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When you need to make a purchase but do not like carrying cash with you, a debit card is a great tool. The bank releases the money electronically for the purchase just like cash and your account is debited the amount, hence the name. This can be a convenient way to pay for anything and a way to carry little cash as most stores take debit cards as a form of payment. As with every type of payment, there are downsides to debit cards that are often overlooked. It is important to know the risks and the rewards of any form of payment and consider them before using any debit card for purchases whether online or at your local store. (more…)

Credit card debt has been mounting this past year as Americans are sometimes using their credit cards to stay afloat during these turbulent times. As the economy has gotten worse, consumers are often turning to their credit cards and cash advances to make ends meet including bill payments, groceries and energy bills.  (more…)

It is important to keep track of our spending so that it does not get out of hand. We should budget and write down the money we spend everyday so that we do not go over our balance and get charged a late fee. These fees can be as much as thirty dollars and since they are charged when we are over our balance, it just adds to our misery. Some people go as far as to use prepaid Visa cards so that they can keep track of money online and add funds to the card when necessary. It is an easy way to make sure that you do not go over your balance and spend money that you just do not have in the bank. (more…)

Credit card debt is something that most Americans live with and the current credit crisis has had an effect on the amount of credit available to consumers. As credit freezes, less capital is available to these credit card companies to lend. Unfortunately, money flow has been slow due to the mortgage crisis and many have been slow to pay their payments. Defaults on credit cards are happening daily as many struggle to stay afloat with mounting job losses and lack of overall funds. As unemployment increases, so do defaults of every kind, resulting in car repossessions and home foreclosures. A recent bill has been passed in Congress that will protect consumers from any unreasonable practices perpetrated by credit companies. (more…)

Is it a good idea for a college student to carry a credit card? Most people, especially experts, will tell you no. Simply put, it is widely believe that college students are not mature enough to carry a credit card. Instead of using this money for important items such as books, it is thought that they will blow their credit at the bar, on junk food, on clothes, etc. Does all of this make sense?

Just like any consumer, some college students can responsibly carry a credit card and others won’t make it a few days without messing up. If your college-age child is interested in applying for a credit card you should talk to them about this situation. Ask them why they want a credit card, what it will do for them, how they are going to use it, etc. You may open their eyes to the fact that applying for a credit card is not the best of ideas.

Unfortunately, most credit card companies don’t have any issue lending money to college students. They know that college kids spend money, and of course, they can hit them with high finance charges that are sure to work in the favor of the creditor.

It is hard to say for sure that all college students should stay away from credit cards. But one thing should be remembered: in order to carry a credit card, no matter your age, you need to be financially responsible.

That all important credit rating can make a big difference to what loans you can get and how much interest you’ll pay, so these tips on ways you can ruin your credit can remind us of the best ways we can act to be sure we don’t damage our credit score, wherever possible:

• Don’t forget to pay a bill on time. Sure, if you can’t get to the post one day and your payment arrives a day late - one time only - it’s unlikely to have any effect on your credit score. But make it a habit to pay your bills on time or early.
• Don’t spend up to your credit limit. The ratio of your debt compared to your credit limits is a big factor in calculating your credit score. Experts recommend spending no more than 10% of your credit limit.
• Don’t cancel all your old credit cards. Keep one or two credit cards that you have a long history with as this will help your credit score.
• Don’t sign up to a dozen new cards a year. Ignore all the offers that land in your mail box. Stick with the cards you have and your credit score will like you a whole lot more.
• Don’t borrow money you don’t actually need just because somebody thinks it will help your credit score.

photo credit: TheTruthAbout…

Whether or not you use credit cards is your decision. But the fact of the matter is that you can find yourself in a large financial hole if you use them to “get by” month after month. Your budget should be simple: you need to earn more money than you spend. If this is not the case, and you neglect to cut out any expenses, you will have to use credit cards in order to make ends meet. While doing this you may not feel much pressure, but over time, as your debt adds up, this is sure to change.

When you use credit cards to bridge the gap between your income and expenses you are only making things worse on you in the future. Remember, the more you use your credit cards the more you are going to owe down the road. This means that while you may be getting by right now there could come a point when you are using credit cards to pay off credit cards. See how bad this can get for you in a hurry?

If you don’t make more than you spend, change your budget. This is better than using credit cards to make up the difference.

photo credit: Andres Rueda

More and more credit card companies are trying to push plastic on college students. If you are a college student it is safe to say that you have seen credit card reps setting up shop and signing up unsuspecting passer-bys. The question is: are student credit cards good or bad?

Generally speaking, college students should stay away from credit cards. It is entirely too easy to spend recklessly when carrying plastic. Additionally, more and more students are ruining their credit history and score before they ever leave college. As you can imagine, this will put you behind the eight ball after graduation.

There are sometimes when a student credit card may make sense. For instance, if you need money to purchase books, or just want to carry plastic for emergencies, this may be something to consider. But before you fill out an application you want to think long and hard about the pros and cons.

Student credit cards can be both good and bad. As a student you will have a lot of pressure on you to obtain a credit card. Whether or not you give in is up to you. Just make sure you know what you are getting into, both the advantages and drawbacks.

By now everybody knows that credit card debt can be crippling, and with a poor economic situation this is especially the time when you do not want to be creating any more debt than you absolutely must to survive. Although most advice on avoiding credit card debt is becoming common sense, it never hurts to hear it again, according to CNN’s Gerri Willis who has some more tips on controlling your credit card, including:

• Take a look at your credit card habits and calculate how much they are costing you. For one thing, only paying the minimum repayment each month will result in huge interest payments and a long time to repay your debt. Try to increase your monthly repayments as much as possible to cut down on debt and interest payments.
• If you have a credit card problem, then try using cash to pay whenever you possibly can. Research apparently suggests people will spend up to 18% less if they have to hand over cold, hard cash rather than a credit card.
• Try to negotiate a lower interest rate on your credit card. Before you do this, make sure you’ve been making payments on time for at least six months, preferably longer. If you don’t ask, you don’t get, and they say that half the people who ask for a lower rate actually get one.

Millions of people in the United States carry at least one credit card. And guess what? A large number of them are college students. This is becoming a popular trend as costs go up, and the number of students in college also increases. The question is: do college students need a credit card? This all depends on who you talk to.

Generally speaking, you should never obtain a credit card until you are responsible enough to do so. If you are going to run up a huge bill, and then find out how to pay it later, a big mistake is in the works. And unfortunately, this is how many college students think.

Is there a time when a college student should have a credit card? There is nothing wrong with using a credit card for essential purchases such as books, food, and supplies. But as noted above, the student must be responsible enough to only use the card for these types of purchases.

Some college students can benefit from having a credit card. Others, those who are not responsible, are better off waiting until they graduate and land a full-time job.