Monthly Archives: January 2016

How to avoid credit card fees with examples:

When you receive your monthly statements there is a great temptation to pay only the minimum due. Do not do it. Please review your statement and look for information on how soon you can pay off the account balance. If you only pay the least possible payment, it may take years, even decades, to finish repaying. It is advisable to always pay your balance off every month or try to pay more than the minimum amount. This will help to establish a good credit rating, a score that financial institutions use to determine the rate you pay on your loan.

Real life examples:

Imagine that you are 18 years old and spent $1,500 on clothes and DVDs with your credit card interest rate of 19%.Cut expenses
If you pay just the minimum amount each month, and as a minimum equal to 4% of your outstanding balance (the lowest amount allowed by certain issuers), your down payment will be $60.To pay off the debt it will have more than 26 years. That equals 106 payments, and you will accrue over an additional $889 in interest. These numbers provided are true only if you do not buy anything else with the card and there are no other fees (e.g., late charges).

If the lowest payment is based on 2.5% of the outstanding balance, your payment will be $37.50. When you settle the debt it will be more than 35 years. That equals 208 payments, and have paid more than $2,138 in interest even if it did not charge anything to the account or other fees are charged.

Wondering how long it takes to pay off your debt? Depending on the information you provide, the payment calculator credit card helps you determine how long you settle the balance of your credit card.

Keep the use of your credit cards under control:

Continue reading How to avoid credit card fees with examples:

How to save money on car repairs:

Perhaps car repairs are one of the most feared by society in general when it comes to everyday things. Too often we see unnecessary expenses due to lack of knowledge or lack of understanding. What will you do when your car is facing repairs? Read on to learn more about how to save money on car repairs:Save money on car repair

Do not pay for air:

Familiarize yourself with the accurate air pressure of your tires and invest in an air compressor. Check your tires frequently and keep them properly inflated. Being able to do this yourself on a consistent basis will save money in terms of wear and regular maintenance.

Follow the scheduled timing of your car:

Every car is different, and that means everyone has different needs. A program set-up for one will not be the same for another. Look in your car manual for more information. Otherwise, you may have more issues in the future.

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Tips to receive the maximum benefit from your tax refund:

Are you eagerly anticipating to receive your tax refund for weeks? When it finally arrives, you spend it in one day? Many people view tax refunds as if they were unexpected bonuses. They see the funds as a gift from the government to be wasted. A tax refund provides you the opportunity to improve your financial situation.

• Tips to receive the maximum benefit from your tax refund
• Savings Bonds Tax Season
Pay what you owe:save your tax refund

Use your refund to reduce your debt as much as possible. Which you should pay off your credit cards. If you have an outstanding balance with more than one credit card, try to pay off the  credit card with the highest interest first. This will allow you to have more funds available to pay higher amounts on outstanding balances. Alternatively, you can use your refund to pay off other debts, such as an auto loan or a loan against the equity in your home.

Save for an emergency:

Why not maximize your tax refund to deposit it in a savings account in a certificate of deposit, or in a retirement fund? Your tax refund will continue to grow if you deposit it in a savings account or investment account. It is always beneficial to have a savings account which can make a withdrawal when you have a big expense such as car repair, a medical emergency or other unexpected expenses. This way you will prevent the need to add more to your burden of debt. Continue reading Tips to receive the maximum benefit from your tax refund:

How to save money on credit cards:

The credit card is one of the most popular inventions of recent times; promoting at least two key benefits: A boon to consumers as a means of payment and in turn, is a great boost to our economy.
But also credit cards have been exploited improperly, becoming the significant source of debt for many consumers. So to realize the true benefits of credit cards, consumers should be well informed about the proper use of credit cards.Saving money on credit cards

  1. Pay outstanding dues:

Failure to pay outstanding fees will only cause the debt to increase immeasurably since interest rates on credit card are considered among the highest as compared with other types of debt.

  1. Balance transfer:

Transfer balances from one credit card to another high-interest credit card with a lower interest.  If interest on credit card is too excessive, you should switch to other credit cards that offer 0% interest even by introduction. In this way, you can pay the debt of credit card gradually without incurring additional interest.

  1. Cancel credit cards with high interest:

Assess the interest rate of each credit card that you have and cancel those that charged too much interest, even if they offer excellent rewards program, because in the end, the rewards are worthless compared with the additional interest incurred. Continue reading How to save money on credit cards:

How to get out of payday loan cycle:

A payday loan, often known as a check or cash advance is a short term loan intended to provide sufficient funds to muddle through until the next payday. Although helpful and convenient in theory, payday loans come with a substantial levels of service fees. In fact a typical payday loan payment will cost about 25% or more of the loan amount in installments, it means that in financial terms the annual interest can be astronomical. Borrowers repeatedly find themselves knotted in the wicked circle of using much of their paycheck to pay the fees, only to have to borrow more money from payday lenders.  There are ways to escape the cycle by eliminating the debt to payday loans:

Step 1

Calculate how much you owe.payday-advance-post-dated-checks-cashed-1057118-1279x1871

Gather all documentation of your payday loans and total them.  Once you are able to find an exact figure, now you can be on your way to finding the means to remove it from your budget.

Step 2

Earn more money to pay debts yourself.

You can choose to fine additional work, start a profitable hobby as selling artworks, holding a weekly garage sale or ask family and friends to donate to your funds. If you combine all four, you will have even more financial power.  Allocate all the extra income to pay your debts; start by paying smaller debts so you can accumulate sufficient funds to pay the larger debts. Continue reading How to get out of payday loan cycle: