How To Get Out Of Debt » Credit Card Debt

Credit Card Disclosures Cause Consumers to Pay Less Toward Debt [Study]

Admin — Thu, 10 Nov 2011 17:55:52 +0000

Opening a credit card statement these days often comes with a bit of sticker shock. Banking regulations passed in recent years now require lenders to show consumers how much their credit card balances will generate in interest and fees if only minimum payments are made to pay it off. For example, a healthy monthly payment of $50 going toward a modest $2,500 balance at 9 percent interest will take over 5 years to pay off and add $645 in interest—a whopping 26 percent of the borrowed amount.

Credit card interest rates are now hovering around 29 percent for many U.S. borrowers, who, on average, hold just over $10,000 in credit card debt per household. By any economics definition, one would think that consumers would be rushing to pay double or triple the minimum payment to avoid a mountain of interest and decades of (Read More....)

Are Credit Card Companies Really Charging 83.3% Interest?

Admin — Thu, 18 Feb 2010 16:36:11 +0000

Everyone pays attention to the interest rate when shopping around for credit cards, but Finance Charge policies are rarely glanced at. Are credit card companys are really charging you 83.3% interest? When a customer receives a $1000 loan from a bank, the bank in turn has the legal right to charge interest on the rate you borrowed the loan. If, for example, the interest rate were a fixed 10%, cost of borrowing the original $1000 would be at least $1100, in other words, the $1000 loan + $100 finance charge. Banks and credit card companies don't expect most customers to borrow the loan and pay it back right away, and nor do most people pay on time every month. The bank allows customers a few days after that date to pay their bill, which is called a grace period. Payments received after the grace period can be assessed as late fees or additional finance charges (Read More....)

Tips For Getting Out Of Credit Card Debt

Admin — Sun, 14 Feb 2010 21:47:53 +0000

Tips For Getting Out Of Credit Card Debt

Author: Dr. Marcilio

If you've found yourself in a bad financial situation, try some of these tips for getting out of credit card debt. While each tip might not work in every situation, you should be able to find something here that will help you get into a better place financially.

Getting out of debt does not have to be difficult or scary. True, it takes some dedication and hard work, but it does not require a superhuman effort. Instead, it involves following some simple tips for getting out of credit card debt that anyone can handle.

Make a Plan

Before you start working toward getting out of debt, you'll need a plan. Without a plan, your efforts will be uncoordinated and frantic, like an animal trying to get out of a trap. With a plan, you can make each move strategically, (Read More....)