Entries Tagged 'debt management' ↓

Since paying credit card debt is usually done once a month, I’ll be doing the results updates twice a month. I started saving money for this goal since I announced the Zero Credit Card Debt Challenge. My target is to pay the whole $850 debt little by little. And, so far, here’s how I fared:

Money from blog monetization:

Text Link Ads - $35

AdSense - $156.29

Extra Contract Work payout:

Web Content Writing - $16

Total Extra Earnings for June: $207.29

Debt Balance:

$850 - $207.29 = 642.71

Tags: credit card debt, debt payment, extra income

Another way to manage your credit card debt is to look for credit unions which offer low interest rates for your credit card. There are credit unions which offer credit cards with incomparable advantages like waived annual fees, credit lines up to $30,000, discounts on automobile rentals, tours, hotel stay and cruise, and 100% protection against identity theft.

Credit unions also offer cards for people with huge debt. This allows credit card holders to have credit line starting from $300 - $1500. Credit unions provide free access of account online, free bill pay and card usage around the world. The catch with these cards is that very high interest rates and annual fees are charged.

Continue reading →

To save money when buying a home, it is important to review your home loan options first. There are many available home loan options in the market. All of them have their positive and negative points and its up to you to consider what will be most beneficial for you.

The mode of payment should be considered, first and foremost. The one that would fit your budget with the least interest at the shortest possible time should be your option of choice. There are just too many options that you really have to take your time out to check all the details. You may want to involve a consultant in this so you are assured of making the best decision.

Here are some of the most common options you can choose from: Continue reading →

Find a zero percent or lower interest rate credit card where you can transfer your balance. By the time the debt is safely owed by another credit company, a new grace period will be charged less or even zero interest. This can thus be a sane move when you are faced with large credit card debt. Balance transfer on credit card is available to anyone who has a social security number and a mailbox.

Balance transfer is actually one of the many strategies that a savvy consumer does to reduce his credit card debt. It can free you from paying all the balances and interests incurred from an old card. Using this technique, you can open new accounts which offer transfer of balance when an old one expires.

However, credit card balance transfer will always be dependent on your credit worthiness. Your ability to pay additional charges will be screened and gauge. If you’re planning to apply for a balance transfer, be sure that your old account will be closed immediately. Usually, acquiring two credit card accounts damage your credit scores.

Keep in mind also that balance transfer requires diligence. Be cautious of the hidden charges attached and certain percentages charged for the transferred balance. See to it that the banks do not charge high joining or annual fees. Do not let them ever take the upper hand in your balance transfer.

[image from painet01]

Tags: balance transfer, zero percent balance transfer, credit card

According to survey, 80% of US households hold at least one credit card. An average American earner, has 8 credit cards on his wallet, all accumulating interests and debts! It has also been found out that only 2% of credit card holders pay their entire bill each month. $574 billion are accrued as interest for all carried over debt per month! Well, it’s not easy to own 1 card, all the more managing 8 credit cards!

So how do you avoid having to resort credit card debt consolidation services or credit card debt counseling? SELF-CONTROL!

But what if it’s too late and you’ve already amassed headache-inducing credit card debt? Read on.

Ask your credit companies to help you lower your interest rate. You can phone these companies and request them to lessen your interest rates by negotiating and setting some limits. You can do this every six months; target the months of December or June.

Seeking the help of credit companies to lower your interest rates can also be disadvantageous. While most credit companies offer good services, be wary of those which take advantage. Here are some of the pitfalls:

Continue reading →

When you have too much debt, deciding which one to pay off first can be a little tricky. However, not knowing how to prioritize can push you further into debt quicksand or even land you in jail. Generally, you should pay off the debt for which you stand to lose something and then prioritize the rest in terms of urgency and size.

If you’re still confused, here are some of the things that should appear on your debt cross-out list:

Home Mortgage or Rent
If you don’t own your house, this should be one of the top priorities, especially if you have no other place to go to.

Secured loans
If you owe a company some money for which you had to put up a collateral, pay this off first. If you default, you risk losing whatever property it is you used to guarantee your debt repayment. If you don’t mind losing it, then move on to the next on your list. The only caveat is that defaulting on your payment can affect your credit rating.

Credit cards
Pay off your largest credit card debt first and make minimum payments on the smaller ones. Interest and penalties do add up, making it harder for you to pay them later.

Unpaid taxes
If you owe the IRS, you bet they’ll come knocking at your door soon. You’ll lose a lot if you don’t pay them. If you can’t afford the payment, by all means, negotiate. They’re quite willing to talk as long as you make the initiative.

Car payments
Pay only if you cannot live or work without a car. Otherwise, think about selling the unit and commuting to work.

[image from kinuk]

If there’s a fashion police that lets you know if you belong to either the best or worst dressed list, in the world of finance, there are credit bureaus determining whether you deserve the trust of creditors or not. Credit scores let you know how credit bureaus think of you, and fortunately or unfortunately, credit scores are fairly accurate, unbiased, and reliable results of how you’ve managed your credit.

When it comes to maintaining your 620 and above credit score, all you have to do remember is that good deeds are equal to good credit scores and vice versa. Continue reading →

Most people find it easier to earn more than spending less. Earning more allows them to satisfy all their wants and needs while spending less could force them to make severe lifestyle changes…which no one really wants if it’s going to take away their luxuries. Unfortunately for them, spending less – and not earning more – is what will get them wealthy and set for life.

Here are several ways for you to help you spend less and make do with what you’re earning.

Tip #1 Income Equals Necessities, Savings, and Frivolous Expenses
All the money you earn, whether it comes from your work, the business you have on the sides, part-time gigs, or the prizes you’ve won from the lottery, should be considered as your income, and there is a simple but exact formula on how to allocate it properly. Continue reading →

Found this interesting blog post from Money Smart Life on handling credit card debt

If you had $10,000 of credit card debt and $10,000 in an emergency fund would you use the emergency fund money to pay down your debt?

Money Smart Life’s discussion on this financial conundrum is especially timely since I’m in the same boat - thinking whether to get rid of credit card debt with the help of my emergency fund or not.

The responses varied from the situation being labeled as sheer stupidity advising that of course you have to pay that credit card debt first with your emergency fund and some delved more into the situation and would personally pay some of the credit card debt without finishing up all the emergency fund. Continue reading →

The current economic problems experienced by the housing industry can be attributed to the previous practice of trouble-free lending.

Easy credit has previously allowed consumers to spend more than what they can afford. With the current state of the economy, credit is increasingly becoming more difficult to acquire. Thus, if credit is no longer as available and as affordable as it previously was, consumers would be forced to spend much less than what they currently do, subsequently injuring the economy further. Continue reading →