Sunday, February 27, 2011


When it comes to credit card debt, people are often confused. If you have a bad credit history, you should be aware that his reputation will hurt directly or indirectly.
Here are some common steps, however, ignores the people can use to get rid of credit card debt:-

1) First, you must be willing to face the debt problem and be willing to change their habits in order to solve it. If you need a helping hand to find the solution, then you should talk to someone you trust who can help.

2) Stop charging your credit card when you leave - and be aware of automated billing systems linked to your card. This will help greatly in reducing debt.

3) You need a well-planned strategy to reduce debt. Start by paying the smallest debt first, and then proceed to the next. A step by step approach will guide you to success.

4) Eliminate unnecessary purchases. This is often the most difficult since it is likely that this need be put in the position you are now. It is very important to meet only those needs that are essential.

5) Stop using credit cards or limit use to one. An alternative is to use debit cards.

6) Take appropriate action to begin to repay their debts immediately. Your actions will decide the efficiency of removing unwanted debts.
7) Consolidate all debts to pay a single amount. This will keep you away from facing a series of bills.

Be creative in your approach. Write down the things that you will be able to do as a result of payment of its debts and keep handy to remind you what's on the line.

If possible, create multiple revenue streams that will work for you while eliminating debt.

Once the debt is eliminated, not to return to old habits. These suggested steps can help eliminate debt effectively.

Sunday, February 20, 2011

8 Tips to Save Money for College Students

Many students support themselves with a limited budget while others may be living on the limited funds their parents allot them.While in school, and maybe even right after graduation, one will be a tight budget. you can save some money to be very important during their school years and beyond. Here is some tips to save money while in college.

1. Stop buying on impulse: -
Impulse shopping can be very tempting, while away from home. Before making a decision of purchase, ask yourself if it is really necessary.

2. Hide the credit cards:-
Many students are tempted to buy now and pay later. Unfortunately, these habits can come back to bite. If you find that you can not collect responsibly, credit cards hidden until you learn some moderation.

3. Giving up bad habits:-
Everyone has at least one bad habit. Maybe one smokes, drinks cosmos and there is no tomorrow, or buy expensive coffee before class. Whatever, that's enough. You will be amazed at the amount of money you save.

4. Search Offers:-
When shopping, look for clearance items or two-for-one bargain, buy used books instead of new, and for special rather than something off the menu. If you can find a bargain whenever you shop, you'll save more money than you ever imagined.

5.  Stop Keeping up with the neighbors: -
The fact that your roommate or your friends down the hall has a seemingly endless subsidy that does not mean you are too. Try to avoid keeping up with the neighbors and to stick to your budget.

6.visits Library:-
Did you know that most libraries that offer the chance to check out DVDs, CDs and other forms of entertainment for free? Well, yes, and taking advantage of this resource, you can remove the money spent on the purchase of CDs and movie rentals.

7.Stay at home:-
While it may be nice to leave the residence from time to time, staying home is much cheaper. Instead of going out at night, invite some friends over for movies, games, information, and snacks.

8. See a Matinee: -
Going to the movies with friends can be an expensive departure. Instead of going at night, try to catch a matinee. Daytime shows are usually half the price of their counterparts in the night and can be as fun.

Thursday, February 10, 2011

Reality Bites : Credit Cards

In today’s fast moving world Credit Card is one of most sought thing in ones life. It is a gift of the modern age. It is also known as plastic money. It adds buying power, convenience, security and helps in building credit worthiness for a consumer. According to a survey customers who uses a card may spend up to 2.5 times more than a customers who use cash which can eventually translate into a 40% sales increase for business that accepts credit card. 

It also gives access to credit in times of emergency. Beside access to credit it allows a smart of transaction, hassle free shopping which not only saves valuable time but also provides security against theft. A consumer can always a use a credit card for every small transaction instead of writing a check or even going to the branch to withdraw money. 

In addition to this many cards offers buyer protection in case of defective merchandise or fraud. There are also special protection plan available which allows identity theft protection to a card user. Finally a credit card user can build his credit score or credit worthiness by paying up credit card bills in time. This eventually helps in long term access to Personal Loans, Auto Loans and Home Loans. Banks and Financial Instructions at times refer back to prompt of credit card payment as one of the criteria while they process a loan.

But the reality is quite different at times. With use of credit cards there is always a temptation of overspending and live beyond one’s means. Not being able to pay back on time results in paying up very high rates of interest and damaging one’s credit worthiness which makes to difficult to obtain any further loans. It becomes high alerting situation when a card user falls into the trap of revolving credit. This not only washes away his capital but also makes him/her as defaulter. For example, a developing economy like India credit card as a inflow of credit to the consumer resulting in higher spending and then to higher rate of inflation exactly what we had learn in economics. 

Moreover at times the credit card companies have been accused of targeting a younger audience which includes college students, young professionals who are less experience at managing their own finances. Beside these there are loopholes in the credit card contracts that allows the issuers to charge a high rate of interest than normal in case of payment default. Another grey area in this regard is the trailing interest issue. 

Trailing interest is the practice of charging interest on the entire bill no matter what percentage of it is paid. Card issuing company also are accused at times of charging different rates to different person.
So overall we could see credit card is one of most sought after thing in modern era especially for person from cosmopolitan background. However we should not forget our roots. It is always advisable to consider credit card as secondary (emergency) option rather than primary.