Credit Card Quick

Do You Have Your Credit Cards Under Control?

Credit Card Debt

Most credit card customers assume they have a good grasp on their credit card spending and budgeting, but in reality very few of us do. You have likely heard of many people saddled in thousands and thousands of dollars of credit card debt say that they don’t know how it happened. Unfortunately, this is an all-too-common occurrence. To prevent yourself from heading down the same path to credit card despair, consider asking yourself the following questions:

• Do I purchase things on impulse? Is your credit card a green light for your spending? Many individuals will purchase things with their credit cards that they normally would have never used their cash to purchase. In other words, a credit card is often very tempting when it comes to spending, so it is wise to reflect upon your recent purchases to determine if you have a habit of purchasing items on impulse with your credit card.
• Do you have a budget? If you have no idea what is going in or going out in terms of finances then you could be setting yourself up for disaster when it comes to your budget and your credit cards. Make a point of determining your monthly income and your monthly expenses. This will give you a clear picture of how much exactly you can afford to spend each month on your credit cards. In other words, determine your disposable income and don’t spend any more than that – even if you have a credit card in your wallet.
• Do you study your credit card statements? If you are opening your credit cards and paying only the minimum balance then you could be in denial about your credit card spending and your credit card balances. Take the time to open your credit card statement each month and examine your spending habits from the previous month. More often than not, simply being aware of your spending habits may thwart you from overspending.

Post Bankruptcy Tips: How to Get back on Track and Stay on Track

Bankruptcy

If you have recently filed for or been discharged from a bankruptcy, there had to have come a time when your financial life began to take a turn for the worst, slowly meeting up with its demise. While it is true that some people wind up in this boat simply because they were irresponsible or failed to heed to caution, most people who file bankruptcy got there because of life’s unforeseen circumstances and their lack of ability to control them. In those cases, bankruptcy can be a real blessing; rescuing you from the burden of a financial problem that seemed insurmountable.

The sense of relief one feels when successfully getting out from under overwhelming debt is almost indescribable. However, one thing you do not want to do is to forget how overwhelmed you felt prior to filing for bankruptcy. That way, you can avoid winding up in the same boat again, or at least take steps to avoid it as much as you can. Financial death can happen to anyone at anytime. However, financial suicide is a whole different matter. The following tips can help you to get back on track and stay on track, avoiding the post-bankruptcy blues:

Your Credit Report

Yes, you want your credit score to improve substantially. However, that’s going to take some time and effort. For now, you need to take a good look at your credit report and stay on top of it. Get copies from each of the three credit bureaus (you’re entitled to one free report from each of these every year). Look them over and make sure your bankruptcy and discharged debts are noted. If there are any discrepancies at all, call and have them fixed immediately. While this may not do much to improve your score right away, it can help some and is a step in the right direction.

Credit Counseling

If you were not required to seek credit counseling as part of your bankruptcy requirements, now might be a good time to give it a shot. You’ll learn a lot of great things about money, budgeting, savings and maintaining a healthy financial life. This counseling could truly make a difference in staying the course or falling back into bankruptcy again.

Your Debt

If you have debts leftover that were not discharged, set up a plan to pay those debts off as quickly as your income allows and get them off your back. For your current bills and any newly acquired debt, make a point to stay ahead of the game by paying the full amount due  in advance or at least on time each and every month.

A credit card is a great way to rebuild your credit. Your best option is to go with a secured card. Just make sure you pay the bill on time, the company reports your activity to a major credit bureau and that it is not reported as secured.

Loans

It is best to wait several years before amusing a loan. Smaller loans are acceptable as long as you pay them back quickly. For large loans though, give yourself some time. Get back on your feet financially. After a couple of years, if you want a car loan or a mortgage, you will be able to get a better interest rate then if you jumped right in after bankruptcy. On a car loan, minimize the term of your loan as much as possible, or you might wind up paying far more than the car is even worth! When it comes to choosing a lender, watch out for those bleeding hearts that say bad credit is ok with them. It is ok with them in the form of the highest interest rates going!

As long as you make a conscientious effort to stay on track after bankruptcy, you should be fine. Granted, life does happen and financial problems are not always avoidable. However, if you have been down bankruptcy road once, it is easier to identify the mistakes of the past and avoid them, increasing your chances of escaping the same pitfalls the next time around.

The Three Easiest Ways to get into Credit Card Debt

Credit Card Debt

There are certain life situations that result in credit card debt. We do our best to keep our credit card debt at bay, but there are times when credit card debt can sneak up on us when we are least expecting it.

Don’t let life situations catch you off guard and end up costing you big in the form of credit card finance charges. Instead, make it a point to plan ahead and prepare for those changes in life that can cause our finances to spin out of control.

When you are likely to get into Credit Card Debt:

• When you have a baby – Having a baby is no doubt a huge strain on any family’s finances, especially when a couple who normally lives off two salaries is not cut down to one for a specific length of time. The easiest way to plan for a new baby – and save yourself from credit card debt in the process – is to begin the task of budgeting long before the baby arrives. For example, if you know that you or your spouse will be taking time off from work to care for the baby, or if you or your spouse is even considering quitting your job to care for the baby full-time, you must understand that this can take a huge toll on your ability to budget your household. Your best bet is to begin saving as much money as possible ahead of time and to start living as if you are without a salary. That way you can begin deciding where you need to cut back and save so you are better prepared when the special time comes.
• When you change jobs – Changing jobs can be both a positive and negative financial experience. Many individuals must take a pay cut to move to a more desirable job, while others begin spending more because they are earning more. Either way, your finances can be thrown for a loop when you change jobs. To keep yourself out of credit card debt during this transitional time, remember to stick to your budget and cut down on your discretionary spending until you have settled into your new position.
• When you remodel your home – Remodeling your home is a tricky process that can often quickly spin out of control. Many remodeling projects go way beyond the projected budget, leaving homeowners little choice but to charge a good portion of the project just to get it completed. To avoid this, make a detailed budget and stick to it! Be realistic and budget for surprises or additional expenses, and revisit your budget and where you stand throughout the project as to avoid any surprises.

Credit Cards or Debit Cards: Which is Better?

Choosing Credit Card

Credit cards and debit cards provide busy consumers with convenience and practicality, as they allow us to quickly pay for purchases without fumbling for cash or writing checks. From gas and groceries to clothes and our morning coffee, credit cards and debit cards provide unsurpassed convenience.

Some consumers use their credit cards for their monthly purchases, as many credit cards now offer rewards and cash-back programs. Some of us have moved to debit cards as an easy way to budget ourselves. Which one is right for you?

Let’s take a look at the advantages and disadvantages of both credit cards and debit cards:

• Convenience – Both credit cards and debit cards run neck and neck regarding their overall convenience. They are easy to use, are accepted at nearly every location, and allow consumers to avoid carrying cash.
• Security – Both credit cards and debit cards are protected with security features; however, credit cards may win the security battle due, in part, to the fact that debit cards are connected to checking and savings accounts, both of which could be drained as a result of credit card theft.
• Rewards – Credit cards offer the best rewards for consumers who use them regularly. From airline and hotel points to cash back programs, credit cards have found many, resourceful ways to lure consumers into using them. Some debit cards offer reward systems, but they generally pale in comparison to many credit card reward systems.
• Online Shopping – Because of credit card theft, it is important to never shop online with debit cards. Credit cards are the clear winner when shopping online, as they are not directly linked to your personal bank accounts.
• Budgeting – Debit cards come out ahead regarding budgeting. Debit cards are ideal for the consumer that tends to overspend, as the consumer can only spend as much money as he or she has in the bank account. Credit cards, however, are often abused by consumers who view them as “free money” and overspend as a result. The bottom line: there are no surprises and large bills at the end of the month with debit cards.