Avoiding College Credit Card Traps

Written by James H. Dimmitt

Continued from page 1

2) NEVER use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.

3) Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance atrepparttar end of each month. If you can’t pay offrepparttar 150081 balance, always make more than justrepparttar 150082 minimum payment.

4) Pay your bills on time, otherwise you’ll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on ALL your credit accounts.

5) Request a low credit limit somewhere between $700-$1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.

6) Less is better. You don’t need more than one or two cards atrepparttar 150083 most. The more you haverepparttar 150084 more tempted you’ll be to use them or to “max” them out.

7) Consider using a debit card instead. A debit card is linked to your checking account and purchases are automatically deducted from your account balance. Of course, make sure you have money in your account to cover any purchases you make.

Using a credit card is a big responsibility whether you’re a college student or an adult. Managing your credit wisely establishes a positive credit history which will serve you now and well intorepparttar 150085 future.

© 2005, http://www.yourfreecreditreportnow.com Author: James H. Dimmitt James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book “IDENTITY THEFT- How To Avoid Becoming the Next Victim!” and other bonuses by visiting http://www.yourfreecreditreportnow.com

Home Equity Loan – Good Choice for Luxury Purchases?

Written by Charles Essmeier

Continued from page 1
with a home equity loan have come down in recent years, andrepparttar application process is much simpler than inrepparttar 150068 past.

The good points make it seem like a good idea, butrepparttar 150069 bad points are considerable. Most home equity loans have terms that extend quite some time, typically ranging from 5-15 years in duration. Do you really want to pay for a car for fifteen years? It is quite likely that you’ll still be paying for that luxury car long after it has gone torepparttar 150070 junkyard. The same applies to that aroundrepparttar 150071 world cruise, which will be long forgotten byrepparttar 150072 time it has actually been paid for. It may make sense to fund a luxury car with a home equity loan ifrepparttar 150073 term ofrepparttar 150074 loan is only five years and you actually plan to keeprepparttar 150075 car for that long. Otherwise, fundingrepparttar 150076 purchase with a more traditional loan would be a better choice.

Of course, if you have already maderepparttar 150077 purchases and you are maintaining a balance on a high-interest credit card, it might be wise to consolidate your debt with an equity loan. Trading a 20% loan for a 6% loan is certainly a smart move. The best advice for anyone considering funding a luxury purchase through a home loan would be to consult with a tax advisor.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.

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