Tag Archives: financial

How To Use Your Credit Card Intelligently

Credit cards are a true godsend as they provide a safe and effective way to make purchases when one does not wish to carry large sums of money around. Additionally, they provide an effective means of accessing financial resources during an emergency when actual capital might be limited. Yes, credit cards do offer a great number of benefits, but these benefits will be completely turned on their head when a credit card is not used intelligently. If a credit card is used foolishly or irresponsibly, then the results may prove to be downright disastrous. That is to say, if one is buried under a massive mountain of debt, whatever benefits the cards previously possessed will be undermined. As such, it is critical to use a credit card intelligently and here are a few simple guidelines to help you in that regard.

First, what must be understood that “using a credit card” start not with the very first time you make a credit card purchase, but with the actual application process. That is to say, it is critical to select the right card before even attempting to use it. For example, American Express requires that its entire balance be paid off in full every month. If you are unable to do this, then you should not be using an American express card as the potential to ruin your credit from missed payments becomes extremely likely. As such, select the right card that fits your needs off the bat.

This brings us to our next point – select a card that is low in interest. If you are using a card that has a very high interest rate, you are simply not using your card intelligently. If you accept a card with a 19% interest rate when you could have had a card at a 12% interest rate, then you have simply made life much more difficult for yourself as you will be amassing a significant amount of interest payments that could have been completely avoided.

This brings about the next point which is one that most people overlook: credit cards are not gifts; they are loans. When you use a credit card to make a purchase, you have to pay the loan back. Yes, this may seem like a very simple notion, but many, many people do not even think of it! As such, they overspend and overcharge with their card and this can lead to a massive amount of debt in a very short period of time. Often, the debts that are accrued are debts based on needless leisure purchases. This type of reckless spending is probably the most unintelligent manner in which to use a credit card. Of course, everyone needs to spend an entertainment dollar here and there and this is understandable. However, when one is reckless with this type of spending the results can be cataclysmic. So, it is best to stick within a reasonable budget for entertainment purchases and not allow fiscal irresponsibility to cause financial Armageddon.

Here is also another tip that can keep costs low: pay cash whenever possible. That is to say, do not get into the habit of always pulling out the credit card and using it to make purchases when cash is available. This is a surefire way of amassing needless debts so do not get into this habit!

Ultimately, the most intelligent way to use a credit card is to use it with common sense and proper financial decision making. If you follow some basic, simple guidelines of financial responsibility then such credit card errors and problems will be avoided. Credit cards are a good thing to have; don’t turn them into something bad!

Are Payday Loans Addictive?

While payday loans can act as a savior in immediate financial needs, they can be compulsive too. These are useful as they are easily accessible when one is low on cash in between the paydays. And you can acquire small amounts of money without any paperwork and hassles. Nevertheless, these loans can be obsessive. The part, which is compulsive, is not possession of money but act of acquiring it.

Being compulsive with habit of borrowing is horrible and without preparedness to pay it back, you can be trapped in greater complications and debts. This in turn will persuade you to borrow the money again, fuelling your loan addiction. Compulsions are not easy things to break, they can over power the lifestyle, and you will find yourself creating justifications and excuses for it, no matter devastating it is. You experience buzz or jolt due to such obsession and you end up losing the view of proceeding or coming out of it. Possessing the compulsion of money advances can lead you to stack of trouble. It can attract greater debt, which will trap you in the vicious circle of borrowing.

Lure of immediate cash is enough for propelling individuals straight to different sites offering such an opportunity. Many people assume that by applying payday loans, they are getting good deals, cash for their purchases as compared to use of credit card that charges high interest rates. Like most of Janes and Joes who easily get addicted to any activity, they really are not able to recognize the big stumbling block, waiting for them in near future.

If you are struck in one such situation then you should start by understanding more money that you borrow through payday loan, you are also losing higher finances that are being charged by payday loan companies. One of the best ways for assisting yourself is making a budget and sticking to it. Prepare an efficient financial plan for yourself so that you do not end up taking payday loans for every small monetary disaster that comes your way.

Doing all the above mentioned things would surely help you to understand that you can live in the lieu of the payday loan lender and this is will make you feel better and comprehend that you can manage from your work in between the paychecks too. It is easy to get obsessed to payday loans but it takes a lot to come out of it. For what we think as the best solution for the moment exacerbate existing financial problem too. So you need to very careful while taking the cash day loans.

If you think that you are well equipped for facing penalties posed by overnight cash advances, think again. This hook, reel scheme and cast if reason why the payday loans are considered to be an addiction. Immediate cash is enticing but the inability to pay it back within in the specific time span can invite a lot of trouble for you. So next time you apply for payday loans, ask yourself if you really need it.