Thursday, April 5, 2007
No Credit CreditCard - Excessive Credit Card Debt
No Credit Credit Card - Excessive Credit Card Debt
Excessive debt
Most people advocate the case of credit cards, quoting the benefits and convenience that arises from them. However, there is another line-of-thought that strongly opposes credit cards. The reason being ‘Excessive Credit Card Debt’, which is one of the most serious problems faced by the credit card holders and the industry. However, you can’t pull the shutters on the credit card industry just because of a few irresponsible people (or even if it’s more than few). That is not a solution for beating excessive credit card debt. Moreover, you can’t overlook the benefits associated with the credit cards.
The issue of excessive credit card debt can be looked at from 2 angles. First is by addressing the debt problem at the industry level and second is by addressing the excessive credit card debt problem at the individual’s level. The first method involves increasing awareness of the excessive credit card debt problem to the masses. However, there should also be an effort to tackle this problem of excessive debt at an even deeper level. This means trying to devise a mechanism to nip the problem in the bud. This mechanism should actually be a part of the overall system. A lot of thought needs to go into devising such a mechanism. Case studies should be taken up, statistics gathered and a proper forum formed (with representatives from the credit card holders and from the credit card suppliers).
As of now, the credit card suppliers just seem to be engaged in coming out with new products and getting customers enrolled to those products. There is little attention paid towards addressing the problem of excessive credit card debt in the real sense. Something like attending mandatory seminars on the root causes of excessive credit card debt could be made part of the credit card application process.
Another way of dealing with the problem of excessive credit card debt could be: developing a system for calculation of applicable credit card limit at the individual level i.e. no standard/product-based credit limits.
Then there could be mechanisms for warning the users about excessive credit card debt or even imposition of early restrictions on noticing the first signs that lead to excessive credit card debt At the individual’s level, the treatment of the problem of excessive credit card debt would include following best practices by the individuals themselves. A checklist or a set of questions could be provided to individuals for recognising the first signs of excessive credit card debt.
So, the problem of excessive credit card debt can surely be dealt with by putting together some serious thinking at a broader level together with discipline at the individual’s level.
Excessive debt
Most people advocate the case of credit cards, quoting the benefits and convenience that arises from them. However, there is another line-of-thought that strongly opposes credit cards. The reason being ‘Excessive Credit Card Debt’, which is one of the most serious problems faced by the credit card holders and the industry. However, you can’t pull the shutters on the credit card industry just because of a few irresponsible people (or even if it’s more than few). That is not a solution for beating excessive credit card debt. Moreover, you can’t overlook the benefits associated with the credit cards.
The issue of excessive credit card debt can be looked at from 2 angles. First is by addressing the debt problem at the industry level and second is by addressing the excessive credit card debt problem at the individual’s level. The first method involves increasing awareness of the excessive credit card debt problem to the masses. However, there should also be an effort to tackle this problem of excessive debt at an even deeper level. This means trying to devise a mechanism to nip the problem in the bud. This mechanism should actually be a part of the overall system. A lot of thought needs to go into devising such a mechanism. Case studies should be taken up, statistics gathered and a proper forum formed (with representatives from the credit card holders and from the credit card suppliers).
As of now, the credit card suppliers just seem to be engaged in coming out with new products and getting customers enrolled to those products. There is little attention paid towards addressing the problem of excessive credit card debt in the real sense. Something like attending mandatory seminars on the root causes of excessive credit card debt could be made part of the credit card application process.
Another way of dealing with the problem of excessive credit card debt could be: developing a system for calculation of applicable credit card limit at the individual level i.e. no standard/product-based credit limits.
Then there could be mechanisms for warning the users about excessive credit card debt or even imposition of early restrictions on noticing the first signs that lead to excessive credit card debt At the individual’s level, the treatment of the problem of excessive credit card debt would include following best practices by the individuals themselves. A checklist or a set of questions could be provided to individuals for recognising the first signs of excessive credit card debt.
So, the problem of excessive credit card debt can surely be dealt with by putting together some serious thinking at a broader level together with discipline at the individual’s level.
Labels: credit card, excessive debt
Tuesday, April 3, 2007
Credit Card Debt - After you Pay it off
Credit Card Debt - After you pay off credit card debt
Credit card debt is a very big problem that is being faced by a lot of people who have been irresponsible and undisciplined in the use of their credit card. Though some might have landed up with credit card debt due to some unfortunate event/emergency in their life, most people carry a credit card debt due to their own wrong doings or, gasp, selfish purchases. There are a lot of ways to pay off credit card debt and a lot of people do achieve this feat. Surely, to be able to pay off credit card debt is really a great achievement in itself; for not everyone is able to pay off their debt. It takes a lot of discipline, restraint, planning and perseverance to finally pay it off. However, there is more to paying off credit card debt then just paying it off.
Here we are talking about the life after you pay off credit card debt successfully. As mentioned before, of all the people that try to pay off debt not everyone is able to do so. However, some people fail after they have succeeded in paying off credit card debt. These are those people who let themselves loose and go on a spending spree as soon as they are debt free. Soon, these people again land up with a credit card debt and are again trying to pay it off. So, it’s not enough to just pay off credit card debt, it’s equally important to maintain a debt-free status even afterwards; only then can you enjoy a stress-free life in the world of credit cards. So learn your lessons well and do not let yourself loose on the path to another credit card debt. Most of the rules that you followed when you were trying to pay off credit card debt, will also hold good after you have paid them off. Here is a quick synopsis of things that you should take care of even after you pay off credit card debt:
1) Do not overspend. Yielding to the sale offers for something that you don’t really need is a
big mistake that leads to overspending
2) Always remain within 70% of your credit limit.
3) Make credit card bill payments in time and in full.
4) Don’t hold more than 2 credit card accounts (two are enough for anyone)
These are just very basic things to adhere to. For those of you that managed to get out of debt, just keep doing what you have been doing. For those of you still trying to get out of debt, hang in there! Those fancies nothings might look impressive but it is NOT worth taking the 2 steps back into debt that would happen in order to get them!
Credit card debt is a very big problem that is being faced by a lot of people who have been irresponsible and undisciplined in the use of their credit card. Though some might have landed up with credit card debt due to some unfortunate event/emergency in their life, most people carry a credit card debt due to their own wrong doings or, gasp, selfish purchases. There are a lot of ways to pay off credit card debt and a lot of people do achieve this feat. Surely, to be able to pay off credit card debt is really a great achievement in itself; for not everyone is able to pay off their debt. It takes a lot of discipline, restraint, planning and perseverance to finally pay it off. However, there is more to paying off credit card debt then just paying it off.
Here we are talking about the life after you pay off credit card debt successfully. As mentioned before, of all the people that try to pay off debt not everyone is able to do so. However, some people fail after they have succeeded in paying off credit card debt. These are those people who let themselves loose and go on a spending spree as soon as they are debt free. Soon, these people again land up with a credit card debt and are again trying to pay it off. So, it’s not enough to just pay off credit card debt, it’s equally important to maintain a debt-free status even afterwards; only then can you enjoy a stress-free life in the world of credit cards. So learn your lessons well and do not let yourself loose on the path to another credit card debt. Most of the rules that you followed when you were trying to pay off credit card debt, will also hold good after you have paid them off. Here is a quick synopsis of things that you should take care of even after you pay off credit card debt:
1) Do not overspend. Yielding to the sale offers for something that you don’t really need is a
big mistake that leads to overspending
2) Always remain within 70% of your credit limit.
3) Make credit card bill payments in time and in full.
4) Don’t hold more than 2 credit card accounts (two are enough for anyone)
These are just very basic things to adhere to. For those of you that managed to get out of debt, just keep doing what you have been doing. For those of you still trying to get out of debt, hang in there! Those fancies nothings might look impressive but it is NOT worth taking the 2 steps back into debt that would happen in order to get them!
Labels: credit card debt, credit card debt consolidation, pay off debt
Monday, April 2, 2007
Credit Card Debt - Eliminate Credit Card Debt
Eliminate credit card debt
How to eliminate credit card debt? A questions that is asked by a number of individuals around the globe. These are the individuals who somehow (mostly due to uncontrolled spending) landed into the mouth of this monster called ‘Credit card debt’. So what are the ways to eliminate credit card debt?
If you are looking to eliminate credit card debt, you have already reached 50% of your goal because your decision to eliminate credit card debt is the first and the most important step towards you being able to eliminate credit debt. Having said that, it is important to mention that you also need to be firm on this decision and stick to it with complete sincerity and seriousness, till you finally eliminate credit card debt (and even after that).
To eliminate credit card debt, you need planning. This starts with analysis of current situation in terms of your debt and your finances (current and as expected in near future). So to eliminate credit card debt, you need to first check the amount you owe on various credit cards. Just use a notebook to note down the amount you owe on each credit card and the corresponding APR associated with them. Once you have this information handy, you can total up the various amounts to get the total amount of your credit card debt. After all, you can’t eliminate credit card debt if you don’t know how much it is actually. The next thing is to see if you have enough cash handy e.g. in your various bank accounts, which you can put to use to eliminate credit card debt (of course, you will need to take a view on how much cash you will need to fulfil your day to day and specific future needs). If you find that you have enough to eliminate credit card debt completely, just go ahead and eliminate credit card debt and earn your peace of mind. However, if you can’t eliminate credit card debt completely, check the amount that you can use to eliminate credit card debt partially. Next step, as you must have guessed, is to check how best you can use this amount to eliminate credit card debt (even if partially) i.e. which portion of credit card debt should you eliminate first. So, first eliminate credit card debt on the credit card which has the highest APR and which is hitting you the most. Then eliminate credit card debt on the credit card which has the next highest APR and so on and so forth. If you are incurring additional late fees etc on some of your credit cards, you might decide to reserve some amount to make minimum payments on those credit cards (before you finally eliminate credit card debt on them).
What we have seen is just some basic analysis and first steps on how to eliminate credit card debt. You might need to take some other steps to eliminate credit card debt e.g. consolidation of credit card debt is one good option. However, it’s imperative to understand that any and all methods to eliminate credit card debt will fail if you don’t inculcate controlled spending habits.
How to eliminate credit card debt? A questions that is asked by a number of individuals around the globe. These are the individuals who somehow (mostly due to uncontrolled spending) landed into the mouth of this monster called ‘Credit card debt’. So what are the ways to eliminate credit card debt?
If you are looking to eliminate credit card debt, you have already reached 50% of your goal because your decision to eliminate credit card debt is the first and the most important step towards you being able to eliminate credit debt. Having said that, it is important to mention that you also need to be firm on this decision and stick to it with complete sincerity and seriousness, till you finally eliminate credit card debt (and even after that).
To eliminate credit card debt, you need planning. This starts with analysis of current situation in terms of your debt and your finances (current and as expected in near future). So to eliminate credit card debt, you need to first check the amount you owe on various credit cards. Just use a notebook to note down the amount you owe on each credit card and the corresponding APR associated with them. Once you have this information handy, you can total up the various amounts to get the total amount of your credit card debt. After all, you can’t eliminate credit card debt if you don’t know how much it is actually. The next thing is to see if you have enough cash handy e.g. in your various bank accounts, which you can put to use to eliminate credit card debt (of course, you will need to take a view on how much cash you will need to fulfil your day to day and specific future needs). If you find that you have enough to eliminate credit card debt completely, just go ahead and eliminate credit card debt and earn your peace of mind. However, if you can’t eliminate credit card debt completely, check the amount that you can use to eliminate credit card debt partially. Next step, as you must have guessed, is to check how best you can use this amount to eliminate credit card debt (even if partially) i.e. which portion of credit card debt should you eliminate first. So, first eliminate credit card debt on the credit card which has the highest APR and which is hitting you the most. Then eliminate credit card debt on the credit card which has the next highest APR and so on and so forth. If you are incurring additional late fees etc on some of your credit cards, you might decide to reserve some amount to make minimum payments on those credit cards (before you finally eliminate credit card debt on them).
What we have seen is just some basic analysis and first steps on how to eliminate credit card debt. You might need to take some other steps to eliminate credit card debt e.g. consolidation of credit card debt is one good option. However, it’s imperative to understand that any and all methods to eliminate credit card debt will fail if you don’t inculcate controlled spending habits.
Labels: credit card debt, elminate credit card debt
Sunday, April 1, 2007
No Credit Credit Card - Good Credit Card Deal
No Credit Credit Card - Credit card deal
What is a ‘good credit card deal?’
You must have heard people say – ‘I got a good credit card deal’. So if you happen to be looking for a credit card at that moment, do you just go with what your friend has told you as a good deal?
Let’s check out what one means by a good credit card deal. A credit card deal is good if it works for you. So, if the credit card fits into your lifestyle in a way that rakes in maximum benefits for you, that is a good credit card deal. The most important thing to realize here is the word ‘your’ as in ‘your lifestyle’. So logically speaking there is nothing like a good credit card deal. What it is - is good deal for ‘you’ i.e. the individual who is going to use that card. This is because the lifestyle and the needs differ from person to person (and that is precisely the reason why every credit card supplier offers so many different kinds of cards). It might be true in some cases (where the lifestyle of two individuals/friends is similar) that the deal which is good for one may be good for the other, however, this is just in a few cases.
You can always check with your friend who has recently got a credit card, since that might cut down the time needed for researching/hunting-for a good credit card deal. However, it’s really a matter of evaluating your own needs. If you travel a lot and to far off places by air, a card that offers you good rewards/rebates/benefits on travel would comprise as a good credit card. Sometimes the airlines themselves have their own credit card issuing/supplying company from where you can get a good deal. For people shopping at a particular retail store or a shop, a good credit card deal would be a card that offers discounts, rebates and rewards on shopping. Again, the retail stores themselves might have cards that could be beneficial to you. Then there are credit card deals that are linked to gasoline stores or big grocery chains. If you don’t have any specific needs, you might use a general purpose credit card that gives reward points on every purchase you make. These points can then be redeemed for rewards.
Good credit card deals are really relative terms and there is no credit card deal which is equally good for all. So do your research, take an interest in what you spend most of your money on as it is, and look for a credit card that will work for you in the long run with benefits!
What is a ‘good credit card deal?’
You must have heard people say – ‘I got a good credit card deal’. So if you happen to be looking for a credit card at that moment, do you just go with what your friend has told you as a good deal?
Let’s check out what one means by a good credit card deal. A credit card deal is good if it works for you. So, if the credit card fits into your lifestyle in a way that rakes in maximum benefits for you, that is a good credit card deal. The most important thing to realize here is the word ‘your’ as in ‘your lifestyle’. So logically speaking there is nothing like a good credit card deal. What it is - is good deal for ‘you’ i.e. the individual who is going to use that card. This is because the lifestyle and the needs differ from person to person (and that is precisely the reason why every credit card supplier offers so many different kinds of cards). It might be true in some cases (where the lifestyle of two individuals/friends is similar) that the deal which is good for one may be good for the other, however, this is just in a few cases.
You can always check with your friend who has recently got a credit card, since that might cut down the time needed for researching/hunting-for a good credit card deal. However, it’s really a matter of evaluating your own needs. If you travel a lot and to far off places by air, a card that offers you good rewards/rebates/benefits on travel would comprise as a good credit card. Sometimes the airlines themselves have their own credit card issuing/supplying company from where you can get a good deal. For people shopping at a particular retail store or a shop, a good credit card deal would be a card that offers discounts, rebates and rewards on shopping. Again, the retail stores themselves might have cards that could be beneficial to you. Then there are credit card deals that are linked to gasoline stores or big grocery chains. If you don’t have any specific needs, you might use a general purpose credit card that gives reward points on every purchase you make. These points can then be redeemed for rewards.
Good credit card deals are really relative terms and there is no credit card deal which is equally good for all. So do your research, take an interest in what you spend most of your money on as it is, and look for a credit card that will work for you in the long run with benefits!
Labels: credit card, good credit card, no credi
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