It Is In Your Best Interest To Do The Math On Your Credit Card Interest

Written by Terry McDermott

If you begin foaming atrepparttar mouth once a month when you receive your credit card statement, joinrepparttar 146937 millions of Americans that are foaming along with you. There is a growing outrage atrepparttar 146938 seemingly endless journey towards eliminatingrepparttar 146939 balance on your credit card and that is due primarily torepparttar 146940 extravagant interest rates charged by credit card companies.

Your bank is probably toutingrepparttar 146941 super rates it offers on Certificates of Deposit or CDs. “Just deposit $5,000 for 6 months and we’ll give you a ‘whopping” return of 2.83%.” Yet, in contradiction torepparttar 146942 low rates banks are willing to pay you forrepparttar 146943 use of their money,repparttar 146944 interest on credit card rates can be 10 timesrepparttar 146945 amount offered on a CD. Why?

The interest rates on savings accounts and CDs are based on competition,repparttar 146946 cost torepparttar 146947 bank of borrowing money andrepparttar 146948 expected return on investment torepparttar 146949 bank forrepparttar 146950 use of your money. Because a savings account is liquid,repparttar 146951 bank does not know from day to day how much of your money will be available for its use. A CD, onrepparttar 146952 other hand, requires that you place your money inrepparttar 146953 bank for a specific amount of time. The longerrepparttar 146954 time period,repparttar 146955 higherrepparttar 146956 return. That is becauserepparttar 146957 bank has greater flexibility with your money and knows exactly how long they have to work with it.

Credit card companies have been highly successful at convincing government regulators that they need higher interest rates to protect themselves. As opposed to a mortgage loan or home equity loan, credit card companies claim that they do not have any collateral to “securerepparttar 146958 loan” they provide to consumers that use their credit cards. If a customer defaults or files for bankruptcy, a credit card company had little recourse to recoverrepparttar 146959 balance due on a credit card account. But a recently passed law now makes it much harder for individuals to eliminate all of their credit card debt by filing personal bankruptcy. Many think this is an unfair advantage forrepparttar 146960 highly profitable credit card companies.

Wealth Creation

Written by Marlene Challis

"Learn to live within your income. Some day you may have to live without it."

Anybody can earn money--the trick today is to save money.Probably every man and woman in moderate circumstances is either saving money or has planned to do so before long. It is quite natural to put off actually beginning saving until "tomorrow," because today there are so many things one feels it is necessary to buy or to do. Everybody expects to have a larger income "after while" and intends to save then, but whenrepparttar larger income arrives,repparttar 146936 cost of living has increased, andrepparttar 146937 pleasures and luxuries to which one has grown accustomed eat uprepparttar 146938 increased income.

Many men and women who planned two years ago to begin saving as soon as they made more money, are today making more money--but are not saving a cent more than they did two years ago. Many people who read these lines know that is true from their own experience, for every one who looks back realizes that it is not one bit easier to save money today than it would have been whenrepparttar 146939 income was but a few dollars a week.

A larger income is often a temptation to adopt a more expensive mode of living. The modest home which seemed cozy and attractive whenrepparttar 146940 master ofrepparttar 146941 house was earning only a few dollars a week, is immediately abandoned when his salary doubles. The instinct ofrepparttar 146942 average man is to want his home, his dress, his pleasures, his habits--all to make a show far in advance of his actual earnings.

He impresses his friends and neighbors withrepparttar 146943 idea that he is making twice as much money as his pocket-book ever holds--and then he has to work in a constant fever in order to keep up with this impression.

Let us live while we live isrepparttar 146944 slogan of too many men and women of this generation--and that is exactlyrepparttar 146945 point we are coming to.

Let us live while we live. The man or woman who does not knowrepparttar 146946 pleasure of adding week by week to a sum of money earned and owned, has missed one ofrepparttar 146947 most enjoyable, stimulating, and ever-present pleasures which can be experienced.

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