October 19, 2014
The credit card is completely different to the original concept of the idea of using credit. While the original credit card was paper, this quickly developed to the plastic one that adorns many purses and wallets around the world.
The original idea behind the credit card was to pay the debt in full at the end of each month. You only became eligible for a credit card if you were a special and privileged client. Often the banks lost money on the credit card, with high fees, but this didn’t matter if it meant a customer was happy and loyal. The change in the use of the cards is apparent as customer’s now, often have balances from previous months spending.
However, slowing the evolution of the credit card took place and it was no longer a privileged accessory but one many people demanded as an easy access to some form of credit.
A credit card has become a necessity in the majority of homes; it pays for luxuries but also a way to pay for the essentials. With the companies competing for the larger slice of credit from the consumers, more and more people opted for the credit card as a way to pay for everyday life.
While improvements in the economy is a positive angel, wages have stayed comparatively low. This has led consumers to look for credit in all places and credit card companies have obliged.
What is staggering is the fact that in 2008 credit card transactions over took cash transactions in America. This is a worrying statistic in the current economic climate.
However, life has changed.More and more families are in a lot of debt due to the credit cards and rising housing costs. Consumers are struggling with the debt they are experiencing, the credit card companies are continuing to push the cards and increase the amount of debt.
Credit problems are bad that the amount on bankruptcies are increasing, meaning the credit card companies are potentially losing money through bad debt.
However, whilst this might seem that the evolution of the credit card is bad, the changes haven’t completed and there is still hope for the future.
Hello, I’m Blair Thomas and I’m an electronic payment expert and the co-founder of eMerchantBroker from Los Angeles, CA, the #1 High Risk Merchant Account Company in the country. I enjoy hiking, snorkelling and discovering new music. When I’m not working in the electronic payments industry, you can most likely find me producing and writing music. Add me to your circles at Google +
Tags: Credit Card
, Credit Card Debts
, personal finance
March 11, 2014
The overwhelming credit burden requires effective resolution. However, the debt aspects are so complicated that it is often confusing to understand even where you stand at the debt status. The monthly bills keep on coming, and the numbers seem like huge burdens on your mind. The risk entailed in a debt crisis involves all things you hold dear. The vacuum of unpaid dues threatens to take your home, car, and subsequently the job. Many debtors are already without a job. The situation is even more drastic for them than the average homeowner. However, debt is also a great equalizer. Everyone facing it feels the same haunting vulnerability. You need to overcome the distress via a suitable solution. Look up a credible debt relief agency for the purpose.
Checking essential registration
You must be aware that several agencies operate without proper licensure. Either they do not have the registration at all, or they have an invalid document. Working with dubious services can land you in deep troubles you do not want. Many identity theft services do rounds in the debt market. You can identify them by the unrealistic claims. It is impossible for a company to make a person debt-free within one week. You cannot just make thousands of dollars in debt disappear overnight! Money is not an illusory magic trick! It is the realest thing in defining a society. You need to be superbly realistic in facing money issues. Never forget to discuss the consequences and penalties of missing an installment. Always ask whether the service can provide their verifiable registration number. Follow this approach even when you apply online.
Identifying the right service
Of course, a company can facilitate consolidation within a week. It requires efforts, but a well-connected service can easily accomplish the task. Call the customer service in verifying whether they have the necessary systemic contacts. Check if they maintain stable connections with the bank and credit card services. The debt relief service must negotiate your consolidation with lenders. You may follow the official protocol of bankruptcy. Many services also offer consolidation on a one-to-one basis, without filing a bankruptcy claim. You have two claim options, the chapter 7 and the chapter 13. Discuss the appropriateness of both parameters with the debt rescue customer support.
Convenient loan provisions
The relief service essentially arranges the most convenient loan package. However, you need to verify whether the assigned conditions are compatible with your personal finance. Start with checking your monthly budget balance sheet. You can also use amazing online accounting resources to develop a balance sheet. See whether the credit repair agency has the necessary tools such as debt calculator and budget balance sheet. They may or may not have it. You can find many free online software solutions for the purpose. You must check the loan interest rate total value. Services also levy additional fees on the final amount. Inquire to interpret the exact amount you need to allocate every month for repayment.
You must find a service with the most helpful attitude. Their genuine helpfulness must reflect in different aspects of their service. See if they can adjust the service fees with the loan monthly installments. Understandably, it is extremely difficult for you to pay in lump-sum at the first. The convenient payment packages simplify things. The company should be able to present a clear blueprint of debt freedom. However, you may need to make some personal adjustments. Consider shifting to a debit card or a secured credit card. These can effectively assist in managing your credit bills. You do not even receive a bill with the debit card purchases. However, you need to look up legal options for certain specific loans that do not fall under the bankruptcy plea even.
Nathan Dylan is a financing agent for electric cars in New York. He says business is at its all-time best as of now. Nathan suggests customers must contact a credible credit repair services NYC to inquire the relief options.
, Credit Card
, debt freedom
, financial planning
February 6, 2014
Car title loans are a viable option for people who need money fast. This type of secured loan is convenient and easy to obtain. All you have to do is to use your car title as collateral. Even those with bad credit or no credit history at all can qualify for these short term loans. Most lenders require customers to pay off their debt within one month. If the borrower is unable to pay, the lender can repossess his vehicle.
In general, customers who apply for auto title loans receive $500 to $25,000. How much money you will get depends on the value of your car as well as on the lender. LoanMart’s online auto title loans are flexible and easy to qualify for. The application process takes only a few minutes. Borrowers must provide a valid driver’s license, a copy of the auto title, proof of income, and contact information. If your application is approved, you will receive the money within one hour.
When you apply for a car title loan, the lender won’t check your credit or ask you to prove employment. As long as you have a steady source of income and a car, you will get the funds needed. The best part is that you get to keep the car and still drive it while you have the loan out. It’s no wonder why these loans are so popular among customers. If you’re too busy to go to a title loan shop, you can submit your application online.
Tags: Car Loan
, financial planning
November 19, 2013
Over time credit cards have become one of the most popular finance options. Their flexibility means that they can be used in almost any financial situations; whether you’re looking to spread the repayments of a large purchase, spend money overseas, build your credit history or earn loyalty points or rewards on transactions.
Unfortunately though, when they are not managed properly credit cards can cause real financial problems – and because of their relatively high interest rates; the longer you leave it the worse it gets. Throughout this article we are going to run through a 5 step guide to how you can overcome credit card debt and get your finances back on track:
Step One: Calculate how much you owe
Although it may be tough to face the reality of your problems, this is ultimately the first step to overcoming your debt. So, find your most recent statements and see how much you have outstanding on each card. Until you are debt free it’s definitely a good idea to stay away from spending anymore on your cards.
When noting down all outstanding balances it may also be a good idea to include the interest you’re being charged highlighting any interest free deals or bonuses that you are currently benefiting from.
Step Two: Create/ recreate your budget
There are three possible reasons you got into debt in the first place:
1. You overspent month on month
2. Your budget wasn’t effective
3. You didn’t have a budget
Whatever the root cause of your problems, you need to draw a line underneath it and work on putting things right. The single most effective way of doing this is by creating an effective monthly budget.
To do this you firstly need to note down all sources of income that you’re receiving month-on-month. This will include your mainsalary, any other jobs you may have, anything you may be earning on savings or investments and finally any benefits or tax credits you may earn. Having added all of these together you now need to calculate your level of outgoings.
In order to determine how much you are spending throughout the month you firstly need to gather as many recent bank statements as you can. Arguably the most effective way of listing your outgoings is to split them into compulsory, essential and luxuries. Your compulsory outgoings will be payments that you make each month without fail, so things like: your rent or mortgage, utilities, council tax, loan repayments and insurance costs. Your essentials are things that you couldn’t get by without but often differ in cost each month, such as food, petrol, mobile phone and broadband bills, car maintenance costs, TV licence and parking costs. Finally, you luxuries are things that you don’t necessarily need such as entertainment costs, night outs, dining out, gym memberships, holidays and gifts.
It will be evident by simply looking at your bank statements whether each expense differs on a monthly basis or stays the same. For those expenses that differ, take an average from the past three months and if you’re in any doubt always overcompensate.
Your final step is to calculate your disposable income; this simply involves deducting your total monthly outgoings from your total monthly income.
Step Three: Adjust your budget
Now it’s time to make some adjustments to your budget in order to increase your level of disposable income. There are two ways of doing this; increase your income or decrease your outgoings. Decreasing your level of outgoings will be the simplest way of doing this, and your first stop should always be the luxuries section. By simply reducing the amount you spend on eating out, takeaways and seasonal gifts you could find yourself £100 better off over the course of the month.
Always assess your subscriptions too; do you get the most out of your gym membership? Do you really watch TV enough to warrant having Sky TV? Remember, the more you can save the more you can put towards credit card repayments and subsequently the quicker you can get debt free.
Step Four: Calculate how much you can afford to contribute each month
Now that you know how much money you have left over at the end of each month you can start to calculate how much you can contribute to repayments. Often the most effective way of getting debt free is by snowballing your debts. Snowballing is basically just the process of paying off debt in order of interest rate (from highest to lowest). So while you may only be paying the minimum payment on three of your cards, you are taking large chunks off the balance of your highest interest card.
It may be tough at first, but you need to condition yourself to churn any additional disposable income into your credit card debt. So, if you get a bonus at work or do some overtime then this needs to go towards your credit card repayments. The lower your level of debt gets the easier it will become.
Step 5: Keep your eye on the prize
There are temptations to spend every day you just need to ensure that you keep your eyes firmly on the prize of getting debt free. The rewards of being debt free will feel so much better than the five minutes of joy you get from an impulse buy.
, Credit Card
, Credit Card Debt
, Financial Problem
September 3, 2013
For a long time now, we have become very used to living off credit. This is unfortunate as we may find ourselves out of our depth, having totted up a huge bill and struggling to make the repayments on a monthly basis. And the trouble is it is just too easy to do. Credit card companies are continually offering us card after card and, being only human, particularly if we find ourselves short of cash one month; it takes just a few minutes to apply. OK so our immediate cash flow problems are resolved but what about the bigger picture? Maybe it is time to take a fresh look at our borrowings before our total debt is larger than we can manage.
But if it is not to be credit card, or even bank overdraft, what exactly are the options? Agreed that it is sometimes impossible to manage on our salary alone, particularly when unexpected debts knock our carefully planned budget for six. On paper, it may all look rosy. Our income is in excess of our expenditure and we should even be able to save £50 a month. But like most well-made plans, it doesn’t always work out like that. The £50 gets swallowed up by sundry expenses like lunchtime snacks and trips to the supermarket. The end result is no savings, so that when the car breaks down or the bike needs a service, the funds just aren’t there to cover the cost.
As we can see, credit cards can be a wolf in sheep’s clothing. So how about looking for something different that will not land us with long term, ever increasing debts? An internet search for ‘payday loan’ will bring up the name Wonga. But if you have never heard of Wonga or ‘payday loans’ then you can be excused for wondering what on earth this is all about. It’s a very simple process. Unlike credit cards and similar types of borrowing which let us borrow large amounts and pay back over extended periods, payday loans have to be paid back, in full, within 28 days or less. At first glance you may think that this is not so good. After all, with a credit card you can pay it back over years can’t you? But think again. The longer you borrow the money for the more it costs you. A payday loan can work out cheaper as there is no option to spread the loan over a longer period.
Added to that, a Payday Loan truly is fast and can be in your account within minutes. Once you have repaid it in full, the debt is gone. Wiped out. No horrific huge sum of debt stockpiling into the future. No worrying about monthly repayments. It really is worth thinking carefully before you take out another credit card to shuffle your debt from one card to another. Once you have gotten used to the new way of dealing with your money shortages, you should find it refreshingly simple and easy to use. Bye-bye credit cards!
Tags: Cash Flow
, Credit Cards
, financial planning