Posted by Tom Wilkins on Thu 23rd August 2007 at 06:00 AM, Filed in Credit Tips
If you’re unlucky enough to get yourself into a hole with credit card debt then don’t despair. Firstly, it’s not the end of the world although there is a price to exacted in terms of poor credit ratings and bankruptcy. Nonetheless, there is alot of help out there should you need guidance. Credit card debt counselling is one way of helping yourself.
The process should run as follows:
1. Realise you need help and approach a trained debt counsellor.
2. Thoroughly explain your situation to the counsellor.
3. The counsellor should talk through all the options available to you.
4. Solutions might include:- budgeting, debt consolidation onto lower interest rates, asset disposal and remortgaging.
5. Cut down the number of credit cards you own.
6. If you really have to use credit cards, shop around for the cheapest APR.
7. Try to pay off your balance at the end of each month.
The key point to recognise from this sort of counselling is that you have ultimately over spent and need to moderate your spending in the future. Talking to someone can help crystallise some of these objectives and encourage you to take action.
The Virgin Money Credit Card has to be one of our favourite reviewed cards in recent weeks.
The opportunity to save an absolute fortune is apparent when you see:
0% p.a. on balance transfers for 15 months (2.98% handling fee applies)
0% p.a. on card purchases for 3 months
It’s a no brainer really when you might be paying 15% - 20% APR on your balance elsewhere. 15 months 0% even with 2.98% handling fee really is quite an exceptional deal.
Other great features include:
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An interesting piece of research published by Lloyds TSB reveals that 26% of UK Internet users took a “these things happen” attitude to online fraud.
The study also looked at some fascinating demographic differences:
• Just 15 per cent of people aged 18-25 said they felt ‘very well informed’ about appropriate ways to avoid becoming a victim of online banking fraud. This compares to 22 per cent of 35-50 year olds and 29 per cent of those over 65.
• Gender was another major discriminator - 26 per cent of men claimed to be well informed, whereas just 14 per cent of women expressed confidence.
• Some 39 per cent were blithe because they knew their bank would reimburse them.
Ian Larkin, managing director of consumer banking at Lloyds TSB, said:
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According to CreditCards.com US Student Credit Cards charge whacking great annual percentage rates (APR’s) that top rates applied on other card categories.
Figures listed below:
Low Interest 11.41%
Balance Transfer 11.41%
Bad Credit 12.81%
Cash Back 13.13%
Reward 13.66%
Business 13.95%
Instant Approval 14.18%
Airline 15.08%
Student 17.88%
The problem is that fluctuations in the Fed’s prime rate is heaping further misery on student cardholders because a majority of banks base their credit card APRs on an index tied to the prime rate.
According to the U.S. central bank: “54% of credit card issuers tie card interest rates to prime.”
That’s a whole lot of misery for young students struggling to meet interest repayments.
Posted by Tom Wilkins on Fri 17th August 2007 at 06:00 AM, Filed in Credit News
There has long been some scepticism about the wisdom of using credit cards for online gambling. But now a financial expert has spoken out, by warning online gamblers that it’s easy to lose track of expenditure which can result in huge overspend. This makes complete sense.
With the rapid increase in UK online gambling many banks are blaming some of the rising bad debt on gambling addictions fed by the online phenomena. In a reaction to this, many online gambling sites have stopped accepting credit cards. About time to I say.
An expert from Moneyexpert.com, Sean Gardner, is quoted as saying:
“It’s very easy to lose track of the money you owe on your credit card, particularly with online gambling. If you have wracked up debts through gambling the important thing is not to bury your head in the sand. If you can’t meet repayments it’s always better to tell someone or to seek professional help.”
(Via CardGuide)
