Tag Archives: avoid
Being Careful With Credit Cards
When it comes to getting equipped with a credit card, many people are aware of the advantages and disadvantages, but few are aware of how to ensure that they are getting the best deal through being careful about the credit card provider they use, and ensuring they have read the terms and conditions, and are therefore aware of all the cost centers that will affect them during their contract.
Watch out for:
Annual Fees Not all credit card providers will charge an annual fee, but by the same token not all those who do charge an annual fee will necessarily be the least cost-effective. Keep in mind that different credit card providers will charge in different ways, and being away of the ways you are charged means you get the best deal, and can budget for these expenses.
Late Payment Charges Should your credit card payments be later than expected then as well as the interest still being due you will have to incur a late payment fee. This is justified by the credit card providers through the consideration that it could cause cash flow problems, and may mean that their financial planning could be off-set or not as projected. Late charges should be a consideration when costing a credit card; a great way to avoid this is to set up a direct debit so your payment is taken directly out of your bank account.
Exceeding Your Limit When you exceed your credit limit the likelihood is that you will be charged, unless you make prior arrangements with your credit card provider. You should be aware of what these charges are before you enter into a contract with a credit card provider. To avoid these costs, many choose to take out another credit card to finance clearing the limit, whilst others may look towards short-term solutions like an overdraft or long-term solutions like a bank loan. Please be careful not to spend money on a credit card unless you can afford it.
Avoid:
Small Companies Avoiding small companies can ensure that you do not come across problems that would not face well-known, reputable house-hold names. Should a company be a public limited company/listed company or be owned by such then the inherent risk of unfair contract terms and a shift away from best-practice are significantly reduced by PR factors and media pressures/influences.
High APR/0% initial APR Choosing to contract with a credit card company that offers a great introduction rate and a higher rate in the long term is relying on your lack of financial control to make money. If you are not in total control of your finances and ultimately earn less than you make then please avoid these at all costs.
Student loan – help at hand for students
It is extremely difficult to go through college directly from high school without taking a break to work, earn and save money for further education. Working while learning is an option but you cannot always manage the time and a part-time job does not pay enough to get you through college as well as provide for your other needs. Education loans, also known as student loan, are the only way for such people who want to pursue higher education but do not have the requisite financial ability to manage it and students all over the globe go for such loans to fulfil their dreams and needs of college education.
Different lending organizations have different terms and conditions for student loan and it is strongly advised that you collect as much information possible before opting for a particular lender. Apart from terms and conditions, the interest rate, the time given for repayment of loan as well as penalty for defaulting. You should know about each aspect of the loan thoroughly and clearly before getting into any kinds of contract so as to avoid any unwanted situations later. Most of all, you should at least be very clear about penalty for loan default as a defaulted student loan can have grave consequences on your career as well as your life.
It is of course better to avoid defaulting a loan as regardless of the penalty, it will affect your credit rating and stop you from getting any loans in future. However, if you feel you are absolutely unable to repay your loan in time it is advised that you be transparent with your student loan lender. Before your lender declares your loan as defaulted student loan, let them know about your predicament and they might defer your repayment date or make some other arrangements such that you do not become a defaulter. The whole point is to try and avoid defaulting any which way possible.
When you are pursuing higher education with the help of student loan, you need to be extra careful regarding the course as well as the institute or university you choose since the kind of job you will be offered and the kind of salary you will be receiving once you join a particular industry or company, after the completion of your education depends very much on these two factors. Even if you are dreaming of starting something of your own, it is advised that you take up a stable job that ensures fixed payment for a certain period of time, till you repay your loan. A new venture will be a risk when you already have the burden of student loan on your shoulders and a defaulted student loan will in no way be helpful for your business prospect.
Fulfil your dreams of higher education with the help of student loan but try and avoid converting it into a defaulted student loan by just being extremely careful and a little sensible. Remember the good points of student loan and you would dare not default it.