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Credit Card eZine - News and Articles about Credit Cards

Credit Card eZine - News and Articles about Credit Cards

Get even more information on credit cards? Read our Credit Card eZine. The section is regularly updated by our specialists. Learn all the financial tricks. Know the pitfalls and hidden bonuses. Find out how to transfer balances and accumulate points. We will tell you about the latest offers on the market.Get your credit card education and make the most out of your plastic.

Credit Card Debt

Thursday, October 16, 2008

According to the latest survey conducted by Standard and Poor's, American consumers experience difficulties when managing their personal debts. Due to economic hardships such as falling home prices and rising inflation, more and more consumers turn to credit cards. But the problem is, plastics are mostly used as the source of cash, rather than its substitute. About 10% of US consumers make more cash withdrawals to receive cold cash and it leads them to heavy debts. Read more about credit debt and the ways to reduce it!

Bad news is that more credit users find it difficult to meet their financial obligations. According to the research, about 14% acknowledge the fact that sometimes they're unable to pay down their balances. For 5% of users, it's always a pressing problem. 8% of cardholders make the monthly minimum payment and another 8% pay less than the required minimum.

The number of those customers who carry big balances is striking. 3% of respondents have over $40,000 in credit card debt. More than 20% carry balances between $5,000 and $20,000. What's more, there are many customers whose available credit is near to the spending limit. To be more exact, 25% max out their primary cards or near to this.

When it comes to prioritizing monthly payments, 35% of respondents chose their mortgage as the bill that would be paid first. More than 25% said that this would be their credit card bill. This survey has revealed the change in the consumer behavior. Now that the value of homes decreases, more and more people turn to credit cards as the source of funds. But the problem is that not so many people can manage their massive balances and their debts spiral out of control.

If you get sucked into credit debt and find it difficult to pay down your balances, it's high time to take actions and manage your debts. First, you need to take a close look at your income from all the sources and your expenses.

The task is to find the balance between income and expense. Avoid spending money on something you can do without. Overspending is one of the most major reasons of debt. Do your best to put more money toward your debt. It speeds up the process of paying off your balances. By making minimum monthly payments, you risk to get up to the ears in debt, as this payment covers only a small portion of your balance. The major portion goes towards interest. And if you carry a high-rate card, you are sure to have problems with paying down your balance.

Good balance transfer deals come as a smart idea in such situation. By transferring your balances onto one card with lower rates, you have good chances to pay off your balance easier and faster. This will save you a lot of money as well.

If your credit score is in a good standing, no need to pay more if you can get a better deal. 0% APR cards are ideal if you want to save on new purchases or balance transfers. When applying for a new card, pay attention to ongoing interest rates. If you tend to carry a balance over the time, the deal with low interest rates is a must-have for you. Manage your debts, otherwise, they will manage your life!

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[December 05, 2011]

In a time when banks have begun charging monthly debit fees, baby boomers may be able to find discounts based on their age and experience. Our research reveals some of the best checking accounts for consumers over 50 - and the best part is that they`re free!

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[October 12, 2011]

All data shows that the woman entrepreneur is on the rise.This could be because women tend to work well in groups and are great multi-taskers and communicators. In addition to that, women are also making riskier decisions when it comes to financing their businesses, according to a recent survey by PNC Financial Services. These decisions may have an impact on the longevity of these female-run businesses.

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[September 07, 2011]

With the economic upheaval, obtaining a credit card seems a distant dream, especially if you fail to qualify for any credit card application. Nonetheless, turning into an authorized user, i.e. attaching yourself with a good-quality credit customer`s account and the consent to use it, would boost your credit scores swiftly, and jump start your credit history.

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