|
Author: David Andiers Article source: http://www.selfemployedweb.com/. Used with author's permission.
There are a lot of questions about using credit cards. Here's some important points for you:
A quick look around on the Internet this morning shows that more than 9 million people in the UK do not pay off their credit card balances each month. (The principles of what follows are the same in the USA, or wherever you are right now.)
The average balance left outstanding is over £1000. The interest charged on such a balance varies according to the card, but we have seen rates of up to 29%!
When you bear in mind that banks are offering somewhere in the region of 3% interest on account balances, it's easy to see how such a fantastic amount of money is turned over within the banking and finance industry!
Consider a card with an average outstanding balance of £1000: with an interest rate of 19%, this could take over 20 years to pay off at minimum payment levels! On a balance of £1000 at 19% for 20 years, you'd pay back a total of £3889.
Credit cards are a tool designed to make a profit for those who issued them. They are not provided for your convenience! The only way it makes sense to use a credit card is to only use it up to a point at which you can pay the full balance each month.
In other words you are using it to access money you already possess, and not using it as a form of loan. To use a credit card for a loan is going to be some of the most expensive credit you will ever encounter.
I know that life isn't always easy, and some people will say they need to use a credit card to get by. This is the worst position you could be in, and it is really important that you do something about your financial circumstances if you are in this position. Continuing along that path will steadily and inexorably lead to financial disaster.
Nobody said it's easy! But I would be doing no service at all if I avoided the facts, even if it's not what everybody wants to hear.
Another unwise use for a credit card is to get a cash advance from an ATM machine. whereas with purchases on the credit card there is an interest-free period up until the next payment is due, there is no such period of grace for cash withdrawals. Use a debit card instead.
And be aware of the deal with store cards. These can typically carry some of the highest interest rates around. Any savings are often have wiped out by the fact that you are encouraged to buy more then you otherwise might have, and even if they are genuinely savings, they are typically dwarfed by the total interest when the balance is not paid in full.
Use your credit card wisely, use it to your advantage, and get on the right side of the credit card game. David Andiers is the owner of
RF Credit which is a premier resource for credit information.
For more information, go to:
http://www.rfcredit.com
Organic Roses in the Flower Garden
Many people believe growing their flowers and vegetables organically is healthier for them and their environment. It is natural that you may wish to grow your r...
How A New Millennium Home Loan Benefits A Homeowner In a Katrina Like Disaster
Hurricane Katrina has taken it's toll up in a 4 State region along the Gulf Coast. Many homeowners have been left at with huge repair and little or no insuranc...
Tradeshow Booth Cures - Living Color
Retailers and marketing professionals embrace color as one of their most effective tools. Psychologists have suggested that color impression can account for 60%...
10 Tips for Sensible Living
Ten common sense tips for those who want to live a financially responsible lifestyle.
The ABCs of Ceramics
Ceramics can be delicate and decorative or unrefined and utilitarian. Bone china, porcelain, stoneware and earthenware - this month we'll review them all.
When Human Beings Take It To The Limit
I believe I have been witness to a certain level of human achievement that was simply mind-blowing. These people have obviously trained and practiced so much th...
Points to Consider When Contemplating Bulgaria Holiday Homes
Consider carefully how you intend to use your Bulgaria holiday homes.
The Moons Effect on Natural Childbirth
Does the moon really affect the timing of childbirth? Or is that idea just an old superstition? Find out in this revealing article.
Read Your Mind, Are You Hoping People Will?
Quite often, people will expect others to read their mind, especially with family, spouses and close friends.
You lose all control of your life when you do this...
Business Success - The 42 Greatest Business Tips
What does it take to grow a business and run it successfully? The main ingredient is attention to the basics, operating with integrity and following the way ot...
All You Need to Know About Agents
The eagerness to have the validation of a literary agent often pushes writers to make poor decisions. With some thinking, solid preparation and research it is p...
Leading In The Face Of Disaster
The date was Saturday, April 11, 1970, the time 13:13 CST. The event to take place was to be one of NASA's finest hours; the launch of Apollo 13. Apollo 13 was ...
Websites: You Get What You Pay For!
So you finally decided to invest in a web presence or upgrade your current site? There are many available choices in "web designers" to choose from. This deci...
Create the Right Splash With Bathroom Accessories
Ideas for decorating your bathroom...
Got Purpose? Part 2
I guess I found some hot buttons last week eh? Thanks for a week full of real good feedback. That being the case I’d like to follow along with last weeks them...
Discovering Turnaround Candidates
What is turnaround stocks? They are normally companies that are experiencing problems (hopefully short-term), and a lot of people are not willing to wait for th...
Set Up Your Website in Minutes – For Free
Now setting up a website is like 1..2..3.. and you are online. You don't need to a technical geek anymore. Let me teach you how to do it. And right now.
Meet the New Look Ronald McDonald
The new-look Ronald McDonald puts a sporty spin on fatty fast foods.
Dont Overpay for a House, Even in Todays Market
If there's one thing American investors love, it's an over-inflated market. Which is why they keep buying houses and new ones keep coming onto the market. Acc...
Childhood Friendships
Childhood friendships are as special as they are a necessary part of growing up. While some of our children will maintain these friendships into adulthood, many...
Market Timing?
The recent criminal fiasco in the mutual fund industry is being used by Wall Street to persuade investors that market timing is a bad thing. The late trading by...
Ten Quick Tips for Outstanding Presentations
Learn how to give outstanding presentation that persuade.
No-Holds-Barred Conversation with Dan Lok - Part 1
Question: If you were starting out and had no references or a substantial resume, how would you go about finding paying customers for your services? To answer...
How to Get 100s of People into Your Downline(s) in Just a Few Months
Having problems uilding a downline? This article takes you through a step by step process that will help you to grow your referral base quickly, easily and ethi...
|
Print this page