Monday, November 8, 2010

5 Common Mistakes the Credit Cardholders Make

If you have overwhelming debts then it is advisable to take serious action against it. You might face a similar economic turmoil like millions of other credit card consumers. In order to manage your debts you need to control your expenses. If you realize your mistakes then that would help you to put an end to the accumulating debts.

Top 5 credit card mistakes:

1) Making minimum payment:

You may committee a severe mistake if you plan to pay off a minimum balance. If you only make payment of the minimum balance in this way you won’t eliminate your actual debt. Your interest rate would increase on the outstanding amount making the repayment plan unaffordable for you. As you are unable to pay off your debts therefore your situation would be unfavorable.

2) Late Payment:Making late payments can have more adverse effect than not making any payments at all. On making late payments a fine would be levied on you that would be more than the minimum balance. Your credit report as well as your FICO score would be negatively affected on defaulting. As all the lenders would refer to your credit report so tainting it with negative remarks can create impediment while applying for other loan program. If you keep a check on your monthly account statement then you can avoid missing your payments.

3) Monthly statement is ignored:Check your monthly credit card statement in order to avoid failing to pay your bill on time. In this way you would not only pay the bill on time but also immediately mark the error on the statement by verifying it. You need to inform the credit card company if you manage to find any discrepancy on the credit card statement.

4) Tempting offers associated with the cards:If you are driven by the attractive offers given by the cards for instance cash back or any discount offer then avoid the temptation that is generated by it. It often provokes you to fill your wallet with innumerable credit cards with different reward program.

You need to be aware that these companies would only extract money to fill their bank account. Therefore select a card that would be ideal for your financial condition.

5) The introductory rates are misinterpreted:Introductory rates are often misconceived by the consumers. Initially you might think that you can transfer your other remaining balance to a no interest account. You might have thought that this offer might help you to control your financial situation in a right way. You would be oblivious to the other interest rates that would show up with the end of the introductory offer. Before getting these introductory rates cards make sure that you read the terms and conditions so that you can avoid taking wrong decision.

The above written points are few common mistakes made by a consumer. You need to remember these points so that you can avoid financial hardships. They would help you to recover from the financial disaster and would help you to avoid the debt traps.

Tuesday, October 12, 2010

Redesign your Budget plan before Christmas

Before Christmas approaches make sure that you redesign your budget in order to avoid the financial hardship. Christmas is the month of giving and receiving gifts and the expenses are beyond our limit. So planning a budget would help you to control the reckless habit of spending. In this way you would be able to save a decent amount of money that would pave the path for paying off your debts as well as free yourself from financial catastrophe. The following tips would help you to curtail your expenses and help you to prepare a budget plan before Christmas.

1) Make a list of the names you plan to give gifts in Christmas:

If you fail to plan for the Christmas gifts then you might end up spending recklessly. Therefore it is advisable to make a list of the people whom you are planning to give gifts. If you plan out your strategies well then you have an idea about the amount you need to spend or you have already spent. This would help to keep a track of your expenditure. Make sure that your expenses do not exceed your income then you might get dissuade from your budget plan.

2) Calculate the amount you desire to spend:
If you calculate the amount you are planning to spend this Christmas then that would restrain you from extravagance. Therefore you can save a hefty amount of cash before Christmas. In this way you can avoid the excess use of your credit card that might have paved the way for credit card debt.

3) Set a rule Christmas extravagance:
If you are going through a financial crisis make sure that you set a spending rule this Christmas. Instead of giving something expensive to your friends and family members you can give them some hand made gifts. This would help you to express love and adoration towards them. You can bake cakes and cookies or prepare pudding and custard to give them as Christmas gift. These gifts would bear the warmth of your love that does not need money to expression.

4) Keep the expenses for Christmas dinner low:
If you are planning a sumptuous Christmas dinner in a frugal way then you need to do a critical analysis of the mode of your expenditure. Plan a menu according to the number of guests you are inviting for dinner. You can avoid unnecessary spending as you would prepare limited food in order to prevent wastage. You can prepare a simple dinner with two starters served with wine that would be continued with two kinds of main course ending with a dessert. If you get the ingredients at a whole sale rate then you can afford to save a reasonable sum of money.

5) Effortless but budget friendly Christmas decoration:
If you want to avoid burning a hole in your pocket then keep the decoration simple. Just before Christmas the decorative items have fancy price that means unnecessarily you have to waste a fortune on decoration. If you are smart take out the old Christmas decorations for instance Santa Claus decorations or snowmen. The old cards can be trimmed and hung on the wall and on window panes. You can use your old household items like a soup, peanut, or coffee cans as a replacement for gift stuffing socks. Decorate the can by gluing things on or painting and then drill a hole just below the lid. Attach some colorful ribbons and hang it on the mantel.

Therefore if you redesign your budget before Christmas then you can celebrate it without getting into the trap of debts.

Author Bio:

This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics.

Get Connect To Online Cash Advances Through NetCredit

If you are in a bind or a crunch and happen to need some extra cash then perhaps Net Credit is for you. In most cases I don't recommend quick solutions such as a personal loan but sometimes we get stuck in such an awful bind that we don't have many other options to meet our short term monetary obligations.

Enter NetCredit! NetCredit is a premier provider of online financial services which is primarily focused on finance broker services. You see, the goal at NetCredit is to match customers with lenders that best meet for their immediate monetary needs and their long-term goals. If you are in need of money to meet immediate debts then head on over to NetCredit and fill out the short application. After this a company representative will get into contact with you and they will do their best to match you up with a lender who meets your needs.

Net Credit is a well known company within the finance brokering industry and they have helped over 1 million customers get the cash they need. Net Credit is registered company so when dealing with then you can be sure you are dealing with a legitimate business that will treat you right!

When dealing with any short of company or broker that offer cash loans services it is important that you pay attention to all details regarding the loan includes but not limited to both the repayment period and the fees & interest charged. The most important thing is to be sure that you can meet the repayment terms. If you are unsure of whether or not you can meet the repayment terms you need to discuss this with the company offering you the loan in order to see if any changes can be made. Remember, cash advance loans can be very useful and helpful but only if used and managed properly!