Minimum Credit Card Payments to RiseWritten by Charles Essmeier
For years, major credit card companies have allowed cardholders to make minimum payments of 2% of outstanding balances on their credit cards. Having customers pay minimum doesn’t reduce balance by very much, but when 18-30% interest rates that many credit cards charge is applied, result is a profitable ones for banks that issue credit cards. A balance of $1000 can take nine years to pay off at 20% interest if borrower only pays minimum due each month.
Clearly, it is not in best interests of consumers to pay minimum every month. But tens of thousands of Americans do just that, carrying huge balances and paying minimum every month. The average household now carries $10,000 in credit card debt; for many people, paying minimum is all they can manage. Due to changes in Federal law, several major credit card issuing banks will soon raise minimum amount due to 4%. This might seem like a small increase, but if you are already deep in debt and paying minimum amount, this could cause your payments to double. If you have a $10,000 balance and you are paying $200 per month, you will soon need to come up with $400 instead. Many people will
| | Bad credit personal loans – pertinent pedestal for a financial resumptionWritten by Amanda Thompson
In arena of loan borrowing, there is hardly an opponent more difficult to tackle than bad credit. Bad credit implies that your personal credit history is integral and decisive in making personal loan available for you. Bad credit history is like very probable. It is not that you have not been repaying loans, sometimes financial accidents happen. And this might happen without any particular effort from your side. This leads to bad credit. Bad credit in simplest terms means that you are a high risk borrower and likely to make faulty loans repayments. You might say this conclusion is unfair. So is it hard to get bad credit personal loans. I say - no. Increasingly financial institutions have become flexible in their outlook towards personal loans application with bad credit. Bad credit personal loans application do get approved every second. There is no doubt about it. But remembering some simple basic things will make your bad credit personal loan application approved without any snag. First of all verify your credit ratings. Credit rating is evaluation of individuals past loan repayment history. Credit rating is used as a yardstick against which future ability of a creditor to pay back loans is measured. Bad credit for personal loans can be enforced if anyone who has history of previous county court judgments, bankruptcy, closure, charge-offs. All these materialize as bad credit on your credit ratings. Interest rates! It usually then all boils down to interest rates. Bad credit implies higher interest rates for personal loans. Nothing in life comes without a price tag. This is way of real world. Subsequently, there is little scope for denial as far as higher interest rate for bad credit is concerned. One cannot evade paying higher interest rate for personal loans with bad credit. However, hunting for comparatively lower interest rate for bad credit is feasible. It is easy to do and very fruitful. You will never fail to find someone who can provide you with better interest rates. It is important to realize that higher interest rate for bad credit personal loans do not mean exaggerated interest rates. It only means that interest rate for bad credits are higher in comparison with personal loans without bad credit.
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