Personal Finance Views

Wednesday, September 14, 2016

Top 10 Reasons to Get a Credit Card
September 14, 20160 Comments
It is possible that most people have read lots of information on why they must not use credit cards. This is because it is not uncommon for cardholders to misuse these products and fall into debt traps. However, using credit cards in a responsible manner has several benefits.

Here are ten reasons for cardholders to use their cards

1. Signup Bonus

Most card issuing companies offer signup bonus offers to the cardholders. These include annual fee waiver, lower interest rate, and higher reward points for a certain period of time.

2. Cashback Offers

Users may be able to receive between 1% and 5% of their card spends through cashback offers available from the credit card providers.

Credit Card

3. Rewarding Investments

Some cards provide higher cashback to the users when they use this cash to deposit in an investment account.

4. Frequent-flyer Rewards

Cardholders may earn one mile for every rupee spent on airline ticket bookings. The accumulated points may be redeemed to purchase tickets in the future. Some of the frequent flyer programs offer huge signup bonus to make it advantageous for users.

5. Reward Points

Several credit cards offer reward points to the users for every purchase made using these products. These points are redeemable against various offers, such as buying certain items, air miles, travel deals, gift cards, and much more.

6. Security

In case a stolen or lost debit card is misused, the money is immediately debited from the user’s account. As a result, there may be insufficient funds to make legitimate payments, which causes delays and thereby reflects negatively on the overall credit score. On the other hand, if a person loses his credit card, he simply needs to notify the issuing company. Even if any fraudulent transaction is executed, no money is debited. Furthermore, the users do not have to pay for these transactions while the card company resolves the issue.

7. Credit Period

Purchases made using credit cards do not require immediate payment. The cardholders enjoy a credit period and the money is payable only in the next billing cycle. This allows individuals to make expensive purchases without making upfront cash payments.

8. Insurance Protection

Some credit cards are available with several consumer protection offers. These may include product warranties that exceed the warranty offered by the manufacturers, travel insurance, and much more.

9. Wide Acceptance

Most hotels and rental companies prefer payments through credit cards. Furthermore, while traveling in foreign countries, debit cards may not be acceptable. However, most credit cards are accepted by merchants across the world. This makes it convenient for users to make payments even while traveling.

10. Improved Credit History

For an individual who does not have any credit history or wants to improve it, using a credit card responsibly is beneficial. When an individual makes timely payments on the card, it is positively reflected on his credit score. This may further benefit the user in the future when he applies for other types of loans, such as home or auto finance.

Understanding When Not to Use Credit Cards

If an individual is going to be unable to make timely payments on his credit card, he must avoid swiping it frequently. Furthermore, if users overspend and exceed the available card limit, using a credit card is not advisable. Such situations may result in increasing the interest costs for the users. In certain instances, they may even find themselves in a huge debt trap. Nonetheless, if a person is responsible and knows how to use these products wisely, he must compare credit cards to select the one that meets his financial needs.
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Thursday, August 18, 2016

Chapter 13 bankruptcy Repayment plan
August 18, 20160 Comments
When you find yourself knee-deep in debt, you will have to find a way in which you can become debt free. There are infact various ways in which you can become free of your financial obligations like credit card debt consolidation, debt settlement, self-repayment plan or debt management. However, if all of these fail, you will have to opt for the last resort that may be able to swipe out all of your debt problems. This is filing a bankruptcy. As a commoner, you can file bankruptcy either under chapter 7 or chapter 13.

Chapter 13 – More of a repayment plan

Chapter 13 is known as the repayment or reorganization plan. In this type of bankruptcy, you are not required to sell off your assets. When you file chapter 13 bankruptcy, a significant portion of your outstanding debt gets eliminated and you are required to make the payments on the rest amount to your creditors as per the repayment plan.

Chapter 13 bankruptcy

The repayment plan and the amount of your debt that gets eliminated through chapter 13 bankruptcy will depend on your income and expenditures. Almost all of the income that remains after paying off all of the necessities will have to be forwarded to your creditors.

However, one of greatest advantage of chapter 13 bankruptcy and any other bankruptcy is that it puts a stop to the interest rate from increasing and the debt amount from accruing. Another advantage of chapter 13 bankruptcy is that, if you are able go on making the payments as per the repayment plan throughout the life of the plan, the remaining debt gets discharged.

However, another thing that can affect the amount that you will have to pay is the value of the assets that you own like your real estate (if any). You may have to pay the amount which your creditors would have got if you were to file chapter 7 bankruptcy and if your real estate would have been sold off.

Your tax liabilities and other payments like the insurance payments in relation to the assets that you own can also affect the amount that you will have to pay through the repayment plan. Through chapter 13 bankruptcy you may be able to pay off the debts within 36 to 60 months depending on the amount that you are able to forward to your creditors.

Many people are of the opinion that chapter 13 bankruptcy is better than credit card debt consolidation as it puts a hold on the interest rate and the debt amounts from increasing.
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Saturday, July 23, 2016

Get Help from a State Licensed Lender
July 23, 20160 Comments
A short-term loan in between paydays is often a practical solution for your money problems. For many Americans, these small dollar loans offer a unique opportunity. They provide them with the cash to take charge of their finances, even when they only have bad credit to their name. You too can be helped by these useful loan should you ever find yourself suffering through a cash shortfall. Just be very critical of the source of these loans, as not every small dollar lender has your best interest in mind.

What are your best interests?

Borrowing any kind of money comes with its fair share of risk. Whether it’s short-term loan, a mortgage, or a student loan, any loan will come with fees, interest charges, and possibly even penalties should you ever fail to make your repayments. In order to find a loan that works in your favor, you need to understand what fees and rates you can realistically take on in addition to the repayment of the loan’s principal. For short term loans in particular, you need to determine if these conditions are feasible when under a tight time constraint. Generally, a small dollar loan will be due at the time of your next paycheck. If you can’t afford to repay it within that schedule, you risk potential late fees that will increase the amount that you owe.

Licensed Lender

You won’t know what your limit is until you create a budget. By tabling your monthly income and expenses, you’ll be able to see where your money goes. Hopefully, once your crunch the numbers, you’ll determine your paycheck will bring in enough money to cover your immediate expenses as well as the repayment of your loan.

Credible loan sources are a necessity

Ensuring you have the cash flow to take on a small dollar loan isn’t the only thing you need to consider. You’ll also have to research the best source for your loan. Some lenders make it easier to borrow within your limits, as they make their application process simple, straight-forward, and convenient. Instead of using fanciful or vague language regarding their rates and terms, credible lenders will use clear, comprehensive language to explain their loan products, application process, and repayment schedules. When information is easy to understand, the chances of you unknowingly signing a contract that exceeds your resources decrease significantly.

Many products will have a full page dedicated to their details. You’ll be able to read a transparent explanation of what a small dollar loan is, how it should be used, who should be using it, and how you can apply. You can also phone, email, or chat with lending representatives who can clarify any concerns or question you may have about any particulars.

Armed with the right knowledge, you can apply for a short-term loan that will solve more financial problems than they will cause. By sticking to credible online lenders that provide reasonable rates and terms, you can easily get the money you need. It’s easy; you just need to do a bit of research.
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Wednesday, June 15, 2016

5 Benefits about cash in the wallet
June 15, 20160 Comments
When you’re strapped for cash, it can make life a little bit harder and much more stressful, especially when you need to cover your basic expenses or pay for the unexpected which always finds you when you least expect it. When you have your hands on some extra cash you’ll immediately understand that great benefits that come with having instant cash in your wallet!

Easy to Manage Cash Flow

There are so many benefits for having cash in your wallet, and this is something that you can achieve through taking out cash loans. The first benefit that comes with cash in hand is being aware of your cash flow and keeping tabs on just how much you have. When our financial numbers are hypothetical, it’s easy to adjust them slightly to make them fit into what we believe we have. But when you have actual cash in your wallet, you can keep tabs on just how much you have and how much you have spent without getting it wrong.

cash in the wallet

Adding onto keeping tabs, once you have taken out a loan and your cash is in your hands, you’ll think twice about parting with it. Each time you hand over a crisp bill and see your stack of cash being depleted, makes it harder to spend, which is great for your finances!

Cash Eliminates the End of Month Surprises!

If you are used to swiping your card all over town, then of course taking out cash loans and having cash in hand can save you from the scary end of the month surprises, when you realized just how much debt you've racked up. With cash, you know what you spend and when you spend it. Add to that the ease at which you can spend and cover your costs when cash is accessible, and there is no way we should be walking around without any cash on us.

Makes sticking to a budget Easy!

Lastly, and quite importantly if you have taken a loan, you’re budget may not be up to scratch, and cash in hand can help you turn this around. When you know how much money you have, and exactly how much you are spending, then budgeting becomes a lot simpler, helping you to stabilize your finances in no time.
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Thursday, May 19, 2016

10 Steps to Overcoming Credit Card Debt
May 19, 20160 Comments
If you are struggling with credit card debt, you should understand that there is a process that you will go through in order to finally pay off that debt. Willingness to go through this process will help you undo the debt problem you have caused for yourself.

1. Realize That The Debt Is Your Fault

No one forces you to get into debt, so you have to understand that it is up to you to buckle down and pay it off. Blaming others will not help.

2. Find Ways To Pay Off The Debt Faster

Don’t waste money on things you don’t need. If you need to go out a few times a month, make some extra money first. Otherwise, just pay off your debt with extra cash.

Credit Card Debt

3. Don’t Tap Into Equity

Don’t take a loan to pay off your credit card debt. Keep your equity in your home and work harder to pay off your credit debt.

4. Sell Off Investments First

If you have stocks, or mutual funds, try to make a profit off those and pay down your debts. Investments aren't valuable if you have too much debt.

5. Pay Off The Lowest Balances First

Find the card with the lowest balance and pay that off first. This reduces the amount of payments you have to make and the interest you are paying each month.

6. Make Small Payments

No matter if you have a couple dollars left over at the end of the day, you should make a payment. A dollar a day equals 365 dollars a year.

7. Cut Up the Cards

Cut up your cards and make sure you cannot use them. It is hard to rack up debts when you don’t have a card.

8. Work from Home

Get a second source of income. Whether it be a work at home job, or a part-time job, to gather a second source of money.

9. Budget

Make a budget so you don’t ever get into debt again. Getting out of your debt problems is not going to be a successful endeavor if you face the same problem over again.

10. Bankruptcy

If there are no other options available to you, it might be worth going bankrupt. You may still have to pay off your debts, but there is a chance that the whole thing goes away. That might be what you need now.
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