Don't Let Credit Card Debt Get You Down

Americans all have something in common. Liberty? The right to the pursuit of happiness? No, it's debt. No one starts out as a young person looking forward to having a lot of debt when they get older. But before we are even out of college, we have probably accumulated some debt in the form of college loans and credit card debt to pay for books and clothing. The next thing you know, you are married, with a couple of kids, and a house and a car. And you are still paying for that old debt, and have added a few more on, such as a mortgage and a car loan and some more credit card debt to buy things for you and your family.

Maybe you have decided to make this the year you are going to get rid of your credit card debt. How do you go about doing this/ Well, you might consider destroying all the credit records, or killing off the people who lent you money, but then you would just be sent to jail and when you got out, your credit record would be even worse.

Figuring our the fastest and easiest way to get rid of credit card debt may seem like a difficult task, but it can be very simple and easy. The first thing you have to do is is get out all of your credit card statements and look at the interest rate on each one. Make a list of all of the cards, how much is outstanding on each one and what the interest rate is. This may be a depressing exercise, but it is necessary. Next, go online. Go into Google and search for debt consolidation loans. You want to take all of your credit card balances and consolidate them into one balance and one monthly payment on that balance. You are going to shop around on the net for the lowest interest rate. You may consider a loan, or perhaps a new credit card that you will transfer all of your other credit card balances to. The most important thing is the annual percentage rate. You are paying high interest rates on your credit cards balances so that when you reduce the interest rate, you will reduce how much you have to pay in total. Yes, you have to pay off the principal that you used to buy things for you and your family, but do you want to throw away money on interest that doesn't get you anything else. Get your interest rate down, and you can start to eliminate the debt.

It may take a while, but you can eliminate this credit card debt. Using your computer as a search tool, you will be able to find the best interest rate offer for you and then consolidate all of the loans into one.

Did you read this?
Deciding When Your Teen Should Get a Credit Card
Using Your Credit Card to Manage Your Finances

Credit Card Protection Insurance: What You Need To Know

Your credit card company may offer it under a variety of names. Credit card protection insurance. Credit Shield. Payment protection. Credit safeguard. But no matter what name it goes by, this insurance aims to provide the cardholder with the same thing: security in case unemployment, injury, disability, or death makes paying your monthly credit card bills impossible. By paying a monthly fee (which vary between issuers), if you should lose your job or become incapacitated, your credit card payments are put on hold and interest is suspended, often for as much as two years. This can help keep your credit rating intact during a rough patch, enabling you to remain in good standing with creditors.

But is paying for such a service worthwhile? If you do suffer an unforeseen life event, credit insurance protection can be helpful in preventing your debt from spiraling beyond your control. As with any insurance, credit card insurance needs generally are very specific to a person's life situation.

To understand what your credit card company may offer, consider the four major types of credit insurance: life, disability, involuntary unemployment and property.

• Credit life insurance pays the balance owed on your card when you die, provided the credit card company is named the beneficiary of the insurance.
• Credit disability insurance covers the minimum payment due on your card for a specified period following a medical disability, with purchases made after you become disabled not covered.
• Credit involuntary unemployment insurance pays the minimum amount due on your account should you be laid off from work or downsized for a certain length of time, with purchases made after you become unemployed not covered.
• Credit property insurance may be included with your credit card and usually provides payment for items purchased with the card if the items are damaged or, in some cases, stolen.

With disability and unemployment credit card insurance, a drawback is that the payment made by the insurance is just the minimum monthly payment and often for a very limited time frame. Minimum payments are mostly between 2 percent and 3 percent of your balance, meaning interest will still accrue on the remaining 97 percent to 98 percent of what you owe. If you have more than one credit card, you must purchase separate insurance for each card. Meanwhile, for major illnesses, at the time of the incident you generally must have been employed for a minimum of 20 hours per week. The insurer will sometimes only pay off your minimum payment until a maximum benefit (generally $5,000 to $20,000) is reached or you return to work, whichever happens first.

Should you suffer a critical illness or death, the insurer will pay off your entire balance, saving your family members from having to make payments. In such cases, coverage may be limited to major afflictions. Once again, the credit card company will only pay up to a maximum benefit (generally $5,000 to $20,000).

Prior to signing up for credit card protection insurance, ask your card issuer the following questions:

• What situations will the insurance pay for and which ones will it not cover?
• Will the insurance cover a spouse or other supplementary cardholder?
• Can you choose to purchase just one or two coverage options or do you have to purchase all of them?
• What are the requirements for each policy -- such as if you miss a payment or your account is not in good standing when you file a claim?
• Do age restrictions exist for life or disability insurance?
• What does the insurance cost annually, and how frequently can rates go up?
• How can the policy be canceled?

Before purchasing credit card or any insurance, be aware of exactly what you are getting and what it will cost over time.

Although your case may be covered depending on your situation, for many consumers credit card insurance is expensive and rarely pays off. Enrolling in credit card protection insurance effectively boosts your annual percentage rate. A premium is charged on a monthly basis, and is calculated by multiplying a set fee by your outstanding balance. Even if you lose your main income stream, secondary money from savings, investments, or other coverage (such as your employer's disability insurance) could help you make the minimum credit card payment. And hold on to any documents proving your illness, as you will have to include it with your insurance claim.

Additionally, be careful if you get a call from a person claiming to offer credit-loss protection from your credit card issuer. Many scammers use this technique to get you to provide your credit card number and expiration date by claiming they need this information to issue the insurance. You do not need credit-loss protection in most cases, since the cardholder is only held accountable for the first $50 of fraudulent charges made with their plastic and only then if they do not report the loss to the issuer in a prompt manner.

Source

How to Guard Against Credit Card Fraud on Your Website

Common Debit Card Errors

Tips in Choosing the Best Credit Card for Bad Credit

Having bad credit does not mean one can never apply for good credit cards. Because of so many people having problem with bad credit, credit card companies saw the potential in providing service for this people. Thus, credit card companies came up with bad credit credit cards. As the name suggest, these credit cards are especially created to cater people with less than perfect credit history.

Bad credit credit cards or secured credit cards do come with higher interest rates and fees to make up for the risk from customers who have a poor credit history. When compared with standard credit cards, these cards also impose lower credit limit for its card holders since they were not able to present impressive credit.

However, this doesn't mean that bad credit credit cards are inferior since these cards can be a tool for people with bad credit to regain their credit reputation. Just how is this possible? By submitting regular payments on your account, secured credit cards report to the major credit bureaus to ensure that your credit report is updated.

Understandably, not all credit cards for bad credit that are offered in the market are great and it is up to you to do your choosing carefully. One of the first things you should look for with a credit card for bad credit is whether it reports to the major credit bureaus. There are some secured credit card providers that do not have this important provision. This is crucial in helping you rebuild your bad credit history.

Of course, just because you don't have an excellent credit doesn't mean you have to settle for unreasonably high rates that credit cards impose on their clients. It is possible to find secured credit cards with interest and fees that do not take advantage of your bad credit.

Another important factor to check about secured credit cards is the minimum amount of deposit required to get an approval. This security deposit is held in your account in case you default on your debts, thus giving the bank a guarantee that they can use this money to pay for the debts your defaulted. Take note also that some banks place this security deposit in an account that bears interest. Make sure that you'll be able to claim this security deposit along with its interest after building your credit.

The use of your security deposit may also differ depending on your bank. Some creditors will take your deposit if you miss a single payment in your account while some banks allow at least 5 to 6 months before deciding that the card holder has completely defaulted his debts.

Most importantly, choose a secured credit card that allows you to convert your account to an unsecured one after a certain period if you can prove that you are submitting all your payments dutifully and timely. This way, you can enjoy the privileges that unsecured credit card holders enjoy such as lower APR, higher credit limit, and less restrictions.

Source

The Dangers of Credit Card Debt

4 Reasons to Pay Your Credit Card Bill in Full

How to Get a Credit Card with Bad Credit

Five Unnecessary Credit Card Fees You Can Avoid

Credit card companies are in business to make money. They don't run charities for down-on-their-luck consumers, and they don't have access to the Money Fairy who provides them with funds to give their customers. Instead, they make money off fees and finance charges paid by the people who depend on them. Of course, this makes credit card companies sound evil, which they are not.

However, you can find yourself going broke over credit card fees, particularly when you don't know how they work. When your statement comes in the mail, you might find yourself unpleasantly surprised by the total owed, which is to be avoided wherever possible.

Following are five credit card fees you can avoid if you practice due diligence in maintaining your accounts.

1. Late Fees

If your credit card payment isn't sent and posted by the due date, you will be charged a late fee, which in some cases can be up to $39, depending on your balance owed. Late fees not only cost you in the present, but they can also be ammunition for the credit card provider to raise your interest rate and increase your finance charges.

To avoid late fees, you can sign up for electronic alerts with most credit card companies. Six or seven days before you minimum payment is due, they will send you an e-mail reminder. It gives you sufficient time to post a payment and can save you plenty of money in the process. You can also sign up for automatic payments with some accounts, which are withdrawn directly from your checking account.

2. Over-the-Limit Fees

When the balance on your credit card exceeds your credit limit on the account, you will be charged an over-the-limit fee. This can happen if your forget about interest charges on your purchases, or if you forget how much you've already charged during a billing period. Unfortunately, most credit card companies will allow you to go over your limit without declining the card, ostensibly to collect the over-the-limit fees.

If you want to avoid this scenario, you can request that purchases that exceed your limit be denied. Some financial institutions-such as WaMu and Bank of America-allow this to help protect their customers. Overdraft protection is another option, but fees are usually associated with this service as well.

3. Balance-Transfer Fees

Another credit card fee to avoid is the balance-transfer fee. In addition to charging interest on the amount you transfer, your credit card will also be charged a fee under most accounts. The amount varies from 1% to 3% of the total amount, though it is usually capped at around $75. Unfortunately, these fees can also put you over your credit limit (see above).

To avoid balance-transfer fees, find a card that doesn't charge them. Although they are few and far between, some cards have special balance transfer rates for an introductory period, and you can consolidate your debt without incurring any fees.

4. Foreign Conversion Fees

When you use your credit card in another country, the credit card issuer (Visa, MasterCard, etc.) will charge you a foreign conversation fee, which is usually around one percent of the total purchase price. In addition to that, your financial institution will charge you another fee (between two and three percent) to add insult to injury.

Some credit cards, such as the Discover More card and a few Capital One cards, don't charge foreign conversion fees. Apply for one of these and use it exclusively while out of the country to avoid these enormous credit card fees.

5. Payment Fees

A growing trend among credit card companies is the push for customers to pay online. With many companies, you get charged a fee ($3-20) if you insist on paying by telephone. The fee will be charged to your account and payable on the next billing cycle.

If this is the case for you, avoid the fees by signing up for an online account and paying over the Internet. This is easier-no hold times-and you won't be charged extra for the convenience.

Credit Card Debt: Avoid The Snares

It has been said a lot of times about credit card debt and although sometimes the words can be redundant, there are still many more issues that needs to be addressed.

We stress this mostly because time and time again, people with nice intentions of keeping on top of the credit card game end up falling victim to the snares these lenders have masked into their programs.

Bear in mind that credit card companies want you to slip up - that is the way they make money. Think you have a handle on all the ways the card companies can zing you? Here are a few of their not so obvious tricks:

Watch out for carrying balances. It is not uncommon for cards to charge 20% or more in interest. You knew that already, right? Well here’s the snare: Interest is usually called “finance charges” on your statements to lessen the impact of what you are really paying for. Finance charges doesn’t sound quite so bad right?

Fixed rates aren’t always fixed regardless of the terms and conditions you originally signed up for. By law, a credit card company can hike the rate by informing you 15 days in advance. That’s right - if they tell you 15 days ahead of time, it’s legal!

Remember that credit card companies make a lot of money on the cash advance game. There is usually a large finance charge for cash advances. Here’s the snare: Interest begins accruing as soon as you take the money out, not after the next statement closing.

Watch out for introductory offers! When you receive a credit card offer in the mail with a seemingly too good to be true low rate, it will likely expire in three or six months. Pay special attention to when and by how much the rate increases after the “introductory offer” expires. Many great card benefits suddenly vanish without warning once the teaser rate promotion expires.

Credit card debt is a legitimate problem source for most Americans. Being aware of the games played by the card companies can make all the difference in your ability to stay afloat in a sea of deception.

Debit Card

If for any reason you don't want to have a credit card, you want to make sure that you have a debit card. If you have a checking account with a bank, in most cases, you will be allowed to get one of these cards. They can be used almost anywhere credit cards are accepted, but they do work in a different way. These cards will only allow you to purchase something if you have enough money in your account. If you have problems with credit cards, this might even be a great alternative to stop you from overspending.

A good debit card is one that offers you buyer protection. Though not all of these cards will do this for you, you will want to ask at your bank to see if yours will. The good debit card will offer you the same protection a good credit card will, and you should be able to use it anywhere you buy or spend money. They are especially useful if you want to buy things online, or if you are going out of town where you know no one will accept a check from you.

If your debit card comes with credit protection as an optional feature, make sure you sign up for it. Also remember that your debit card is vulnerable if someone else were to get their hands on it, so if you find that your debit card is missing make sure you contact your bank at once. They will be able to cancel your card and possibly issue you a new one immediately. In some cases, you will not be liable for fraudulent charges made against your account while your card was out of your hands. However you must act fast if you find it missing or there may be nothing the bank can do.

As with a credit card, make sure you have a secure server when you are using your debit card online. Also remember that there are scam e-mails that will ask you to enter your debit card information under false pretenses. If you receive an e-mail from your bank asking you to go to a web site to enter your information, you should delete the e-mail at once and contact your bank. Your bank will never ask you for this information online. If you enter your information on one of these fraudulent sites, you have just given criminals the keys to your bank account. If you are ever in doubt - call your bank over the phone. If there is a problem, they will address it with you then.

Source: Credit and Debit Cards Tips