CREDIT CARD SHOCKER

Written by Rosella Aranda


Continued from page 1

Thirdly, and this isrepparttar sneakiest part of all, in order to securerepparttar 112245 0% rate on your transfers, you are required to purchase a minimum amount on your card for several consecutive months. At first, this doesn’t sound so bad. However,repparttar 112246 fine print tells you thatrepparttar 112247 interest rate applied to these new purchases is NOTrepparttar 112248 same 0% rate, but a different, much higher rate.

What’s more, all your payments will always be allocated torepparttar 112249 balance that will earnrepparttar 112250 credit card companyrepparttar 112251 most money. This means thatrepparttar 112252 balances withrepparttar 112253 lowest rates will be targeted first, whilerepparttar 112254 balance withrepparttar 112255 much higher rate keeps accruing and compounding interest month after month. So, if you transfer a large sum in order to take advantage of this seemingly generous offer, you will likely be paying on it for a very long time before you ever get around to paying downrepparttar 112256 mandatory purchases, which are racking up some pretty serious charges inrepparttar 112257 meantime..

And we’ve only looked at interest rates here. There are also default penalties, late charges, over-the-limit fees, transaction fees, ATM fees, stop-payment fees, cash advance fees and annual fees, all of which are onrepparttar 112258 increase. Over halfrepparttar 112259 states inrepparttar 112260 union have no limit on what credit card issuers can charge for annual fees and yearly interest rates. These companies are gouging their customers with charges that are downright outrageous, and unfortunately for us, legal.

So how do you avoid falling into these sneaky traps thatrepparttar 112261 credit card companies set? If you are lucky enough to not be playingrepparttar 112262 losing game of credit card roulette, for heaven’s sake, don’t start! If you are already involved, get out as fast as you can. Here are a few basic steps.

-Don’t carry a credit card. It’s amazing how easy it is to ignore this obvious first step.

-Apply any extra money to your debts first. If you’re saving a little nest egg earning at a rate of 5%, but you have debts gnawing away torepparttar 112263 tune of 12%, it’s not difficult to see that this is a losing proposition. -Target one debt for elimination at a time. Pickrepparttar 112264 one that can be wiped outrepparttar 112265 most quickly first.

-Take allrepparttar 112266 extra money fromrepparttar 112267 first debt and apply it to your second target.

-Continue in like fashion until you have dug yourself out of this miserable pit.

And finally, breathe a major sigh of relief and vow never to pass that way again.



Rosella Aranda, international marketer, writer and business mentor, collaborates with a team of experienced professionals to help people achieve financial health and peace of mind. To learn how to reduce your debt, view: http://www.FreeFreedomSeminar.com. For further information on how you can become financially independent, please visit http://www.FinancialFreedomWorld.com or write to rosella_aranda@yahoo.com


THE WONDERS OF COMPOUND INTEREST

Written by Rosella Aranda


Continued from page 1

You can applyrepparttar rule backwards as well. Let’s say you have a lump sum of $5,000 that you would like to grow into $10,000 in 8 years. You would need to find an investment that pays 9% compound interest. (72/8 = 9). Ifrepparttar 112244 best you can find is an 8% return on your money (hypothetically speaking,) then it would take you 9 years to double your money. Not bad for just letting it sit there!

Now let’s assume that you want to helprepparttar 112245 growth rate along, so you add an extra hundred dollars to this account each year. Atrepparttar 112246 end ofrepparttar 112247 12 years, you would now have $3,800. If you could discipline yourself enough to add $200 a year, then you would find yourself with almost $5600. Seeing your money grow like this might well entice you to invest more money each month and really reaprepparttar 112248 benefits of this wealth-generating principle. And there’s more good news. These examples demonstrate what happens when your investment compounds annually. Some institutions are more generous, compounding your interest quarterly, monthly or even daily.

It’s pretty clear which end ofrepparttar 112249 compound interest principle you want to be on. The first step towardrepparttar 112250 winners’ circle is to pay off your existing debts. Even if you’re already having trouble making ends meet, a mere $1 addition to a minimum payment can significantly shortenrepparttar 112251 life of that loan. That’s right, just one dollar. You won’t miss it and it would be well worth it. Rememberrepparttar 112252 compounding effect. And once you’re out of debt, there’s no minimum for earning compound interest. Any sum that you can set aside will do. You don’t need to be Donald Trump or Bill Gates in order to benefit from compound interest. It can work wonders for us all.



Rosella Aranda, international marketer, writer and business mentor, collaborates with a team of experienced professionals to help people achieve financial health and peace of mind. To learn how to reduce your debt, view: http://www.FreeFreedomSeminar.com. For further information on how you can become financially independent, please visit http://www.FinancialFreedomWorld.com or write to rosella_aranda@yahoo.com


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