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Credit Card Debts

Check Out This Resource Site For Best Balance Transfer Credit Cards

Just came across this resource site – CashMoneyLife.com and if you are looking for some information on the best balance transfer credit cards, you may wish to check out this article to explore further.

What Happened When You Have A Balance On Your Credit Card

Having a Credit Card can be a good and a bad Financial Instrument Tool. Those who have it can make good use of it to enjoy discounts on certain purchases or other shopping benefits that you may not be able to enjoy when you make purchases with cash. But those who have it but do not know how to control their spending may end up having a balance coupled with high interest rate that will affect their finances and even their future lifestyles and families…

And if you are having such issues with clearing these balances… it’s good to have some alternatives like what I have just checked out – balance transfer credit cards. And if you like to know how this works you can click on the link above to understand better.

Read More »Check Out This Resource Site For Best Balance Transfer Credit Cards

15 Signs That You Are Going To Have Credit Card Debt Issues

Are You Holding On To Any Credit Cards?

(Image courtesy of LotusHead of sxc.hu)

If so, have you been making payments (in full especially), for your credit purchases, on time?

If you are not and just making the payments for the bare minimum and having signs that you are going to default the next few payments, then these are some signs that you are going to have Credit Card Debt Issues!

The Problems Associated With Credit Card Debts

With all the perks offered for having Credit Cards, there’s also the negative side to having them especially if you are one of those who have issues making full settlement on time. Time also has a part to play because of the existence of the interest rate and this interest rate is compounding!

To have an interest rate compounding on your outstanding debts can be quite scary in the long run… Imagine just have a debt of $1,000 and an annual 24% per annum Finance Charge imposed on this amount. And there’s the common practice of using 2% (24% divided by 12 months) per month to compound.

So your actual outstanding loan per month will be like this:

  • First Month $1,000 + $1,000 x 2% = $1,020
  • Second Month = $1,040.40
  • Third Month = $1,061.21
  • Fourth Month = $1,082.43
  • Fifth Month = $1,104.08
  • Sixth Month = $1,126.90
  • Seventh Month = $1,149.44
  • Eighth Month = $1,172.43
  • … Twelfth Month = $1,269.07

From the mere of $1,000, the debt grew to $1,269.07 at the end of a year. And what I have shown you is just a simple illustration of a small loan debt (is your usual debt usually this small?) and that you are not going to make any further credit card purchases (is it possible? are you able to avoid the temptation?).

Along with a growing Debt, there’s also the other problems like:

  • Your Credit Score being affected – you may not be able to take up loans in the future (even if it’s a time of emergency)
  • Your Savings Affected (together with your Financial Objectives) – if you do not get out of this situation fast, your long-time savings may get used up fast, resulting in you not achieving your Financial Objectives.
  • No Peace Of Mind – just think of the number of letters you will be receiving for late bill repayment or even personal calls checking on your financial situations.
  • Lifestyle Affected – at times like this, you may find it hard to ask for loans from your friends or family. It’s not their fault. They do have their own financial commitments.

If you do not wish to be facing such issues, you must be aware of these:

15 Clear Signs That You Are Going To Face A Credit Card Debt Issue

Read More »15 Signs That You Are Going To Have Credit Card Debt Issues