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reliable information on credit cards - online investing - personal loans - owning and operating your own home business. indepth information from professionals in their field. dont forget to check out our links to the best sources on the internet, these days information and research is critical to making the best educated decision to suit your needs.

Sunday, May 21, 2006

How to Deal with Credit Card Debt



There's no doubt that credit card debt is a problem. More than 30 million people have a credit card in the UK, and many of those have more than one.

It stands to reason, then, that credit card debt accounts for a significant proportion of the grand total of �1.1 trillion personal debt in United Kingdom.

Credit cards are an incredibly useful way to buy goods whether in store or online and the idea of paying for expensive items or holidays etc and putting off the day when you actually have to part with your own cash is very appealing, not to say tempting.

Unfortunately, temptation can get the better of you and before you know it, you have more credit card debt than you can handle.

CAN YOU HANDLE IT?

The most important question you have to ask yourself is: can you handle having a credit card(s) without letting your debt get out of control? Do you have a history of overspending where credit cards are concerned?

If that�s the case, the simplest solution might be not to have a credit card at all and just use a debit card or of course cash for all your transactions.

But if you can trust yourself not to spend irresponsibly with a credit card, it is still important to use it sensibly and it will help to follow some of the basic rules.

CHOOSE WISELY

There are more than 1,000 different cards to choose from so you really will be spoilt for choice, but you have to make the right choice. You should look further than the high street for the best deals as often it�s the bigger names that carry the bigger interest rates. Search on the internet for sites that compare different cards and their rates.

THE PAY-OFF

Without doubt the best way to use a credit card is to pay your balance in full every month. That way, you won�t have to worry about interest mounting up and also you can be sure you are not spending more than you can afford, thus allowing your debt to spiral.

Paying the minimum amount every month is no way to handle a credit card because it will take you literally years to pay off a relatively modest debt as the interest is allowed to mount up. Worse, of course, is paying nothing at all from month to month as you could also be charged penalty fees.

If this isn�t possible, then it is more important than ever to make sure you are not paying more interest than you need to, which brings us to�

PLAYING THE SYSTEM

You cannot have failed to notice the multitude of credit cards on the market offering a very tempting 0% interest rate. The downside of these is that the 0% interest only lasts for a limited period, after which you could find you are paying an excessively high rate.

There is a way round getting tied into unfavourable interest rates by this initially attractive proposition: once the 0% interest rate finishes, simply switch your balance to another card offering 0% interest for a limited period. And when that finishes� well, you get the message.

Even if you don�t want to get on the 0% interest merry-go-round, you should still assess the credit card market regularly to see if it would be worth your while switching your balance elsewhere. There is no point in paying extra interest when switching is so easy.

STORE CARDS

The best advice as far as store cards go is leave well alone. The interest rates these cards carry are ridiculously expensive when compared to ordinary credit cards. Sometimes they offer money-off incentives. If you are tempted by these, make sure you pay the balance in full every month to avoid paying the excessive interest.

IF YOU ARE STRUGGLING�

Tell the credit card company about it. Don�t just sit there and watch the unpaid bills drop through your letterbox. That way, the interest will just get bigger and the charges pile onto your original debt.

All reputable credit companies will be open to suggestion and willing to negotiate because they want to make it as easy as possible to recover the debt.

Enlisting the services of a professional debt counsellor can be beneficial for negotiating with your creditors � they can sometimes get the interest frozen and are experienced at securing more favourable terms for repayment.

It pays to change your attitude by taking advantage of the credit card companies rather than letting them take advantage of you.

For more information on credit card debt, go to: http://www.debtcounsellors.co.uk/credit_card_debt_free.htm

-->by: John Porter

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How To Profit From 0% Interest Credit Cards



Credit cards equal debt, it's almost a universal truth.Almost.It is possible, and is being done right now, to turna profit from 0% credit cards.

Before we get started here are some things you needto realise before you even attempt to profit fromthese 0% interest credit cards.

1. It's no use making small percentage profits whenyou are already paying out large interest on debts elsewhere. Clear your debts first if you have anyapart from a mortgage.

2. You will need to be vigilant on the 0% periodsexpiry, most will be 6 months, and you need to makesure you pay the money back then.

3.You need to be able to forget you have the moneyyou borrowed on the credit card, and not dip into itfor any reason.

4. You will need a good credit score from the startof this venture or it won't happen at all.

Now with those little caveats out of the way, we can get to the meat of the idea, and profit fromthose credit card companies.

Firstly you will need to find a credit card with a 0% interest rate for at least six months, someeven offer up to nine months 0% interest. Thenyou need to apply for it, and wait.

You will also need either a loan or another creditcard you can draw up to the limit of your 0% card on. Now here comes the science bit.

Pay the limit of the 0% credit card into a bank accountby drawing it as cash or direct transfer, and immediatelyuse the 0% card to transfer the balance to the other cardto make it paid up.

The money you just got out can be placed into a highinterest savings account. Leave it there until you have to pay up the 0% card at which point you willstill only owe the original amount you transferredonto it. You will have made interest on the money while you had it and owe 0% interest.

If you have a real clean credit history you could eventransfer the balance from another o% interest credit cardto the first one, and leave the money earning interestin the savings account.

This is only meant as an informational overview, and youwill need to research the credit cards and relevantlaws in your own country or state. Here in the UKa few savvy people are using 0% interest credit cardsto make them a nice sum, and as long as you rememberthe few simple rules at the beginning of this articleyou could too.

ABOUT THE AUTHOR

Douglas Titchmarsh also runs a credit and debt
information site at
http://www.cashinonline.info/credit
and a newsletter at
http://www.thediscountebookstore.com/gep

Other Links:

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http://blognetwork.tripod.com/cardcreditdebtreduction