Credit Card Quick

Credit Cards and Marriage: Getting started Right

Introduction

If you are getting married soon, chances are you and your spouse will each come into the marriage with your own set of bills; and that includes credit card bills. In order to start your life out on the right foot, you and your spouse will need to be on the same page when it comes to finances; and to do that you need to remain open and honest with one another.

Here’s what you and your spouse, or soon-to-be-spouse, may want to discuss:

• Order copies of your credit reports – There is no better way to start a marriage than by laying everything out on the table. Regardless of the financial mistakes you or your spouse made in the past, it is best to begin your life together with complete knowledge of where you stand financially. Agree not to judge each other; just concentrate on your goals moving forward.
• Consider consolidating debt or paying it off – One of the best things you can do before you even think about any other financial decisions is to pay off outstanding credit card bills that either you or your spouse currently possess. Paying off debt, especially high-interest credit card debt, will free up your household budget so that you can move forward and work together to save money and create savings.

In addition, if you or your spouse have a great credit card with a low interest rate, consider transferring your other credit cards to just this one card.

• Consider opening a joint credit card account instead of carrying separate accounts. A joint account will allow you and your spouse to keep better track of your household spending and work together to pay the bill each month. This is also a good way for both you and your spouse to stay better informed regarding your credit card debt.
• Choose the card that’s best for you – Consider your options regarding credit cards, and decide on a card that will benefit both you and your household. For example, you may want a low-interest, no-frills credit card or one that comes with attractive rewards.

Your Options for Consolidating your Debt

Credit Card Debt

If you are frustrated with your debt and the number of checks you must write every month then you may have considered consolidating your debt.

Consolidating debt is often a popular choice for individuals who are looking for the convenience and practicality of paying just one bill every month instead of multiple bills; it is also ideal for individuals who are looking to lower the interest rate on other higher-interest rate debt and establish one, affordable payment.

The consolidation of debt is quite easy, provided you have a solid credit score and a low, debt-to-income ratio. Debt consolidation is probably not right for individuals with poor credit, as they are either unlikely to be approved for debt consolidation loans or credit cards, or they are likely to pay high interest rate on the loan.

Debt consolidation is often the smart choice for paying down debt and achieving the financial freedom that is highly desired by so many people.

Your Debt Consolidation Options:

• Debt Consolidation Loan – A debt consolidation loan is often a popular choice for individuals searching for a small, affordable payment. Debt consolidation loans may be taken out for a number of years, depending on what you can afford to spend each month to pay off the loan.

Many times, lenders will offer consumers a choice regarding the length of their loan. The longer the loan term the lower the payments, and vice versa; however, it is important to point out that longer loan terms also mean more interest charges. Debt consolidation loans typically fall under the category of personal loans, and can therefore feature different fees, loan terms and conditions. Compare lenders to find the best consolidation loan with the most competitive rates; however, it is important to remember that debt consolidation loans, because they are typically unsecured loans, come with higher interest rates than other types of secured loans, such as home equity loans.

• Home Equity Loans – Speaking of home equity loans, many consumers choose them to consolidate their debt because they typically offer low interest rates and long loan terms. Your ability to obtain a home equity loan, however, will be dependant upon several factors, including the amount of equity you have in your home. In addition, it is important to remember that home equity loans come with their own share of risks because they are attached to your home. In other words, if you fail to pay your home equity loan you could risk losing your home.
• Credit Card Consolidation – Perhaps the easiest way to consolidate your debt is through a credit card. Many times, credit card companies will offer consumers the option of transferring debt onto one, low-interest rate credit card. Many credit card companies offer enticing, introductory rates for balance transfers, as well. There are a couple things that need to be remembered about consolidating your debt onto one credit card: pay close attention to the card’s terms and conditions, including balance transfer fees, and pay close attention to the card’s interest rate once the introductory period has ended.

Consolidating your Credit Card Debt: How to Make it Work for you

Credit Card Debt

If you find yourself in over your head in credit card debt, or if you simply want an easier way to manage your existing credit card debt, you may consider consolidating your debt onto one credit card.

If you have good credit – and provided you do not already have too much debt – you will likely be able to secure a low, fixed interest rate credit card. In addition, you may be able to snag an even lower introductory rate.  You can use this new credit card to transfer all of your outstanding credit card debt, thereby alleviating higher interest rate cards and multiple, monthly payments.

Debt consolidation is usually a smart move to make, although it pays to consider your actions after you have consolidated your debt:

• Make a budget – Once your debt has been consolidated, now is the time to sit down and make a firm, monthly budget, without all of the cards that you have been accustomed to paying every month. It is important to recognize your new debt, along with its due date and monthly payment.
• Cancel other credit cards, if necessary – Although you’ve no doubt heard many credit card experts tell you not to close credit card accounts because it will lower your credit score, the fact of the matter is that if you think – even for a minute – that you might be tempted to charge these cards back up, it will simply be in your best interest to close the accounts and eliminate the temptation.
• Make a plan and stick to it – One of the best things you can do once you consolidate your debt is to come up with a realistic game plan. Do the math and figure out how long it will take you to pay off your credit card if you put X amount of dollars on it every month, and then go from there. Make a commitment to pay at least a certain amount above the minimum payment each month so you won’t be stuck with a credit card payment for years and years to come.