Posted by Elizabeth Halpern | Posted on 12-01-2012
The recession seems to be taking a back seat as more people pull out their credit cards to pay for everyday items. According to The Christian Science Monitor, consumers racked up a total of $64 billion in credit card debt for the year 2011, and January 2012 has already seen an increase in credit card use.
January normally means a return to less spending, trimming your budget, and putting off big purchases, but more consumers are throwing caution to the wind when it comes to credit card spending. In fact, the payment processing company First Data reports that people are using their credit cards at rates not seen since the pre-recession era.
What has spurred this rise in credit card spending?
Banks have cancelled or severely cut back on their debit card rewards programs, and have even suffered a backlash when they instituted debit card fees.
Full Article…
Posted by Declan Disney | Posted on 02-08-2010
It’s someones birthday, there’s a sale, gotta have it, and many other reasons that people charge items on their credit cards, even if they don’t have the budget to pay it off right away. In fact, that is part of the convenience and attraction to credit cards and people are able to get what they want today and not have to worry about paying for it now.
This temptation along with many appealing outlets that accepts credit cards as a form of payment, make it easy for people to increase their credit card debt to the point where it becomes nearly impossible to pay off.
Credit card debt can easily increase and most of the time it starts off harmless. It coul
Full Article…
Posted by Admin | Posted on 13-01-2010
Credit card consolidation can be a beneficial way to pay down debts. If you are considering this avenue, make sure that you get the lowest interest rate and the best terms available. Below are the ways in which you can use consolidation to achieve one low monthly payment:
Home Equity Loans
By putting your house up for collateral, you can obtain a credit card consolidation loan. Consolidation loans allow you to pay less interest, and make a lower payment than the combined total of all your credit cards. Caution should be exercised when taking out a home equity loan for credit card consolidation, because you stand to lose your house if you can’t make the payments. A good rule of thumb is to close all but one credit card account so that you aren’t tempted to add even more debt.
Balance Transfers
This is another method of credit card consolidation. Basically, you apply for a card that offers a low introductory rate and transfer all your other balances to that card.
Be aware that this “teaser” rate only lasts for a limited time, and will return to normal interest rates at the end of the introductory period. Before it converts to the regular rate, you can transfer your balance to another card with a low introductory rate.
Using balance transfers to consolidate your credit card debt often brings added costs in the form of transaction fees. Read the fine print to see how much it will cost you to make the transfer for your credit card consolidation. Be sure to make your payments on time, as late payments often raise your interest rate to the normal rate charged.
When using balance transfers to consolidate your credit card balances, be sure to close old accounts so that you aren’t tempted to use them. Failure to do so can leave you even deeper in debt if you rack up new charges.
Credit Card Consolidation Services
If your credit card debt is out of control, you can lower your payments by up to 57% using a consolidation service. Consolidated loans are not for everyone, though. Before you make a decision, you must realistically look at the pros and cons of debt consolidation to determine if this is the right decision for you. Click here for m
Full Article…
