Don’t you hate when you have something break or need a repair done on the fly, and out comes the credit card. Your fridge breaks or your cars engine goes but you cannot get financed because of your credit score or available credit.
Credit card debt elimination should be a key focus for you for several reasons , such as increasing your available credit, decreasing your debt to income ratio, strengthening your credit, and the most important reason of all is to stop loosing future income to interest payments .
Increasing your available credit - This effects people more than people realize in respects to your credit. If you have a credit card that has a 1000.00 dollar limit, and owe over 40% of that maximum balance your credit will be effected negatively. Look at all your credit cards and use this formula to determine what actions you may want to take first , 1000 X 40% on any calculator will tell that you should reduce your balance to under 400. Your goal should be to completely eliminate all the credit card debt but that will be a good start for you .
Decreasing your debt to income ratio - Your debt to income ratio is very important, especially when needing something new. If your debt to income ratio is too high you will typically get denied any new credit as it shows you are not handling your current credit. This is considered a high risk to the creditors and especially in today’s economy when credit is not handed out as easily as it was in the past.
Strengthening your credit - Just the fact of making very consistent payments, never late will help your credit. Getting your available credit per card below 40% of the available balance will also help your credit score. This will be very useful to you when contacting your creditors asking for better interest rates. They will still give you a hard time but you will have better luck if your credit is strong.
The full effects of interest - Every credit payment you make is packed with interest. Interest is a total loss of income that you could be using for important things in life, it is also FUTURE income that have yet to make. For this reason alone you should make credit card debt elimination a priority over everything else currently . House interest is at least beneficial when taxes come around, however credit card debt is not.
Eliminating your credit card debt is a very important task to our economy recovering, more money will be available for families to eat out, buy furniture, upgrade cars…etc etc and the list goes on. So get down to business and get working on your credit card elimination program today
Tags: Credit Card Debt, Credit card debt elimination, Credit Cards, Credit Credit Card, Credit Score, Creditors, Debt Elimination, Debt To Income Ratio, Eliminating Debt, Interest Payments, Interest Rates
Credit card companies are very good at doing one thing , keeping you in debt for as long as possible. But if you know what to watch out for and how to get around them you will save yourselves a lot of money and get out of debt faster.
Trick#1 Offering for you to transfer a balance to your card , when you already have a higher interest rate balances currently on the card. Why this is a big deal is because of the way the credit card companies handle payments. Now when you make a payment it pays off the lower interest balance first before the ones with higher interest rates. Now the only one that that benefits is the credit card, as they will continue to collect higher rates on the original balance until the lower rate balance is gone .
How would you get around this issue, only transfer a balance to a card with no balance or one that you can transfer the entire balance to and this issue will be avoided all together. Not that transfering for a better rate is a bad thing but if you do it improperly you will actually end up spending more in the end.
Trick#2 The funny thing is my credit card just tried this on me, they sent me a deal to make certain debts split off on the card to pay on those first until they are paid off, sounds good right.? Well again in hind sight it does the same thing as trick #1 . It takes you focus away from your actual balance and allows them to sock you with lots of interest on everything else.
Trick#3 This is not actually a trick as it is a greedy measure to ensure they stay profitable. Never ever ever make your payment even a day late. they will sock you with the most interest that they can legally causing you to not be able to make an efficient payment. There are ways to limit the amount of interest you pay on your credit cards, this is the practice I show all my clients to allow them to save money regardless of interest rates.
Trick# 4 Credit card companies will periodically offer you the ability to go a month without making a payment , do not fall for this technique and please make sure to go ahead and make your payment. This gives them another 30 days of interest on your full amount owed.. so bottom line don’t do it.
These are very common things credit cards will do to keep you in debt for as long as possible, but you can fight back by planning things correctly. Planning a proper debt elimination , debt consolidation, debt reduction plan will go a long way in reducing your debt fast and increasing your credit.
This post was brought to you by http://www.debt-elimination-services.net -updated
Tags: Credit Card Companies, credit card reduction, credit card tricks, Credit Cards, Debt Consolidation, Debt Elimination, debt reduction, Debts, Interest Balance, Interest Rate, Interest Rates
