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Credit Card eZine - News and Articles about Credit Cards

Credit Card eZine - News and Articles about Credit Cards

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Credit Debt Levels

05:14:30 AM Tuesday, February 26, 2008

Credit Card Deals - Australians Practice Frugality with Their Plastics

While American consumers get used to carry heavy balances from month to month, and this idea is quite common for an average American cardholder, Australian consumers are highly concerned about credit card debts and do their hardest to pay them off.

Interestingly, Australian customers become more frugal with their plastics after two interest rate hikes, meaning customers pay off their credit card balances on a regular basis in order to avoid heavy credit card charges. Though they still use their plastics quite actively, and credit spending is on the rise, the total outstanding credit card debt is rising at a slow pace.

It's no secret that a state bank may take certain steps in the frames of its monetary policy. In the US, the Federal Reserve Bank cuts the fed rate to make the borrowings cheaper for banks. And oddly enough, thousands of cardholders discover sky-high interest rates on their plastics.

Meantime, the Reserve Bank of Australia aimed to slacken the pace of consumer spending by raising the interest rates. And it's worth mentioning that interest rate hikes have taken a toll on consumer behavior. They keep on charging on their plastics, but the total credit card debt climbs at the slowest annual pace.

According to statistics, the total credit card balance rose just by 9.5% for the 12 months period. Taking into consideration that the average increase is 17 per cent, we may conclude that Australian consumers tend to be more frugal with their credit cards. Let's take a brief look at the behavior of Australian cardholders after two interest hikes.

First and foremost, the use of cash advances on plastics went down by 2.3 per cent for the last eight months. That's no surprise, as cash advances incur pretty high interest rates. So, consumers avoid taking cash withdrawals.

Meantime, the amount of credit card purchases rose by almost 12% in December. In view of the fact that year-end time proves to be the strong retail season, it's no surprise that credit card purchases were on the rise. However, credit card spending declined in the US even despite dramatic fed rate cuts on the edge of Christmas retail sales.

The thing is, credit card repayments in Australia went up 5.5% in December, and that was a good sign. It shows that Australian consumers take their credit matters seriously and try to stay within their means by paying off their balances on a regular basis.

One of the surefire methods to avoid heavy credit card debts is to pay them off as soon as possible. That's just what Australian credit cardholders do. They actively repay their credit card debts, and it helps them avoid various problems associated with carrying heavy credit debts. All the more so, there was a 0.4% increase of the number of credit card accounts in December.

All in all, we may see that interest rate changes may have different effects in different countries. In the US, interest rate cuts may have the opposite effect, as many lenders suffer incredible losses and recoup these losses by slapping sky-high interests on their clients' balances. As for Australia, interest rate hikes have caused consumers to change their attitude to credit card debt.

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[August 15, 2008]
Credit Card Limits

Owners of high limit credit cards are proud of their status which speaks of the bank's favor and trust. Limit increase doesn't come by itself, sometimes it takes years of disciplined card use to prove the bank you've deserved it a better credit card deal. The day when you receive a statement offering to extend your credit line makes you happy and full of spending expectations.

But there some rare cases when a person, once offered an extended credit line, rejects the privilege. Or worse even, the person does accept the increased limit but later decides to lower it to the previous amount. The reason is put up simple: why borrow such a huge amount, when you are barely going to spend 20% of it?

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[July 29, 2008]
Credit Debt Causes

Credit cards have made our life much easier. They provide a host of great services and incentives, but plastics do have the downside, i.e. fees and charges that may result in heavy credit debts.

When used wisely, credit cards are really effective. They will be of great help for those who plan purchasing a big-ticket item, as well as for those who badly need money in case of emergency. All the more so, by using credit cards at certain retailers, you can get extra bonuses or discounts. But there's one thing that can ruin your credit card pleasure, i.e. credit card debts. Read more about the most common credit debt reasons.

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[July 15, 2008]
Negotiating Credit Fees

Balance transfer credit cards are ideal when it comes to heavy balances. Shifting your high-rate balances to a card with much lower rates is a good idea. However, when choosing the right balance transfer card you should take a closer look at balance transfer fees, as they can be pretty hefty.

These days, it can be troublesome to find a card with no balance transfer fees. Due to a tough economic situation, creditors have pulled such credit offers from the market. However, it doesn't mean that you cannot find an offer with fair terms. With a wide variety of balance transfer cards on offer, you can always make a good deal!

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[July 01, 2008]
Stolen Credit Cards

One of the things most people would hate to lose is a credit card or a wallet full of plastics. The point is, a lost or stolen credit card may become the reason for serious financial problems.

Much to cardholders' delight, credit cards come with a thick bunch of various credit benefits. One of them is zero liability coverage. It means that when your card is lost or stolen, you are liable only for $50. It's all well and good but it's still really crucial to know what to do when your credit card is lost or stolen.

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