Champ Money » credit cards

Paying Off Debt – The Beginning

admin — Wed, 06 Aug 2008 15:49:35 +0000

Once you’ve convinced yourself to pay off your debt – you’ve cut spending and you’ve reviewed your budget, which debt do you begin with?

It’s always best to focus on one debt at a time. Plan to pay the minimum amount due on all forms of debt. And, always pay those minimum amounts on time. Paying even one day late will, in most cases, will subject you to late fees, which is just more debt that you’ll need to pay back.

Now, decide on which ONE debt you’ll pay off first.

This can vary from one situation to another, depending upon your specific needs. If you have a car that’s about to be repossessed, for example, or electricity which is about to be shut off, those will be your first priorities.

However, once you’ve moved beyond the “urgent” debts, credit cards are the most common choice for pay offs, due to their higher interest rates.

The choice of which credit card to pay off first is up to you. There are two common choices, and either can be the “right” choice.

First, you might choose to pay off the card with the highest interest rate. This makes sense because, in the long run, you’ll save the most money.

However, many choose to pay off their small balances first – regardless of the interest rates. This is a favorite method since it provides the positive feedback of actually seeing accounts being paid off. This not only will free up more money to pay other debts with, but further motivates you because each paid off account is one less that you’ll need to focus on.

Credit Card Incentives

admin — Mon, 16 Jun 2008 00:28:40 +0000

There are many credit cards offering “cash back” or “rebate” incentives. These offers can sometimes be very good deals for the card holder. But, don’t always assume that is always the case.

Be aware that credit cards with rebates, cash back, travel awards, or other perks may carry higher rates or fees. Just as with any agreement, read the fine print!

Credit Card Late Fees

admin — Tue, 03 Jun 2008 20:23:18 +0000

Credit card companies generate a significant amount of revenue from late fees and related charges. Since they rely on this income, they wont hesitate slapping the customer with those additional fees at every possible opportunity.

To avoid late payment fees and possible interest rate increases on your credit cards, make sure you send in your payment a week to ten days before the statement due date. Late payments on one card can increase fees and interest rates on other cards.

Credit Cards

admin — Thu, 29 May 2008 21:52:12 +0000

Sometimes it’s not easy, but you can avoid interest charges, which may be considerable, by paying off your entire credit card bill each month.

If you are unable to pay off a large balance, pay as much as you can. Try to shift the remaining balance to a credit card with a lower annual percentage rate (APR). You can find listings of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers.