An Easy Way To Eliminate Your Credit Card Debt

Cornie Herring shares her wisdom with us today. She is the Author from http://www.StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy. There are millions of Americans out there who have paid off heavy credit card debt, and you may be one of them. To get rid of credit card debt, it won't be enough, however, to just make minimum monthly payments. In fact, you just need to do a little more than just paying the minimum monthly payments; you can save thousand of interests and shorten many years in settling your credit card debt. To give you a better picture how it work, let use a case study to elaborate the solution. Case Study: A friend of mine asked me to take a look at her monthly credit card statement; according to her, she has stopped using this credit card and try to pay it off, but feels like she isn't getting anywhere. The credit card statement record shows her balance is $5218.00 and she is paying 18% of interest; and she is paying the minimum payment at 3.5% or $10 whichever is higher. Like many who confuse with financial matters, she thinks that as long as she stops using the card and by just paying the minimum of monthly balance, her credit card debt will be cleared soon. The Calculation Result: If she has stopped using this credit card, and if she continues to make the minimum required monthly payment, as she has been, based on the way her bank calculates her minimum required monthly payment. It will take her 181 months to pay off her current credit card balance of $5,218.00 and she will pay a total of $3762.35 in interest. In other words, if she continues doing what she has been doing. It will take her 15 years and cost her $8980.35 to pay off her $5218.00 credit card balance. No wonder she feels like she is not getting anywhere. So, what should she do? Actually, it quit simple, if she able to pay the minimum payment of $5,218.00, which is $181.37, which means this is her affordable amount. Instead of paying the minimum payment as defined by the credit card company, she continues to pay $181.37 from now on. As the result, she will pay off this credit card in 43 months instead of 181 months and she will pay $1635.45 in interest instead of $3762.35 in interest, saving $2126.90 in interest charges. See the different? What she can more? If she really wants to go for it, she could increase the amount of her "new" self-imposed minimum required monthly payment. For example, if she were to start paying an additional $18.63 a month for a total of $200.00 a month. She will pay off this credit card in 34 months instead of 181 months and she will pay $1428.30 in interest instead of $3762.35 in interest, saving $2334.05 in interest charges. If she were to start paying an additional $68.63 a month for a total of $250.00 a month, she will pay off this credit card in 26 months instead of 181 months and she will pay $1071.09 in interest instead of $3762.35 in interest, saving $2691.26 in interest charges. If she really wants to eliminate her credit card debt as soon as possible and her financial is able to support it, she could double the amount of her "new" self-imposed minimum required monthly payment. If she were to start paying $362.74 a month instead of $181.37 a month, she could pay off her credit card balance in 17 months. In Summary There are a number of things she could do, but this is one of the simplest and it's something she can start doing right now to begin eliminating her credit card debt. You can do the same to start eliminate your credit card debt. If all you do is stop charging on your credit card and continue making the same minimum required monthly payment you will be making on your credit card this month, every month from now on, you will make significant progress towards totally eliminating your credit card debt once and for all. Article Source: http://EzineArticles.com/?expert=Cornie_Herring

Things You Should Know When Applying for a Credit Card

Credit cards are not evil, if used correctly. In fact, having one is a good idea. If you are shopping for one, Liz Roberts has some good advice in this article. Liz is a loan consultant with NewHorizon Finance and has been providing consumers and business owners with financing since 1989. Looking for a credit card, feel free to read our credit card reviews. For a list of bad credit credit card offers click here. When you apply for a credit card, the lender does a credit check to how risky the extension of credit is going to be. There has to be a standard of risk that the lender is going to be willing to accept. Among the things you can count on being checked are your credit history, income, job history, current debt, how long you've lived in your residence, whether you own your own home, how many times you've applied for credit, and possibly if you have tax liens or judgments filed against you. All of these factors can be listed on your personal credit report and along with your credit score (the numerical value of your credit worthiness) the lender will determine if and how much credit they want to extend to you. In today's world, there is a credit card available for just about everybody. You are going to find yourself pummeled with credit card offers at some point or other. This is especially true for students. This is where patience, research, and common sense should come into play. Never choose the first credit card offer that comes across the table. Set a standard by what you're willing to allow yourself to be charged in interest. After all, this is money that will be coming out of your pocket. This means getting in the habit of reading the fine print of the offer. Some companies offer low to zero interest but this usually for a set period of time from one month to one year. Read the fine print so you don't wind up with a zero interest credit card that suddenly charges you 18% interest. It's also very important to note that if you apply for too many cards at the same time, this can put a negative light on your credit report. Each lender that checks your credit generates a line on your credit report called an inquiry. You will end up getting rejections if you apply for card after card. If you have no credit or a bad credit rating, the best card to apply for is the secured credit card. Getting this card and making your payments on time signals that you're a good money manager and responsible with your financial matters. This is a great way to establish credit or begin rebuilding your credit. More often than not, once you've established that you're a good credit risk, you might be given the option of an unsecured credit card with a much higher spending balance. Knowledge is the key and understanding the credit game will save you a lot of time and money over the long period. Remember, that many people are in debt because they have a good number of credit cards with high balances. One personal financial disaster can leave you seriously in debt. Once you get your credit card, use it wisely and never use the credit card to pay for anything you can write a check for. Remember that legitimate credit card companies are not going to ask you for money up front. Never apply for credit cards you don't need. Use these tips to understand the application process and use your credit wisely. Article Source: http://EzineArticles.com/?expert=Liz_Roberts

Debt Relief - Make the Professionals Work For You

Today's wisdom comes from author Dave Cahill: ----- If you're like most Americans you probably have so many credit cards that you have no idea how many you have. How about you? Do you know how many credit cards you carry? And if you're reading this article you are probably straddled with a hefty amount of debt on those numerous credit cards and you have that sinking feeling that your financial situation is hanging by a thread. The bottom line is that it simply does not matter if you are already deep in debt or whether your financial situation is at a tipping point, in either case it's high time you looked for help from your debt issues by seeking out the help from the professionals and stayed away from advice from friends and family. The first step is finding competent debt consolidation advice but from who and where do you begin? Of course, you can get advice on debt relief from banks, financial planners and other financial institutions. Don't worry do a little research online or locally and you will find a plethora of debt consolidation companies and individuals who will be more than willing to help you out by providing supply you with a review of you current debt and overall financial situation. It's really quite simple, especially online. Most debt management companies simply require you to fill out a simply form, that requires no confidential information and submit it. You will then be contacted and the whole process can begin. Only after you've been contacted will you be required to provide more in-depth information about your debts. They will map out a plan tailored for you and advise you on which steps you need take to dig yourself out of debt. Another peripheral advantage of debt counseling is that your advisor will probably suggest some lifestyle changes you need to make in order to avoid putting yourself back behind the financial eight-ball sometime down the road. Sounds like a no-brainer but how much is this going to cost me? For those who are already suffering financially it's normally the first thought that comes to mind. However, the good news is that most companies will do a complete review of your current debt financial situation at little or no cost. Remember, wishing away your debts is a bad idea and if you find yourself in a situation that only a small miracle will save you it's time to look for some help from a professional because the sooner you get a handle on your finances the sooner you can get to living your life. In summary, as in all fields there is always a wide range of talent and pricing and so make sure you contact a minimum of 3 companies and listen to what each one has to offer. And then, only after you are satisfied with your contact person, the company, their pricing and everything else associated with their service should you commit to working with them. Tip - For options in finding the best debt relief options, check out the links below. Visit debt management relief or personal loan debt or debt consolidation for bad credit for more information on debt relief options. Article Source: http://EzineArticles.com/?expert=Dave_Cahill

Christmas Debt

Christmas is the season when you buy this year's gifts with next year's money. ~Author Unknown

The Credit Card Fight

Some great advice from Andy Gorton, who is the founder of Fresh Finance, a Debt Solutions company for UK residents. --- Credit Card Debt If you find yourself in major credit card debt you are not alone. It happens to many people and it can feel overwhelming. The problem can start as early as the first day of college. Credit card companies have stands offering new adults their first line of credit, but credit cards can be a dangerous weapon in the wrong hands. When you find that you’ve gone too far, the best thing to do is to work on eliminating your credit card debt before it wreaks havoc with other things in your life. How to Eliminate Credit Card Debt When you’ve reached the point where you are swimming in a pool of debt, and you are feeling overwhelmed, there are things you can do to get yourself out of the mess you’ve created. 1. Know how much you really owe-take stock of what your bills really are, and how much you really owe 2. Stop using your credit cards-if you’ve gotten to the point that you are getting those nasty calls, you’ve gone too far and it is time to immediately stop using the cards you have 3. Don’t open anymore credit cards-I know those deals for lower interest rates look tempting, but they can be deceiving, don’t take anymore of them Eliminating Credit Card Helps Improve Your Life It isn’t just the fact that you no longer have debt hanging over your head, you now have the money to spend on things that are more important. School for your kids, that new home or that family vacation you’ve always wanted to go on. Eliminating credit card debt will improve your life in ways you may not be able to imagine right now, but when you go to get a loan on your first house, you’ll realize how important it really is. Getting Rid of the Debt The way these non profit elimination services can help you get rid of your debt is by giving you the advice that they have gleaned through years of experience. The people who work in financial aid, and the experts you find online, all know the most up to date information and any new laws that may have been enacted. This is the kind of stuff that most of us find it difficult to understand. You don’t have to be a financial whiz to get rid of the debt that you have, you just have to know how to tap into the non profit resources that are out there. Keep something else in mind, you didn’t get yourself into this position overnight so don’t expect to get out of it overnight. Take advantage of the non profit help that’s available to get rid of your debt. Article Source: http://EzineArticles.com/?expert=Andrew_Gorton

Loan Refinancing: Debt-Freedom or Debt-Slavery?

Today's featured article is from Kate Ross. She is a professional consultant with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams. Smart tips and interesting articles on this subject and other financial related topics can be found at Speedybadcreditloans.com --- You need to be extremely careful when considering refinancing since it’s a very complex financial operation and there are many variables involved that if not considered carefully, they can affect the results turning the financial transaction into an extremely onerous decision that may increase your debt against your will. Daily Finance Eased Refinancing your home loan can alleviate your daily finances. By refinancing your home mortgage with a longer repayment program and / or a lower interest rate, you can lower your monthly payments and thus, the amount of money you destine towards debt payments will be considerably reduced. However, this doesn’t always come at no-cost. If you get a lower rate and a longer repayment program, you may be saving money but you’ll have to be indebted for a longer period of time. If you get a higher rate and a longer repayment program, you may get lower or higher monthly payments depending on the intensity of the increments and you may also get some ease for your finances but you’ll also be attached to the loan for a longer period of time. Only an equal loan term and a lower interest rate can save you thousands and not oblige you to a loan for longer periods. Long Term Commitment to Mortgage Payments The opposite of the above is also true. If you want to hasten the date where you’ll finally be debt free, you’ll have to compromise your income to debt ratio. Shortening repayment programs will raise your monthly payments as a higher rate would do. This can be compensated by a reduction on the interest rate but this cannot always be achieved. By refinancing for shorter repayment programs you will be affecting your income since you’ll have to destine higher amounts towards debt payments. So, when it comes to refinancing, you’ll need to ponder all and reach equilibrium between all these variables so you don’t extend your debt-slavery too long and you don’t affect your income to debt ratio either. The Right Path Towards Debt-Freedom What you need to do is reduce your overall debt and since home loans are the cheapest sources of finance, it is wise to extend the repayment programs (even if the rate goes up) because by lowering the installments you’ll be able to use the surplus to repay other debt. Of course, this requires discipline on your behalf since a chaotic credit behavior will worsen your situation. If you can get approved for a cash-out refinance home loan, you’ll be able to use the extra money to cancel outstanding and more expensive debt which will contribute to achieving debt freedom sooner. Remember, exchanging your expensive debt for cheaper financial sources is the smartest and most intelligent thing to do. --- Article Source: http://EzineArticles.com/?expert=Kate_Ross

Debt Quotes for the Day

"Creditors have better memories than debtors." ~Benjamin Franklin "Another way to solve the traffic problems of this country is to pass a law that only paid-for cars be allowed to use the highways." ~Will Rogers "Debt is the worst poverty." ~Thomas Fuller, Gnomologia, 1732

Harmful Spending Habits

Here is a GREAT article on bad spending. How many bad habits do you have? ____________________ A lot of people are quite compulsive where shopping is concerned. In order to maintain a balance between what we earn and can spend, we need to make a budget before buying. We buy things out of impulse not out of necessity, and that is the most common mistake a lot of us make when shopping. More so during the holidays. People need to learn how to control overusing their credit cards and the unnecessary little gifts for everybody. Problems start when people do not pay bills on time, and even worse, when they do not have enough money to do it. This why you get into debt. And getting out of debt is not as easy as getting in. To get out of it, you will need the help of professional counselors. Here we have The Consumer Literacy Consortium's list of consumers' most common mistakes. The purpose of this list is to educate consumers on their most common buying mistakes in order to develop a healthy purchase habit. Consumer's Most Common Mistakes - Using too many credit cards - Not having the minimum balance needed in order to avoid checking fees - Buying new appliances without really needing them - Never comparing product prices - Never comparing prices on supermarket shelves - Not having a life insurance policy for no less than 15 years - Taking a 30-year mortgage and not a 15-year due to the low monthly payments - Paying your home improvements before finishing them - Leasing cars instead of buying them - Letting their insurance agent make decisions on which deal to take - Not knowing they can afford Disregard of all the measures taken. Nowadays there are thousands of people swamped with debts, and some are on the brink of becoming debtors. People need to know that there are lots of ways of receiving professional help in order to become debt free again. Debt Settlement is one of the most reliable and fastest ways of achieving financial balance, and becoming once again debt free. Debt is not the problem, the problem lies in our spending habits and the way we look at money. People only need to learn how to purchase in order to stay away from debt. Avoid making the mistakes that are mentioned on the list above and you will notice the difference in your financial balance. Check these links to learn more: http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/ NJ-New-Jersey/Consumer-Credit-Counseling-NJ-New-Jersey.shtml http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/ NY-New-York/Consumer-Credit-Counseling-NY-New-York.shtml Nancy Smith is a contributing writer to http://www.bill-consolidation-and-debt-negotiation.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Spending Habits and Debt Help Consultation, call toll-free 1-877-850-3328 Article Source: http://EzineArticles.com/?expert=Nancy_A._Smith

Can A Debt Management Association Help You?

For consumers with debt problems, life can be stressful and problematic. It is no fun living in the modern world without money. For consumers with serious debt problems and a need for professional assistance, there are a myriad of options available, none of which seem to be a clear solution. This means that individuals need to assess and select debt management assistance. Unfortunately, many people who need this help are amongst the most vulnerable in society and may not be able to make an informed decision. The debt management industry is one that has little or no regulation and oversight. This can make it hard for consumers to tell fact from fiction and honest, reliable assistance from rogues. Yet, it is vital that these vulnerable consumers make this decision wisely. In a bid to assist the public and begin to bring the industry under some sort of control, trade bodies are springing up. These debt management associations are actually designed to help the reputable companies to further distinguish themselves from the rogues. Members must adhere to service and ethical guidelines, operate a complaints system and generally do their best to serve the client. Some will even put themselves through audits and examinations to try and further elevate themselves from the crowd. It is also very likely that charging structures will be organized in a more responsible manner. Though it should be pointed out that these companies may well charge more than the average. However, in an industry with so many pitfalls, it seems a false economy to pay less and take the chance of using a less reputable firm. This can be a great help to consumers. For people trying to find a competent and honest professional, a debt management association is an ideal place to look. Debt management associations keep a directory of member firms, usually on their website, for members of the public to search. Finding a reliable and honest adviser is highly likely if this route is followed. In the US, AADMO is just such an organization. In the UK, DEMSA does a similar job. These are not the only trade bodies, obviously. As with any market, there is competition. Both operate a website search facility to help the public find member firms. The low number of member companies highlights earlier comments about the industry lacking oversight and regulation. It is also worth noting that if a consumer is unhappy with a service, it is possible to make a complaint to the debt management association about a member firm. There is never any guarantee that this will aid your situation, but an extra level of responsibility and authority is often very useful. Stuart Langridge has experience as a mortgage consultant, financial adviser and personal finance columnist. To read more of his down to earth financial wisdom, please click here: www.debtmanagementresources.com Article Source: http://EzineArticles.com/?expert=Stuart_Langridge

It's Time To Consolidate And Reduce Rates of Student Debt!

Quick loans are student loans from a long-intended government initiative to aid students financially for higher education. The purpose is to help students cover living costs. To apply for a student loan, contact your local award authority that takes care of the first stage of the loan, irrespective of the country you want to study in. To use a live example, Janey and Jim get $15,000 in student loans. Now Janey pays just $147 a month while Jim pays $170. Yet both will take ten years to repay their student loans. The difference is due to Janey availing of the unbelievably low interest offer of 3.37 percent on student loans by consolidating and refinancing her student debt. Jim however, chose to opt for the 6 percent rate. The Right Time Is Now! To understand better, this is not considered a good time to consolidate student loans and fix interest rates, but the best opportunity for years to come. Waste no time in going for it. Lately personal finance writers and financial planners have made it an annual habit to announce to the world that rates are at an all time low on student loans and that graduates should lock in their interest rates. However, this time is different; unlike the last four years, with the economy flourishing, inflation approaching and the Federal Reserve hiking interest rates. But in spite of mortgage prices and consumer loans rising, rates on government-guaranteed student loans continue declining, mainly due to a unique formula based on the rate of the short-term Treasury bill. Stafford loans, the cheapest, most common student loan, fell to a 39-year low of 3.37 percent for the next 12 months, from 3.42 percent the previous year. PLUS loans or parent loan for undergraduate students register 4.17 percent from 4.22 percent. Four years back these loans were at 8.19 and 8.99 percent respectively. No credit check or collateral is necessary to consolidate. Anyone out of school or attending classes less than half time is eligible. Students with direct federal loans can consolidate while still in school. Lenders may instruct you to combine two loans, refusing to finance only one, or carry a minimum loan amount, for example $10,000. Some Precautions Take care of consolidated Perkins loans, especially if you want to continue studies. While you’re in school, the government subsidizes interest for a while and may even wave off the loan completely if you choose certain professions like law enforcement. But this doesn’t apply to the new loan. Also graduates who’ve crossed a certain stage in the repayment process to earn a prompt-payment discount, mostly 1 percent could lose the privilege. It’s unfortunate that once consolidated you can’t consolidate again unless you have at least one federal student loan outside that debt. If the low rates haven’t tempted you, maybe you will be when you find out that Congress is considering elimination of fixed-rate student loans. Sarah Dinkins is an Expert Loan Consultant in the financial industry that helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and other types of loans and financial products. At her Website she is continually adding new finance articles useful for those in need of professional advice. Article Source: http://EzineArticles.com/?expert=Sarah_Dinkins

How To Avoid Large Amounts Of Credit Card Debt

Credit card debt is one of the biggest financial problems in America today. Far too many people use credit cards to fund lifestyles that they really cannot afford, and eventually it will catch up with them in the form of debt. The companies that issue credit cards know this all too well, and they market their credit cards to people who really can't afford to use them. They sell the image of being able to buy anything you want, whenever you want, and then sit back and collect the interest on the debt for years to come. Now, obviously the best way to stay away from credit card debt is to simply never use a credit card. They can create too much temptation for many people, making it too easy to spend money they don't have. As time passes, they'll spend more and more on interest charges and if left too long, they can put themselves in dire financial straits. Never getting a credit card is really not feasible in today's world, however. They're necessary if you ever want to order anything over the phone or over the internet, and they can be helpful if used properly. The following are 3 important tips for avoiding credit card debt: * Don't carry your credit cards with you at all times. The temptation to spend is much easier to deal with if you can't just reach into your pocket or purse and pull out the card. * If you really can't fight the temptation to overspend, put the card in a tupperware container or tin can, fill it with water and put it in the freezer. If you have to thaw your card out to use it, it will be a lot harder to spend on impulse. * Compare credit cards when you are applying for one and look for the best terms - lowest interest rate and best payment terms. If it's too late to avoid credit card debt, there are a number of steps you can take to deal with it including credit counseling or a debt consolidation loan. William Blake writes about the results of excessive credit card debt and how to deal with it for the Debtopedia website. For more helpful information about managing credit card debt, visit http://www.debtopedia.com Article Source: http://EzineArticles.com/?expert=Wm_Blake

The Best Advice I Can Find About Debt

I will be posting more great articles from people over the next month. There is a ton of great advice out there. I am going to pick what I think are the best articles and post them. Here is to "NO DEBT!"

Debt Elimination Program -- How to Bulletproof Your Efforts

There are very few positive things in life that are guaranteed but if you want to become debt free, there are some that are worth looking at. In this article, I want to share with you what I believe WILL guarantee success in your debt elimination efforts. It’s the same thing that drives a young boy or girl to have a successful lemonade stand. It’s also the same thing that drove Thomas Edison to finally find a way to make a light bulb. Know what it is yet? Do you have any idea what a children’s lemonade stand and Thomas Edison have in common? I have always been amazed at how single moms or dads can raise a family, take care of the house, work and still maintain their sanity. I respect them a lot. Yet the same thing that makes these amazing people successful at what they do is the same driving force that makes a debt elimination program a reality for thousands others. What is this secret? Tenacity. It is a bold determination, a relentless assault and unveiled restlessness to see their dreams come to true. This secret is so powerful, that it has made millionaires out of people who were stone broke and living on the street. This secret crosses all cultural and social barriers. It knows no form of discrimination and is available to everyone that would desire to attain it. It’s literally a FREE debt elimination program! You don’t need to be born into royalty or be given a special gift to obtain tenacity, it is free for the taking. If you make whatever it is you want the focal point of all your energies, you will see your dream transform into reality. Maybe you’ve tried to get out of debt before and it wasn’t successful. Maybe you are trying now but going nowhere. Are you tenacious about it? Are you relentless? Are you really doing EVERYTHING you could possibly be doing to achieve your goal of freedom from debt? Thomas Edison found the solution to creating the light bulb not because he was lucky, but because he determined in his mind that he WOULD find the solution. There was no “if” or “maybe,” only “when.” After thousands of failed attempts, he was successful. You can be too, regardless of how many failed attempts you’ve had in your life. You can assume this same outrageous level of tenacity as well and turn it into whatever dream you have, including the elimination of your debt. Do this and like those before you, success will come knocking on YOUR door. About the author Paul Smith is author of the highly acclaimed debt elimination program, JumpStart To Freedom. Building on his years of experience as a professional Compensation Analyst, Paul is helping hundreds of people become achieve debt elimination, save money and create wealth. Article Source: http://EzineArticles.com/?expert=Paul_J_Smith