When it comes to savvy credit card use, it’s vital that you avoid racking up large amounts of debt.
Unfortunately, many of us fail to track our spending, and before we know it, we’re drowning in credit card debt.
Getting out of debt can be challenging, even to the most competent of us. However, it’s possible to boost your pay off efforts with a process called debt snowflaking.
One of the confusions that come up when many people use plastic is the difference between a credit card and a charge card.
In some cases, they are basically used as the same thing, especially since there are very few true charge cards in use these days. Most people swipe credit cards instead of charge cards.
One of the reasons that many people get credit cards is so that they can earn rewards.
A popular rewards program you may know is earning airline miles. Usually that goes toward individual airlines and you can earn free flights, among other things.
But there are also more general travel rewards programs out there where you earn credit towards more than flights such as hotel stays, car rentals, and more.
The Miles by Discover® Card is a great travel rewards card where you can easily earn miles for rewards.
One of the most difficult things to deal with is credit card debt.
Let’s face it, when you have a lot of credit card debt it feels like a huge weight on your shoulders that pulls you down. I’ve been there. I know what it feels like when your paycheck comes in and a good portion goes back out in credit card payments that barely put a dent in your total credit card debt.
When you have a lot of credit card debt, getting rid of it is hard because you dealing with high interest rates. A good portion of your payment every month goes toward interest, rather than reducing your principal.
This problem is compounded when you have multiple credit cards with high balances. You are paying different interest amounts on different cards, and it can really slow your progress.
In some cases, you can help your situation with a debt consolidation loan, in which a larger loan is used to pay off several smaller loans. The problem is that it is hard to find an unsecured loan that will pay off all of your credit card debt if you go to a more traditional bank. Banks have been real tight with credit and they aren’t quick to give out a loan to pay off another debt without there being something to secure your loan.
A balance transfer to another credit card could be an option but only if your credit is good enough to get a low interest rate and a credit limit large enough for the transfer. Besides, if you’re still working on building good credit card habits then opening a new credit card may not be a great idea.
So what can you do to help pay off credit card debt?
Instead of relying on a more traditional bank, or putting your home at risk through a secured home equity loan, it’s possible to see if you qualify for an unsecured loan through P2P lending.
You are probably aware that your credit history is an important part of your financial well-being.
Indeed, your credit history impacts what you pay for loans — and whether you get them in the first place.
Your credit history can also affect your insurance premiums, employment prospects, and even what happens when you try to sign up for cell phone service.
Many people want to know how they can establish a credit history quickly. It’s true that it can take years and years to build a solid financial reputation. But, if you want to kickstart your credit history, a credit card is probably the fastest way to do so.
The Consumer Financial Protection Bureau has been on fire lately going after credit card issuers for unfair practices.
They have recently settled with American Express, Discover, and Capital One. As a result if you’ve had a card with one of these issuers you may see a credit on your statement sometime soon if you were a victim of one of their unfair practices. Even if you no longer have the card you may see the credit, but instead in the mail as a check.
When the CFPB was created many wondered how much of a difference they would actually make. It seems like they are starting to live up to their potential and are becoming advocates for consumers.
That’s great to see!
There are plenty of time when debt and fees are the consumers fault but it’s nice to see there’s a governing body out there taking care of the little guy.
(source: Consumers to get refunds in credit card settlement – chicagotribune.com)
There are few credit cards out there that combine a great signup bonus with a very solid rewards program.
The Chase Freedom® card does just that, and is, as a result, one of the most sought after credit cards out there. Follow along in our Chase Freedom card review.
Here is a quick rundown of the card:
One of the worst drains on your wealth is likely to be fees.
When you pay fees, you are paying some sort of penalty. You don’t receive any product or experience in return for the fee. Instead, it’s just money that goes right to someone else, rather than helping you build more wealth over time.
Credit card fees can be eroding your wealth, taking your resources and using them to enrich others. As you manage your money, consider which fees you are paying — and how you can avoid them.
One of the most demoralizing things in life is credit card debt.
Credit cards can be useful in helping you manage your cash flow, as well as help you build a credit history.
The flip side, though, is debt.
Credit cards can come with high interest rates, and paying them down can become a difficult exercise — and even seem futile. Without a solid plan, and way to ease the transition, paying off your credit card debt is beyond challenging.
One way to get moving with credit card debt pay down is to consolidate your credit card debt.
If you are looking for a flexible rewards program, and one that can help you earn points quickly, as well as give you great incentives to pay on time and spend wisely take a look at the Citi Forward® credit card.
The Citi Forward Visa makes use of Citi’s ThankYou points reward program. It also comes with an attractive introductory offer.
Let’s start with a quick rundown of what the Citi Forward card offers.
• $100 in gift cards – When you redeem the 10,000 bonus ThankYou® Points received after you make $650 in purchases and sign up for paperless statements within the first 3 months
• 0% intro APR for 12 months on balance transfers and for 7 months on purchases. After that, 12.99% – 22.99% variable
• 5 points for every $1 spent at restaurants and on books, movies and music. 1 point for every $1 you spend on all other purchases
• APR reduction on purchases when using credit wisely
• No Annual Fee
