Debbie Dragon is an editor for CreditorWeb.com, a site that provides visitors with advice and information they need to compare credit card offers. The opinions of Ms. Dragon are her own and not necessarily those of the owner of this blog.
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It's true that credit cards are the reason why many people find themselves in over their heads in debt. Often, it's not even the amount of money we charged on the card that causes the main problem- but when we don't pay the cards off in full each month, the balance that gets carried over from one month to the next is subject to a variety of fees, interest and in some cases- late fees - if we had trouble getting the payment there on time. Every month that we only make a minimum payment on what we owe, we hurt ourselves financially.
When a credit card is used responsibly, however, and the card itself has reasonable fees- it can actually help an individual improve their financial situation.
So how do you find a credit card with reasonable fees? A card that can actually help our financial situation? Here is what you should look for when comparing various card offers:
1. Grace Period. There are actually some credit cards that do not offer a grace period, and you should steer clear of them at all costs! A grace period is the period of time that you have to make your payment without being charged interest or fees on the money you borrowed. Make the most of the grace period by making all of your purchases in full during this time and your credit card will work exactly like cash- and you'll never pay a dime in interest, finance fees, or late fees.
2. Balance transfer offers. If you already have considerable credit card debt, you will want to find a credit card that will give you a no interest or low interest offer on balances you transfer to your new card. The best cards offer the lower interest rate on transferred balances for the life of the balance; but even if you can save for six months to a year on that debt, you can make a lot of progress towards paying that debt off.
3. Check into the terms and agreements, particularly the default agreement (you know, the fine print!) Many credit cards indicate that they can raise your interest rate at any time, and for any reason. If possible, you want to avoid these cards and focus on the credit cards that only raise the interest rate you pay if you are late or miss a payment. Be careful, as many of the large credit card companies have started raising interest rates for cardholders who are late on ANY credit card, not just their card!
Weeding your way through credit card offers can seem like a challenging task, but if you focus on the aspects that are important, not only can you get a card with reasonable rates, but with some careful financial savvy- you can actually make your credit cards work with you instead of against you!
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Debbie is an editor for CreditorWeb.com, a site that provides visitors with
advice and information they need to compare credit card offers.
--------
It's true that credit cards are the reason why many people find themselves in over their heads in debt. Often, it's not even the amount of money we charged on the card that causes the main problem- but when we don't pay the cards off in full each month, the balance that gets carried over from one month to the next is subject to a variety of fees, interest and in some cases- late fees - if we had trouble getting the payment there on time. Every month that we only make a minimum payment on what we owe, we hurt ourselves financially.
When a credit card is used responsibly, however, and the card itself has reasonable fees- it can actually help an individual improve their financial situation.
So how do you find a credit card with reasonable fees? A card that can actually help our financial situation? Here is what you should look for when comparing various card offers:
1. Grace Period. There are actually some credit cards that do not offer a grace period, and you should steer clear of them at all costs! A grace period is the period of time that you have to make your payment without being charged interest or fees on the money you borrowed. Make the most of the grace period by making all of your purchases in full during this time and your credit card will work exactly like cash- and you'll never pay a dime in interest, finance fees, or late fees.
2. Balance transfer offers. If you already have considerable credit card debt, you will want to find a credit card that will give you a no interest or low interest offer on balances you transfer to your new card. The best cards offer the lower interest rate on transferred balances for the life of the balance; but even if you can save for six months to a year on that debt, you can make a lot of progress towards paying that debt off.
3. Check into the terms and agreements, particularly the default agreement (you know, the fine print!) Many credit cards indicate that they can raise your interest rate at any time, and for any reason. If possible, you want to avoid these cards and focus on the credit cards that only raise the interest rate you pay if you are late or miss a payment. Be careful, as many of the large credit card companies have started raising interest rates for cardholders who are late on ANY credit card, not just their card!
Weeding your way through credit card offers can seem like a challenging task, but if you focus on the aspects that are important, not only can you get a card with reasonable rates, but with some careful financial savvy- you can actually make your credit cards work with you instead of against you!
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Debbie is an editor for CreditorWeb.com, a site that provides visitors with
advice and information they need to compare credit card offers.
I view credit cards the same way I view alcohol. Some people can use them responsibly and some people should avoid them at all costs. I think it makes no sense to demonify the object when it's the person's behavior that is the problem.
ReplyDeleteWell said, Kate
ReplyDeletethis is perfect info to have. One of my goals for the year is to find the right credit card for me. I'm very excited about some of the info I found on your site! THANKS!
ReplyDeleteoh my gosh, you just talked about lowering rate on debt! it really is a new year!
ReplyDeletemcfnord -
ReplyDeleteIf you notice, I didn't write this post, and I placed a disclaimer on it, that I didn't necessarily agree with it. Fact is there is many things I disagree with it.
based on what i know, your overall interest rate is 10%. better than i thought! mine is 6%, almost all my mortgage. for $100 of debt, i have to pay $6 interest each year, and you pay $10. almost double!
ReplyDelete