Why You Should Pay Your Credit Card Debt Immediately
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Easy Tips
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Sunday, 15 July 2018
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Credit Tips
The precious credit score The newest number that everyone is talking about is their credit score. With a good credit score, you can get better credit card offers, better interest rates for houses and cars, and you can get bigger loans than others with lower credit scores. And the truth is that most people dont know what their credit score is. When you carry high balances on your credit cards, these balances are reported back to the credit reporting agencies that in turn make adjustments to your credit score.
If you have large balances, it looks like youre living beyond your means and thus youre not a good candidate for future loans and your score is lowered. If you have low balances (less than 50% of the limit) and pay your bills on time, you will raise your credit score. Making larger investments If you dream of owning a home or a new car, you need to pay down that credit card debt.
In order to get these kinds of large loans, banks need to know that you are responsible with money and will be able to pay off your loan as you promise. By having credit card debt, it seems as though you arent able to live on what you can afford and thus will probably not be reliable with paying off your loan. And if you do get the loan, the interest rate is much higher for the borrower that has credit card debt.
In case you cant pay off the loan, the bank will want to make more money off you when you do make payments. Your sense of security No one needs the added stress of whether or not they can afford to pay the minimum balance on their credit card. And with a little planning a discipline, credit card debt can be managed and eliminated. You can start with cutting up those credit cards and start using ‘real money to make way for the future that you deserve—houses, cars, and a good nights sleep. Beth Derkowitz recommends Find Credit Cards for finding a BankFIRST credit card thats tailored to suit your financial needs.
2,550 in 1990. This means that credit card loans are becoming serious problems for average Joe. Thats why the first step of your investment strategy should be to get rid of your consumer debts- especially your credit card loans. Most credit cards have horrendously expensive interest rates – normally, 18 percent and over.
If you are one of those people, who pay only minimum payment amount each month to their credit cards debt, you are making a great mistake. Same goes for your other consumer loans like student, car, etc. Mortgage The second step of your investment strategy should be to evaluate your mortgage payments. There are several very simple ways of reducing your payment time dramatically. Used scrupulously these methods can lower a 30-year mortgage to 10-15 years.
Instead of making one single payment each month, every two weeks pay out half the monthly payment. The idea behind this is, since you are making 26 payments in a year – each one of them carrying 50 percent of your monthly payment – this is equivalent to 13 monthly payments. You are generating an extra months payment each year, which in turn will reduce your mortgage term substantially.
Whenever possible, each month try paying ten percent more than you are supposed to. Whenever you manage to make some extra earnings, use a portion of that to pay down your mortgage. Keep track of your expenses If you dont do it yet, resolve yourself to keep an expense ledger of all spending.
Just the mere act of jotting down all your expenditure will reduce your expenses up to 20 percent. The reason is when you start keeping track of the money you spend, you become more careful and discerning in your buying decisions, which in turn help you cutting back and saving hard earned money. A Ph. D. in Information Technology, he has wide experience in Business Consulting, International Trade and Web Marketing. Rusbiz is a Global B2B Emarketplace with solutions to start and run online business.