What You Need To Do After Clearing Your Credit Card Debts.
If you have a credit card then you have to be responsible about your money so that you won’t have to deal with debt problems.
There are some people that face this problem because something unpleasant has happened to them in the past and they needed money to solve it.
That’s just a small part. Many people use it wrong and without thinking about consequences.
You can choose how you want to pay off your card debt. It is very important to do that because unfortunately there aren’t many people able to pay off their credit card debts. You’ll have to manage your finance carefully and start planning the payments in order to pay off the debt.
It’s not that simple as you might think. You’re entire life could change after that. Probably that’s why it is so hard to do it. Unfortunately, it is very easy to fail in this process.
You have to control yourself because you’ll be facing some temptations along the way. There are people that go out and spend all they money right after paying off their credit card debt.
That’s wrong! You’ll feel great for a short period of time, but on a long run you’ll have to work harder then you did before and pay off credit card debt all over again.
As you can see for yourself, paying off credit card debt it’s just not enough.
To avoid all problems you must keep a debt-free status all the time before and after you pay off credit card debt. If you all that you’ll be able to sleep relaxed at night without thinking about any financial problems.
You’ll have to be very careful and pay attention to all the rules referring to this complex process.
We present you here some tips on what to do before and after paying off credit card debt.
You must not overspend.
You might be tempted to buy a lot of things you don’t need and that’s not right.
Stop spending money on useless things because you’ll regret it later.
Also, be very careful not to exceed 70% of the credit limit. It’s a safety barrier for your spending spree.
Once you start spending money you have to make sure you’ll pay your card bill payments in full and in time.
It is very important to stop when you have 2 credit card accounts. That’s more than enough for anyone.
All this are just some common things to help you handle your money and pay off your credit card debt without facing any problem.
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28 July 2008
23 July 2008
Batman Credit Card ?
Yep... You read it right. Batman credit cards is available now in conjunction with the latest Batman movie.
Too bad that this Batman credit card is only available in Hong Kong.
The Batman credit cards is issued by the one of Hong Kong top bank, Dah Sing Bank Limited.
From now until 31 May 2009, successful applicants for the Batman Credit Card can enjoy one of the following fabulous offers:
- Batman Cooler & Warmer
- Batman MP3 Player
- Up to HK$60,000 15-month Interest-free Cash-in Installment
- Batman Gift Card (value HK$100)
More info on Dah Sing Bank Limited Hong Kong Batman Credit Card Here
Too bad that this Batman credit card is only available in Hong Kong.
The Batman credit cards is issued by the one of Hong Kong top bank, Dah Sing Bank Limited.
From now until 31 May 2009, successful applicants for the Batman Credit Card can enjoy one of the following fabulous offers:
- Batman Cooler & Warmer
- Batman MP3 Player
- Up to HK$60,000 15-month Interest-free Cash-in Installment
- Batman Gift Card (value HK$100)
More info on Dah Sing Bank Limited Hong Kong Batman Credit Card Here
17 July 2008
HSBC Malaysia Premier MasterCard
HSBC Malaysia Premier MasterCard
HSBC Malaysia Premier MasterCard comes with a wide international acceptance, at over 24 million locations around the world, the finest rewards programme, local privileges around the world and on the ground support in case of emergency.
Finally, there’s a card that gives credit where it’s due.
HSBC Malaysia Premier MasterCard Benefits :-
- HSBC Malaysia Premier MasterCard Fee-Free Pre-approved Credit Card and Supplementary Credit Card for Family. That's right. No annual fees, as long as you maintain your HSBC Premier account status.
- HSBC Malaysia Premier MasterCard International Recognition. Walk into any International Premier Centre or branch, show them your HSBC Premier Credit Card, and you'll immediately be made to feel at home.
- HSBC Malaysia Premier MasterCard Worldwide ATM network. Access to cash at over 1,000,000 ATMs around the world.
- HSBC Malaysia Premier MasterCard Premier TravelRewards Plus. Earn Reward points by putting your spending and bill payments on your HSBC Premier Credit Card. With Premier TravelRewards Plus, you can now redeem travel products on the spot at our designated travel agencies.
Corporate Information Travel Sdn Bhd - Tel: 03-2091 9988
Boustead Travel Services Sdn Bhd - Tel: 03-2072 7609
First Travel & Tours (M) Sdn Bhd - Tel: 03-9179 5599
- A dedicated HSBC Premier emergency hotline. You can call from anywhere in the world, 24 hours a day 365 days a year, and you'll have a designated customer service representative attending to your needs.
- HSBC Malaysia Premier MasterCard International Rescue. HSBC Malaysia Premier MasterCard will be your safety net with instant lost or stolen card reporting and a quick card replacement or an emergency cash advance pending delivery of the replacement card.
- HSBC Malaysia Premier MasterCard Home & Away Programme. Wherever you travel, experience the unknown and have a more enriching and rewarding time abroad with around 2,800 exclusive shopping, dining, leisure and entertainment offers at 9,000 merchant outlets in over 40 countries and territories worldwide.
More Info : HSBC Malaysia
HSBC Malaysia Premier MasterCard comes with a wide international acceptance, at over 24 million locations around the world, the finest rewards programme, local privileges around the world and on the ground support in case of emergency.
Finally, there’s a card that gives credit where it’s due.
HSBC Malaysia Premier MasterCard Benefits :-
- HSBC Malaysia Premier MasterCard Fee-Free Pre-approved Credit Card and Supplementary Credit Card for Family. That's right. No annual fees, as long as you maintain your HSBC Premier account status.
- HSBC Malaysia Premier MasterCard International Recognition. Walk into any International Premier Centre or branch, show them your HSBC Premier Credit Card, and you'll immediately be made to feel at home.
- HSBC Malaysia Premier MasterCard Worldwide ATM network. Access to cash at over 1,000,000 ATMs around the world.
- HSBC Malaysia Premier MasterCard Premier TravelRewards Plus. Earn Reward points by putting your spending and bill payments on your HSBC Premier Credit Card. With Premier TravelRewards Plus, you can now redeem travel products on the spot at our designated travel agencies.
Corporate Information Travel Sdn Bhd - Tel: 03-2091 9988
Boustead Travel Services Sdn Bhd - Tel: 03-2072 7609
First Travel & Tours (M) Sdn Bhd - Tel: 03-9179 5599
- A dedicated HSBC Premier emergency hotline. You can call from anywhere in the world, 24 hours a day 365 days a year, and you'll have a designated customer service representative attending to your needs.
- HSBC Malaysia Premier MasterCard International Rescue. HSBC Malaysia Premier MasterCard will be your safety net with instant lost or stolen card reporting and a quick card replacement or an emergency cash advance pending delivery of the replacement card.
- HSBC Malaysia Premier MasterCard Home & Away Programme. Wherever you travel, experience the unknown and have a more enriching and rewarding time abroad with around 2,800 exclusive shopping, dining, leisure and entertainment offers at 9,000 merchant outlets in over 40 countries and territories worldwide.
More Info : HSBC Malaysia
09 July 2008
Beat Inflation With Giant Citibank Credit Card
Giant hypermarket and Citibank have come up with a great credit card that give you 2% rebate when you shop at Giant Malaysia hypermarkets.
This is indeed a credit card that will help you save when you go for sundries shopping at Giant stores nationwide in Malaysia.
With the rising food and gas prices, Giant Citibank Credit Card will help you save money on your monthly groceries expenses especially if you do your shopping at Giant stores.
If you use the Giant Citibank Credit Card to shop elsewhere, you will also earn rebates of up to 1%.
If you sign up for the Giant Citibank Credit Card before 15Th July 2008, you will be entitled up to 10% rebate on your first purchase at Giant hypermarket.
You could apply for the Giant Citibank Credit Card online :-
Citibank
This is indeed a credit card that will help you save when you go for sundries shopping at Giant stores nationwide in Malaysia.
With the rising food and gas prices, Giant Citibank Credit Card will help you save money on your monthly groceries expenses especially if you do your shopping at Giant stores.
If you use the Giant Citibank Credit Card to shop elsewhere, you will also earn rebates of up to 1%.
If you sign up for the Giant Citibank Credit Card before 15Th July 2008, you will be entitled up to 10% rebate on your first purchase at Giant hypermarket.
You could apply for the Giant Citibank Credit Card online :-
Citibank
Win a Suzuki SX4 Sedan When You Shop At Metrojaya With Citibank Credit Card
Win a Suzuki SX4 sedan 1.6L auto and RM5,000 petrol rebate for your card when you shop at Metrojaya using your Citibank credit card.
All you need to do is spend RM200 or above and swipe your Citibank credit card at any Metrojaya stores.
The RM200 must be in a single receipt.
Fill out the contest form at the customer service counter and guess the total number of shopping bags in the Suzuki SX4 on display.
That's it. The one with the correct answer wins.
You will also enjoy instant discount when you shop at Metrojaya stores with your Citibank credit card. You will get 10% OFF on normal priced merchandise when you use your Citibank credit card at Metrojaya. This discount does not include cosmetics, fragrances, agent-controlled items and best buy merchandise.
Win a Suzuki SX4 Sedan When You Shop At Metrojaya With Citibank Credit Card Contest is from 13 June 2008 to 20 July 2008.
07 July 2008
Credit Cards - Friends or Foes ?
Credit Cards - Friends or Foes ?
So you just received an offer to have your very own credit card.
Just think, you could take advantage of the sales that always come the week-end before your paycheck does; your friends would be impressed beyond belief; and, best of all, your parents would finally have to admit that you really are an adult.
Sounds great doesn't it?
Like Santa Claus promises to deliver whatever you want for Christmas, credit cards promise to deliver whatever you want, any time and any where. All you have to do is head for the nearest store, present your card, and, presto, you are on your way home with your purchases.
Unfortunately, the resemblance between your credit card and Santa Claus ends right there. Such purchases are not free gifts; every item purchased on your credit card must eventually be paid for by YOU. And, not only are you expected to pay for each item, but you will also be charged a monthly interest fee or service charge on the unpaid balance.
Some of the more popular credit cards charge an additional yearly fee for as long as you keep the card, whether or not you make any purchases with it. Although the fee is fairly small, it should definitely be considered when deciding whether you, personally, would benefit from owning a credit card.
It's true that credit cards can be extremely useful; the negative stories you hear about them can usually be traced to lack of wisdom in their use.
Credit cards are, presently, fairly easy to obtain. Besides the well-known Visa and MasterCard, most major retail stores offer cards of their own.
Usually, you must fill out an application for a particular card, but some companies mail them out to the general public. A recent newspaper article reported that a five-year-old girl was issued her own credit card, and that her mother rushed her to the store to take advantage of it.
Most reputable companies require that you have some sort of employment before you are eligible for a card. They also set a limit for your card, based on your income, and once that limit is reached, you must reduce your account balance before making additional purchases. Some limits amount to thousands of dollars, and the size of your monthly payment depends upon the balance due at any given time.
Following are a few guidelines that may be helpful, not only to those who are considering the pros and cons of credit card life, but also to those who already have one or more of the powerful little plastic critters in their wallets. Remember, there really isn't any Santa Claus when you are talking about credit, and those little plastic cards sometimes create more problems than they solve.
If you do decide to use one, keep the following points in mind, and your credit card will become a useful tool in your hand; one that works for and not against you.
1. Before you obtain a credit card, decide whether or not the advantages you will receive from its use will outweigh the extra costs you incurred in interest and service charges. Some sad users end up owing more in interest than the original cost of their purchases.
Be sure this doesn’t happen to you.
2. Don't use a credit card to create an unrealistic standard of living for yourself. Sooner or later, you will reach your credit limit and find yourself unable to maintain that standard. One young man we know reached his $2500 limit on a major credit card and promptly applied for a card from another company. Reaching his limit there, he obtained a third.
Now he is faced with high interest payments on his first and second cards and will soon reach the limit on his third. Because he has trained himself to live above his income, a large part of his salary goes to keep up the payments on these cards, and he sees no possibility of getting out of debt for several years. "It was so easy to charge things," he explains, "and I bought things I probably wouldn't even have considered buying if I'd had to pay cash."
3. Try to limit credit card purchases to emergencies or opportunities that will not be repeated. We all have unexpected problems that pop up occasionally, or we find an item we have been seeking for years. These might be acceptable uses for a credit card. Daily expenses and ordinary run-of-the-mill sales are not. Who wants to be still paying in July for a hamburger he ate in March?
4. Never, never loan your card to a friend. If your friend cannot qualify for his or her own credit card, then that friend is certainly not responsible enough to be entrusted with yours.
5. Don't make the mistake of throwing out your budget just because you get a credit card. You still need to plan expenditures carefully and to learn to live within your means. A credit card does not add one extra cent to your income; it merely allows you to pay for certain items at a more convenient time. Too often, that more convenient time never arrives.
If, after considering all the advantages and disadvantages of credit buying, you feel ready to take on the responsibility of using a credit card, spend some time finding out which card is right for you. A reputable online company credit cards offers a free credit search which will inform you about the various terms and conditions of usage of various credit cards, including online application links for each one.
Credit cards, in themselves, are not evil, but the misuse of credit cards can end up being your worst nightmare. One you may not wake up from for many years.
So you just received an offer to have your very own credit card.
Just think, you could take advantage of the sales that always come the week-end before your paycheck does; your friends would be impressed beyond belief; and, best of all, your parents would finally have to admit that you really are an adult.
Sounds great doesn't it?
Like Santa Claus promises to deliver whatever you want for Christmas, credit cards promise to deliver whatever you want, any time and any where. All you have to do is head for the nearest store, present your card, and, presto, you are on your way home with your purchases.
Unfortunately, the resemblance between your credit card and Santa Claus ends right there. Such purchases are not free gifts; every item purchased on your credit card must eventually be paid for by YOU. And, not only are you expected to pay for each item, but you will also be charged a monthly interest fee or service charge on the unpaid balance.
Some of the more popular credit cards charge an additional yearly fee for as long as you keep the card, whether or not you make any purchases with it. Although the fee is fairly small, it should definitely be considered when deciding whether you, personally, would benefit from owning a credit card.
It's true that credit cards can be extremely useful; the negative stories you hear about them can usually be traced to lack of wisdom in their use.
Credit cards are, presently, fairly easy to obtain. Besides the well-known Visa and MasterCard, most major retail stores offer cards of their own.
Usually, you must fill out an application for a particular card, but some companies mail them out to the general public. A recent newspaper article reported that a five-year-old girl was issued her own credit card, and that her mother rushed her to the store to take advantage of it.
Most reputable companies require that you have some sort of employment before you are eligible for a card. They also set a limit for your card, based on your income, and once that limit is reached, you must reduce your account balance before making additional purchases. Some limits amount to thousands of dollars, and the size of your monthly payment depends upon the balance due at any given time.
Following are a few guidelines that may be helpful, not only to those who are considering the pros and cons of credit card life, but also to those who already have one or more of the powerful little plastic critters in their wallets. Remember, there really isn't any Santa Claus when you are talking about credit, and those little plastic cards sometimes create more problems than they solve.
If you do decide to use one, keep the following points in mind, and your credit card will become a useful tool in your hand; one that works for and not against you.
1. Before you obtain a credit card, decide whether or not the advantages you will receive from its use will outweigh the extra costs you incurred in interest and service charges. Some sad users end up owing more in interest than the original cost of their purchases.
Be sure this doesn’t happen to you.
2. Don't use a credit card to create an unrealistic standard of living for yourself. Sooner or later, you will reach your credit limit and find yourself unable to maintain that standard. One young man we know reached his $2500 limit on a major credit card and promptly applied for a card from another company. Reaching his limit there, he obtained a third.
Now he is faced with high interest payments on his first and second cards and will soon reach the limit on his third. Because he has trained himself to live above his income, a large part of his salary goes to keep up the payments on these cards, and he sees no possibility of getting out of debt for several years. "It was so easy to charge things," he explains, "and I bought things I probably wouldn't even have considered buying if I'd had to pay cash."
3. Try to limit credit card purchases to emergencies or opportunities that will not be repeated. We all have unexpected problems that pop up occasionally, or we find an item we have been seeking for years. These might be acceptable uses for a credit card. Daily expenses and ordinary run-of-the-mill sales are not. Who wants to be still paying in July for a hamburger he ate in March?
4. Never, never loan your card to a friend. If your friend cannot qualify for his or her own credit card, then that friend is certainly not responsible enough to be entrusted with yours.
5. Don't make the mistake of throwing out your budget just because you get a credit card. You still need to plan expenditures carefully and to learn to live within your means. A credit card does not add one extra cent to your income; it merely allows you to pay for certain items at a more convenient time. Too often, that more convenient time never arrives.
If, after considering all the advantages and disadvantages of credit buying, you feel ready to take on the responsibility of using a credit card, spend some time finding out which card is right for you. A reputable online company credit cards offers a free credit search which will inform you about the various terms and conditions of usage of various credit cards, including online application links for each one.
Credit cards, in themselves, are not evil, but the misuse of credit cards can end up being your worst nightmare. One you may not wake up from for many years.
06 July 2008
Can a Debt Management Program Help You ?
Can a Debt Management Program Help You ?
By Brad Sylvester
At some point in your life, you may find yourself in a situation where you have difficulty paying off your debt on time. Maybe you’ve lost a job, had your overtime cut, or just somehow let things spiral out of control.
Looming debt and the fear of losing it all can interfere with your family’s happiness, your work performance, and make your life miserable.
If this sounds like you, or if you are afraid you’re only a step away from this situation, a debt management company may be right for you.
Debt management companies will work with your creditors to consolidate all your monthly debt payments into a one simple monthly payment. They use their company’s clout with lenders to try to reduce your monthly payments with your creditors, so you can meet your daily living expenses AND avoid the never-ending trap of late fees and the ever-increasing penalty interest rates by establishing consistent payments.
Not every creditor will accept lower payments, but the debt management company’s relationship with the creditor and history of making sure they are receiving at least some payment each month will be working in your favor.
Within two or three months of making these reduced payments, the collection calls should be a thing of the past. Sometimes, though, these large companies are quick to let their collection arms know when to start calling, but ever so slow in calling them off once a repayment agreement has been reached.
A good debt management company will help work your information through the creditor’s bureaucracy if the calls don’t stop within a few months.
A debt management program is not for everyone. If you’re managing to stay current on your payments, then entering a reduced payment plan can negatively impact your credit ratings.
On the other hand, if you’re already behind in your payments and are either getting collection calls or you live in fear of them, a debt management program may be the best thing you can do for your credit and for your piece of mind.
By Brad Sylvester
At some point in your life, you may find yourself in a situation where you have difficulty paying off your debt on time. Maybe you’ve lost a job, had your overtime cut, or just somehow let things spiral out of control.
Looming debt and the fear of losing it all can interfere with your family’s happiness, your work performance, and make your life miserable.
If this sounds like you, or if you are afraid you’re only a step away from this situation, a debt management company may be right for you.
Debt management companies will work with your creditors to consolidate all your monthly debt payments into a one simple monthly payment. They use their company’s clout with lenders to try to reduce your monthly payments with your creditors, so you can meet your daily living expenses AND avoid the never-ending trap of late fees and the ever-increasing penalty interest rates by establishing consistent payments.
Not every creditor will accept lower payments, but the debt management company’s relationship with the creditor and history of making sure they are receiving at least some payment each month will be working in your favor.
Within two or three months of making these reduced payments, the collection calls should be a thing of the past. Sometimes, though, these large companies are quick to let their collection arms know when to start calling, but ever so slow in calling them off once a repayment agreement has been reached.
A good debt management company will help work your information through the creditor’s bureaucracy if the calls don’t stop within a few months.
A debt management program is not for everyone. If you’re managing to stay current on your payments, then entering a reduced payment plan can negatively impact your credit ratings.
On the other hand, if you’re already behind in your payments and are either getting collection calls or you live in fear of them, a debt management program may be the best thing you can do for your credit and for your piece of mind.
Federal Reserve Board US - Credit Card Complaints
Credit Card Complaints - Where can you seek help on your credit card complaints in the United States.
The list below is where you can seek help for all your credit card complaints.
However, first try to resolve it directly with the store or the credit card company.
If that doesn’t work, you may want to file a complaint with your state’s attorney general or banking agency.
You may also file a complaint with the federal agency responsible for enforcing consumer credit laws for your credit card company :-
Credit cards issued by state banks that are members of the Federal Reserve System :
Federal Reserve Consumer Help
PO Box 1200
Minneapolis, MN 55480
888-851-1920 (Phone)
877-766-8533 (TTY)
877-888-2520 (Fax)
Email: ConsumerHelp@FederalReserve.gov
http://www.federalreserveconsumerhelp.gov/?District=13
Credit cards issued by banks with “national” in the name or “N.A.” after the name :
Comptroller of the Currency
Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010
1 (800) 613-6743 (toll-free)
http://www.occ.treas.gov/
Credit cards issued by state banks that are not members of the Federal Reserve System :
Federal Deposit Insurance Corporation
Consumer Response Center
2345 Grand Boulevard, Suite 100
Kansas City, MO 64108
1 (877) 275-3342 (toll-free)
http://www.fdic.gov/
Credit cards issued by federal savings and loan associations and federal savings banks :
Office of Thrift Supervision
Consumer Programs
1700 G Street, NW, 6th Floor
Washington, DC 20552
1 (800) 842-6929 (toll-free)
http://www.ots.treas.gov/
Credit cards associated with federal credit unions :
National Credit Union Administration
Office of Public and Congressional Affairs
1775 Duke Street
Alexandria, VA 22314-3428
1 (800) 755-1030 (toll free)
(703) 518-6409 (Fax)
http://www.ncua.gov/
Credit cards issued by finance companies or stores, and matters related to auto dealers, mortgage companies, and credit bureaus :
Federal Trade Commission
Consumer Response Center - 240
600 Pennsylvania Avenue, NW
Washington, DC 20580
1 (877)-FTC-HELP (1-877-382-4357) (toll-free)
http://www.ftc.gov/
Source : Federal Reserve Board US
The list below is where you can seek help for all your credit card complaints.
However, first try to resolve it directly with the store or the credit card company.
If that doesn’t work, you may want to file a complaint with your state’s attorney general or banking agency.
You may also file a complaint with the federal agency responsible for enforcing consumer credit laws for your credit card company :-
Credit cards issued by state banks that are members of the Federal Reserve System :
Federal Reserve Consumer Help
PO Box 1200
Minneapolis, MN 55480
888-851-1920 (Phone)
877-766-8533 (TTY)
877-888-2520 (Fax)
Email: ConsumerHelp@FederalReserve.gov
http://www.federalreserveconsumerhelp.gov/?District=13
Credit cards issued by banks with “national” in the name or “N.A.” after the name :
Comptroller of the Currency
Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010
1 (800) 613-6743 (toll-free)
http://www.occ.treas.gov/
Credit cards issued by state banks that are not members of the Federal Reserve System :
Federal Deposit Insurance Corporation
Consumer Response Center
2345 Grand Boulevard, Suite 100
Kansas City, MO 64108
1 (877) 275-3342 (toll-free)
http://www.fdic.gov/
Credit cards issued by federal savings and loan associations and federal savings banks :
Office of Thrift Supervision
Consumer Programs
1700 G Street, NW, 6th Floor
Washington, DC 20552
1 (800) 842-6929 (toll-free)
http://www.ots.treas.gov/
Credit cards associated with federal credit unions :
National Credit Union Administration
Office of Public and Congressional Affairs
1775 Duke Street
Alexandria, VA 22314-3428
1 (800) 755-1030 (toll free)
(703) 518-6409 (Fax)
http://www.ncua.gov/
Credit cards issued by finance companies or stores, and matters related to auto dealers, mortgage companies, and credit bureaus :
Federal Trade Commission
Consumer Response Center - 240
600 Pennsylvania Avenue, NW
Washington, DC 20580
1 (877)-FTC-HELP (1-877-382-4357) (toll-free)
http://www.ftc.gov/
Source : Federal Reserve Board US
05 July 2008
Credit Card Debt Problems
Credit cards are so important these days that they are no more a luxury, they are almost a necessity.
Because of this, a lot of people are going for credit cards. In fact, a lot of people posses more than one credit cards. So, the credit card industry is growing by leaps and bounds. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’.
In order to understand what ‘credit card debt’ actually means, we need to understand the work flow associated with the use of credit cards as such.
Credit cards, as the name suggests, are cards on which you can get credit i.e. make borrowings (your credit card debt). Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt.
Your total credit card debt is the total amount you owe credit card supplier. You must settle your credit card debt on a monthly basis. So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You must pay off your credit card debt by the payment due date failing which you will incur late fee and interest charges.
However, you have the option of making a partial (minimum) payment too, in which case you don’t incur late fee but just the interest charges on your credit card debt. If you don’t pay off your credit card debt in full, the interest charges too get added to it. So your credit card debt keeps on increasing, more so because the interest rates on credit card debt are generally higher than the interest rates on other kind of loans/borrowings.
Further, the interest charges add on to your credit card debt each month to form the new balance or the new credit card debt amount. If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month’s interest too.
Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.
Because of this, a lot of people are going for credit cards. In fact, a lot of people posses more than one credit cards. So, the credit card industry is growing by leaps and bounds. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’.
In order to understand what ‘credit card debt’ actually means, we need to understand the work flow associated with the use of credit cards as such.
Credit cards, as the name suggests, are cards on which you can get credit i.e. make borrowings (your credit card debt). Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt.
Your total credit card debt is the total amount you owe credit card supplier. You must settle your credit card debt on a monthly basis. So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You must pay off your credit card debt by the payment due date failing which you will incur late fee and interest charges.
However, you have the option of making a partial (minimum) payment too, in which case you don’t incur late fee but just the interest charges on your credit card debt. If you don’t pay off your credit card debt in full, the interest charges too get added to it. So your credit card debt keeps on increasing, more so because the interest rates on credit card debt are generally higher than the interest rates on other kind of loans/borrowings.
Further, the interest charges add on to your credit card debt each month to form the new balance or the new credit card debt amount. If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month’s interest too.
Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.
Credit Card Trekker Blog - Trekking The Best Credit Card Deals
Credit Card Trekker blog is created to help credit card users find the best credit card deals on the internet.
Everyone uses credit card in their daily life though one can do without it.
Finding the best credit card company that compliment your usage is not easy.
Therefore, Credit Card Trekker blog will help you to solve your credit card problem with the best tips to tackle your credit card problems.
Stay tune to Credit Card Trekker blog...
Everyone uses credit card in their daily life though one can do without it.
Finding the best credit card company that compliment your usage is not easy.
Therefore, Credit Card Trekker blog will help you to solve your credit card problem with the best tips to tackle your credit card problems.
Stay tune to Credit Card Trekker blog...
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