High Interest Credit Cards: Quick Tips

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Those of you who want to apply for major high interest credit cards to re establish or just to establish new credit should consider the price that they will ultimately pay, including interest, yearly fees, etc…

high interest credit cards

Most of the high interest credit cards are usually pretty easy to get and really the high interest rate only matters if you are going to roll over your balances from month to month. People that have been involved in bankruptcies, judgments or have a bad credit score, for some other reason are the most common applicants for these high interest credit cards. It might be possible to lower your interest charges with credit card balance transfers. If you are looking to consolidate all your debts or you just want to pay off your high interest credit cards, apply for a card that offers a low rate on balance transfers.

Those of you who want to apply for a major high interest credit card to re establish or just to establish new credit should consider the price that they will ultimately pay, including interest, yearly fees, etc… Those who have good credit may qualify for credit cards that offer a 0 percent interest rate on balance transfers for a full year, but be aware, if you make a payment late, you might end up paying higher interest than before you transferred your balance. A recent FDIC study revealed that the overwhelming rise in bankruptcy rates (up 400 percent in the last 25 years) is directly related to banking de-regulation and the use of high-interest credit cards.

Many credit cards can have interest rates, 15, 19 and even 24 percent or higher.?At these very high interest rates you are paying a lot of money in interest. If you are in a bind and missing payments, many credit card companies might agree to reduce your debt on a credit card dramatically if the borrower is able to pay off the balance rather than continue to miss payments, so it might be worth contacting a debt expert to negotiate on your behalf. If you have a good credit score, one way of paying all of your high interest credit card balances, is to take out a debt consolidation loan, which will mean that you can pay off all of your credit cards with one lower interest loan, possibly saving you quite a bit of money.

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5 Simple Ways To Lower Your Monthly Bills ?And Save Lots Of Money!

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Here you’re going to learn several ways to save money every month by lowering your monthly bills.

There are lots of ways to save money, no matter how much of it you have – or don’t have!

Having struggled for many years paying my own bills, I learned many ways to save money. From simple things like food, gas, and clothing, to bigger expenses, like insurance and your mortgage.

All you need to know is where to look to find the savings.

Several Ways To Save Money

save money, get out of debt, monthly bills

Here you’re going to learn several ways to save money every month by lowering your monthly bills.

There are lots of ways to save money, no matter how much of it you have – or don’t have!

Having struggled for many years paying my own bills, I learned many ways to save money. From simple things like food, gas, and clothing, to bigger expenses, like insurance and your mortgage.

All you need to know is where to look to find the savings.

Several Ways To Save Money

The first thing you need to do is eliminate ALL of your unnecessary expenses:

?eating out on the weekends
?buying lunch at work every day
?magazine and newspaper subscriptions (especially those you can get online and at the local library)
?cable TV (you’d be amazed at how many other ways you’ll find to spend your time once you get rid of cable TV)
?groceries (you can save lots of money with coupons and specials.)

It’s OK to reward yourself once in a while, but if you are really looking to get out of debt faster, you owe it to yourself to save every single penny you can!

To find other ways to reduce your expenses, take a close look at your checkbook and credit card statements. You should also call your credit card companies to see if they will lower your interest rates, even if it is only for a short time.

You’ll be amazed at how many ways you can save money, especially once you start looking carefully at how you spend your money every month.

Shop Around For The Lowest Prices

For those expenses you can’t eliminate, it’s time to start shopping around for the best prices.

Once I realized you can shop around for just about ANYTHING you spend money on every month, I learned how to save myself SEVERAL HUNDRED DOLLARS each and every month!

In fact, by shopping around I ended up saving myself more than $750 a year on car insurance alone!

The same is true of many of your monthly expenses – like long distance telephone service, internet service, all types of insurance, mortgages, and in some places even your utility bills.

It DOESN’T take any special skills. All it takes is a few clicks and you can save yourself a bunch of money in no time at all!

So, if you’d like to save yourself lots of money every month – and who doesn’t – start shopping around and looking for ways to lower your monthly bills right away!

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Finding The Right Credit Card

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Some people feel loyal to certain credit card companies, it’s only natural when you’ve had them for so long, but why not see if they can offer you a better card?

find the right credit card

I remember the lecture my mother gave me a few weeks before my first day of college. She sat me down and said, “I have something important to tell you.” Right about then is when I rolled my eyes and braced for the, “Young men are the devil’s spawn and should not be trusted,” and the, “You are going to a place where there will be great temptations,” speech. What I got was not really a lecture, but a talk about how it was time to start building my credit.

I really never gave that topic much thought. I always thought that getting a credit card was for grown ups, and Lord knows I didn’t quite feel like a grown up at the time. She told me I should start thinking about applying for a credit card. She also warned me if I did so, she would NOT bail me out if I started charging up the world. That alone scared me. I had a full time job, but what if I couldn’t handle the payments? What if I went temporarily insane, and decided to charge everything I could. It was too much for me, and I told her, I didn’t want to hear any more nonsense about me getting a credit card.

She of course persisted for the next two weeks, and I finally told her that I would look into it. I then asked the million dollar question, “How do I find the one that is best for me?” She blank stared me. Then she blink. Then she shrugged her shoulders and said, “I don’t know, that’s your problem.” Cue the crickets.

So there I was, eighteen in 1992, trying to get a credit card, but not knowing where to start. Luckily on the fist day of classes, I was in the school book store and found an ad for a student credit card. Without giving it much thought, I applied and to this day I still have a card from that company. Was that the best way of going about it? Probably not. I suppose if I did the research I could have found a card with a better interest rate, or a better limit.

Now days, the internet has changed the way people research topics. I’ve found the best way to find a good product is to find a site that helps you compare similar products side by side. Are you interested in credit cards that offer airline rewards? How about credit cards that offer hotel and travel rewards? Maybe you are just looking for the credit card that would be right for your business, or one with low interest rates. There are even credit cards for poor credit.

Some people feel loyal to certain credit card companies, it’s only natural when you’ve had them for so long, but why not see if they can offer you a better card? Your time is precious and getting the best credit card for you is important to your lifestyle.

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Say “Bah, Humbug!” To Holiday Debt: Avoid the “Holiday Hangover”

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Avoid the post holiday blues by learning tips and tricks to reign in your holiday spending.

holiday season,finances,gifts,purchases,spending,money,credit cards,Christmas,Thanksgiving,budget,gift wrap,cards,expenses,debt

Ah, the holiday season! Turkey and dressing, pumpkin pie, office parties, jingle bells, and lots and lots of eggnog make the season a delight. But all fun and reindeer games aside, you have to be careful to make sure you don’t wind up as poor as Tiny Tim! Americans can spend as much as $1,000 a year on gifts for family, friends and business associates. That is a big chunk of money that can hit you pretty hard come January if you don’t plan ahead. There are some tips and tricks you can do to keep your holidays bright and debt-free this year.

Before the holidays arrive, do some careful plotting and planning for family and business expenses. A few hours spent in preparation can mean less money spent on gifts. You don’t have to be Scrooge, you just have to be smart.

1) Decide how much you are willing to spend, and stick to it. Pretend you are spending cash. How much can you afford out of pocket this month? If you cannot afford it right now, consider that you cannot afford it at all.

2) Budget non-gift and after-Christmas items too. Remember to include other things you buy over the holidays – cards, stamps, candles, a tree, decorations, and food galore. Plus, plan ahead to save some money for next year by taking advantage of after Christmas sales. It is all part of your holiday spending, so plan for it in your holiday budget.

3) Make a list of everyone you will be buying gifts for and estimate how much you want to spend on each person. Include the smaller gifts for teachers or your mailman. Include the price of cards and stamps, because Christmas cards count as gifts when it comes to your budget. Then, add it up and compare the total to your budgeted amount. Make the necessary adjustments. Your brother-in-law may only get socks this year.

4) Cut down your list. This may sound harsh, but look closely at who you are buying gifts for. When saving money is an issue, it is ok not to give gifts to everyone you know. Send only cards to distant relatives, neighbors you don’t know well and business owners who haven’t bought from you this year.

5) Be creative. Determine if some people would be happy to receive home baked cookies. Remember, the holidays aren’t about presents but about good will towards man. Good will comes in many forms and does not always need wrapping paper. If you have a skill or a hobby, use it: needlework, knitting, art or poems. Make a photo album, or offer to plant their garden. Use discount coupons for your customers.

6) Carry your shopping list with you. Take every opportunity to shop. Start early and try to get things before the rush, before highly sought, hard-to-find items go up in price, and before you can’t find what you need. This gives you a chance to comparison shop. It also takes away some of the stress and reduces your risk of overspending just for the sake of finishing your shopping.

7) If a store offers free gift-wrap, go for it! It’ll save you time and money on buying wrapping paper, tape, bows, and cards and struggling with it all yourself.

8) Have willpower. Stick to your estimates and you won’t go over budget. eBay is a wonderful shopping tool if you remember to start early enough to account for shipping time. Find the right item, bid your budget price and leave it. If someone outbids you, don’t get into a bidding war, just bid on something else within your price range.

9) Increase your income for the season. During the holidays there are lots of ways to make a little extra money. Many stores hire part-time workers for the holidays. Since it is a party season, babysitting is in high demand. Be imaginative. You could be the Official Gift Wrapper in your neighborhood and wrap gifts for friends and neighbors for a small fee.

10) Use your credit cards. Yes! If you stick to your budget and only spend what you are able to pay for in the next 30 days, then yes, you CAN use credit cards. The key is to use them as you would cash. Using your credit card is not a way to buy things you can’t afford, it is a way to organize your spending and possibly get some rewards and discounts along the way.

11) Make the credit card companies compete for your business. It may be the holidays, but you can dig in your heels and play hardball. Call your credit card bank and tell them you won’t be using their card for your holiday purchases unless they sweeten it up for you. You want a little sugar and spice to make using that card a better deal. You can ask for 0% interest, double your gas points or flyer miles. Anything to make using your credit card more worthwhile. Banks will usually be willing to strike a deal with you, so long as you try. It can’t hurt to ask.

12) Use specialized credit cards, but carefully. Many of the stores where you will be buying your holiday gifts offer their own credit cards. They tend to have ridiculously high interest rates. However, they may give you discounts of 10%, 15%, sometimes even 20%! So, you could actually go ahead and use a store credit card to make the purchases and get the discounts, since you are paying these off when the bill comes due the interest rates should not be a problem. If you do get into a pinch and can’t pay them off right away, then transfer your balance to your lower-rate credit card before any interest is added to the higher-rate one. You need to be on the ball with this trick, but it may save you money.

It is important to keep in mind that every new credit card you apply for will lower your credit score. So if you’re saving up for a mortgage or a large loan, you’ll want to avoid applying for additional credit.

Come the start of January, your main concern is going to be getting ready for the new year, and you won’t want post-holiday money troubles making things worse. The Ghost of Christmas Past starts visiting even before you put the tree in the trash. Be sure to have a Happy New Year by being money-wise in advance.

(c) 2005 DebtGuru.com(r). This article may be freely distributed as long as the signature file and active link are included.

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The Quickest Way to Dramatically Increase Your Net Worth

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There are only two ways to increase your net worth. Here’s a secret formula to supercharge your ability to build personal wealth. All you do is fill in the blanks and follow the game plan. If you are self-disciplined and really want to increase your net worth… here’s your chance to succeed.

net worth, debt

Your net worth equals what you own minus what you owe. It is commonly referred to as the difference between your total assets and your total liabilities.

Here’s a simple illustration:

Home Value = $350,000   Mortgage balance = $150,000
Investments = 100,000     Credit cards = 20,000
Auto = 45,000                  Auto loans = 30,000
Savings = 15,000             Bank loan = 4,000
You Own = $510,000        You Owe = $204,000

Therefore, your net worth would be $306,000.

There are two ways to increase your net worth. You can own more things or you can reduce your debt obligation. This article will focus on reducing your debt first because it is the fastest way to generate more money and, then, buy (own) more things.

In our example, you have $204,000 of debt. If you’re like most people, you pay less attention to the mortgage and car loan balances because you consider them to be rather normal (necessary) to your way of life.

The credit card companies are probably charging somewhere between 12 to 18 percent (forget those slick, short-lived introductory teasers) and the bank loan is probably around 6 percent.

Now, before we go further let me ask you a question. Which is faster? Create $204,000 (in other words, own more) … or reduce $204,000 of debt? In both instances, the result is the same because your net worth will have increased by the same amount.

To create $204,000 in 15 years, you would have to invest $6,956.69 each year for 15 years and receive a guaranteed 8 percent rate of return. Where can you find a guaranteed rate of return this high in today’s marketplace? No where!

To reduce $204,000 of debt in 13.5 years, it takes only $100 extra each month. Now, let’s make sure you understand what I just said.

To increase your net worth by $204,000 you must invest almost $7,000 each year for 15 years. You hope and pray you’ll receive no less than 8 percent average every year.

Or… you can come up with only $100 each month to reduce 100% of your debt (to include your mortgage) in only 13.5 years — guaranteed! Hard to believe isn’t it?

Go ahead and check it out yourself. First, use a compound interest table to compute the investment requirement. Then, print this
debt reduction chart. You’ll need an Adobe Reader, which is probably already installed on your computer. Otherwise, go to adobe.com for a free download version.

In every instance, it is faster and more reliable to eliminate your liabilities than to increase your assets. Why? Because the interest you pay on your debt is excessively higher than the guaranteed interest you can earn.

By following the debt chart and adding an additional $100 each month to the minimum payment requirement, you can dramatically compound the effect of your payments and expedite the complete elimination of all your debt.

It’s a lot easier to come up with $100 extra each month than it is to find $6,956.69 each and every year for the next 15 years.

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Get in Control of Your Credit Card Debt

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Using credit cards can make day to day life more simple, reducing the need to carry cash and making it easy to shop online and by telephone. However, spending with plastic can sometimes be a little too easy, and many people find their balances get out of control.

credit cards,debt,reduce

Few people would deny that using credit cards can make day to day life more simple, reducing the need to carry cash and making it easy to shop online and by telephone.

However, spending with plastic can sometimes be a little too easy, as it doesn’t always feel like you’re actually parting with any cash. This means the temptation is to spend without thinking about the consequences too carefully, until you hear the ominous thud of a huge credit card bill hitting the doormat.

If you’ve been caught out like this, the size of your card debt may seem overwhelming, but don’t panic – there are a few simple steps you can take to start getting your debt back under control.

Try and make a little more than the minimum payments:

The minimum payments required by credit card companies have steadily fallen over the years. Where once it was typical to have to repay a minimum of 5% of your balance every month, it’s now common to only have to pay 2.5% or 3%. With repayments this small in proportion to your debt, a large chunk of each payment gets swallowed up in interest charges. Depending on the APR rate of your card, up to 75% of each payment could be ‘lost’ in this way, meaning that it takes a very long time for your balance to reduce to any great extent.

By trying to repay more than the minimum, even if only by a little, you can speed this process up, and in the long term you’ll end up paying much less in interest charges.

Prioritize your card debts:

If you have more than one card with different rates of interest, it makes sense concentrate on the one with the highest interest charges. This means not just the one with the highest interest rate, but the one which actually charges you most each month, which could have a lower rate but a higher balance.

Check your statements to see which card is costing you most in interest each month, and try to focus on repaying this card first by putting any spare cash you have into extra payments while keeping to the minimums on your other cards.

Change your card:

The credit card market is very competitive, and rates have fallen over the last few years. You may be stuck with an old card charging an old rate that is much higher than newer cards. If you can get a new card with a lower rate and transfer your account balance on to it, you could save a lot in interest charges, helping you to bring down your debt. If you can get a card with an introductory rate on balance transfers then all the better – you’ll get a few months of interest free credit which you can use to really drive down your balance as 100% of each repayment will be helping to clear your debt.

Debt consolidation:

If getting a cheaper card isn’t an option or isn’t something you feel happy about, then maybe a consolidation loan would be worth considering. If you take out a loan and use the money to pay off all your card debts, you could benefit from a lower rate as loans are normally quite a bit cheaper than credit cards.

The downside to these loans is that the repayment period might be quite long, and so even though your monthly repayments will hopefully be lower, you’ll stay in debt for longer and so end up paying more in interest. Done carefully, however, consolidation can be a sound move if there’s little chance of clearing your debt in any other way.

Watch your spending!

All the above strategies for getting your debt under control will only work if you stop getting deeper into debt – and this means stopping spending on your cards. Ideally, you’d cut them up so that you can’t use them again, but this might not be realistic as you may need to keep them as a credit option in an emergency. In any case, cutting your spending to an absolute minimum will keeping your repayments as high as possible is the only sure strategy to clearing your debt in the long term.

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