Tag Archives: credit cards
Debt Can Have an Impact on Your Health
No one thinks debt is fun or enjoyable, but did you know it can also be detrimental to your health? The stress and tension bills can create causes more than just mental discomfort: it can become a serious hazard to your health. It is more important than ever that you get out of debt and save money. There is a lot more at stake than just your credit score.
Anyone who has had to deal with debts from credit cards, medical bills, and loans knows that it can contribute to irritation, frustration, anger, stress, anxiety, and more than a few sleepless nights. Some people, however, experience physical side effects as well, including headaches or migraines, stomach aches, back and/or neck pain, digestive tract problems, serious anxiety and/or depression, increased risk of heart attack and ulcers.
These are all effects of chronic stress, when our bodies are constantly on high alert. Our bodies dont know the difference between a lion chasing us or the fear of not making the mortgage. We react similarly, flooding our system with adrenaline. When our body is under unrelenting stress for long periods of time, it affects the ability of the body and mind to function optimally. What all this means is that overwhelming bills can cause enough stress that our body considers it a serious emergency.
When you pay off credit cards, loans, and other burdensome bills, you begin to feel better. It is not just psychological, though that is important. Your body actually feels better.
If you are trying to cope with huge debts and it is taking its toll on your health, there are several things you can do to feel better. The first is to take action. Often, when we do not have a plan or feel like there is nothing we can do, stress is much worse. What can you do about your debt? Can you speak with your creditors? Can you develop a tighter budget? Do you need counseling from a dependable debt management expert? Is debt reduction a good option for you? There are things you can do to improve your financial situation.
As you are working to improve your personal finances, you can also take steps to reduce stress. Take walks, do yoga, exercise, knit, draw, read, have a movie or card night with friends, talk to someone about your situation and your fears. There are infinite ways to reduce stress, so find what works for you and make a commitment to include it into your day. Stress specifically related to finances can be reduced by not adding to your current balances, saving money, and seeing your credit card balance creep down each month. In this case, positive action is the best stress buster.
One of the most stressful parts of having debts is the feeling of helplessness and isolation. If you feel like you cant do it by yourself, dont worry. You dont have to. Impact Debt Settlement is ready to work with you to achieve not only a better financial future for you and your family, but also better health so you can enjoy that debt free life. Credit repair is possible, and we can help.
Credit Card for Students
For most university students, credit cards arent high on their priority list for things to take care of after all, students with loans can pay for things with direct debit from their bank accounts, as can students that are being assisted financially by their parents.
The simple truth of the matter is that most students dont think about credit cards, so that when it gets to the point that they need one, they end up rushing through the selection process, ending up with a credit card that isnt optimal for their needs or worse one that actually ends up being detrimental for them in the long run.
So what should a student seeking a credit card do? Simple, they need to research! Look at a wide variety of student credit cards, their benefits and their drawbacks. Only select one that you feel comfortable with and that you feel addresses your needs well, while not providing you with too many setbacks.
So what characteristics should you look for? Well, here are a few things to keep in mind in your search for the perfect student credit card.
Fees
Some credit cards charge you an annual fee for their usage; I like to counsel students to stay away from these types of credit cards, as usually their good points are not enough to outweigh the fact that you have to pay for them. Youve already good tuition, textbooks, residence and many other things to worry about, no sense in adding another to the list.
Credit cards that charge annual fees are intended more for business people that spend lots of money and have lots of disposable income, not for students on a fixed budget. As a result, most student credit cards wont have such a fee attached to them. If they do however, consider whether you really need the benefits of that specific credit card before you sign up for it.
Spending Limits
When I started my first year of undergraduate studies, the first credit card I applied for had a credit limit of $500, and it ended up being more than I needed at the time. As I went through University and my general expenses increased, I ended up applying to have that limit raised to $1000 and adding a second credit card with a limit at $1500 this was mostly just for when I bought textbooks or paid for tuition, as I wanted to get the maximum advantage out of my credit card bonus plans, but it was a good example of me getting the most out of the cards.
Incentives
Incentives are bonuses that the companies attach to their student credit cards in order to entice more people into signing up for them. A good example of this is the “cashback” credit card, where a certain small percentage of what you spend on your credit card is refunded to you.
A credit card that was popular amongst friends of mine was the grocery credit card, which was given out by one of the chains of grocery stores where we lived. Instead of direct cashback, they offered a store credit that was twice the value of most cashback plans at the time, the practicality of which appealed to a lot of students.
Interest Rates
Ideally, this shouldnt ever be a problem, as youd be able to pay off your balance each month and thus never accrue interest on your account. Practically, however, things wont always work out that way. Therefore, interest needs to be a concern as well.
The industry average for credit card annual interest rates is somewhere in the 19-23% range, compounded monthly. However, being a student you should take advantages of the discounts available to you if you do your research, you should be able to find a card that suits your needs with a student discount interest rate in the 10-15% range.
While 10% may not seem like a whole lot, if you ever lose your job, have to quit or have some other unexpected event that affects your finances, the interest can build up very quickly. One way to partially prevent this is to purposely search for a lower interest rate first.