Credit card help tip: Figure out how much credit card dept you have

The first step to paying off your credit card debts is figuring out how much credit card debt you actually have. If you only have one credit card then you are one of the lucky ones. Most people tend to have at least two credit cards that they have an overdue balance on. In this case, they need even more credit card help.

If you do have more than one credit card with debt accumulated on it then the best thing to do is consolidate the debt. To do this you need to apply for a separate credit card, preferably with a 0% balance transfer deal. These cards will typically have an interest free period of at least 3 months where you will only have to pay the balance that you actually owe. Currently all of your debts are accumulating interest that you have to pay each month. By eliminating that interest for a while it will lower your overall debt repayment.

Consolidating your loans onto one card will also make your debt easier to handle. Once it is all in one place you will be able to handle it much better.

Credit card help tip: Arrange a Realistic Repayment Plan

Once you have paid off as much of the debt as possible in the interest free months, it is then time to negotiate a repayment plan. If you cannot afford the minimum payments then you need to write to the company and ask them if they would be willing to offer you a longer term repayment plan. This will lower your monthly repayments but you will typically have to pay back more in the long run as you will be paying it off for a longer time period.

Always aim to pay off as much as possible and aim to pay off the most expensive purchases first if you only have one card. It is also possible to make small changes to your lifestyle in order to save more money to pay off your debts. For example, write down what you typically spend in one month. Then go over the list and see how many unnecessary items you purchased. By cutting back a little the extra money will help you to pay off your debts quicker.

Overall the best way to help yourself to repay your credit card debt is to pay it off as quickly as possible. Always aim to pay off the most expensive credit card first and always pay off more than the minimum payment whenever possible. If you need more credit card help, we suggest looking for a credit counsellor in your area who can help you to work out a solution. There are many non-profit organizations that will give you credit card help free of charge.

Credit Card Help – Best Way to Pay Off Your Credit Card Debt is a post from: Saving money tips - frugal living tips

Looking For Mistakes

It probably won’t have even entered your head that there could be a mistake on your credit card statement. After all, the creditor knows how much you have spent don’t they? Well unfortunately sometimes they actually don’t and some companies get away with adding little extras onto your bill when you aren’t looking.

The trouble is, your credit card debt shows clearly on your credit report. Imagine getting refused for credit when you actually haven’t done anything wrong. If there is one mistake on your credit card statement it can have potential negative consequences on all aspects of your life. Therefore it is vital that you check your statement thoroughly each time you receive one.

What to Look For

The first thing that you need to look at is all of the new charges and purchases that the statement claims you have made. It is a really good idea to keep all receipts for the month. That way once your statement arrives, you can go through and double check that no mistakes have been made. Many people have found that they have been double charged for the same item. Make sure that this hasn’t happened to you by making a note of everything you have purchased and checking it against the list.

Another problem that could occur is that someone else may be using your credit card. Is there anybody else in the home who has access to your card? If there is then it is possible they could borrow it to pay for something and simply “forget” to tell you.

You should also look to see that any special rates that you were offered have been applied in the statement. Sometimes creditors forget to apply special rates and you could end up paying more than you should be.

If you have made a payment to the company for your previous statement then you should also check to see that it has been credited to your account. Don’t forget that if you have sent your payment up to 10 days before your statement arrived then it may be possible that the statement was sent out before your payment was received. However, it would still be a good idea to check with the company to make sure that payment has been received and that it will be applied to your account as soon as possible.

If you do spot any mistakes or if you are worried about anything on your statement, contact the credit card company ASAP. You should first telephone the company and then follow that up with a letter. Mistakes don’t happen frequently, but they can still happen to you. If they do then it could affect your credit rating so it is important that you check your statements each month to see that they are correct.

Do You Read Your Credit Card Statements? is a post from: Saving money tips - frugal living tips

However, if you are not careful the same credit card can become a liability in more than one way. You not only become exposed to risks of fraud and identity theft if you are not careful while parting with your card details, you also become prone to piling debt that can build to unmanageable limits very fast making you lose control of your financial situation, and a slave to the bank that you are borrowing from. These are prime reasons why you need to be extra cautious when it comes to spending using your credit card. You must only use it very sensibly.

Scammers find a very attractive tool in other people’s credit cards. Their main trick is to look for gullible consumers who are careless with details of their credit cards and use their cards throwing caution to the wind. It is essential to take extra precautions while using a cash machine because there is always a possibility of someone looking over your shoulder to obtain your details while you are at the machine. Any cash machine user who inadvertently leaves his card in the machine faces the maximum risk. It is really surprising how many people actually forget to collect their cards back from the machine after completing their transactions without realizing the gravity of what they have done or rather not done. This is the ideal set up for a thieves who has just seen the pin number being punched in. He has the pin and he has the card now forgotten in the machine. What great luck!

There are other ways also in which thieves can get hold of your card details without you being any the wiser. One gentleman went to the gym, placed his things along with his wallet in the locker and forgot to close the locker. He came back and was surprised to find the locker open. He quickly checked everything and found all in order. After a few days he got his credit card bill with $12,000 in charges. He called the credit card company to say that he never made those purchases and they told him to check his card. He checked his wallet and found that his card has been replaced with an expired card from the same bank. The ‘gym locker thief’ has done his job perfectly and the gym guy ended up having to pay his bills. So beware!

Another way is through information you provide when placing an order over the telephone. You must ensure that you place such orders in absolute privacy as you have to give the details of your credit card which can be noted down by someone who is on the look out to grab your details.

If your are placing any orders online you need to be extra careful in case you are using a shared computer and tend to save your card details on the computer. Make sure you never do this as the details of your card can be accessed by another person using the shared computer.

So having a credit card can be convenient, but you need to aware of all the risks and take every precaution necessary, be very careful in using your credit card.

How to use your credit card sensibly is a post from: Saving money tips - frugal living tips

The latest buzz; cardholders are noticing their balance is being reduced for no apparent reason. There seems to be no logic or motive, since even people who routinely pay their full balance each month are being notified the limit on their credit card is being reduced. Others are finding the limit decreased to just above the current balance, effectively putting a stop to any further spending.

Bankrate.com calls this “chasing down the balance”. Basically, the credit card companies shadow your purchases, spending trends, demographics and other behavioural information, and adjust your balance according to what they perceive as risk. Yes, that means even if you’ve never been late on a payment and never carried a high balance you might find your limit being slashed anyway, simply because you live in an area with an increasing default rate. Guilt by association.

In Canada, it’s just quietly entering the system. In the United States, balance chasing is running rampant. Amex seems to be biggest culprit, so lucky for us; they have a very miniscule market share in Canada. While I’ve heard of a couple bank-issued cards having limits reduced, these stories strike me as having more to do with late payments, or obvious risky behaviour rather than balance chasing. So far, the executors of limit reductions appear to be smaller creditors and “b” lenders. I can’t say this with absolute certainty though, only that I didn’t see balance chasing complaints about TD Visa or BMO MasterCard for example. The cards I did notice participating in balance chasing, have pretty deep roots in the American credit industry.

Currently in the states, most major newspapers have run stories on balance chasing and consumer shadowing. A couple paid down their balance in anticipation of an upcoming vacation, and discovered while on that vacation, their credit limit had been slashed. A businessman found his limit reduced and his account frozen pending a “financial review” which included providing tax returns for the past two years. Another woman who always paid her full balance each month had her limit slashed by over 50%. The stories go on and on.

So what prompts creditors, who traditionally thrive off the interest paid on high balances, to change their thinking and lower the lid on card limits? Apparently, too much spending leads to too much risk. For credit card companies, it’s an oxy-moron, after spending decades increasing credit limits and promoting card use. That’s where the shadowing comes in.

It’s the sad reality of credit cards that the issuer knows exactly what you do with it. Do you shop online? How about regular Friday night stops at the Beer Store a la Visa? Still renewing that Playboy subscription? Ah, yes, only you and your credit card company know the truth about the many details of your spending. Nevertheless, it’s the sudden appearance of grocery stores or discount stores among your charges, which may prompt your creditor to take notice of you. Perhaps you’ve added regular gasoline fill ups to your profile, or maybe you’re online buying memberships to quick cash solutions or work at home schemes.

Then of-course, there’s demographics. Do you live in an area that is primarily dependant on the auto industry? Is your city facing unprecedented unemployment rates? Are your neighbours struggling to pay their mortgages? Yes, credit card companies are taking a good, hard look at everything that might be a sign of a consumer in financial distress. Make no mistake; they are watching you – closely.

Canadian credit card balances are over the $40 billion mark. More people are opting to use credit (and pay the interest) to keep their cash flowing smoothly. Isn’t that what credit is supposed to be for? To get you through the tough times? In other words, shouldn’t it be there when you need it? Fortunately for us here in Canada, the credit card companies are taking a lot of heat in the states. Legislators and consumer advocate groups are chomping at the bit to put a stop to slash and burn practices, citing discrimination and general unfairness.

For now, we have avoided the onslaught of “risk adjustments” that American consumers have been subjected to. Only time will reveal what the credit companies have in store for us, and if Canada will be forced into the same “credit crisis” being felt in the US. We can try laying off the credit use, but for many, credit is being used to bridge their finances while they get back on their feet. Let’s face it, we are paying for the privilege of having credit. Usually around 19%. Therefore, while we can’t boycott credit cards in protest of consumer profiling, you would be wise to watch your credit spending.

Oh, and one more thing, if you must use your credit card, by all means do so, but I absolutely insist you should avoid cash advances.

Your Credit Card Use Might be Shadowed is a post from: Saving money tips - frugal living tips

As special motivation to stop charging and pay off your credit card debt, consider this: if you had $10,000 in credit card debt and paid only the minimum payment each month, it would take you more than 31 years to pay off that debt – IF you stop using the card entirely. And, the minimum payment on a $10,000 credit card debt at 18% interest is a whopping $250 a month. So put away those credit cards and think of what you’ll do with that extra $250 you’ll have each month once you get that bill paid off. If you need additional motivation, check out our suggestions.

Travel
In just a few months of debt-free living, you would have enough to take a fantastic vacation somewhere tropical, cultured, relaxing or just plain fun. Cut out pictures of your favorite travel destination and tape them to your credit cards to remind you that you’d rather be basking in the sun of the Caribbean than buying three new pairs of shoes or a new set of golf clubs. (Just don’t let it backfire and use your credit card to pay for that vacation!)

Donate
Extra money means you could set aside funds to help out your local homeless shelter, cancer research facility, religious organization or a child in need. Your good deeds will keep you feeling warm and fuzzy a lot longer than the cashmere sweater you were eyeing, and they don’t need to be dry cleaned.

Purchase
If you dream of owning a home, put the extra money you’ll have each month toward a down payment. You’ll have much more money to put down, and you’ll be able to afford a much nicer home if you’re not dragged down by credit card payments.

Save
There will always be rainy days, so why not squirrel away your extra cash? There is no reason you need to spend any of your extra cash. Put it into a high-interest savings account, start college funds for you children (whether you have any yet or not), or think of it as your first step toward an early retirement.

Reduce Your Debt, Reclaim Your Life is a post from: Saving money tips - frugal living tips

As a regular credit card user, I can very well understand those times, back in the day when there was no such thing as a credit card. I can’t imagine leaving my house, without having a credit card in my wallet. After using credit cards for so many years and remembering experiences shared by some people in my life, I have learned some useful tips for choosing the right credit card. And as you can see I am generous enough to share these tips with you

What is the interest rate?

Always look for a credit card with a lower interest rate. If you have similar habits like me, you might be postponing the payments to the last days of the month. Believe me, you need to have a low interest credit card to match your not-so-good habits.

Cash Advance Facilities

Does your credit card offer cash advances? What I mean is that some credit card companies go beyond their munificent nature and offer cash against specified limits. Always look for such cards and you will always have that spare cash handy.

What is your company charging?

It is necessary to watch out for different types of fees charged a by a particular credit card company. Some of these include:

• Penalty on late payments made by you.
• Service charge on every withdrawal of cash from an ATM
• Interest rate charges for the time period of usage
• Annual service charges and membership fees.

It is good to research different credit card companies on the basis of these charges and see which one will best suit your usage habits.

Are you a supported customer?

Always look for customer support services offered by the company. With a number of credit card companies mushrooming on the surface, customers are being served way better than before. Thus, you must lean towards a company offering better customer support. Also look at what support they offer incase of theft.

What else do you need to know?

Apart from all those tips mentioned above, here are other tips as a bonus for my valuable readers:

• You must talk about the length of grace period with a credit card company.
• If you travel, you must make sure that the card is accepted across different geographical locations. Also, obtain the list of ATM locations established by the credit card company.
• The company might be willing to offer you with free credit report, so that you are able to maintain the track of your credit history.

As a last piece of advice, it is recommended to look for reviews shared by credit card users and act according to their suggestions. When I choose a credit card, I was helped by a number of people online.

Choosing the right Credit Card is a post from: Saving money tips - frugal living tips

Using credit card on the internet, over the phone, or in the stores is very easy and convenient. It’s important though to be sure that you practice smart credit card use.

If you are not smart with your credit card it can become a liability in more than one way. You not only become exposed to risks of fraud and identity theft, you also become prone to piling debt that can build to unmanageable limits very fast making you lose control of your financial situation, and making you a slave to the bank that you are borrowing from. These are prime reasons why you need to be smart and extra cautious when it comes to spending on your credit card. You must only use it very sensibly.

Smart scammers find a very attractive tool in other people’s credit cards. Their main trick is to look for gullible consumers who are careless with details of their credit cards. It is essential to practice smart credit card use and take extra precautions while using a cash machine because there is always a possibility of someone looking over your shoulder to obtain your details while you are at the machine. Any cash machine user who inadvertently leaves his card in the machine faces the maximum risk. It is really surprising how many people actually forget to collect their cards back from the machine after completing their transactions without realizing the gravity of what they have done or rather not done. This is the ideal set up for a thieves who has just seen the pin number being punched in. He has the pin and he has the card now forgotten in the machine. What great luck!

There are other ways also in which smart thieves can get hold of your card details without you being any the wiser. One gentleman went to the gym, placed his things along with his wallet in the locker and forgot to close the locker. He came back and was surprised to find the locker open. He quickly checked everything and found all in order. After a few days he got his credit card bill with $12,000 in charges. He called the credit card company to say that he never made those purchases and they told him to check his card. He checked his wallet and found that his card has been replaced with an expired card from the same bank. The ‘gym locker thief’ has done his job perfectly and the gym guy ended up having to pay his bills. So beware!

Another way is through information you provide when placing an order over the telephone. You must be smart and ensure that you place such orders in absolute privacy as you have to give the details of your credit card which can be noted down by someone who is on the look out to grab your details.

If your are placing any orders online you need to be extra careful in case you are using a shared computer and tend to save your card details on the computer. Make sure you never do this as the details of your card can be accessed by another person using the shared computer.

So having a credit card can be convenient, but you need to aware of all the risks and take every precaution necessary, be very careful and always keep smart credit card use in mind.

Smart credit card use is a post from: Saving money tips - frugal living tips