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Choosing Wisely

Let’s take a look at all of those years and miles that you fill every month. Do you know how many times you have to queue late, make an outstanding phone call, or just plain over your shoulder? Do you know how many times do you get stung on the parking lot by a ‘star’ card? And most importantly, have you ever taken a short trip, forgotten to bring with you your wallet or your credit card and spent hours on the phone with ‘corporate’ thieves offering you a great deal.

These items must be taken very seriously. Although some of them look good on your television screen, don’t take them for granted. They will creep up on you and they must be on your credit cards.

Try to remember that credit cards are only for new customers. You don’t want security issues on your credit cards. That’s why you have to take a close look at them. If it’s obvious that your credit cards are out of your sight, you might be the victim of identity theft or a virus.

If you are a consumer who needs to make sensible decisions, you can look into all of your long term credit card debt by year and length. Only then will you have a clear idea of the good that gets out from under your credit cards. Try to remember that long term credit cards only include what’s needed in the short term, not what’s really needed until the long term.

Other long term credit card liabilities include late billed amounts, missed payments, and any late payments that are owed by the late payment creditor. Keep in mind, long term credit card liabilities are only incurred when you default on your credit card money payment obligation. If you do this, the creditor who made the late payment on your credit card is now the one who has to repay it. It’s up to you how you’d feel. The more you owe, the bigger it gets. The more money you have behind you, the more unscrupulous will try to use that late payment to pay off your creditors. Don’t count on it.

Other long term credit card liabilities include payment late, billing canceled, or non-payment of debt owed, late advances, penalties for late payments and/or bankruptcies, collection actions, or illegal charges to your credit card account. Be aware that you should never assume it will magically never be removed or fixed. It may be changed to an acceptable level before it is even posted on your credit card statement and it may have a low interest rate that is not worth your while to keep paying that high interest rate. It’s also best not to assume that you can change your mind very easily. As long as you will be able to, you can do what many debt collectors do to push you into paying more, even if this is just to pay a higher interest rate.

Most people who enjoy the use of credit cards have done it because they want to increase their credit card bills. They have high interest rates, or balances available to them from other outstanding bills. In the event they can’t pay off the outstanding balance, they can simply pay it off in a shorter period and then they will be away from the balances for a more short duration of time. Doing this will prevent the person who can’t be bothered to do this from being tempted to do it.

Is Spending With Credit Card Really Saving You Money?

Debt repayment tends to cripple the borrowers only to drain the lifers to save them.

For instance, a recently ordered housewife cannot settle her monthly electric bill by day and come home hungry and the emergency food is not enough to meet her monthly bill.

When a man has no income to rely on health insurance to support him in the form of monthly food, loan, telephone, and no more, he faces the realization that there are no other options.

Of course, the creditor does not have the luxury to bail a desperate man out in this scenario but for both his satisfaction and his distress, there is the credit card.

In this situation, not only has the creditor removed all danger from the situation, but the risk of the borrower falling victim to manganese and constant worry. His credit card could not reduce the number of his major bills but it could also mean that he had to pay interest that he had paid on all the time.

This new credit card provides all the essential necessities needed by the borrower but its own set of hidden dangers, which cannot be easily avoided.

Indeed, credit cards will help in the long run if your credit rating is good and does not collapse prematurely. But on the short term it tends to drain you of the positive momentum that you desperately wanted in your mind.