Debt Consolidation Facts
Debt consolidation programs can help you lift the burden of excessive debt and potentially save you hundreds of dollars a month. Debt consolidation professionals will work with you and your creditors to design a plan to help you lower your payments...
Different Ways Of Dealing With Debt.
Bills, creditors, debt collectors. Are you yearning for the days when all you had to worry about was the money in your piggy bank? If so, you are far from alone. Whether its illness, loss of a job, or simple overspending, it happens to the best of...
Some tips to reduce debt problems
Some tips to reduce debt problems - Don't let your debt problems overpower you. Be analytical, creative and realistic to find options that can help you out. - What worked out for somebody else in resolving his economical problems may not be the...
The Fair Debt Collection Practices Act
Declaration Of Purpose: An abundant evidence of the use of abusive, deceptive, and unfair credit collection practices by many debt collectors led to the declaration of the Fair Debt Collection Practices Act. The purpose of the Act, approved in...
UK Consumers Regaining Control Of Runaway Levels Of Personal Debt
The UK in recent years has seen a massive growth in the levels of personal debt and thanks to increases in secured loans corresponding to a strengthening of the housing market; it does not appear to be slowing down. Recent figures from Creditaction...
Credit Card Debt Help: How to Become Credit Smart and Enjoy the American Dream
Being able to buy things on credit has allowed Americans to own
and enjoy things--often for years--without having to wait and
pay cash for them. In that way, the concept of credit has been a
boon to experiencing the American Dream. Unfortunately, there is
also a dark side to credit--one that can turn the American Dream
into a life-destroying nightmare.
The figures are startling. More than 70 percent of American
divorces are caused by the stress brought on by financial
difficulties, and three out of every four Americans are a mere
three paychecks away from having to face potential default on
their debts.
But how can this happen in the richest country in the world? The
answer is simple: misuse of credit. In order not to become one
of those depressing statistics, it's important that you become
credit smart--long BEFORE you find yourself in financial
difficulty over your head.
Credit Card Debt Costs
First, let's look at the nuts-and-bolts of what credit card debt
actually costs. When you buy something using a typical credit
card, you will, on average, end up paying more than 130 percent
above the actual cost of that item, compared to what it would
have cost if you had paid cash. No matter how terrific the sales
price may have been, your savings will be more than offset by
the interest charges you'll end up paying if you pay by sending
the monthly minimum payment to your credit card company.
If you pay the minimum amount suggested on your bill each month,
you'll normally be paying 90 percent interest, with only the
remaining ten percent going to the reduction of the principal
on
your balance. It can take years to pay off relatively high
ticket items, and you'll end up paying many times more for the
item than its original sales price. Yet more than 70 percent of
American consumers pay only the minimum amount on their monthly
statement and never give any thought to how much interest
they'll pay over the life of the debt.
To avoid potentially devastating financial difficulty, and to
save money (and possibly your marriage), it's important to
become credit smart.
First, pay cash, if at all possible. Second, if you can't pay
cash at the moment, ask yourself if you truly NEED whatever
you're contemplating at the moment. Perhaps you can put it off
for awhile, and then pay cash for it.
If you need the item right away, put it on your card, but when
the bill comes, always pay a little more than the minimum amount
each month. Even a small amount can save you hundreds, or even
thousands, of dollars over the life of the loan. Finally, if you
can, pay off your credit card in full each month. That way,
you'll avoid paying any interest at all.
Credit card debt can ruin your life and the lives of everyone in
your family. Take time to learn how to use it wisely--to improve
your quality of life without creating undue amounts of stress.