Financial
productivity: 7 Brilliant Do’s and
Don’ts For Using Credit/Debit Cards-When You Want To Terminate Debt And Be
Financially Wise
Wall
street journal report that, Americans’ debt grew in April as credit-card use
surged, a sign of a rebound in consumer spending after a sluggish winter.
Outstanding
consumer credit—reflecting Americans’ total debt outside of mortgages—rose by a
seasonally adjusted $20.54 billion in April, or at a 7.33% annual rate, the
Federal Reserve said Friday. Debt jumped
7.66% in March. Economists
surveyed by The Wall Street Journal had expected consumer debt to rise $16
billion in April. The latest increase reflected a sharp rise in revolving
credit, reflecting mostly credit-card debt, which increased at an 11.57% annual
rate. That marked the second- biggest jump since the recession ended nearly six
years ago.
Meanwhile, borrowing for cars and education grew at the
slowest pace since July 2012. That category–so-called non-revolving
credit—expanded at a 5.8% rate in April after growing 8.05% in March. Consumer
spending accounts for more than two-thirds of economic output in the U.S. When
consumers rein in spending, as they did in the first three months of the year,
the economy typically slows.
Economists
typically see a pickup in consumer debt as a sign Americans are gaining
confidence and feel more secure.
But
the growth could also be a sign money is tight for many households and they
have few other options than to borrow. The latest pickup in debt comes amid
steady job growth and early signs that Americans’ incomes are growing at a
slightly faster pace after years of stagnant wages. Americans are also saving
on gasoline, compared with a year ago, after a dive in oil prices from
mid-2014.
Credit Cards Do's
and Dont's
1- Stop all your credit card and
keep only one for emergencies. Always use cash instead. And for the one you
keep, be sure to choose one with the lowest interest rate and best credit
facilities. If you search you find. If you are a student, look for student
plans with zero monthly fees
and very low interests and also a low renewal fee.
2- If you have multiple credit cards,
transfer the debts to the card with the lowest interest rate or get a
debt-consolidation loan from a bank at a very lower rate.
3- Use cash!
And buy what you really need only!
4- Pay off the debts with the highest interest rate first.
5- Add an extra payment
on the next debt by taking the payment
you made on the first debt and adding it to the current debt.
6- Always have you notepad or PDA with you and invest in
personal finance software to track your spending.
Search
the web and you will find great software for competitive prices. Also invest in
debt-reduction software, it will help you calculate and create a debt reduction
plan.
7- Use consumer credit agencies to arrange repayment of debt.
Many are free.
There is a lot of truth in the advice that credit cards
are not a substitute for not having money. Every time you use a credit card
this should be the theme replaying in your mind.
And you would do good to remember the following too.
Do s.
* Always plan
for the purchases that you need and those that you want. You need the
essentials, and you want everything else. The ability of making a distinction
might help you plan wisely.
* If caught up
in financial difficulties, it’s always good to talk to the issuer who might
re-schedule your payments. If you simply default, that only helps to build up
an unfavorable credit history and you might find yourself being denied credit
next time.
* Unless it is an
emergency, staying within your credit limits will help you a great deal. If you
must spend over the limit, ensure you are within the manageable levels, say
within 30 percent.
* And if your
mails are flushed with more favorite
deals than you currently are enjoying, you may approach your issuer
for a better deal. They want to retain you as their customer, so they will
listen.
Dont s
* Do not use
your credit card to make house hold purchases. It’s expensive in the long run
* Do not just
pay the minimal amount. You will end up paying exorbitant interest. The quicker
you clear the debt the better.
* Do not use
the credit card to purchase things you can’t afford.
if you like it if you can pass it on to other people.........Thanks, I will like to see your comments.
if you like it if you can pass it on to other people.........Thanks, I will like to see your comments.
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