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Why you Should Pay Off Credit Card Bills On Time

August 18, 2019   Fast Loan

When reading about credit card tips and advices, paying your bills on time is often at the top of the list. And if you think that the reasons are quite obvious, this article will emphasize and highlight the reasons why it is important for every credit card holder to take his payment dues seriously. Why should you pay your bills on time? If you think that occasional late payments are okay, read on and be warned:

The longer you linger with debt, the more risk you put yourself in. Most credit card holders are in the habit of submitting only the minimum payment each month. But doing so means stretching your repayment period for a longer time than you’re supposed to. Of course, your credit card company is okay with it since you are being charged with the interest rate anyway. But if you think this is okay, realize that you’re putting yourself at risk of uncontrolled debt sooner or later.

You are badly hurting your credit. Not paying your debts on time damages your credit history. Timeliness of payment makes up 15% of your total credit score so even just a single late payment can make a big difference. On the opposite, paying on time greatly improves your credit score. And everyone knows that a higher credit score is a pass for better rates with lenders.

Late payments forfeit rewards and incentives. Credit cards with reward programs are very strict with their rules. You may be working hard trying to collect your points in your account but just one late payment can put all your hard-earned points to waste. Thus, not only are you disqualified from earning your rewards, you’ll also get penalized with high interest and late charges.

Late payments mean additional charges. Late payment means you’ll be charged with interest rates and late penalty fees. Imagine how much it would cost you if your credit card charges you with 15% interest plus late fee. You could have saved that amount and use it for more important expenses. Why pay these additional costs when you can save your money by paying your bills early?

Late fees could mean interest rate hikes with your other creditors. Have you heard of the “universal default” clause? If not, then you should be more concerned about late payments. Even if you’re up to date with your debts to other creditors, they can still penalized you by increasing your rates without your notice based upon your one credit card account. However, the new Credit CARD law has prohibited creditors from imposing the “universal default” clause. Still, delinquency for 60 days allow creditors and credit card companies to increase the interest rate of the borrower.

Unpaid bills cause headaches and stress. Seriously, not being able to keep up with your bills on time is a great emotional burden. As your late fees add up, you become more anxious, stressed, worried about how you can get rid of your debts. In consequence, your personal relationships are affected, your performance at work is disrupted, your peace of mind – robbed. So why put yourself through all these emotional burden when you can avoid them?

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Futureproofing Your Finances: A Graduate's Guide (Page 1 of 2)

June 27, 2019   Loan Tips

With every passing year, employers place more and more importance on the ‘right’ degree, even for entry-level positions, so it is little wonder that more school leavers than ever before are choosing to continue with Higher Education.

Since the UK government abolished means-tested maintenance grants in 1998 and introduced tuition fees soon afterwards, the cost of getting a degree has increased exponentially, with an alarming proportion of new graduates leaving university tens of thousands of pounds in debt. The future looks bleak for the current generation of graduates. The ‘job for life’ has become the stuff of legend, and state pensions are at risk of being phased out.

It’s easy to put off getting your finances properly on track, especially if you’re working full-time and managing to keep your head above water, but those loans and overdrafts that were so easy to get when you were a fresh-faced eighteen-year-old need to be dealt with now if you want to enjoy a decent lifestyle by the time you are middle-aged.

We’ve identified some of the key things you can do to get on the road to financial freedom as soon as possible.

Make a plan

List your short-term and long term life goals. Do you want to be able to afford a new car or invest in property? Start a business? Get married or have children? Having a rough idea of the direction you want your future to take will provide the framework on which to base many important decisions.

Kill your debts

This one is vital! As long as you owe people money, you will feel like they own you. If you have outstanding student loans, bad credit cards, unpaid bills or similar debts, ignoring them will only make them grow bigger, and if all you can afford to pay is the minimum charge every month, all you will be doing is paying off interest without ever repaying the original loan. It’s important to break out of the cycle of debt, but it can also be a very daunting prospect, especially if you are being harassed by many creditors. If you can’t find enough hours in the day to organise repaying your debts properly, or simply feel you don’t know where to start, it’s worth finding a personal debt management firm to help you get back into the black. As long as you are in debt you will not be able to save any money, which brings us to:

Start Saving Now

We’re not saying that you shouldn’t spend money on consoles, new stereos and so on but at least make sure you put aside 10% of your salary in a savings account for use in future emergencies. We don’t want to sound fatalistic, but there will always be future emergencies!

Cut Day to Day Expenditure

The internet offers hundreds of ways to save on all manner of products and services. There are price comparison websites, sites that collect discount voucher codes that you can use when ordering all manner of things online, from new PCs to take-away pizza. If you find a voucher online that saves you some money, put that money into your savings fund as well. Sites like MoneySavingExpert are dedicated to helping consumers claw back as much money as possible from the corporations.

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