Credit Card Quick

The Advantages of Bi-Monthly Credit Card Payments

Introduction

We all know that a good credit score is highly important in today’s economy. It is therefore all the more important that we do what we can to maintain a great credit score. For some individuals, this may mean making bi-monthly credit card payments instead of monthly ones.

Making bi-monthly credit card payments (paying on your credit card twice a month, instead of once a month) may make the task of paying on your credit card a more easily manageable one. Smaller payments, for some individuals, are just easier to budget, and may allow them to pay more on their credit card than if they were paying once a month.

Why it may pay to make bi-monthly credit card payments –

• You can time your payments with your paycheck –  If you are paid every two weeks then a bi-monthly credit card payment plan may work out well for you. For individuals living paycheck to paycheck, paying on their credit cards, a little bit at each paycheck, allows them to better manage their money and get their credit cards paid each month.
• Paying bi-monthly may allow you to pay down your debt more quickly. For example, paying bi-monthly will allow you to make 26 smaller payments each year – or 13 payments instead of 12 – thereby allowing you to pay down your debt more quickly. You’d be surprised to find what one more payment can do to your balance!
• Bi-monthly payments may help you achieve a sense of satisfaction and gratification. Bi-monthly payments are just as much about your feelings as they are about your financial well being. In other words, you may end up feeling much more in control of your finances by paying bi-monthly, and you may end up feeling more accomplished and gratified.

For many individuals, bi-monthly payments simply help them achieve their financial goals, and allow them to better budge themselves, based on their bi-monthly paychecks.  In the end, achieving a balance with your credit card debt will help you tackle your debts and make them all the more easy to pay off.

Give bi-monthly payments a try – your FICO score will thank you for it!

Along with New Credit Card Laws comes Consumer Responsibility

News

The government has stepped in and curbed the fees, rates and tactics that credit card companies can throw at consumers. But where is the all-important consumer responsibility?

The new credit card legislation, set to go into effect in February, is laden with plenty of rules and regulations that credit card companies must follow. From restricting college students’ access to credit cards to changing rules regarding interest rake hikes and due dates, the law is designed to help consumers better manage their debt.

Recognizing Personal Responsibility

However, don’t expect the government (or the credit card companies) to take the place of your personal responsibility as a consumer. If the credit card company’s terms, conditions, rates and fees are now transparent then the responsibility lies solely on the consumer. In other words, there’s not much more the government can do to help you responsibly manage your money.

Credit card reform is only half of the equation; consumers must be other half.

The Importance of Learning from Past Mistakes

The credit crisis and subsequent recession has taught us all many lessons. Many consumers are now rethinking their once-impulse purchases; people are making budgets and sticking to them; and still many people are simply saving more and spending less.

If anything has come out of credit card reform is that everyone needs to be accountable for their actions. The bottom line is that it is ultimately your decision to spend or not to spend on your credit card. You have the final say and you – and only you – are left with the credit card bill at the end of the month.

For many consumers, this is a great time to reevaluate their needs, pay off their credit cards earlier than later, and simply take a good, hard look at their past spending habits so they can begin changing them for a better tomorrow.

Take this opportunity to review your credit card and spending decisions and make positive changes. Develop a realistic budget and stick to it; reevaluate your credit card needs and ditch the ones that simply are not working for you anymore; find a great credit card with competitive rates and excellent terms and conditions; and make a commitment to pay your card in full, every month, without exception.

Here’s to a healthier 2010!

What to do when you can’t Afford to Pay your Credit Card Bill

Credit Repair

If you find yourself in the difficult situation of not being able to pay even the minimum payment on your credit card, there are a number of things you can do – and ignoring the problem is not one of them.

Many of us, in the midst of financial despair, may choose to ignore the creditor phone calls and letters; but this simply doesn’t solve anything. Instead, face the problem head-on and figure out what you can do today to get out credit card debt tomorrow.

• Sit down and make a budget. Not just a general budget, but a detailed budget that accounts for every penny going in and out of your household each month. Examine your monthly expenses and look for ways to cut back.

You may want to consider abandoning your land line if you have a great cell phone plan; you may want to drop your expanded cable television package for its basic counterpart; or you may want to make an effort to cut down on your grocery bill every month by clipping coupons and shopping sales. The bottom line is that most everyone can find an extra $50, $100 or more in their budget if they just take the time to re-examine their spending.

• If you’ve lost your job, make immediate, drastic cuts in your lifestyle. Don’t wait until you are behind on all your payments to start making changes. Immediately cut out all unnecessary expenditures and live lean until you can find another job and regain your financial footing.
• If you’re simply in over your head in credit card debt, and can’t seem to find a solution, you may want to consider contacting a non-profit, credit counseling service. These agencies can help you find ways to meet your financial obligations without getting bogged down by late payments and over-the-limit fees.
• If you find yourself struggling to make your minimum payment, you may be able to negotiate a lower, monthly payment with your creditor. Always remember that it never hurts to ask. Many creditors, aware of the financial problems of so many Americans, understand that it is in their best interest to help consumers find a solution to their credit card debt.

Three Ways to Beat the Credit Card Game

Introduction

Credit cards can be your best friend, and your worst enemy. For those who have mastered the credit card game, credit cards are merely a convenience, and one that they certainly never rely on. Mindful, responsible spending and a serious commitment to paying off your credit card debt in a reasonable amount of time will save you from credit card problems, thereby helping you to become financially independent and not bogged down in credit card debt.

How to Beat the Creditors at their own Game:

• Did you ever hear the saying that the best way to achieve a zero percent interest rate on your credit card is to simply not have a balance? Listen, credit cards more than serve their purpose, for a multitude of reasons; however, when you find yourself purchasing things that you know darn well you will not be able to pay off in the near future then it is time to rethink your attitude towards credit card debt.

For starters, make a budget and stick to it. That will allow you to estimate what you can afford to charge each month and pay off each month. Next, before you whip out your credit card to make a purchase, simply take a moment or two and ask yourself if you really need this item, or if it an impulse purchase.

• Consolidate your debts onto one, manageable credit card and then cut up all of the other ones. One of the biggest mistakes consumers make is to consolidate their credit cards and then simply charge them back up again. You must make a conscience decision once you have consolidated your debt to no longer use those cards that got you into trouble in the first place.
• Negotiate the terms of your credit cards. It is not uncommon to see interest rates skyrocketing and credit limits being slashed, as the new credit card legislation has prompted many creditors to stick it to their customers in hopes of recouping some of their losses. However, if you notice you APR on the rise or your credit limit being cut, immediately contact your creditor to remind them that you have been a loyal, responsible customer and that you expect the changes to be reversed. If they are unwilling to negotiate with you regarding the terms of your credit card then it may be time to move on.

Sure Fire Ways to Pay Down your Credit Card Debt

Credit Card Debt

You’ve made yourself promises, time and time again, that you would pay down your credit cards and be done with them, once and for all! Now, here you are again, with mountains of credit card debt and virtually no plan to get yourself out of this mess.

Perhaps, instead of simply being angry at yourself for not being able to pay down your credit card debt, you should develop a game plan and stick to it.

The following tips will lead you in the right direction so that you can, once and for all, tackle your credit card debt:

• Thoroughly examine your purchases over the last year – Ask the credit card company to send you a comprehensive list detailing your credit card purchases over the last year. Most credit card companies can easily send you this information if you ask for it. Then, pour over the list carefully and determine if there are certain patterns and trends regarding your spending. The first step to curbing your purchases is to recognize how you are racking up the credit card debt in the first place.
• Cut up the card but don’t cancel the account – If the temptation to spend is just too great, you will need to cut up the card – but don’t cancel it! Canceling a credit card can initiate an interest rate hike by your credit card company (something you certainly don’t need when you’re trying to pay down your debt) and it may also negatively impact your credit score.
• Make a new budget and stick to it – Make yourself a detailed, comprehensive budget and be honest! Do you spend $2 every morning on a cup of coffee? How many times do you go out to eat every week? Is your premium cable plan really necessary? Most people are amazed to find that their day-to-day spending habits are preventing them from paying off their credit card debt. Find extra money in your budget and put it towards your credit card balance – no exceptions.
• Consider consolidating onto one, low-interest credit card – If you have several credit cards, consider consolidating them onto one, low-interest credit card. This can often make the task of paying off credit card debt more manageable.
• Take a credit counseling course to learn new ways to manage your finances – If you are still struggling to make good financial choices, consider taking a credit counseling course through your local community college. These courses can provide you with a wealth of information so that you can make better choices regarding your finances.