Essential Credit Card Debt Facts
Love them or loathe them, the credit card is actually a good thing. We are all searching for a better credit score and a credit card is very often the best way to build good credit, but misuse it and they suddenly become your most hated financial outlay.
The credit card debt facts are these: The pros are;
1# Emergency Financial Aid: A credit card can be used, as is the case by many users, as an emergency source of funds. 2# Free Insurance: when used to purchase items many cards offer the security of free purchase insurance. 3# Improved Credit Status: As long as your use is controlled and you don't run into problems your improved credit status will make it easier to gain loans for cars etc.
The negatives are;
1# Card Misuse: Using your credit card as an extension of your paycheck and maxing it out will get you way in over your head very quickly. 2# Missing payments will have an adverse affect on your credit for SEVEN years and becomes affective almost as soon as you miss your first payment.
When deciding to get a credit card the two important factors to give consideration to are the Interest charged by the card supplier and the balance payable at the end of each period.
Different Credit card companies offer different interest rates, but an acceptable Fixed interest rate is between 8 and 11 percent. You can then compare the various special offers that each supplier in that bracket is offering before making your final choice.
With regards to payable balance that comes down to you, how much you can comfortably afford to pay each month, remember this sum should include the added interest rate; for example: If you can only afford to pay $100 each month and your credit card has an interest rate of 10% APR you should only spend around $90 to $95 as there will be a minimum monthly interest charged.
However should these credit card debt facts go unheeded it is likely that you will end up looking to consolidate your credit card debt and quite often a debt consolidation loan is the best option to do this
Are you are fed up of being in debt and continually dream of the day when you are no longer a 'debt slave' to the financial institutions.Sounds great I know, but it can be a reality! If you like to know more about methods of debt elimination that will have you debt free SOONER THAN YOU THOUGHT POSSIBLE? Visit -
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