If you’re in a really bad situation, and you just can’t even make your minimum payments this month, don’t worry. You can negotiate your debts, and pay back much less than you owe – as long as they get their debt plus interest in the end, no-one is expecting you to pay the full amount when you just can’t afford to.
Settling your debts takes a lot of time, and many people find it intimidating. If you do it right, though, you’ll be surprised at how kind your creditors (that is, the people you owe money to) can be.
Close My Account.
It might feel bad, but if you can’t afford to pay that credit card, you’ll have to close the account – that means you can’t borrow any more money with that card. To close the account, you’ll have to negotiate something called a ‘payment plan’. Read the rest of this entry »
by Benji | Posted in Credit Cards |
Do you have any idea just how common credit cards are? Let’s take a look at a few statistics from the USA.
The average family carries a balance of between $5,000 and $8,000 on all their credit cards, depending on which figures you believe. Over $1,000 per family goes on interest every year. And that’s just the average – some people owe much more! Overall, Americans spend over $1 trillion every year on their credit cards, and owe more than $500 billion of it.
If debt continues at the current rate, then one family in a hundred will be forced into bankruptcy. Over 90% of Americans’ disposable incomes are spent paying back debts. Whatever happened to saving? Read the rest of this entry »
by Benji | Posted in Credit Cards |
If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help of your family in making your budget work.
Create a family budget vision. Talk to your spouse and children about whatever budgetary constraints you are facing, or whatever financial goals you intend to set. By being completely honest about the bills and loans you have to pay, or your intention to save a certain amount of money for a family emergency fund (or a college fund, for that matter), you can help your family understand better your collective financial situation. This will allow them to change their perspective on purchases they make, and will help you make sure that whatever money crunching strategies you utilize won’t be counteracted by a subsequent spree by your teen. Read the rest of this entry »
by Benji | Posted in Budgeting |
When you’re paying back debts, a little strategy can make a difference of hundreds or even thousands of dollars. The best strategy is simple, but effective.
List Your Debts.
Write down a list of every debt you have, how much it is, and what the interest rate is. You might have trouble finding this information, but it’s worth getting it all together in one place and write it down. You can’t manage your situation strategically if you don’t even know it, can you? Read the rest of this entry »
by Benji | Posted in Credit Cards |
Credit cards, as part of the financial industry, use a massive array of jargon. You can’t be expected to recognise all these technical terms, and some of them are quite important – so here’s a quick guide, in alphabetical order.
Affinity card. This is a credit card that gives a certain amount to a charity of your choice, depending on how much you spend. It is generally best to avoid any charity that wants you to sign up for such a card – don’t let guilt lead you to a high interest rate.
APR. Annual Percentage Rate. This is your overall interest rate, calculated yearly, and given as a percentage of your balance. Read the rest of this entry »
by Benji | Posted in Credit Cards |
So you’ve got a few credit cards, and you’re quite happy with them overall. Still, wouldn’t it be nice to save a little money on interest? It all adds up over time, and more quickly than you’d think. If you’re a good customer, you’d be surprised how easy it is to get a better rate.
Pay on Time, But Not Everything.
The most desirable customers for the credit card companies are the ones who make a payment on time every month – but don’t pay off the whole balance. After all, running no balance every month means that you pay no interest, and the company makes no profit. If you keep up the pattern of running a relatively small balance each month, then the companies will start falling over themselves to offer you better interest rates. Read the rest of this entry »
by Benji | Posted in Credit Cards |
Once you’ve been paying off a credit card for a while, you might be offered a ‘payment holiday’. You’ll get a letter, saying that since the company knows it’s difficult for some families around Christmas (or whatever other excuse they think up), they’re offering you a month off from paying, as a ‘special present’.
Why Would They Do That?
Offers of payment holidays typically have a very high acceptance rate. People think it’s great that they can take a month off from the stress of paying back debt. What they don’t usually realise is that these ‘holidays’ aren’t a present at all – they’re a great money-spinner for the credit card company. For the company, it’s a win-win situation: they get to make big profits just by making their poorer customers happy. Read the rest of this entry »
by Benji | Posted in Credit Cards |
Parents mostly complain that teenagers do not listen to them. The opposite is true when it comes to advice regarding ‘money matters’. Teens actually welcome their parent’s input about their finances.
In the past few years, teenagers have earned billions of dollars with part-time and summer jobs.
Some have spent most of what they earned, while others saved most or even all of it for a big purchase, or for their college education. Read the rest of this entry »
by Benji | Posted in Budgeting |
Are you craving for the newest designer clothes, a pretty tank top, and that pretty dress? All this fashion comes at a price — you choose.
Buying clothes these days is always a choice between the designer-made outfit or those cheap but quality items that you could pull together and express your personality in many different ways.
Most experts contend that clothes can definitely make or break a person. They say that your personality is usually reflected on how you dress up. But it does not necessarily mean that good fashion would absolutely mean expensive clothes. Read the rest of this entry »
by Benji | Posted in Budgeting |
There are so many credit cards out there to choose from that deciding which one to get can feel really daunting. What makes one offer better than the hundreds of others you’ve seen? Take this little quiz to find out what you should look for in a card.
First, Are You a Student?
If you are, then you’ll be best off with a student card – you’ll probably have trouble getting accepted for anything else. It would be best to contact the bank where you have your student account before you do anything else. Read the rest of this entry »
by Benji | Posted in Credit Cards |