300 a month down to under $1300 a month. He went from 0 in the bank to
Zero Percent and Zero Payments for 90 Days, and put over $30,000 in the bank
between the refinance and the resulting monthly savings. Not only does he
have some money saved up for a rainy day, the new, lower payment is much
easier to make even when times get tough, dramatically lowering his risk of
missing a payment. And because his credit scores have already improved and
will continue to do so, any new car payments or loans he takes out over the
next couple of years will be substantially less expensive, allowing him to
qualify for low cost car leases and zero-interest, cash back credit cards.

So through this illustration, we've explored some of the benefits of using a
minimum payment mortgage refinance with no payments & no interest due for 90
days as a debt consolidation tool. More so than other type of mortgage
refinance, this new loan and other mortgages like it help borrowers achieve
all of the key goals of debt consolidation, offering great payments and a
real "vacation" from making payments. If you ask David and other borrowers
like him what they like the most about the product, they'll tell you it's
the "breathing room", the ability to get out from under debt and take a
couple of months off of worrying about making the payment so they can
concentrate on organizing their finances and improving their situations. We
can all use that space from time to time, and I agree with our borrowers
about the importance of this feature.

There are a lot of reasons we consider the "Zero Interest/Zero Payments for
90 Days" plan the ultimate debt consolidation mortgage refinancing tool.
There are some limitations though, which do vary somewhat from lender to
lender: While you don't need perfect credit, a minimum middle credit score
of 620 is required to qualify for the 90 days with no payments option.
You can borrow up to 80% of the value of your home with no payments for 90
days, with the balance above 80% rolled into a separate second mortgage (or
you can keep your existing second mortgage if you have one). You are allowed
up to one 30 day mortgage late within the last 12 months, however you cannot
qualify if you have multiple late mortgage payments showing on your credit
report over the last 12 to 24 months, and this program is not offered in all
states. Depending on your credit, you may be able to state your income, or
even qualify without considering your income. Contact your mortgage
professional for more information, and if they don't have a program that
allows you to pay off your debts, lower your payments, and get 3 months off
of making mortgage payments all in one, find yourself a new lender!

Our next article in this series will tell the story of a single mother who
has impressed us greatly with the way in which she's secured her family's
financial situation with this loan immediately following a challenging
divorce. If you have any questions about this article, please feel free to
contact us, or visit us online.

About The Author: Tristan Hunt is a seasoned financial professional with a
wealth of experience in the mortgage industry, advising clients on debt
consolidation, refinancing & investor loans. Phone: 800-515-8443 Website:
http://www.RefinanceOne.net

How To Avoid Credit Card Fees

Credit cards are an almost essential part of many people's lives, because
they allow you to increase your cash flow and have more financial freedom.
However, if you use credit cards too much or in the wrong way you can be
stung with large credit card fees and penalties. Avoiding these fees will
help you to cut the costs of using a credit card and get the most out of its
benefits. If you want to know how to avoid these credit card fees then this
article can help you do just that.

Grace periods

A grace period is the time you have to pay off your credit card debt before
you start paying interest. Although many cards used to have good grace
periods, these are reducing and some have none at all. This means you will
start accruing interest from the moment that you make a purchase. If your
card does have a grace period, then the best way to avoid extra interest
charges is to pay off the balance in full before the end of each grace
period. This will mean you can use your credit card without having to pay
interest.

Late fees

One of the most expensive fees you might have to pay is for late payment.
Although you might not think this will apply to you, it is very easy to be a
day or two late with payment, especially if you have a lot of cards and
bills. Late payment fees can be as much as £35, and if you are near the end
of your credit limit could trigger other penalties such as over limit fees.
Before you know what has happened you might owe £100 in fees, which is
basically money wasted. To avoid these late fees, try and pay your bill by
direct debit if possible, or use online banking to speed up the process of
paying your bill. This will ensure that your money arrives on time. If you
think you are going to be late with payment, try calling your credit card
company to inform them. If they know it will be late they might be able to
waive the penalty fee, especially if you usually pay on time.

Annual fees

Another fee that can cost you money is the credit card annual fee. Although
this fee used to be commonplace, less and less cards are now charging an
annual fee. Unless you have a gold or platinum card, then you really
shouldn't have to pay an annual fee. Although there will be some issuers
charging annual fees, unless the benefits you get for the fee are
significantly more than the fee you should find another card.

More than just the fees

Perhaps the biggest problem with some of these penalty fees is that if you
have to pay them, it can mean more money lost for you than simply the
penalty fee. For example, if you are late with payment a few times, the card
issuer may remove your low interest rate. This could end up costing you a
lot of money, especially if you have a large balance on your card. In order
to avoid these fees, make sure you carry out your payment obligations, and
also read the contract in full before signing for the card. That way you
will know what the fees are in case the worst should happen.

About The Author: Peter Kenny is a writer for creditcards-gb Please visit us
at http://www.creditcards-gb.co.uk and
http://www.thriftyscot.co.uk/Credit-Cards/

Why To Consolidate Debt

I know you're looking at that plasma TV and thinking of buying yourself a
nice early birthday present. You can just imagine it on that wall in your
living room. In fact you've been saving a spot for it for a year now. But
there's really no way that you could afford such a thing. Unless.you do have
that little piece of plastic in your pocket just screaming to be used.

Besides, this is the reason you have a card, in case of an emergency. And,
that big empty space is an emergency, it must be filled. Of course you'll
have a big fat balance on your statement that there's no way you can pay,
but what the heck.
Only live once right?

Now Stop and Listen Carefully!

How silly do you sound when you begin thinking thoughts like these? This is
what happens in millions of heads around the world daily, and this lack of
debt management is hurting way too many people, so don't get sucked into it
too.

It's crazy that we think that we can just buy something that we can never
afford just because we can charge it. Tell me, what kind of debt management
is that?

Well, if you need help with your credit cards and debt, don't feel bad
because you're definitely not alone in this. In fact, I remember getting my
first card, I got myself in the same situation, and this is after I told
myself that I would never use the silly thing.

Well, except for emergencies that is.

Then came college, and everything seemed to be an emergency. I was on my own
for the first time, and not wanting to bother my parents, and wanting to
appear "responsible" I just kept on racking up the balance on the darn
thing. Oh but that was okay I would convince myself, because soon enough I
would graduate with my bachelors and laugh at this debt I was racking up.

This may be how it ends up for some people, but for most, myself included
the exact opposite is true. I actually come out the other end with a good
career, but I didn't consider how much actually living in the real world
costs, and very soon my budget had met it's match.

Now I had to find help with my debt.

The one thing I did that was quite smart was to transfer the debt to a lower
interest card. It helped me a little, but it really was still hard keeping
up.

I then began my search for a reliable company to help me consolidate debt
even more. I searched online and found quite a few companies to help me. The
one that I went with, actually helped cut some of my balances by up to 40%,
and then got me on a plan with on low monthly payment that was easy to
afford.

So, don't be like me and get yourself into a mess. Start managing debt
wisely early on, and you'll avoid a rough ride that you don't need.

About The Author: Robert Carlton writes essentially for
http://www.debtania.com , a website on money management and assets. You can
come across his publications over at
http://www.debtania.com/managingcreditcard.html and many different sources
for managing credit card debt tips.

Credit Card Debt: Do You Need Credit Help?

If you have credit card debt it is important to take its measure from
time-to-time to determine whether or not you have a problem with your debt.
If you are carrying a balance on more than one card (or simply a sizable
balance on one card) then you could have a problem.

There are five reasons why you should seek credit help to deal with your
credit card debt.

The biggest reason is that credit card debt can affect your credit score
which in turn impacts your ability to borrow money for everything from your
car to your home. High credit card debt can lower your credit score and
raise your interest rates. A problem with late credit card payments or high
amounts of debt can make you appear to be a poor risk for credit to many
finance companies.

However, almost as important is the way that credit card debt makes you
feel. While money cannot buy happiness, credit card debt certainly buys
unhappiness. The knowledge that you have a large debt can destroy your self
esteem and add a lot of stress to your life. If you dread the arrival of the
credit card bill in the mail then you have a problem with debt that you need
to address. Owing money can also add a lot of pressure and stress on a
marriage.

Another important reason to resolve your credit card debt is that by
avoiding the problem or simply paying minimum amounts you will never be
free. Most minimum payments do not do much more than pay for the interest.
While many people make paying their credit cards a low priority it should
actually be a top priority. Yes, your mortgage payment is important because
you do not want to lose your home but that is good debt as it helps your
credit rating and your taxes. Credit card debt does nothing for you at all.

Owing money on your credit cards is also a self perpetuating problem. Every
time you charge instead of paying with cash and every time you do not pay
off the full balance when it comes due you are perpetuating your problem
with debt. You need to learn better money habits or you will never solve
your problem with credit card debt.

Finally, an important reason to start paying with cash, check or debit card
is that by paying-as-you-go for your lifestyle you will be modeling
responsible behavior for the next generation.

Take these five reasons to heart and take stock of your own financial
situation to determine whether or not you have a credit card debt problem.

About The Author: Deanna Mascle shares more tips about Credit Card Debt and
Credit Repair in her blog at http://answersaboutcredit.com

Things You Should Know When Applying for a Credit Card

When you apply for a credit card, the lender does a credit check to how
risky the extension of credit is going to be.
There has to be a standard of risk that the lender is going to be willing to
accept. Among the things you can count on being checked are your credit
history, income, job history, current debt, how long you've lived in your
residence, whether you own your own home, how many times you've applied for
credit, and possibly if you have tax liens or judgments filed against you.
All of these factors can be listed on your personal credit report and along
with your credit score (the numerical value of your credit
worthiness) the lender will determine if and how much credit they want to
extend to you.

In today's world, there is a credit card available for just about everybody.
You are going to find yourself pummeled with credit card offers at some
point or other. This is especially true for students. This is where
patience, research, and common sense should come into play. Never choose the
first credit card offer that comes across the table. Set a standard by what
you're willing to allow yourself to be charged in interest. After all, this
is money that will be coming out of your pocket. This means getting in the
habit of reading the fine print of the offer. Some companies offer low to
zero interest but this usually for a set period of time from one month to
one year. Read the fine print so you don't wind up with a zero interest
credit card that suddenly charges you 18% interest.

It's also very important to note that if you apply for too many cards at the
same time, this can put a negative light on your credit report. Each lender
that checks your credit generates a line on your credit report called an
inquiry.
You will end up getting rejections if you apply for card after card.

If you have no credit or a bad credit rating, the best card to apply for is
the secured credit card. Getting this card and making your payments on time
signals that you're a good money manager and responsible with your financial
matters.
This is a great way to establish credit or begin rebuilding your credit.
More often than not, once you've established that you're a good credit risk,
you might be given the option of an unsecured credit card with a much higher
spending balance.

Knowledge is the key and understanding the credit game will save you a lot
of time and money over the long period.
Remember, that many people are in debt because they have a good number of
credit cards with high balances. One personal financial disaster can leave
you seriously in debt. Once you get your credit card, use it wisely and
never use the credit card to pay for anything you can write a check for.
Remember that legitimate credit card companies are not going to ask you for
money up front. Never apply for credit cards you don't need.

Use these tips to understand the application process and use your credit
wisely.

----------------------------------------------------
Liz Roberts is a loan consultant with NewHorizon Finance and has been
providing consumers and business owners with financing since 1989. Bad
Credit? Join our mailing list for tips on building and repairing your credit
yourself without hiring a credit repair. Vist our site for a list of bad
credit credit cards http://www.newhorizon.org/Info/unsecured.htm

Bankruptcy Avoidance - Eliminating Debt

Americans generally have one thing in common - debt. Were you expecting
something else? Sadly, whatever plans we make or whatever we claim when we
are in our youth, we manage to some how get into debt. For most people,
especially applies to student type loans and credit cards. Yes, college
somehow changes how we do things. Next thing you know you are married with
some children, a hefty mortgage, car repayments and mountains of credit card
type debts. It's now time to eliminate credit card debt today. Of course you
must be asking how this can be done, and get it done today? Well, hopefully
you are a movie fan because 'Heat' isn't so far from the truth.
Eliminating credit card debt that way is foolhardy because jail is not where
you want to go. Your interest would go even higher.
Ouch!

Yes, everyone wants to know the secret to getting rid of credit card debts
the fastest way possible. That goes without saying.
The question should be - how do we start? For some of you this will be a
major challenge, but for me it's simple. Frankly the most sensible thing to
do right now is to evaluate how many cards you have and how much interest
you are paying on them.
Yes, write it down now! How miserable does it appear? Now you need to get
onto the Internet.

The Internet is a fantastic tool for searching and researching eliminating
this type of debt permanently. So open up that search engine and let's learn
how to consolidate debt. You need to understand how to consolidate all those
ugly balances into one much lower monthly repayment. The trump card is the
interest, lower interest than you are currently dealing with.
You may need to consider getting a loan or doing a transfer of your balances
onto one single low interest card. The key is APR. High interest as you know
is a killer. Why pay out more than you have to, right? This exercise is
about getting rid of that debt now.

The fact is that paying off this type of debt takes time. Fast is not
necessarily fast, but a slower and necessary process.
The important thing is to lower those payments. With the help of the
Internet you can research the best ways to consolidate your credit card
balances and avoid bankruptcy, maybe get some advice about debt management.
No time like the present, so get to it!

About The Author: Johnathan Bakers publishes for the most part for
http://www.debtania.com , an internet site with information about investing
and debt relief. You can come across his articles over at
http://www.debtania.com/howtoeliminate.html
and other sources for how to eliminate credit card debt information.

Avoiding Bankruptcy With Credit Card Debt Relief

Are you looking at that amazing new plasma type television in your
electronic store´s window? Isn´t it something? It would look absolutely
wonderful hanging on your wall right now, right? Oh, so you cannot really
afford it, but that does not matter to you right now? You do have a credit
card, and it´s okay to just put it on the plastic and go home with your new
toy, right? That´s the American thing to do. However, your bill has arrived
and the credit card amount you have to pay is big, very big, but that does
not matter, does it? You better stop now and think again.

The overwhelming problem with society´s current mentality is that for some
strange reason we think we can buy things that we really cannot afford. This
is a major mistake on our parts. It´s high time that we changed our
foolhardy attitudes. It´s time to get the help we need with credit card debt
and simply stop spending what we don´t have.

So, you need help in dealing with that niggling and worrying credit card
debt? That´s not a problem. You are not the first or the last person to be
in this self-inflicted mess. We have all done this. We get our first credit
card and assure ourselves that we will never need to use it, except maybe
for emergencies. However, that didn't happen, did it? I was in college once,
had the same attitude, and started using mine on a regular basis. I strongly
imagine that this seems quite a familiar situation to you. You like myself
thought it wouldn't be a problem. We could add that bill or quick purchase
to our credit card and everything would miraculously not suffer as a result.
Yes, the debt incurred would be in the thousands, but soon we would have
that well paid career and could clear the debt right away. Right? I guess we
were all wrong because the reality is that life doesn't always work the way
we planned it.
Before I knew it I was in the same position as you, in dire need of credit
card debt assistance. Yes, I got that career, but not in the time frame I
had hoped for.

Thankfully, finding credit card debt assistance is as easy as accessing your
computer and the Internet. Start by searching for credit card debt
consolidation and debt management. It is possible to stop struggling making
ends meet and enjoy lower monthly payments. This is one of the best ways to
avoid bankruptcy.

About The Author: Jack Blacksmith pens primarily for http://www.debtania.com
, a web publication with topics around investing and debt relief. Writing
for works (e.g.
http://www.debtania.com/howtoeliminate.html on eliminate credit card debt )
he showed his expertise in the field.

Insightful Tips For Eliminating Bad Credit

Bad credit also known as subprime credit in the mortgage industry, will
affect your pocket book in more ways than making it more difficult for you
to get a home loan. Not only will you have a higher interest rate on your
mortgage but it will also translate into higher interest rates on car loans,
store credit cards and the well-known bank issued credit cards. In addition,
poor good credit can even prevent you from getting some jobs.
As a result, it is clearly important to improve your credit if it's fallen
into such a condition.

You're probably thinking, sounds good, "but how do I do it?"
Remember, developing bad credit didn't happen overnight and you can't
improve overnight either. However, it's not as difficult as you might think
if you follow a few simple rules.

First and foremost, you must stop spending more than you can afford. Surely
a common sense principal but not followed by millions of Americans.

Next, stop making your payments late. Late payments show up on your credit
report as 30, 60, 90 and 120 plus days late and each time this happens it
goes into the formula for calculating your credit score and results in a
lower score.

If your debt has gotten out of control you need to seek credit counseling or
even bankruptcy. Neither is a bed or roses but if you're to that point your
need to bite the bullet, humble yourself and take the plunge. If you can't
make the payments and the interest rates on your credit cards has already
been raised to 20 or 25 percent these may be your only options.

Setup a budget or your monthly expenses and keep track of everything. If you
don't know how much it costs to live each month compared to your income
you'll never get your financial house in order. Once this is done take a
look at where you can cut back. Hey, nobody said this would be easy but once
you make a few changes, exercise a bit of financial restraint you'll be
amazed at how much additional cash you can free up each month to pay down
your bills.

Another key ingredient to remember is that regardless of how bad your credit
has gotten it doesn't take the 5, 7 or even 10 years like you always hear
about to fix it. Follow this simple advice and within 2 years you can have
your credit back to good or even very good. Of course, a prerequisite is
that you get your current bills under control.

Ok, all you need is two credit cards. Use one to buy groceries, the other to
buy gas and then pay them off at the end of each month. Simply switch
between the two for "emergency" purchases but always try to pay them off at
the end of each month or keep a very low balance. Use cash to buy everything
else. You only need two credit cards or what the credit industry calls
"trade lines" paid on time and preferably paid in full each month to really
raise your credit score. So follow the two credit card rule above and even
if you just had a bankruptcy or you've gone through credit counseling,
within a few short years you can have your credit score back to where it no
longer hurts.

Last but not least, get a copy of your credit report from the 3 major credit
reporting agencies: Experian, TransUnion and Equifax and then take a close
look at them to make sure they are correct. Many people who have gone
through credit problems have credit reports that haven't been updated
correctly to reflect their current status with creditors, even after they've
paid off bills or made special arrangements with their creditors. The bad
information can be on their reports for years hurting their credit score, so
make sure you get a copy of credit report after you've done your part in
putting your financial house in order. You can simply type in the name of
the above credit reporting companies in any of the major search engines to
find their home pages.

Better yet, go down to your local bank or mortgage company and apply for a
loan (even if you're not interested at this time in getting a loan) and ask
them for a copy or your credit report (after your initial meeting and
they've called you back).
However, make sure it's a tri-merge credit report, which includes
information from all 3 credit reporting agencies or your credit report won't
be accurate.

About The Author: Visit http://www.aneyeondebt.com or
http://www.aneyeondebt.com/links.html or
http://www.aneyeondebt.com/sitemap1.html for more information on debt relief
options.

Get Rid Of Your Credit Card Debt And Start Investing

Eliminate credit card debt from your life, and you will eliminate a lot of
problems from your life. It is very easy to be trapped by credit card debt;
everybody loves that plastic.
Getting out is a different story. Yes, it is complicated, but it is not
impossible. You may only need a little help in doing so.

If you do not have too much credit card debt, the first thing you may want
to try to do is take advantage of zero interest rate offers. Pay down your
interest rate debt and put the balance on a zero rate card, then start to
pay off the principal. This will work if you have good credit, since the
credit card companies will make you this offer. Just remember that this is
an introductory offer, usually for about six to twelve months; if you make
large payments on this card, you will be able to pay the whole loan off
during this period and be done with credit card debt altogether. If your
credit card debts are large, this solution will not work, since you will not
be able to make large enough payments to pay the debt off before the end of
the introductory period.

The solution if you have high credit card debts is to use is either a home
equity credit line, or obtain the services of a credit counseling company.
You will choose a home equity line of credit if your credit card balance is
very high and you are paying high interest rates on those balances. By using
your home as the collateral for a loan, you will obtain an interest rate
which is much more favorable than the high credit card interest rates. You
then pay off the balances on your credit cards and just pay the mortgage
bank for your equity loan. The other option to consider is the services of a
credit counseling firm or a credit elimination firm. The role of a credit
counseling firm is to negotiate with your creditors to lower your monthly
payments to make them affordable for you. The first thing they will try to
do is get the interest rates lowered so that you are paying off part of the
principal each month, instead of just paying interest. A credit elimination
service should really be considered as a last ditch effort if you consider
your debt an extreme case. These companies will try to negotiate lower
balances on your debt, so you don't have to pay off as much and you can get
out from under. However, since the credit card companies are not getting all
of their money, you will not be considered a good risk for the future.

So you see you can get rid of your credit card debt. It may take some
research, a measure of determination and a lot of phone calls, but it is
much better than being drowned in those bills each month because you only
pay the minimum.

About The Author: Focusing on informating about investing, Johnathan Bakers
writes articles principally for http://www.debtania.com . You can find his
articles over at http://www.debtania.com/howtoeliminate.html and other
sources for eliminating credit card debt knowledge.

The Best Credit Card Offers

Credit cards had been one of the most widely used forms of paying various
types of bills. This may range from regular purchases, to bills payment
transactions in large amounts.

This is different from debit cards in the sense that the former may purchase
in its behalf even if the owner does not have a corresponding amount
credited to the card.

Generally, the issuer of the card provides a credit limit. The predetermined
amount is the maximum allowable transaction to be made by the consumer or
owner of the card.

Credit card companies compete for the fast growing market by offering
various promotional strategies such as the following:

1.Interest rates

Credit card companies try to offer the lowest possible interest rate per
payment due. Said interest rate may range from 1.2% up to 5%.

2.Minimum amount due

Every month, the credit card company has a predetermined percentage of
amount due based from the current charges or purchased made by the owner of
the card.

Failure to pay the said minimum due would result to additional charges on
the part of the owner/consumer.

3.Waiving of dues

The usual practice had been that of waiving the first of the cards' annual
dues.

Other offers had been cutting off one or two billing periods without any
additional charges if the consumer did not pay for the period covered by the
promotional advertisement.

Should the consumer pay the whole amount charged to the card before its
billing period, the interest due from the balance is likewise waived

4.Extension card

Supplemental cards are usually offered for the cardholder to enable them to
extend the use of the card for any family member (or friend) to whom they
would want to grant access to its use.

5.Balance transfers

Most credit card companies offer a very low interest rate charging for any
balance transferred to their card from that of another one.

The catch is to encourage consumers to transfer all the balance charges from
their current card to their very own card company.

Payments are arranged on a predetermined period of time. The disadvantage of
this is that if the consumer decides to pay the whole balance earlier than
the stated date, no rebates would be granted.

Consumers that are not wary of their purchases may find themselves in
immense debt if payments are foregone or if the individual makes purchases
more than he or she is capable of paying at the end of the billing period.

Missed payments would result to finance charges that would be added on top
of the month's interest charges. Thus resulting to higher charges.

It has been said that the rampart use of the credit card system had resulted
to the Great Depression of the 1920's.

The rise of the automobiles during this period resulted to a great increase
in the demand for fuel. To accommodate the large purchases, fuel companies
accepted credit payments so as not to loose transactions to their
competitors.

And the rest, as they say, is history.

Still, if the individual is wary and cautious when making purchases using a
credit card, one may find that he or she may use it for his or her own
convenience.

Below are some of the advantages of using a credit card:

1.Low risk of loosing cash.

Large purchases may be made without having to carry the money around.

2.Readily available

Emergency purchases, such as that of medicines, may immediately be
accommodated at any store that accepts credit payment.

About The Author: Mario Churchill is a freelance author and has written over
200 articles on various subjects. For more information checkout
http://www.supercreditcardoffers.com and
http://credit-card-offersonline.info.

Unbelievable Credit Rate Hikes For Poor Christmas Shoppers

Incredible credit rate hikes lie in store for the poor and vulnerable who
wish to borrow to make their festive season a happy and memorable one. The
festive are generally a time for genuine profit for all businesses and in
fact, some shops will admit to making most of their profits around this
time. This includes credit card companies, banks and above all loan sharks.
For the lucky ones who have some form of savings or have saved towards this
season, there are no worries.

However, for those who have no savings but intend to borrow to enjoy the
festive season, things can get tricky if not costly, much later one. First
of all, there are many spend-now-pay-later schemes not to mention
buy-now-pay-later offers that saturates the market this season. In fact, one
UK company, Shopacheck, is offering vouchers from major brand name shops and
those interested do not have to pay a dime until the New Year.

Sounds like a very good idea at first, as you can instantly obtain all your
festive hampers without breaking any sweat. All you need to do is spread the
cost over a certain period. Now here's where the catch is: sky-high interest
of historic proportions. For instance, a borrower of 400.00 ($790.00) will
end up paying around 550.00 ($1050.00) this well over 70% interest! Someone
repaying this at a rate of 5.00 ($9.00) a week will not finish paying for it
by next Christmas.

In addtion, we should not forget that voucher companies like Shopacheck buy
theie goods at wholesale prices. Thus, not only are they making money
reselling them, they are raking in even more profits with the
spend-now-pay-later scheme. This is in the wake of the collapse of a well
known Christmas hamper company, Farepak, just before Christmas, which left
some unease in these Christmas Clubs who seem to think of themselves rather
than their clients who save hard-earned money throughout the year in the
hope of celebrating the Holidays in style.

Needless to say, the big brand-name shops whose vouchers are being sold in
this scandalous way have sought to distance themselves. Some say Shopacheck
is buying it through an agency, others deny being connected to them at all
while some have offered to investigate this further. As for Shopacheck, they
claim they are not doing anything against the law and that customers know
exactly what's on offer as they do not hide anything.

Without a doubt, this proves that the onus is on the consumer to be weary of
any credit provider especially during the festive season when one is wont to
forget the details and consequences in the whirlwind of activities.
Borrowing can be a good idea especially if you are able to pay it off within
a short time. Missing payments, on the other hand can severely affect credit
rating and therefore your ability to borrow for important things like a home
or a car.

To reduce debt or avoid it altogether this season can be tricky if plans
were not made earlier. Nevertheless, it is best not to use credit card for
festive shopping unless you have to. Debit cards are far better. Should you
use your credit card, then it will be good to pay it off when the next bill
arrives or as quickly as possible to avoid paying any interest. There is
still hope however, if your credit is totally messed up, credit fix is
available as the last resort to improve credit history.

About The Author: http://www.cheap-credit-cards.org
http://www.cheap-credit-cards.org/credit-cards
http://www.cheap-credit-cards.org/insurance

Applying For A Platinum Card, Things To Watch Out For

With the relatively easy availability of credit today, more can get plastic
cards, including students and even those with bad credit ratings.

A credit card is a simple way of getting a credit rating and used smartly,
can help provide flexibility in spending and even bonuses like cash back
offers or travel credits.

To obtain a gold or platinum card you will need to have a higher annual
income. This higher level of income is generally needed to qualify for these
cards contrary to standard credit cards.

These cards can offer several additional benefits such as free travel
insurance, free purchase protection, savings on travel and/or hotels and
free extended warranty for additional year(s) on many household appliances.
They may also offer higher credit limits and let you access to a higher
amount of cash on a daily basis. The possibilities are endless for the owner
of the card.

While carrying a gold or platinum card once give a certain prestige,
nowadays there is very little difference between them although some credit
card companies charge a fee for a Gold card, for example.

If you can afford to have a platinum or gold card, use Internet to help you
get information. Browse around as many of the major credit card companies as
you can and seek out the best possible rates. You have to ensure that a deal
really suits you. You can find a credit card directory at
http://www.platinumaz.com/

There are numerous types of platinum cards. There are cards with frequent
flyer programs for those who travel a lot.
Business cards are ideal for those with good credit history and regularly
charge business expenses to their personal credit card. Those who would like
to earn rebates can choose some rewards card.

What's more, you can find very specific cards for your very special needs or
buying habits, for example if you are frequent guest of Intercontinental
Hotels, only interested in Sony rewards or actually are a coffee drinker.

The credit card companies don't just make their money on unpaid balances. Be
careful how or where you use your card, because you may be hit with
unexpected charges, so it's important to read all the terms and conditions
thoroughly of the card before you apply for it.

There are some things that you also have to watch out for. For example, be
wary if you are asked to pay up-front fees when the promotion or ad without
mentioning that there may be additional costs. Find out the total cost
before applying for this type of card.

Be suspicious about any promises to erase bad credit or to secure major
credit cards regardless of past credit problems.
Think twice about any offer to get "easy credit."

Marketers of 'gold' and 'platinum' cards often claim it's easy to get major
credit cards after using their cards for a while.
In fact, the only major cards you usually can get through these marketers
are secured.

About The Author: Fruzsina Csery is a freelance copy writer.
She occasionally writes for http://www.platinumaz.com/

Slow And Steady Is The Best Way To Clean Up Bad Credit

A bad credit problem can influence your every waking - and sleeping - hour.
There are few things more worrying than wondering how to make ends meet, and
when your outgoings, comprising loans, cards, hire purchase deals and such
like, are biting huge chunks out of your income, it really can look like an
impossible thing to sort out.

One major problem is denial. Although you're well aware of the debts
intellectually, there's an emotional block on them. So to start with, write
down all your outgoings, what are their values and how long you have left to
pay them. This, of course means everything. You have to be honest with
yourself.

It could be time to consider a consolidation loan. You can take out one big
loan with a long repayment term and pay a small amount off every month. For
the first few months it might look like nothing is happening, but persevere
and you will eventually see that your payments are taking larger and larger
bites out of the consolidation loan. Hopefully by now you'll have cut up
your credit cards, because the last thing you want is to be paying off more
debts. Self-discipline is key. But the interest will be a whole lot more
manageable.

You can also look at what else you're spending your money on.
It's amazing how much of our money we waste on needless purchases. It's also
a good time to start shopping around.
Prices of essential items vary widely from store to store; saving five pence
on a tin of food might not seem much, but remember, this is for the
long-term, and you'll be making savings all along. Keep all your change in a
jar and once every few months put it in bags and deposit it in your bank
account.
Wherever possible, buy in bulk - either from a wholesaler or by using
supermarket multipacks or two-for-one offers. And if you're insisting on a
holiday, remember what a beautiful country you live in!

So the sequence is: accept, calculate, consolidate, economise.
You have to change your mindset completely, and accept that your recovery
will take time and that these seemingly small savings will, over several
years, lead to a new start. You won't have to change your lifestyle too
much, just do the same things in a different way.

About The Author: Clive Willis is a recognized expert on all personal money
matters. His opinion is featured on many sites including the Crazy Credit
website - a guide to the personal credit world. http://www.crazycredit.co.uk

Attain Great Money Management Skills

It's not hard to get yourself in a hole that requires bankruptcy to bail you
out these days. All of the expenses in our lives, plus the debts from loans
big and small, credit card bills, and other miscellaneous debts add up and
create a helpless stress. You feel like the only way out is bankruptcy.

Though it is an option, it should be a last option, behind managing credit
card debt, and practicing good money management habits.

There is also debt settlement plans to help you out of your situation as
well. This actually is a rather quick solution, helping you get out of your
problem in a relatively short period of time. Finding a debt consultant to
help you, you'll begin to feel a strong sense of relief when your balances
are cut down significantly through the process. However, this does not mean
you're in the clear, it's simply a way to help give you wiggle room.

The way this works essentially is that you'll contact a debt settlement
consultant with a lot of experience, and they will help you with all of the
forms and paperwork involved. He or she will also go over the details of how
such a program works.
Basically, besides settling with lenders on cutting your payments down, they
will also consolidate your debt and help you recover your original financial
standing, again within a pretty short period.

You will be evaluated to see if you're qualified for the program or not.
Your expected monthly budget will then be calculated to see what needs to be
placed aside for meeting the settlement payments.

This can obviously bring a huge amount of relief to your life.

If you can't see in front of your face because of all of the bills that lay
ahead, including your car payment, your medical bills, school loans, credit
card bills then this is the program that you should enroll in as soon as
possible. These loans that you're having problems with are unsecured, and if
they're not managed well, you've got a ton of problems ahead of you, as well
as your personal assets being at risk.

Money management is a skill that we should be taught very early on, however
this country seems to look the other way on this aspect of life, and just
throw us out to the lions. You can think of this as a life lesson, however
you only want to have to learn it once. It's easy to learn however when you
make use of your debt management consultant, and very soon your social and
financial status can be pieced back in place.

These plans can help you get out of trouble in as short as five years. How
long it takes actually depends on you, and your willingness to work hard at
getting yourself out of trouble.
It's so easy to resort back to our destructive ways that get us in so much
trouble.

Choose your plan wisely and be responsible with your second, and perhaps
last chance of having a financial life.

About The Author: Concentrating on the area of money management, Jack
Blacksmith works essentially for http://www.debtania.com . From his reports
(e.g.
http://www.debtania.com/managingcreditcard.html on managing credit card debt
) he demonstrated his expertise on the topic.

Managing Your Money During The Holidays

Managing anything well is simple once you know the pro's and con's involved.
The financial stress that comes from poor credit management skills can
create a multitude of problems in your life. This is why it is good to use
common sense in handling your own personal finances.

Credit card use, if used wisely, can be one of the greatest tools in
building good solid credit. It can also be one of the quickest indicators to
a potential lender that a person is not a responsible money manager.

Good money management skills also mean taking the time to search for the
best interest rates available on a credit card. Finding a low interest
credit card can allow you to use a cash advance to pay off the debt on other
credit cards that you have. Having paid down the debt of the other credit
cards puts you in a better position to keep tabs over your credit finances
across the board and handle any financial emergencies such as illness,
accident or a sudden mechanical problem on your car.

Make A List And Check It Twice!

Reevaluating how you shop during the holiday seasons is also a part of
sensible money management. The urge to splurge and incur debt in buying
gifts will create a financial hangover that can be repeated year after year.
Many people pay for their holiday shopping for the following 12 months.
Institute a personal rule to not use your credit cards for anything you can
afford to pay cash for. It's not really a bargain if you buy it using a
credit card that charges 18% interest.

After the holidays when all your friends and relatives are fresh in your
mind, make a list of everyone you want to purchase a gift for and keep the
list in an easy to reach place like a purse or wallet, as you find good
deals and sales throughout the year, pick up that person's gift and put it
up until the holiday season. In December, you'll have the majority of your
shopping done and you won't feel the sting of holiday shopping as most
people do.

Set Spending Limits

Setting spending limits where your credit is concerned is always the best
bet. Take the time to really get in touch with your own spending needs and
habits - make a budget and stick to it. Cut corners wherever you can and
eliminate unnecessary expenses. Eat as many meals at or from home as you
can. Curbing eating out expenses will save most people between $20 to $50
dollars a week on the average.

Shop During The Slow Seasons

Deciding where to shop is a highly overlooked skill as well. Retailers are
seasonal and will often run sales during a slow season. These are ideal
times to stock up on the things you need at a fair price and avoid using
credit cards for these purchases. A little time and effort will allow you to
find the best bargains year round.

Lastly, check your personal credit report once a year.
Mistakes can happen and you can be denied a credit card, personal loan or
even a job due to an error in reporting.
Once caught, most credit report errors are easily fixed; but the
responsibility of catching and correcting those errors is solely up to you.
Make these habits a part of your credit and money management skills and you
will save yourself a lot of money and interest in the long run.

----------------------------------------------------
Liz Roberts is a loan consultant with NewHorizon Finance and has been
providing consumers and business owners with financing since 1989. Bad
Credit? Join our mailing list for tips on building and repairing your credit
yourself without hiring a credit repair. Vist our site for a list of bad
credit credit cards http://www.newhorizon.org/Info/unsecured.htm

Home Equity Loan For People With Bad Credit

Bad Credit Home Equity Loans are a Good Thing

If you are in the unfortunate situation of looking as loans for people with
bad credit, take heart. You are not alone. More and more people need to take
out loans for some financial need, and one possible source is a bad credit
home equity loan.

People end up with a bad credit rating for a myriad of reasons.
Late payments and bankruptcy are obvious factors. Not so obvious is the debt
to income ratio factor. If you happen to have college loans that are around
$20,000 and marry someone with the same amount of college loan debt, you
both may now have bad credit. Even if you own a home and have a pristine
credit history a large loan taken out for an emergency will greatly affect
your credit score. If your credit score is lower than you like, the good
news is that it doesn't have to stay that way forever! There are many loans
for people with bad credit and a bad credit home equity loan is one place to
start.

A home's equity is the current fair market value of the home, minus any
mortgage payments left to be paid. What this boils down to for a lender is
what they can get for the home if they have to seize it from the owner for
failure to pay. Even with a low credit score bad credit home equity loans
are available for up to 90% of the equity in the home. Most lenders are
comfortable giving equity loans for people with bad credit.
Since there is collateral involved finding such a loan shouldn't be a
problem. The tricky part will be finding a bad credit equity loan with an
interest rate that you're comfortable with.

Reasons behind taking a bad credit home equity loan vary greatly. Currently,
homeowners are opting to take their home's equity and then reinvest it in
their home through updating and remodeling. Or, maybe someone is able to pay
off a sizeable amount of credit card or school loan debt with a home equity
loan. Not only will it be a relief to pay off all your other creditors, your
interest rate will go no where but up!

If you're looking at loans for people with bad credit and own a home, a bad
credit home equity loan is a good option. Interest rates will be lower than
for any other loan you could get and it's relatively easy for a homeowner
with any credit rating to get one of these loans. Regardless of your
reasoning behind getting a bad credit home equity loan, be careful as to
whom you choose as your lender. Read the fine print and plan a strategy to
increase your credit score with the equity loan.
Your financial security will increase and your credit score will thank you.

Copyright
http://finance.brand-blog.com/
http://loanroad.co.uk/

About The Author: Finance Blog is a bad credit personal loan blog, who help
loan seeker find the best personal loan rates via his website
http://finance.brand-blog.com/

How To Choose The Gas Credit Card

The use of credit cards is but just an evolution of the ancient merchants'
form of transacting for their various businesses.

It was Edward Bellamy who introduced the concept of the card usage to make
purchases. The words "Credit Card" had been mentioned in his novel "Looking
Backward" eleven times, and in the book's sequel named "Equality" three
times.

During the 1950's, Ralph Schneider and Frank Mcnamara invented the notion of
making payments to merchants using a card. This gave rise to the foundation
and opening of the Diner Club, which is still in existence and operation
today.

This had been followed by the opening of Carte Blanche, American Express,
and Bank of America's introduction of the Visa Card.

It continuously evolved until it reached its recent form of using the
plastic card that is most commonly known as the Credit Card.

The use of credit cards has its own pros and cons.

Below are some of the advantages:

1. Minimizes risk of loosing cash.

The consumers need only to bring and present the plastic card to make
transactions or purchases.

2. Convenience

Purchases that immediately needs to be made may be possible with the use of
credit cards even if the individual is low in cash since all that would be
looked at is the credit limit available.

Some of the disadvantages are:

1. This could result to accumulation of debt if the main and interest
charges are not settled until its due dates.

2. It could be very tempting to make purchases that are really not quite
necessary.

It had always been noted that the rampant use of the credit card system had
resulted to the Great Depression of the 1920's.

With the sudden rise of automobiles available for purchase by the consumers
during the said period, there had been an equal increase in the demand for
fuel.

So as not to loose consumers, most fuel companies extended credit to their
consumers to attract more buyers to increase sales.

This gave birth to the introduction and use of Gas Credit Cards.

Gas Credit Cards are somewhat similar with credit cards, but is limited to
the use of purchasing of gasoline.

Cardholders of said cards are usually given rebates in the form of cash back
check or by giving them a credit for their existing balance.

The following are some of the best offers by some gas credit
cards:

1. Awarding of 5% Cashback Bonus upon purchase of gas or 1% for any other
purchase

2. 3-9% rebate on all gas purchases that are made on any gas station during
the first 90 days.

3. Free gas offers when a certain amount had been charged on the card.

4. Gas credit cards that have annual fees usually offer a lower interest
rate for purchases that are charged to it.

A consumer may want to choose these types of cards if they have limited
means to immediately pay the card balance so as to minimize interest
accumulation.

5. Some gas stations offer discounts to consumers using their particular
card

6. As compared to regular credit cards, gas credit cards offer a much lower
interest rate for gas purchases, thus making it a wise decision to have one
of this if the consumer is usually traveling using his or her own vehicle.

Still, it all depends on the consumer to use his or her card wisely for his
or her own benefit.

About The Author: Mario Churchill is a freelance author and has written over
200 articles on various subjects. For more information checkout
http://www.supercreditcardoffers.com and
http://credit-card-offersonline.info.

Truths Exposed - Things You Need To Know About Card Debt Consolidation

A majority of us have yet to hear of as well as be aware of the concept and
practice of card debt consolidation. In fact I hadn't thought of it on my
own and wasn't aware of it until one of my friends and I were discussing
money and she expressed an interest in this action called credit card debt
consolidation.
After I showed surprise and intrigue, she explained that one merges all
balances on all credit cards into one credit card company or institution's
plan. This move means many things:

Firstly, card debt consolidation in short means one can let go of having to
"juggle" the bills, or of having to - as my mother would say - rob Peter to
pay Paul: instead of having, say, six credit card bills (with six different
interest rates, additional fees, etc.), you have just one (with one annual
fee, one interest rate, and one finance and processing charge).

Next, card debt consolidation also means saving time. As with the above
case, which more of us than not know all too well, the filing and figuring
time are reduced significantly. And if one pays online, that time it would
take to write checks, hit the mail box, etc. would shrink to a matter of
about two minutes.

Next, card debt consolidation usually means a major decrease of interest and
other rates generally. In fact I know this one person who has credit cards
with up to 29% interest charges on each card. Then another person who did
the wise card debt consolidation move and now has not only ONE single
interest rate to be concerned with but has that rate down to something like
1%!

And lastly, the card debt consolidation effort does not mean haggling and
hassling and humiliation. To a certain extent, depending on the government
and/or financial institution you choose to go with, the application process
takes approximately five minutes (or less, online, but one needs to be
careful to find a SECURED site and therefore to take a little time to find
out that the offer is legit in the first place).

So, in order to cut your payments down by 50 or 60 percent; cut your time to
almost nothing and shear years off your stress factor and therefore your
aging process.you come out happier, healthier (at least mentally), and
definitely better off financially. Now that I think on the offers for doing
card debt consolidation that I get in the mail, I understand, too, that one
could build up a better line of credit with one financial institution,
having all amounts owed on one card, and having, basically, a higher credit
limit overall.higher than one might have on each individual credit card. Of
course not that the purpose here is to amass more debt, mind you!

About The Author: Thomas B. Stevenson provides readers with up-to-date
commentaries, articles, and reviews for
http://www.financial-information-directory.com,
http://www.first-finance-magazine.com as well as other related information.

Debt And The Risk Of Bankruptcy

If your debt situation has not yet reached a point of no return, credit
counseling and debt management may be the best option for you. There may be
other alternatives to going bankrupt which can also help people in serious
debt to make a fresh start.

How can you avoid bankruptcy. Knowing some important aspects of bankruptcy
can help make your debt burden much easier to manage and can help you avoid
hassles in the near future. You will have to avoid missing records and bad
checks to keep from adding to the bill. If it has even been in the back of
your mind, you should take the steps to avoid bankruptcy.

Hopefully, the new law will come into effect by mid-March.
Although it was a little bit frightening at first, the new bankruptcy law
was not that much of a hassle. The new law requires clients wishing to file
for bankruptcy to undergo a six-month credit counseling. Texas bankruptcy
law for example protects you, as a consumer, from falling into financial
turmoil and is put in a situation where you can be abused by creditors.

Creditors

The moment your petition is filed an automatic stay is in place that means
your creditors listed in the petition must stop their collection procedures
during your bankruptcy proceeding. The United States Bankruptcy Code
provides the debtor an opportunity to pay back their creditors over a period
of time of up to five years. The creditors are required by law to follow
strictly the terms of the repayment plan.

However, as long as you have the funds, you will still be required to pay
all your creditors based on a schedule determined by the bankruptcy court.

Loans

An auto loan after bankruptcy does not mean you have to have a co-signer or
collateral. One option is to get an auto loan through a dealership. If you
need a new automobile, obtaining a new car loan is perfect for rebuilding
credit. Because the loan is secured by the vehicle, most lenders are willing
to give loans to people with a bankruptcy. You can apply for Loan with High
Risk Lenders. In fact, several lenders specialize in offering loan programs
to individuals who have recently filed bankruptcy.

Interest

Financially the person is haunted with higher interest rates, higher down
payments, and outright rejections for many years to come. Compare fees and
interest rates, as well as, repayment options and customer service. Then,
when the high interest rates are added in, people find themselves in a
situation where repayment is often impossible.

They rightly point out that bankruptcy costs the credit card companies
billions of dollars each year and that those costs are passed on to
consumers in the form of higher interest rates.

Lawyers

Be honest with your lawyer and do not withhold any information that is
relevant to your case. Do not be afraid to interview a lawyer and leave
without retaining one if you are not satisfied. When all hope is lost, a new
beginning can be created with the help of a good lawyer specializing in
bankruptcy, by making use of the provision of the Bankruptcy Code. Look for
a certified specialist or a lawyer with significant experience in
bankruptcy. Ask your lawyer questions if you do not understand something.

Trustee

Trustee within 180 days of the date of the filing of a bankruptcy case. Most
people will pass through a bankruptcy case and keep everything they have,
says John Hargrave, a bankruptcy trustee in New Jersey. In a
court-supervised procedure, a court appoints a trustee who liquidates the
non-exempt assets of the debtor's estate and makes distributions to
creditors.
In an orderly, court-supervised procedure, a court appointed trustee
liquidates the non-exempt assets of the debtor's estate and makes
distributions to creditors. Although the debtor files a schedule C form for
property claimed as exempt, the property is not exempt until the trustee
files the property exemption report which actually divides the property as
exempt or non-exempt.

About The Author: Keith George always writes about valuable news & reviews.
A related resource is http://the-bankruptcy-loans.info/ Further information
can be found at http://the-equipment.info/

0% Apr Offers Are Not As Good As They Seem

Credit card companies are getting out of their ways to be ahead of the
competition. A lot of incentives which are truly enticing are being offered.
With this stiff competition going on, better deals are available for
consumers. However, you should still give it careful thought and
consideration before committing to one credit card.

The annual percent rate or APR is the most widely used in credit card
marketing strategies. Essentially, APR determines how much interest a credit
card user needs to pay given a certain principal amount. The lower the APR,
the better the deal is. Some companies may even offer 0% APR which means
that borrowers only need to pay for the amount they actually borrowed.

This is definitely too good to be true. Banks are not charitable
institutions but are for-profit organizations. They would definitely
compensate for loss profits brought about by 0% APR in some other ways.

Usually these ways are hidden behind the fine print. Without reading and
fully understanding every terms and conditions associated with signing up
for a 0% APR credit card, a customer might get into financial trouble. The
law only specifies that all fees and other terms and conditions be posted
for customer's information. It does not require banks to print these in
larger letters.

These 0% APR offers are actually just plain marketing strategies, They don't
last very long - usually only for 90days to about a year. And when that
introductory period is over, high APR charges would start to apply on your
purchases. These would definitely lose you the money you had saved during
the 0% APR period.

Also, when you try to read the fine print, you'll find out that most of
these 0% APR offers may not apply to balance transfers.
That means, in order for you to take advantage of this limited offer, you
would have to make new purchases using your new card. This condition might
be okay for those who are new credit card holders and don't have existing
credit card balances from other banks. However, for most of us who are
looking for ways to minimize the interest rates charged on our credit card
balances, this condition does not sound good especially if we find out all
about it after we have signed up for the card.

Another trick that banks use to make up for the 0% APR is by charging
exorbitant application and annual fees. They might even add transfer rate
charges, and if balances are not paid on time, the 0% APR offer is voided.
Sometimes a penalty APR might apply for these late payments.

A lot of other things can be written on the small print too.
Some application forms may state that the bank may send you another card if
you don't qualify for or if the card you initially applied for is not
available. Usually, these new credit cards won't have the 0% APR offer that
you are interested in.

There are also instances when 0% APR offers are exclusively applicable to
balance transfers. When you have paid enough to pay for the transferred
balance, high APR is charged to new card purchases.

The 0% APR credit card is not as good as it seems. Reading the fine prints
would enable you to avoid the marketing tricks applied. If you know how to
weed out these unfavorable conditions, you would be able to take full
advantage of these 0% APR credit cards.

About The Author: Mario Churchill is a freelance author and has written over
200 articles on various subjects. For more information checkout
http://www.firstglobalcreditcard.com and http://edblogonline.info.

Step Out Of Credit Card Mess - Consolidate Your Debts Today

Credit Card Consolidation: An effective method Of Debt Reduction. You can
adopt various methods to reduce your debts.
Methods such as bankruptcy, debt consolidation, debt settlement, debt
management, debt forgiveness, and debt payoff are all methods which can
bring some debt relief to you. Out of all these methods, debt consolidation
is by far the most popular debt consolidation mechanism for people heaving
under heavy debt. Credit cards bring in the worst form of debt in your life.

Not only do they charge the highest rate of interest, but unlike other
debts, they also fool you into an illusion of financial security. With the
various charges such as late payment fees and other penalties that they
impose on the outstanding amount, your credit card debt can shuttle out of
proportion. In credit card debt consolidation process, your outstanding loan
amount gets pulled together under a single loan. This loan usually comes at
a lower interest rate as compared to the other floating interest rates. To
go in for a credit card debt consolidation loan, you can take a cash advance
from a credit card company that offers a low rate of interest and then
transfer the repayment amount of the credit cards that charge a higher
interest rate on to this card. This way you can redirect your cash flow to
bring down the remaining credit card debt.

Another way to consolidate a credit card debt is by taking up a secured loan
and using this loan to pay back the existing credit card debts. You should
pay off the credit on which you are paying the highest rate of interest,
first. This way you save some valuable money that can help as your buffer
for future needs. Alternatively, you can also use this amount to pay off for
the other existing loans. This is how debt consolidation works. As a
consumer, you must remain careful as a high debt can kill your credit worth
in the financial market. Debt consolidation is a worthy and easy method by
which anybody who is suffering under a massive credit card debt can
streamline his finances and gain a financial foothold back again. Experts
suggest that you by going in for debt consolidation, you streamline your
finances by which you not only eliminate the chaos surrounding intermittent
bills but also gives you a much required breathing space.

Debt consolidation process not only stabilizes your finances but also helps
you by paying off overdue bills and eliminating mental stress
simultaneously. This process converts all your scattered payments into a
single, low-interest bill by condensing all of your high-interest payments
to multiple companies. Debt consolidation is a great choice for people who
are overburdened by heavy credit card bills. This process not only helps you
salvage your credit ratings but also helps build your lost morale by
stabilizing your finances.

About The Author: Jeffrey Walteron publishes largely for
http://www.creditenio.com , a website on the topic of debt consolidate and
bill consolidation. Recording his experience in works (e.g.
http://www.creditenio.com/baddebt.html on bad credit debt consolidation ) he
improved his knowledge in the field.

Holiday Spending Tips - Ten Ways To Keep From Having A Holiday Spending Hangover

Ah the holidays. a time for parties, over eating, and over spending.
Americans routinely overspend during the holidays, often resulting in
increasing credit card debt to go along with that increasing waistline from
too much pumpkin pie.

The holidays are stressful enough. Don't add to that stress by overspending
your holiday budget. Here are ten tips to help you save time, money and
stress this shopping season:

1. Make a list. Decide how much you can afford to spend this year and write
it down. Decide who you want to buy for, and how much you want to spend on
each person. Take this list with you when you go shopping to ensure that you
don't buy on impulse or exceed your spending limit. Also, don't forget to
include wrapping paper, decorations and shipping costs. These can add up
fast!

2. Pay cash for your holiday gifts. It's much harder to spend cash than
credit, so this tip alone could save you hundreds of dollars this holiday
season. Also, avoid credit card offers or store charge card offers that
offer you a discount if you sign up. These cards usually have high interest
rates, and could end up costing much more in the long run than the discount
you receive when you sign up for the card.

3. Do your shopping online this year. Buying online could result in
discounts not available in stores. Just remember to include the shipping
cost when buying online. Even if you don't actually buy online, the time you
can save by doing comparison shopping before you go to the malls could be
invaluable.

4. Have a Secret Santa gift exchange, where you put names in a hat and each
person draws one name to purchase for. If you have a large family, this
could mean tremendous savings! You should set a dollar limit so each person
knows how much to spend. That way no one overspends and relatives with
smaller budgets won't feel bad about not spending a fortune on a gift.

5. Another alternative for those with large families is to do a group gift.
Have several relatives go in on one big gift instead of each person buying a
separate gift. You will probably all save money and you can buy the
recipient one big, cool gift that they really want.

6. Start early! Shopping early allows you to comparison shop and to catch
pre-holiday sales, which could mean huge savings.
This also curbs impulse shopping, which can be very expensive.
Another benefit to shopping early is lower shipping costs if you need to
mail a gift. Waiting til the last minute can be expensive because you're
more likely to pay full price for the gift, and you may have to pay extra to
ship it if you want to guarantee it arrives in time.

7. Make your holiday gifts. If you have creative talents, such as cooking,
crafts, etc., making your own gifts can be very special. If you're not very
creative, consider giving your time. Offers to baby-sit or to do something
special for someone can be very personal and appreciated gifts. How many
parents do you know who wouldn't love to have free babysitting?

8. Purchase wrapping paper, holiday cards and other decorations right after
the holidays. Seasonal items are usually offered at deep discounts after the
holiday, and they never go out of style. Stock up on clearance-priced items
for next year, this year!

9. If you'll be traveling this holiday season, book your travel plans early.
Airline flights, train tickets and bus tickets usually go up significantly
during the holidays, so booking your travel plans early can save you money
and stress.

10. Start a Christmas fund in January for next year's shopping.
Many credit unions and banks offer special accounts just for this purpose. A
CD is another great way to save for next year's holiday expenses. It never
hurts to sock away a little money every month between now and the next
holiday season. You'll earn a little interest and you'll have cash to spend
on your holiday gifts and other expenses when the holidays roll around.

About The Author: Kristine A McKinley, CPA, and Certified Financial
PlannerR, offers fee-only financial planning. Learn how improving your
credit score can save you money with our free ecourse Boost Your Credit
Score in Five Easy Steps.
http://beacon-advisor.com/e-course.asp

Understanding The Basic Concepts Of Debt

Remember: Running away from your creditors is not the answer.
It is not a solution, and may in fact lead you to bigger problems. If you
are having trouble paying off your debts, address this immediately with your
creditors.

By accelerating the payment structure on your loan, the life of the loan is
reduced:

In a normal 30 year fixed rate loan situation, your monthly payment is
applied towards principle and interest. It is amortized over the course of
30 years.

In national accounting debts are added according to those who are indebted.
Household debt is the debt held by households.
"National" or Public debt is the debt held by the various governmental
institutions (federal government, states, cities ...). Business debt is the
debt held by businesses.

For many Americans debt is an overwhelming problem, a stressor that can
quickly take hold of one's life. When there are bills attached to house,
boat, automobiles, college tuition, and daycare, it's not hard to imagine
that many folks can quickly be swept under the current of spending which can
unexpectedly whirl into deep debt.

Understanding the basic concepts of debt

Reduce debts today for a better life! Budgeting is an important aspect of
living and a person who knows how to budget will go a long way in this
commercialized society. Budgeting has a lot to do with keeping the expenses
less than the total income of the household. Those who are very good at
budgeting can even come up with savings even if they have meager incomes.
The problem sets in when a person fails to make an efficient financial plan
and his expenses exceeds his earnings. When this happens, a person has no
choice but to borrow money to make up for his financial deficiencies.
Borrowing once or twice because of a mismanaged financial plan is normal but
when borrowing becomes a regular thing then that can put a person in serious
debt problems.

A person who borrows money from another is said to be in debt.
The debts of a person can be minimal or it can reach up to millions
depending on the credit limits of such person.
Sometimes, a person who has assets but isn't liquid can use these assets to
get cash. Under this term, the person can be indebted for an amount mess or
more than his assets.

There are laws which provide that a person can never be forced to render
services as payment for his debts. This is already called undue servitude
which is prohibited by the laws of some countries. However, there are
situations when the person who is in debt opts to settle his obligation by
rendering his services.
This can happen if a person is so talented in his craft like painting and he
opts to pay for his debts by creating a painting of the creditor or the
assignee of the creditor.
Sometimes, a person can pay his debts gradually or on an installment basis.

When a person dies, the law has provided for a hierarchy of preferences in
the payment of such debts. Of course, payment of taxes to the government
will always come first. The second priority for debt payments includes
funeral expenses of the deceased and the payment for the wages of people.

Most creditors want the money and will extend your time to repay the debt,
since they do not want to go through the hassle that comes along with
reporting you. Most creditors want their clients to return and believe that
if they give you a chance you will repay your debt and open a new account.
All of the debt that an individuals owes appears on a credit report.
Credit repots are used by financial institutions when a loan has been
requested.

The UK attitude toward debt has received a major shift over the past few
years. Where once the UK was seen as a nation that held up thrift as being
virtue and considered debt a vice, it has now changed to owing £1.3 trillion
on mortgages, credit cards and other loans. Find out how long it will take
to become debt free and how much you'll pay in interest by making the
minimum monthly payments.

There are a number of different types of debt consolidation
loans: home equity loan, line of credit, or second mortgage.
Debt is really just a simple concept which provides that a person who
borrowed something from another is duty bound to pay that debt. However, the
concept of debt becomes more complicated with the introduction of other
concepts like mortgage, interest rates and other charges. Interest makes
most debts double or even triple in amount. More often, the interest rates
due for a certain debt is even higher than the principal amount borrowed.

A person who wants to get credit can do so in the form of a loan. A loan can
either be secured to unsecured. A secured loan means the debtor borrowed
some money and supported by collateral or a security for the loan. The
security or collateral can come in the form of a house and lot, a car or any
asset of the debtor. An unsecured loan means otherwise.

Most creditors require a security before granting a loan because it gives
them something to hold on to or to forfeit in case the debtor defaults in
payment. When the debtor fails to pay the debt within the agreed timeframe
then the creditor can foreclose the security or the collateral. However,
having an unsecured loan doesn't mean that the debtor can renege on his
debts. When the debtor fails to pay his loans, the creditor can still run
after him by filing a case in court. When this happens, the debtor who has
no cash can sell some of his assets to pay for his outstanding loan.

Being in debt is common even for the rich and the famous, the only
difference between them and the common people is that their debts can be in
the millions since they have more assets to support their loan. Unsecured
loans most often have higher interest rates to make up for the lack of
security. Even third world countries are indebted to more developed
countries.
However, the debts of a country can go on forever because they keep on
paying their loan but they also get new credits as their credit ratings go
up.

It may be more convenient to make one payment rather than several. Or you
can improve your cash flow in the short term by reducing monthly outgoings.
But this may cost you more over time because you are paying the debt off
over a longer period of time.

Interest rates for credit card debt consolidation loans through traditional
lenders may be based on your credit score. If high, you are likely to get a
credit card debt consolidation loan at a lower interest rate.

The prospects of managing financial obligations have just gotten worse, as
Congress has passed legislation that will make bankruptcy filings more
difficult than ever.

Debt Elimination tips shows how Millions of Americans are living on the edge
of financial disaster surviving only on the hope of next week's paycheck.
The average American is dying under a load of debt, with little or nothing
building in the bank or in investments.

About The Author: Learn ways to reduce your debts today at
http://www.reduce-debt.info

Credit Card Consolidation Does It Work?

Having too much too much on your plate, too much to do or too many
commitments always keeps you involved and it is obvious that it may lead you
to a situation that is unmanageable, tiring and out of control. Further
leading to loose your focus and making you inefficient in everything you are
doing.

If you are carrying so many credit cards then it is a sure sign of danger
you will face in the future. Market research tells that a standard person is
having approx seven credit cards and he makes use all of the cards
frequently and blindly. Therefore this can be unmanageable for you.

Take an example; if you make use of all the credit card too frequently, it
will become very difficult for you to keep record of all the expenditure
done by you by using each one of those cards. You should know how frequently
you use each card their rate of interest and the annual fee, if any, that is
being paid by you.

There is a famous phrase in English, "it's never too late" but you may soon
realize that now it is actually too late. Reason, some people are careless
and don't think of keeping a record of all their credit cards, their
expenditure and variable interest rate if any one is used. And all of a
sudden they come to know that they are into a significant debt. After some
time such people are being surprised with serious debt issues, without
warning.

It's a truth that we all know and agree that credit cards are the most
precious and valuable devices that helps us in urgent situations. Though,
you should be a little careful while using your credit card and should know
the chances of getting into trouble (debt problem).

When you go under a significant debt in credit cards, this issue can be
resolved by paying it all off. Credit card consolidation is one of the
solutions to your problem.
Consolidation means accumulating all the debts into one single credit card
with a low rate of interest.

You can get more benefits when you consolidate all the cards and pay off all
of your credit card liabilities. From the time when you start paying off
your credit card debt with a single card, you can without any trouble make a
record of your payment bills. This way of payment will definitely diminish
your confusion that comes along with multiple bills.

Before initiating consolidation of credit cards debts you should check the
rate of interest and compare. If the interest rates are exactly the same
then there is no need to consolidate credit cards debts. If you are able to
find a credit card with lower rate of interest then accumulate your all
other credit card debts into this.

About The Author: When your in debt troble you need to turn to the
professionals for the right advise.That's why we've setup a credit card blog
so you can read more about credit card consolidation and credit card debts.
Visit http://www.OnlineCreditCardApprovalSites.com for more card
information.

Credit Repair: Repair Bad Credit Card Debt Yourself

Credit repair and eliminating your credit card debt does not mean that you
have to hire an expensive credit repair service.
In fact, if you want to fix your credit you can do it yourself for free. I
cannot promise that it will be easy but despite the glib promises made by
professional services those are not easy either.

Do not sign a contract committing yourself to an expensive credit repair
service. Do not buy any books or software to help you fix your credit.
Instead focus on three simple and free steps to rid yourself of bad credit.

First, go the root of the matter. Run your credit reports, every consumer
gets a free credit report from the three major reporting agencies every
year. Plus if you have had a credit application denied recently you can ask
for a report at that time. You do not need to pay for your credit report or
join a program to get access to it. This will give you a good picture of
your credit situation but you should also collect the recent statements from
each of your creditors. Not only will these give you valuable contact
information for the next two steps but it usually offers the most up-to-date
information regarding your payments, balance, and interest rates.

Once you have summarized your situation it is time to move on to step two
which is simple -- empty your wallet of credit cards. Cut them up and throw
them out, but then you need to take another important step. Close those
accounts and do not sign up for any more cards until your credit is once
more good.
If you continue to add to your debt then you will not solve your problems.

The final step to repair your bad credit and eliminate your credit card debt
will take the longest and involve the most hard work and stress. Now you
will need to make a plan of action. The first step is to stop making any
payments on your credit cards. Now, set aside the money you would use to
make those payments for a few months. When the credit card companies start
calling about your delinquent payments be polite but be clear that you
cannot pay the bill at this time although you are working on a plan to clear
your debts. Tell them not to call again until next month. Minimum payments
will never clear your debt and it is best to consolidate the money until it
matches a sum that will be able to do you the most good. Once you have
enough money to pay about one-third of one of your bills (assuming a few
months have passed) then call the company and offer your one-third payment.
Some companies might jump at that settlement and others may negotiate for a
while. It is very likely that through standing firm, consolidating your
payments, and waiting them out that most of your creditors will settle for
half or less (on average).

You can do your own credit repair and eliminate your credit card debt
without outside help with these three simple steps.
Simply summarize your situation, empty your wallet, and work the phones. You
can do it.

About The Author: Deanna Mascle shares more advice in her blog Credit Repair
at http://answersaboutcredit.com where you can also download the free ebook
What To Do When Your Credit Goes Bad at
http://answersaboutcredit.com/?page_id=51

Investment Property Is Good Debt

There is a lot of buzz on the web about Good Debt vs Bad Debt.
The fact is, most of the baby boomers learned money matters from parents who
grew up during the Great Depression. Since that time, many things have
changed such as the Federal Reserve Board, insurance for deposits, checks
and balances on banking procedures and since the 80s, checks and balances on
Savings and Loans businesses.

If you talk to a banker, you will hear one side, if you talk to a real
estate investor, you will hear another side. The point is to gather all the
facts so that you can then make a wise decision concerning going into
greater debt in order to have greater returns.

The old adage is true, 'You must spend money to make money', or consider
this one, 'Spend a dime to make a dollar.' No one ever made money by
stuffing the mattress with dollars.

Most families spend anywhere between 20% and 36% of their gross household
income on mortgage and credit cards. The average U.S.
Household has at least one credit card with an average balance of $9,200,
according to CardWeb.com. This is when it is necessary to put that pencil to
paper and budget your income.
It is crucial not to spend more than you can afford to spend.
Unless.

Bad Debt: is incurred on things you can't afford and that you don't need
such as that high interest rate on your credit card that is maxed out. If
you buy something that has no potential to increase in value, or goes down
in value-furniture or appliances-that is bad debt.

Good Debt: can be described as that debt which occurs when you purchase
something you must have but do not have the cash to acquire it. Your home is
an excellent example of this. College is another example. The problem arises
when your loan payments exceed your income, or more than you can comfortably
afford to pay back.

Now consider this for a moment.

Good debt can also be when it is tax-deductible. If you could take out a
mortgage that was more than you could afford to pay back, it would seem to
be financial suicide. Except. if you take out this mortgage and the property
gives you a positive return on your dollar. It means that it pays you more
than what you are spending on the mortgage and other maintenance expenses.
That means your money is working for you, and describes positive cash flow:
an example of very good debt.

Investment properties have GREAT TAX BENEFITS. So, the decision to incur
more debt for investment properties should be discussed with your tax
advisor and real estate professionals.

About The Author: Investment Property Specialist - Alex Anderson Connects
Real Estate Investors With High-Quality Investment Properties. Get A Free
Copy Of, "The Investor's Rental Guide" at:
http://www.GreatInvestmentProperty.com

Short Term Cash Advance Payday Loans

Sometimes it seems there's just no way out. Maybe your car breaks down, you
have an unexpected medical expense, or you just find your self coming up
short when you're shopping to put a smile on your kid's face for the
holidays. All of us have felt strapped financially at times, and the choices
we have are accruing more credit card debt, borrowing from friends or
family, or trying to get an advance from your boss.

In the past decade our communities have seen little money mart stores
popping up all over the place, fulfilling a need that many of us have when
we're strapped for cash. If you have a job and are just a little short of
cash, you might want to consider taking out a Payday Loan. Now you can get a
cash advance payday loan on the Internet approved with no credit check in as
little as 30 seconds, and they will deposit up to $1,500 electronically into
your bank account within 24 hours.

Payday loans, sometimes called cash advance or paycheck loans, fulfill a
real need for people that are forced to live paycheck to paycheck, have
little or no credit, or just need some extra cash for the holidays. Just be
sure you can pay the loan back and as quickly as possible - payday loans are
not cheap!

A short term cash advance payday loan online will charge you anywhere from
$15 to $30 for every $100 borrowed. When looked at as an annual percentage
rate this is huge, but the idea here is to pay the loan off, or at least
down very quickly. Therefore it is probably best to look at the charge as a
fee, or service charge.

Payday loans are not without controversy. Critics of the industry say that
the brick and mortar lenders tend to set up shops around poorer
neighborhoods and close to military bases, where people are often strapped
for cash and don't really understand the relationship between time, money,
and recurring payments. Some compare the lenders to loan sharks because of
exorberant interest rates that can reach in excess of 250% when annualized.
Most states have usury laws that put a cap on what an institution can charge
for a loan, but lenders can easily bypass that by funding the loan through a
bank that is chartered in a state that has no such law.

On the other hand, payday loans are not the only ones whose fees seem
excessive when annualized. A bounced check or a late credit card payment can
easily cost just as much or more. Think if you bounced a $100 check every
month for a year. With an NSF fee of $48, that would come out to a whopping
1,250 annual percentage rate.

The bottom line is that a payday loan can be a good thing if you're in a
bind, and are sure you will have the capability to pay it off quickly. If
you think you would have to pay it off slowly, you would be better off using
a credit card and making the minimum payment, if that is an option.

About The Author: Michael Talbert is an author that writes on a variety of
topics. Visit The Loan Station at http://www.Loan-Station.net for more
information.