Month: March 2012

Credit Debt Solutions Need to be Found

If there is one thing that is quickly hitting people’s perceptions today all around the world, is that credit debt solutions have to found because no one or no Country is immune from the wrath of financial institutions. It’s like when students can’t find where can i pay someone to write my essay online. With the near collapse of the Eurozone and more than one country having to take drastic action to remedy the debt problem; should give us all a clear indication of just how serious the world debt crisis has become.

Personal credit debt management is the only thing that each of us can individually do anything about, so the sooner we all consolidate our debt repayments into a manageable repayment plan, while cutting back on any unnecessary financial outlay, the better off each of us is going to be.

The only alternative to fixing our own personal credit debt problems is to elect better Politicians to our Governments and as the Eurozone Countries are fast finding out, sovereign debt is capable of eliminating Presidents and world leaders with the crisis being far from over.

It may be well and good to reject and remove inefficient and corrupt Government leaders, but this still doesn’t remove or fix our debt crisis. Our sovereign debt crisis is not the result or fault of one Government alone or political party alone, but has been slowly building up over a long time. It is just that some of our existing leaders are not seen as being capable of fixing the problems and their people have lost confidence in them and their Governments. Read more on Google about the latest leader to fall.

The recent G20 meeting in Cannes was little more than a ‘talk fest’ about the world financial institutions and as Greece was the main “problem child” during that time, their problems dominated the conversation. But as Greece is not one of the G20 countries and contributes only about 5% of world GDP, it made the whole meeting superfluous.  What I personally found offensive from this meeting of G20 countries was the offer by some countries like Australia, to top-up the International Monetary Fund (IMF) central bank.

When the IMF was founded, its charter was to make low-interest loans readily available to third world countries for infrastructure and development. Using IMF funds to bail out greedy banks and other financial institutions; is to my way of thinking just another form of corruption.

However, the elections for new politicians in Australia are not due to be held for another 2 years so all I can do personally, is to control my own credit debt levels and make repayments over and above the minimum requirements each and every month.

Paying Credit Card Bills on Time

If you can pay your credit card bills on time every month you will quickly get a good credit report and save yourself a lot of money.

While many of us struggle to make the bare minimum payment each month, as the month’s progress and all we manage to do is pay the bare minimum, then we are increasing our interest rate bill exponentially.

When you pay only the bare minimum each month you are really only paying interest rate and not taking or taking a very small amount, off the principal amount of the loan. If you go on indefinitely paying only the minimum, you won’t be paying anything off the original amount that you borrowed.

All credit card debt is money borrowed. Any money that you borrow has to be repaid to the lender. It doesn’t matter if the lender is a credit card company, a bank or other financial institution or your great-Grandmother; if you borrow money it has to be repaid with or without interest.

This is why when you accept a loan from a financial institution you have to sign a contract (application form) for the loan where it says very clearly the interest rate at which you have agreed to borrow the money and to repay. A credit card application is the basis of your contract with the supplier of the money that you have applied to borrow.

Contractual law can get very involved and messy so be very aware of what you are signing for and make sure you always keep all the paperwork associated with any monies that you borrow from anyone, anywhere, any time.

Here are three ways to use any credit card to lower your credit debt:

1. Don’t use a credit card at all. Yes, you have to have one and some credit card companies ‘make’ you use it to keep a good credit score. Abide by their terms and conditions and you will stay financially healthy. But only use as much credit on your credit card as you can comfortably afford to repay.

This clause on a credit card contract should be made illegal in my opinion. But until our authorities are prepared to make some hard rules for our financial institutions and put some regulations in place for the people, this is a clause in some credit card contracts and if you sign up for one of these cards then you have to abide by the Terms and conditions associated with the contract.

2. If you have used your credit card then pay off the full amount borrowed each month. Always pay more than the minimum amount requested because this pays off the interest rate plus part or all of the principal.

Don’t put more debt on your credit card each month than what you can afford to pay off in full each month.

3. It is advisable to keep one credit card in your name. If you don’t absolutely have to have a credit card, then cancel the account with the Credit Card Company or financial institution and use the scissors to cut it into pieces so you will never be tempted to use it again.

Before doing this, make sure:

A) You have cancelled the credit card with the company and there is absolutely nothing owing on it now or in any future charges and

B) That the credit card that you keep is the one with the lowest interest rate charges.

In today’s world, everyone needs a “piece of plastic” credit card. But there are credit cards and there are credit cards but whenever you use either of them to pay for something, the debt can be very different.