Browsing Finance's Archives »»

2010 1 Sep

It is very unfortunate that the majority of American households have a great deal of charge card account debt. Even more unfortunate is the fact that credit card account education isn’t widely offered to the public. As a consumer credit counselor, I have worked with many clients that seemed to be buried under a huge mountain of credit card account debt. Fortunately for them, with a little bit of advise and commitment to follow a simple payment plan, the charge card account debt was gone in a matter of a couple of years without any strain on the household. In rare circumstances, it took more than a payment plan to solve the issues however, payment plans were a great way to start.

No matter what charge card or charge card account company my clients use, I always advise to start with a debt stacking and constant payment method. Coupled together, these payment methods could take years and thousands of dollars off of the total cost of paying off charge card debt. This is because these payment methods attack the interest on the accounts without having to pay more than what your minimum payment is rite now.

The Constant Payment Method

The constant payment method follows one basic principal, don’t ever pay anything less than what you paid to your credit card companies last month. As you pay your charge card bills, you notice that as the balance goes down, the payment goes down as well. This is because with most credit card accounts, the payment is calculated by a percentage of your balance plus interest for that month. I can understand if you can’t afford to send any extra money right now but, you can afford the minimum payment because you have been paying it right? This means that in 3 or 4 months when you receive a credit card bill with a lower minimum payment, you will be able to pay extra. I know it may only be $5.00 but it is something extra. If you continue to send in the same amount of money each month, after a year, you will be surprised at how much more than the minimum payment you will be able to afford.

The Debt Stacking Method

Debt stacking is also a simple process. The majority of credit card account holders know that higher annual percentage rates are the worst kind. The debt stacking method targets the high annual percentage rates first allowing you to focus on what is costing you the most over time first. When coupled with the constant payment method, you are sure to save plenty of time and cash!

Example Of Coupling Both Methods

Lets say you have 3 charge card accounts. Credit card 1 has a balance of $2,000 and a 9.99% APR, credit card account 2 has a balance of $1,500.00 and a 26.99% interest rate, and charge card account 3 has a balance of $500 and a 12.24% interest rate. Credit card 1 has a minimum payment of $200, Credit card 2 has a minimum payment of $215, and credit card 3 has a minimum payment of $50. If all you can afford is the minimum payments, your total charge card account payments will be $465. You should never pay any lesser amount. Lets say over 3 months charge card 1’s minimum payment drops to $197, credit card account 2 has a minimum payment of $211 and credit card 3 has a minimum payment of $49. Now you have $8 extra. This $8 should go to charge card 2 because it has the highest annual percentage rate. This means that you would pay $197 to charge card 1, $219 to credit card 2, and $49 to credit card 3. As the payments decrease you will be sending more and more extra money to the credit card with the highest interest rate. Follow this pattern until you pay off your charge card debt and you are sure to save time and money!

This article is brought to you by JemCreditCards.com – More than credit cards, we build financial stability! Find the best credit card offers including Discover cards and Chase credit cards and apply for the best credit card today!

Published under Financesend this post
2010 1 Sep

As stated in a good amount of my previous articles, Discover credit cards have really been the underdog in the credit]charge card industry. However, lately Discover has really picked up the pace. One of the ways they are undermining the competition is by offering great balance transfer credit]charge card account offers. There are a great amount of pros and a small amount of cons regarding Discover balance transfer credit]charge cards however, I will cover all of these in this article.

One of the best thing about any balance transfer credit]charge card account is the introductory interest rate. An intro interest rate is the APR that the credit]charge card company offers to you as a promotion for a short time to use their credit]charge card. These introductory annual percentage rates normally range from 0.00% to 3.99% and they will last anywhere from 6 months to 12 months. With Discover credit]charge card accounts, these balance transfer intro APRs will almost always be 0% for 12 months. This is sure to save you some cash.

Another great thing that Discover credit]charge cards are starting to offer is rewards balance transfer credit]charge cards. With the majority of the Discover balance transfer credit]charge card accounts, you also earn rewards. These rewards programs will vary depending on the Discover credit]charge card account you choose, so make sure you take a look at the rewards program. Some balance transfer credit]charge cards are designed to offer sky miles, cash back, gas, and many more redemption offers. Make sure that you pick the program that fits you best, because Discover is sure to have what you are looking for.

Now lets talk about the bad. There is only one bad aspect to Discover balance transfer cards and that is the fees associated with balance transfers. Most banks will charge anywhere from 3% to 5% as a balance transfer transaction fee. Discover balance transfer cards however are on the high end with most balance transfer transaction fees at 5%. This isn’t so bad though if you think about it. Lets say you are paying 18.99% interest on $10,000.00, and instead, you pay a one time 5% fee for the whole year. The one time fee is really not that much of an issue when you think of all the money you will be saving in the interest charges.

OK, I don’t know of any perfect credit]charge card accounts. They are all in the business for the same thing, TO MAKE MONEY. However, Discover credit]charge cards are really doing things to make it easier to trust the banks. I have received countless emails from consumers on my websites letting me know that Discover had excellent customer service. If you are looking for a great balance transfer credit]charge card account, there are plenty to choose from. However, if you are looking for the best charge card for balance transfers, look at Discover balance transfer credit]charge cards.

Possibly related posts: (automatically generated)

Published under Financesend this post
Next Page »


create & buy custom products at Zazzle


“My young son asked me what happens after we die. I told him we get buried under a bunch of dirt and worms eat our bodies. I guess I should have told him the truth - that most of us go to Hell and burn eternally - but I didn't want to upset him.”
by Jack Handy