How to Handle and Avoid Credit Card DebtWritten by By Laurel Fisher
If you are trying to avoid credit card debt, it probably seems like entire world is working against you. Anyone with a mailbox receives hundreds of credit cards offers every year. And although credit cards can be lifesavers when used responsibly, they can become nightmares when used recklessly.
The first step to avoiding credit card debt is to avoid credit cards. Now, this does not mean that you should never use a credit card. For certain transactions, especially ones made over Internet, credit cards are usually considered safest payment method. However, you should avoid putting every day purchases on your credit card, lest they quickly add up. If you cannot afford a purchase with money that is in your wallet or in your bank, ask yourself if you really need to make purchase after all. If you do need to buy something and credit card is your only option, try to pay debt off as soon as possible.
When picking a credit card, do not be fooled by low introductory APRs. If rate jumps in a couple of months, then credit card is not a good deal. Instead, look for credit cards that have a continuously competitive rate. You can even try calling your credit card company and asking for a lower rate. Although it might take a bit of negotiating, many credit card companies will lower your APR rather than lose you as a customer.
No matter how low you APR is, do not think that it is okay to only make minimum payments. If you only pay minimum fee, it will take you years to pay off credit card. In meantime, you will accrue more debt in interest. For example, if you have $2000 in credit card debt and have a rather low APR of 14 percent, you will still have to spend over six years paying off credit card if you make a minimum monthly payment of $40. In this scenario, you will end up paying over $1000 in interest. With a higher APR, you would pay considerably more. Obviously, making higher payments as soon as possible is best solution.
| | Debt Consolidation with Free Government Grants? One Scam to AvoidWritten by Charles Essmeier
Have you ever seen a commercial or an ad promising “free government grant money?” According to these ads, government and other organizations give away nearly one half a trillion dollars each year, and all you need to do is apply! The ads go on to state that money can be used for anything, including debt consolidation , student loans, a yacht or just about any frivolous thing you can imagine. All you need to do is call their toll free number, buy their book or enroll in their program and details are soon on their way to you.
A half a trillion dollars is certainly enticing, but are organizations really just giving money away for asking?
Not exactly. Grants are certainly available from Federal Government and elsewhere, but it’s not as though money is just handed out for asking. Grants are usually given by organizations interested in achieving specific goals. If you’re interested in bringing water to desert, you might find an organization that’s interested
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