Credit Cards - A Quick Guide

A credit card is a piece of plastic card that gives the bearer access to a
specified amount of credit from a financial institution. This piece of
plastic is, in the right hands, a great financial tool, which is also
flexible and convenient.
The credit card is a handy thing to have especially in these times of
internet and phone shopping. The many benefits of a credit card include the
ability to make your life easier and to open up a world of possibilities.

The first thing you should look at in choosing a credit card is thinking
about how you are going to use it. If you usually pay cash for everything
and don't buy anything unless you have the cash in the bank then do you need
a credit card at all? My advice would be to stay as you are, and do without
one. One good side benefit of getting your first credit card is that it is a
good way to establish your credit score, if you keep to the monthly
payments.

Before you decide which credit card is the best one for you, you must have a
look at what your personal requirements are. A credit card differs from a
debit card in that it does not take money from the holders account after
each transaction. If the type of credit card you have is secured, this means
you have to have enough money in your bank account to secure the credit. A
secured credit card is normally available after bankruptcy at a better rate
than an unsecured card.

You must be awake to the fact that owning a credit card is a serious
responsibility and. unfortunately can be a quick way to get yourself into a
lot of long-lasting debt. The problem I have with credit cards is that the
companies will keep offering you a higher limit, thus enticing you into ever
more debt. Don't forget that a credit card is just a loan, and so interest
is applied to any money in the loan you don't pay back within the allotted
time.

If your credit card is ever lost or stolen, make sure you notify the credit
card issuer immediately. A lot of us justify having a credit card for things
like emergencies, but emergencies don't very often happen when you are out
on a shopping spree. If you decide that a credit card is an absolute
necessity for you, please make sure you shop around for the card with the
best deal, like a low interest rate and no annual fee.
You know it makes sense.

About The Author: James Hunaban is the owner of
http://credit-cards.jims-info.com/ and http://www.credit-cards-aplenty.com/
sites dedicated to Credit Card information.

Using A Loan To Achieve Credit Consolidation

There are several options when it comes to managing personal debt when an
individual realizes that he or she is overextended in terms of credit. One
such option is taking out a debt consolidation loan. This is one of several
types of debt loans that allows a debtor to put all outstanding bills
stemming from unsecured loans into a single amount with a lower interest
rate than could be expected from the individual creditors.

There are several benefits in using this type of loan for credit
consolidation. First of all, it is much easier to keep track of payments
both when they must take place and who they must be paid to if they are all
under the same financial umbrella. The debtor stands to save a lot of money
in the long run as well, since the interest that is appicable on the
individual loans is greatly reduced by using consumer debt consolidation.
Paying off the creditors will also mean that you will be able to put off the
collecting agencies that may be hounding you and use the head space and time
gained to come up with some different strategies in order to pay the money
off.
This type of loan is also benefical to the lenders, as they are assured of
receiving their money back, although it is paid at a much lower interest
rate.

If an individual has a bad credit rating, he or she will probably still be
eligible for a consolidation loan. The companies which specialize in debt
consolidation will also be able to help debtors with credit repair,
including encouragement to assist the debotr to get their financial house
back in order.

Some people may make the debt consolidation loan sound like an easy way to
get out from under debt, but in fact it is not.
While these loans will reduce the rate of interest that a debtor will pay,
it also increases the length of time that money is owed. If a debtor is not
very careful in selecting a pay back period, they might find that there were
no savings at all with this option. People who use this method should also
bear in mind that loans are secured on tangible assets, such as property.
Therefore, agreeing to a loan will mean that a default will put your assets
at risk of liquidation.

The statistics when it comes to American debt are astounding.
Studies have proved that the average American household holds at least 13
credit cards between family members, with $5800 or more owing on these cards
and on other debts. With the constraints imposed by the need to pay off this
debt, it is hard for the average family to enjoy their lives.

In order to combat their debt and get back to the point where they can save
money and enjoy life again, many Americans are looking into debt
consolidation programs. These programs can be free or paid, through a
financial institution such as a bank or online. Once the debtor makes a
decision on the company he or she is going to use, he is enrolled in a a
program with a counselor or financial analyst to help set up a framework to
help alleviate financial woes. This program will involve working with
creditors to lower interest rates and monthly payments, and setting the
payment schedule and amount that the debtor will be paying towards the debt.

About The Author: Charles Parson is publishing predominantly for
http://www.creditenio.com , a web page covering information on credit
consolidation and debt loans. You might discover his articles over at
http://www.creditenio.com/debtconsolidation.html and different sources for
consumer debt consolidation knowledge.

A Fixed Rate Home Equity Line Of Credit

If you are looking to get a home equity line of credit, a fixed rate is
probably a good idea. This is because when you have a fixed rate, it is not
subject to the whims of rising interest rates. Additionally, a home equity
line of credit can be a good idea anyway, since you have the ability to get
money as you need it, rather than worrying about whether or not you have
borrowed an appropriate amount with a lump sum regular home equity loan.

What is a home equity line of credit?

A home equity line of credit is one that works a lot like a credit card. The
account is a revolving account, meaning that as you pay it down, you can
borrow more. Just like a credit card, you have a specific limit. However,
the limit on a home equity line of credit is based upon the amount of equity
that you have in your home. You can borrow up to a certain amount, and as
you pay it back, as long as the line of credit is still open, you can borrow
more.

The advantages of a fixed rate loan

One of the biggest advantages of a fixed rate loan is the fact that the
interest rate is fixed. This means that the rate does not change, no matter
how interest rates are rising or falling.
While it is possible the interest rates will fall during the time of your
loan, if you get a low fixed rate, they are not likely to get much below,
and far more likely to rise quite a bit above your original rate. If you
have a variable rate, this can mean paying thousands of dollars more over
the life of your loan.

Advantages of a fixed rate home equity line of credit

When it comes to getting a home equity line of credit, it is advantageous to
get a fixed rate if you can. This is because you can combine the advantages
of having ready access to your home's equity with an interest rate that will
stay steady. You will have the ability to borrow what you need, when you
need it, without worrying about having to reapply for a new loan each time,
and without having to worry about varying interest rates.

About The Author: Visit http://www.homeequitywise.com for more information
on the pros and cons of a Fixed Rate HELOC.

Personal Debt - A Quick Guide

The growing level of personal debt is fast becoming a serious social
problem, or so the experts are saying. The causes of such debt are manifold
and can be caused by various difficult life circumstances. For most people,
being in debt of some sort is just a way of life. But it is possible to
become clear of debt; and a good way to start is by learning how to manage
on whatever income you have.

If you do happen to be in debt, the two best types of debt to have are home
equity loans and mortgages. The usual options for those who have large
amounts of debt are either debt consolidation or to think about going
bankrupt. Bankruptcy is very often the result of medical problems, losing a
job, or sometimes a marriage breakdown, which results in the accumulation of
debt. About 20% of folk in debt are being treated for depression and similar
ailments from their doctor, which shows what a stressful experience it can
be.

Be on your guard, there are many companies out there who promise a quick fix
to all your financial problems. But be very careful, some of them may charge
high fees and fail to deliver on their promises. With a lot of personal debt
problems, the hardest part can be admitting to the fact that you actually
have a problem. To avoid running into problems in the first place, try to
educate yourself as much as possible about debt and the damage it can wreak
on your financial health.

A recent report has stated that American credit card debt is estimated to
stand at around $785 billion, which averages out at about $7500 for each
household. Another recent survey of 1500 consumers carried out by another
company, said 71% of people asked said debt is causing them some level of
distress.

To summarize: My advice would be to try and start making some improvements
right away, although you must realize that setting yourself free from debt
might not turn out to be a quick or necessarily easy process.

About The Author: James Hunaban is the owner of http://debt.jims-info.com/
and http://www.debt-advice-online.net/ sites dedicated to Debt advice.

Money Makeover

You come home after a long day at work only to find numerous unwanted bills
in your mailbox. As you sift though them, you start to get that sinking
feeling. You know there is no way you can afford to pay all of them on time.
It's at this time that you remember that you have a vacation coming up and
you want to make the most of it. What you really need now is a money
makeover and this is how you do it.

No makeover is ever complete without a before picture. Take a financial
snapshot, sometimes called a net worth statement.
Imagine you are going to sell everything you own and you are taking that
money to pay off all your debts and normal monthly expenses like rent, cable
and telephone bills. Then count what is left, if you didn't know what net
worth meant before, you sure will now.

The next step to take is to make a plan. You need to write down all the
steps you need to take to achieve a goal. You're finances should be
reasonable, specific, and realistic. There should be a time frame for all
your goals so that you know that you can handle all those payments that need
to be made.

This step is going to be the most difficult. You really have to stop
spending! That means most if not all those luxuries must end, the manicure
or pedicure, the monthly hair cut, the shopping every payday, that all has
to stop. You are never going to get financially caught up if you just keep
spending!

If and when you do spend, which should only be for necessities at this point
like groceries, keep track of what you spend.
Write down everything, this will give you a good visual like a monetary
blueprint. You might even be able to find ways to cut corners and save.

And that is ultimately what everyone needs to do. We all need to save, it
never occurs to people that an emergency can come up and you will need extra
money to cover them. Let's say you need to go to the doctor and it turns out
you need surgery. You need to be able to cover the costs that your insurance
coverage does not and you need to be able to survive for those days you are
recovering and not working. What happens when you get into a car accident
even though it's not your fault? You should have money on reserve so that
you are not digging yourself a hole you may not be able to get out of. Using
credit cards that you cannot afford to pay off in full at the end of the
month is only delaying the problems.

One way to save is to downsize. If you are struggling with your mortgage
move into a smaller home or an apartment. You could try renting out a room.
Sell what you don't use, unless it's a family heirloom. I know you probably
have a desk, table, or even computer around the house that doesn't get used
at all.
You might have baby clothes that don't fit anymore. You can use websites
like http://ebay.com or http://i-soldit.com or you can go the more
traditional route and have a yard/garage sale. It will be successful and you
will have extra cash in your pocket.
Along the lines of selling, if you have two cars, get rid of the one you use
the least. When you do you will have what seems like a fortune because you
don't have to spend your hard earned money on the car payments, insurance,
registration, and gas.

About The Author: "Your" Money Matters By Carl Hampton From the Author of
"From Credit Despair To Credit Millionaire"
http://www.CarlHampton.com http://www.fcdtcm.com

What Are The Benefits Of A Cash Advance Loan?

Cash advance or payday loans are one of the quickest ways to get hold of
money when you are short of funds. They are predominantly used to cover your
expenses until your next payday, when you pay back the loan in full. If you
find yourself short at the end of the month and need cash fast, then you
should look at getting a cash advance loan. Here are some tips about the
benefits of a cash advance loan.

What is a cash advance loan?

A cash advance loan is a short-term loan that is meant for people who need
cash quickly due to a temporary shortage of funds. Usually, you can get hold
of a cash advance or pay day loan within a few hours of applying. You are
simply required to be in regular employment and fill out a few bank details.
You can borrow anything up to about £500 depending on your needs and job
circumstances.

No credit checks

One of the major advantages of cash advance loans is that no credit checks
are required for you to get hold of the loan. All you have to do is provide
details of your employer and you can get hold of the loan. This makes the
application process extremely fast and helps you to get the money when you
need it most.

Great for emergencies

If you have trouble getting hold of other loans or credit cards and have an
emergency situation that requires money, there might not be time to find the
funds elsewhere. A cash advance loan gives you the opportunity to get hold
of the money you need quickly and at a relatively low cost.

Costs of cash advance loans

Although cash advance loans are relatively cheap if you pay back the loan
quickly, you are still paying for the convenience of being able to get money
quickly with very little checks. This means that you will pay a percentage
of the amount you borrow as a fee, usually around 10%. If you pay back the
loan when you next get paid at the end of the month, then this will be all
you have to pay. However, if you can’t pay this back, then you will be
charged again and again until you do. This could mean that in just 6 weeks
you will have been charged £90 on a loan of just £300. This can lead you to
get into a vicious circle where each month you have to get a cash advance
loan just to stay afloat.

What are the alternatives?

The alternatives to cash advance loans are limited, especially if you don’t
have a credit card or a family member who can lend you the money. Although
they can be expensive, if you use cash advance loans wisely for emergency
situations and special circumstances, you will find them a great way to get
hold of much needed cash at short notice without the usual credit checks and
long approval processes.

About The Author: Peter Kenny is a writer for The Thrifty Scot, please visit
us at http://www.loanwize.co.uk and http://www.thriftyscot.co.uk/Loans/

Payments Are Lowered When You Choose To Consolidate Debt

There are lots of ways to reduce the way in which an individual pays their
debt. Some of these methods include debt management, declaring bankruptcy,
bill consolidation, debt forgiveness, debt payoff, and debt settlement.
Individuals who are trying to reduce their debt burden will need to consider
their options in light of their situation; for many, bad credit debt
consolidation will be the best choice.

Most people in debt find themselves there due to poor planning in terms of
spending on credit cards. Credit card companies make their money through the
interest rates they charge on purchases; these rates are often quite high
and when the consumer finds himself unable to make a payment the interest
charges, late payment fees and pother penalties which are injured add up so
quickly that soon an individual will find themselves in a credit quagmire.
This scenario is an ideal time to make the decision to debt consolidate.

The basic premise behind credit card debt consolidation is simple. An
individual takes all of the balances owing on the various credit cards held
and transfers them to one lender, with the idea that the interest rates paid
will be lower than the amount charged by all the previous bills combined.
One way to accomplish this is to take an advance on the introductory rates
offered by another credit card which generally include a much lower interest
rate and paying the money back using that formula. Beware, though; once the
introductory rate has expired, your interest rates may again soar.

Another way to consolidate credit bills is to take out a secured loan. These
loans are procured by putting up a secure asset such as a house or property
against the amount of the loan. Once the loan is gained, the borrower can
pay off the higher debt owed to the credit card companies and begin saving
money by paying the lower interest rate of the loan. The money saved can be
used to make bigger payments, which will also serve to reduce the money that
is paid.

Remember that bad credit reflects very poorly on an individuals ability to
get ahead in life, and sometimes even to maintain a standard of living. It
is important to repair any black marks on your credit record as quickly as
possible.

In addition to debt consolidation, people who find themselves in need of
credit repair may want to consider the services offered by companies who
offer consolidation loans. These services will help to gain some more peace
of mind for the individual as the collection agencies cease calling about
outstanding amounts and there is a little more money left over after the
debt payment has been made. Gaining the consolidation will also put an
individual in contact with a financial expert who can assist in finding ways
to overcome bad spending habits.
Remember that although debt and bill consolidation is an easy and usually
safe way to regain peace of mind, it is up to the individual to make sure
that they do not repeat the mistakes that necessitated the proceedings in
the first place.

About The Author: Barry Brokhard is writing at large for
http://www.creditenio.com , an online site on debt consolidate and bill
consolidation. His articles on bad credit debt consolidation can be
encountered on http://www.creditenio.com/baddebt.html as well as other web
sites.

How Do The Reward Travel Credit Cards Work For Your Benefit?

You must have heard at least once about reward travel points and benefits
either on a television commercial or, if you are a frequent traveler
yourself, from your travel agent or airline personal.

How Do Reward Travel Programs Work?

Reward travel is like an incentive or, better said, a reward given to you by
the airline because you gave them your business and choose their airline to
fly to your destination of choice.
Most airlines will issue a frequent flyer a card, which looks similar to a
credit card and through which you can add points every time you fly with
that particular airline or the one they are partners with.

Travel points are usually calculated by the amount of miles you covered in
one flight and are added to your account accordingly.
Another way to gather reward travel points is through your credit card, as
sometimes the same incentives are applied by your bank or Credit Card
Company as well.

What Can You Get From Your Accumulated Reward Travel Points

Once you have accumulated a considerable number of points, you can use them
to either purchase duty free items, hotel reservations, car rentals and so
on; the list is endless, especially if the reward travel points are
accredited to you by your bank and not the airline, as they usually have
many more partners affiliated in this program at any one time.

With the accumulated points on an airline frequent flyer card you can
usually get flight upgrades, which are a blessing if you have a long flight
and are looking forward to relaxing and maybe get a little sleep as well;
also, you may be allowed heavier bags than normal without having to pay for
the extra weight.

Sometimes, airlines offer free flight for their frequent flyers with an
upgraded membership with them; it does not happen often but it does happen
and when it does it could very well be you if you start collecting your
reward travel points from today.

Conclusion

You can accumulate reward travel points if you travel for business or
pleasure and, thus, have the opportunity to shop, stay in a hotel or even
fly for free from time to time, depending on the amount of points you
gathered and/or the available programs from the airline.

You can start today as the membership and card are free. The only thing you
have to remember is to always travel with the airlines that are included in
the reward travel program and thus keep accumulating reward points.

About The Author: Darlene Berkel, of
http://www.every1loves2travel.com, writes on a variety of travel related
subjects.

Use Your Credit Card Sensibly

A credit card is a wise option if you wish to make frequent purchases and
keep a track of your expenses. The facilities could even be used to postpone
payments on certain articles, thereby earning more interest on your money.
It enables you to shop without carrying large amounts of money, thus
eliminating the risk of theft. However, the credit limit on the card should
be used sensibly, to avoid a bad credit rating.

Ways to use your credit card wisely:

Listed below are some tips on how to manage your credit card
sensibly:

Select the right credit card: It is essential to choose a credit card that
meets your specific requirement and adds significant value to your monetary
assets. You need to shop around and compare cards, before selecting one that
offers the best rewards at low interest rates.

Don't buy if you can't afford: Credit cards make provision for you to 'buy
now and pay later'. However, you should buy only those articles with the
credit card that you are sure to afford paying back, within the time limit
allotted. You should be aware that most credit cards charge an additional
fee and a relatively higher rate of interest on late payments. You need to
carefully analyze the pros and cons of the offers, to increase your credit
card limit.

Avoid paying extra fees: Banks charge an annual fee on credit cards and so
the use of fewer cards would mean less annual charges and minimized interest
rates. Before opting for a credit card, you need to compare the benefits
offered with the fees charged by the credit card company.

Pay on time: It is important to make a regular monthly payment, without
crossing the credit limit. You ought to try and pay more than the minimum
amount. The faster you pay, the quicker you minimize your debt on the credit
card account. This helps to avoid the extra fees charged and the high
interest rates applicable.

Manage debt wisely: It is important to manage your debts in a responsible
manner. It would be beneficial to discuss your financial issues, if any,
with the company and bank. You could adopt a payment schedule to help manage
and curb your credit card debt.

Don't use a credit card for long-term borrowing: Funding long-term borrowing
through a credit card is not advisable.
This would only increase the rate of interest on your credit card account.

Utilize the interest- free period: Most credit cards offer an interest-free
period. The period could be anything between forty-four to fifty-five days.
You are promised additional interest-free days if you make purchases at the
beginning of the month. A comparatively lesser number of interest-free days
are offered on purchases made at the end of the month. You are expected to
pay the entire credit card closing balance within the time limit specified,
if you wish to avoid paying interest on your expenses during the
interest-free days.

Credit cards are a great help to those who wish to avoid paying by cash.
However, you need to make use of the facilities offered judiciously.

About The Author: Joseph Kenny writes for the UK personal finance sites
http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk

Loans And Credit Cards. Bankruptcy On The Up

New figures have been released showing that in 2005, 67,800 people were
declared bankrupt. In the second quarter of 2006 alone, around 26,000 people
became insolvent in England and Wales, a rise of 66% on last year. The way
it’s going, it looks like the number of personal insolvencies in 2006 will
top the 100,000 mark.

So why has bankruptcy become such big business? The main reason is because
so many people live beyond their means. Dubbed the ‘spend it like Beckham
culture’ – getting credit is far easier than it used to be, and many people
take out a mortgage, loans and credit cards – using them to fund a lifestyle
they can’t realistically afford. When they get behind with the repayments,
many people bury their head in the sand rather than face up to their
problems, and finish up by having their home repossessed and by being made
bankrupt.

Some financial experts also think that the rise is partly due to insolvency
becoming an easy option. ‘Bankruptcy’ is no longer a dirty word, and recent
changes in legislation mean that many bankrupts could find themselves
discharged within a year, whereas it used to be two or three years. Also, it
is no longer a requirement for bankrupts to have to sell their homes,
possibly helped by the upturn in the housing market, which has enabled some
bankrupts to be in positive equity despite their inability to pay back their
debts.

The Government’s Insolvency Service stresses that bankruptcy is not an easy
ride, and they would be putting pressure on bankrupts to discharge their
debts. In particular, bankrupts deemed to have ‘recklessly’ gotten into debt
would be pursued for the losses, with the help of Bankruptcy Restriction
Orders (BROs). BROs ensure that bankrupts under the restriction order would
not be able to get credit without disclosing their status, start trading
under a new name, or hold a company directorship, up to a maximum time
period of 15 years. The Insolvency Service estimated that around 10% of
bankrupts would also have a BRO to contend with.

The Liberal Democrats believe that the debt problems in the UK could be
helped if people knew where to look for help when they need it. For example,
there are a number of free and confidential Debt advice lines that can
provide excellent advice. They also suggest that the problem could be
attacked at source, for example, lenders should be more transparent about
the costs and implications of taking out a credit card and making only the
minimum repayments. They also suggest that money management skills should be
taught at school.

The problem is not going away for the meantime, that’s for certain. High
street banks recently announced that their bad debts are already soaring -
Lloyds TSB and Egg have both made announcements - and the total British
unsecured debt is estimated to be £191 billion. That equates to £3,250 per
person in the UK.

By educating people about debt – knowing when to stop buying, and when to
start worrying – bankruptcies could be tackled effectively. But for now,
they’re not going away – bankruptcy is a culture that for the time being, is
here to stay.

Call the National Debtline on 0808 808 4000 or visit their website at
www.nationaldebtline.co.uk for free and impartial advice on managing your
money.

About The Author: Michael has worked in financial srrvices for over 15 years
at Director level. He also writes articles for a number of UK based
financial web sites. Loan locomotive - great uk based loans articles
http://www.loan-locomotive.co.uk

Tips On Using Loan Repayment Holidays

If you find yourself struggling to pay off your loan in the short-term
because of unforeseen financial difficulties, then perhaps you should
consider taking a repayment holiday. Also, if you are looking to get a loan
and want to know that you can take a short break from repayments if things
are tight, then repayment holidays are probably for you. Here are some tips
about how to use repayment holidays effectively and the consequences of
doing so.

What is a repayment holiday?

Just as it sounds, a repayment holiday is when your lender will allow you to
take a break or holiday from your monthly repayments, thereby helping you to
sort out any financial difficulties that you have. A repayment holiday is
often taken at the beginning of a loan, although many companies also offer
the option to take a holiday at any point during the loan term.

Criteria for repayment holidays

Although not all lenders offer loan repayment holidays, it is becoming a
more common practice. If you want to take a repayment holiday at the
beginning of the loan, then you can usually get a few months break before
you need to start paying the amount back. However, if you want to take a
break later in the loan, this usually cannot be done within the first or
last six months of the loan period. Also, you need to have made a number of
consecutive payments before being allowed to take a repayment holiday. The
length of the break you can have varies, but usually ranges from 1 to 3
months, with not more than 3 months out of any year being taken as a
holiday.

Repayment holiday advantages

The main advantage of taking a repayment holiday is that it allows you to
deal with unexpected financial problems without worrying about paying off
your debts straight away. This can be useful if you are between jobs or have
had an unexpectedly large expenditure for one month. Instead of getting into
more expensive debt on a credit card, you can take a repayment holiday and
just extend the loan period.

The costs of repayment holidays

Although repayment holidays can be very useful, they do come at a price.
When you take a repayment holiday, interest on the loan amount still
accrues. When you start paying again, you will either have to pay the normal
monthly payment for longer and pay the interest at the end, or pay a
slightly higher monthly payment to deal with the extra interest you have
accrued. This means you should only use repayment holidays in a real
emergency. If you are struggling for more than just a month or two, you need
to sort out the problem with your lender rather than take a repayment
holiday. As long as you use repayment holidays sparingly and understand the
costs involved, they can be a great way to keep yourself financial stable
during unexpectedly tough months.

About The Author: Peter Kenny is a writer for The Thrifty Scot, please visit
us at http://www.loanwize.co.uk and http://www.thriftyscot.co.uk/Loans/