Is Your Credit Card Debt out of Control?

Everyone loves a credit card yes?  These are a great form of ready cash that can let you buy that elusive item without having to save up.  You see a bargain and you know it won’t be there next week, no disposable income at hand, so making this transaction easily means to use the plastic.  There are and always will be benefits to credit card use, but unless you are able to maintain control, these benefits can easily become a nightmare.  The reason that there are now so many people against the credit cards is simply because the interest laced cash is beyond the means of certain people that hold the cards.  How can a company provide a card for someone who can obviously not afford the rates if they reach their limits, and unfortunately, invariably reach their limit?

So who is irresponsible?  The provider or the user?  Both really, but the buck has to stop with the user.  They applied, signed and began to use the card.  They know their own situation better than anyone else, and without doubt, know that they cannot legitimately pay the monthly fees if the card gets out of control.  And yes, it always does go out of control.  The provider does perform certain checks to ascertain whether the user is applicable for the card.  These checks normally rely on a reference check; but this hardly informs anyone as to what money is coming in and people have been known to use the odd white lie in obtaining any kind of credit.

This abuse of credit is called excessive credit card debt.  It needs to be analysed from both the provider and user level to be able to rectified.  Better checks are needed before cards are provided in the first place.  But the truth is that the industry probably doesn’t want these checks in place because they do earn a great of money by providing cards for anyone and everyone.  The individual should really take more care in their financial situation.  It is their responsibility to make sure they are financially viable when entering into any commitment.

These issues have been long in the standing and it is difficult to see a light at the end of the tunnel.  The industry does not want to deny anyone a card that passes present  reference checks and the individual still remains defiant that they can get manage a credit card wisely.

It is likely that some sort of political; intervention would be needed but is any party brave enough to risk alienating a section of the voting public?

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What Do Your Credit Card Insurances Cover?

Financial companies issuing credit cards present a number of insurance programs to protect their credit card holders. Before subscribing to any of this insurance plans, you should endeavor to read the insurance conditions of your credit card because sometimes the coverage may exceed your standard idea of what a credit card insurance should be.

Some of the largest credit card companies offer insurance coverage for the following:

Purchase protection

This insurance will entirely or partially cover for the replacement or repair cost of a purchased item bought through the credit card and afterwards destroyed, stolen or lost. This is a very relevant coverage especially for purchased items that are easily broken. As a matter of fact, it could also be a good coverage to include in your home insurance policy.

Fraud protection

This policy will cover the damage done if your card was used illegally. Nowadays, properties and belongings are not the only things that can be stolen from you, but even your identity, especially with the advent of online purchases through the internet. What is great is that this coverage will not only protect you from the conventional fraudulent ways but for telephone or internet fraud as well.

Protection against stolen card

To be able to benefit from this coverage, you have to be able to report your lost credit card before the thief has had the opportunity to use it. It will insure you that should any transactions transpire even after your report, you will be paid for all purchases that have been done after your final legal purchase.

Price protection

This insurance will pay you the difference between the product cost and the less expensive cost of the same item you bought if you find it priced cheaper in another establishment. Not all credit card issuers offer this policy, though.

Travel insurance

Using your credit card to purchase your holiday package, you should check out if you are covered by the following insurance policies:  the cancellation policy will reimburse the cost of your trip in the event that you have to defer your trip after you have purchased the holiday package and before the date of departure.

Another useful insurance coverage is the holiday accident insurance which will cover the cost of your hospitalization in case you meet an accident while traveling and even, emergency accident evacuation or mortal remains repatriation in the event that the card holder dies during his travel while on vacation. These two coverages will take the worry out of your travel because they could cost you a lot if you have to buy it separately.

As in all insurance coverage plans, these credit card offers are limited to a certain period of time and financial package. You have to know what the limitations of your coverage are so you will not be caught unawares by events. On top of this, you should also make certain that your insurance will cover your usage and purchases abroad because sometimes, they do not.

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Enjoying Best Of Both Worlds With Your Credit Cards

A lot of people wouldn’t know what to do without their credit cards.  A lot of times, the status of an establishment is gauged by the credit card facilities that they have.  Shopping can now be easily done offline and online through credit cards.  One has to be careful though when using this method of purchase, because you can get addicted to it and end up with mounting bills and charges which could be way beyond your paying capacity.

One of the good things about purchasing through credit card is the simplicity of its use.  Traveling individuals have found it so much easier to flash their credit cards to pay their bills such that it has become a vital aspect of modern living.  You can go to any part of the world for an extended period of time and you do not have to carry with you loads of cash or travelers checks.  As long as you have your credit card with you, you feel confident.

People do not have to go to another part of the world to appreciate the advantage of using credit cards.  Daily transactions can also be facilitated by the use of the credit cards. It can actually be used like a debit card wherein you can charge your small and big purchases, especially if there are items on sale that are hard to pass up.  But then you have to pay all of these come the end of the month come due date.

Purchasing items online requires a solid credit card account rating.  This is an excellent way to do your shopping without leaving the comfort of your home.  Come the sizzling hot summer or freezing winters, you can have what you need and be safe and cozy in your homes, be it a book, a DVD or food items.

But there is a right way of using the credit card which requires self control and sound planning.  When you first get your credit card, you had the resolve that you will not go overboard with it.  But debts can grow while you are not really looking.  The convenience of using the card may get the better of you and begin purchasing things against your credit cards especially for items on sale which most of the time are not really in your priority.

If you let this problem go unresolved, your interest will pile up and whatever savings you got from buying these sale items will be negated and can even go over the regular price.  Interest rates will be charged over interest rates which will cause your debts to balloon.

Before getting a credit card, you have to know in your heart what you really want it for.  If you are financially capable, then perhaps you could look at the credit card as something you would want to have for convenience.  It will be a mistake to treat it as a source of loan because bigger loans can be had at much, much lower interest rates.

So if you are confident that you can control your shopping urges and manage your finances well, then you can enjoy the benefits of simplified purchase transactions without having to worry about incurring huge debts.

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Are black credit cards a waste of money?

It used to be that a gold credit card was the top one you could have. But nowadays, not even platinum is considered the cream of the crop. The new “must have” color is black. This trend started in the nineties with the American Express Centurion card, but since then several similar cards have also sprung up. Even if you can afford it, are these extremely high annual fees really worth paying for? Let’s take a look…

Costs vs. Benefits

At the end of the day, it all comes down to the cardholder benefits. If you’re not getting back the money you’re putting into it, the card isn’t worth it. The AmEx black card started out with a $1,000 annual fee, but now it costs an outrageous $7,500 just to get the card ($5,000 initiation fee plus $2,500 per annum). So it costs significantly more than in the past. So is it worth it?

Unfortunately, it’s hard to justify paying such an excessive annual fee. Recently AmEx has also stripped down the benefits significantly, like eliminating the free first-class airfare upgrades. Considering that the benefits have dwindled, it really doesn’t make sense that the annual fee has increased substantially.

There are several AmEx Centurion imitators on the market (like the Visa Black Card and Citi Chairman card) which have annual fees of $495 and $500 respectively, but it’s still hard to justify paying that much considering their lack of benefits. In all fairness, these cards do offer some enticing travel perks, but they’re only going to help the diehard traveler.


The AmEx Centurion, Visa Black Card, and Citi Chairman card appear to be a waste of money. It just doesn’t make sense to pay so much for so little benefits. These black cards appear to be good for only one thing… impressing people. But is it really worth paying hundreds or thousands of dollars every year just to do that?

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What is a Right Credit Card?

Credit card helps you to get credit at instant and allows the user to return it over a period of time. In our daily life the credit cards we use for finance purpose hold a great importance. Right credit cards can create a huge difference to your finance problems; hence it is necessary to have the right card. First have a look over the different cards available in the market offering by the providers. But, don’t bother what they offers as they can be confusing and deceptive too, just think of the features you needs the most on your credit card. Just make a list of your financial requirements and goals in using credit card, so that you can avail for the perfect desired credit card.

The card is perfect only when it is providing the right combination of fees, rates, grace periods and benefits. The fees or the charges applied on the use of credit cards associated with making purchases, transferring balances to the card, withdrawing cash and late fees. Grace period is the time period provided on the cards, of about 55 days, in which no finance charge is applied over the credited amount or the amount used by the user. A very popular form of credit card rewards is the cash back offer. In cash back, the spenders gets some money back while shopping with credit card.

If you normally uses the cash advance feature of your credit card, then pick the credit card that has the lowest interest rate. While choosing a card make sure that it is accepted at all the places where you have to use it.
Do not stick to the first offer on your mail while selecting a credit card. You really need to lay stress on knowing the different features of different credit cards and only after doing your homework apply for the best suited credit card.

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All credit card debts are costly, stay away

The credit card is a wonderful tool of the present day. Swipe it and you can have anything you want in the world. Buy now and pay later on.

Most often, when using their credit card, people think of no more than how big their monthly payment will be. They do not think about the total sum or even the time they will take to repay that debt. If the payment fits into their monthly budget (if they have one!) then the purchase is done.

Credit cards usually charge very high interest rates. As a result, when you make a repayment, most of its portion goes towards paying the interest and not towards the outstanding balance. Therefore, if you calculate the total sum that you will pay then you will probably think of never using a credit card again. For example, for a balance of $2000 and an interest rate of 18%, you will have a monthly instalment of $40. Well, that is good enough. However, if you look at it closely then you will see that you are actually paying almost $30 towards interest and only $10 towards your balance.

So, now you see it, don’t you? Thus, if you simply keep making the minimum payments every month (as you would have planned) then you will take 30 years for coming out of that debt, costing you $7000.

Now, I have not even included the extra charges that you might incur in case you miss or make a late payment some month. The fact is that these companies actually hope that you miss your payment. This way they can earn lots of profit through the extra charges, late fees and additional interest that they will impose upon you. If you use any of the online debt calculators then you will see reality.  Therefore, it is important that you come out of these credit card debts as soon as you can. The longer you stay in the more you are paying in the end. Thus, it is important to come out of these debts.

You can try for some low interest debt consolidation loan that does not involve taking a loan from credit cards. This way you will be able to pay them back. These loan companies might also negotiate and get you a lower rate of interest on your credit cards. While credit cards are definitely convenient, they are certainly to be used with a lot of restraint. If you lose the restraint then you are in for a long long time.

Thus, make every effort you can to relieve yourself of this burden of credit card debt.

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