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The Buyers Market
much of the stability of our economy is based on people being able to spend money they don?t currently have, a.k.a. ?the credit system.? what makes the credit system so important is that it drives an inflated level of commerce. if we were to rely exclusively on cash purchases the volume that people are able to consume at one time would drop dramatically. imagine what it would be like if you had to buy your car or your house in cash? instead of relying on a payment plan people would have to rely on a savings plan
what makes this immediate gratification mentality so dangerous is that people make decisions on what they can afford based on where they expect their income to be at the time of pay off. for example a person might buy a big screen television, and resolve himself or herself to making the minimum payments on their credit card, because they are expecting a raise at their job. this agreement to spend money not yet earned creates a cycle known as borrow and owe. inevitably an expense comes up that takes up the raise they received at work, and instead of earning more money, they have less in hand that they can spend. this is because more money is going to make the minimum payments to their credit cards or other expenses.
where the line should be drawn is somewhat grayed. certain purchases simply require people to purchase on credit. a home for example is far too expensive to save up for in any conventional means, especially considering that you would be paying housing expenses (rent) the entire time needed to save up for your home. on the other hand, purchases based on impulse that don?t fill a core need and have high penalties (interest rates) can and should be avoided until there is enough money in hand to pay most or all of the debt off.
the strategy for success is relatively simple. set goals for yourself, while outlining the path to get there. if you were taking a trip somewhere you would get a map and plan which roads to take. the same holds true for your finances. see how much money you can comfortably put into savings each month. then determine how long it will take you to save up for the item that you want. you never know, after saving up all that money you may find that your original goal item is not worth the effort, and that you want to invest the money instead. but the effort involved in reaching your goal will give you a glimpse into the value of the item you want to purchase. then you will truly know if the purchase is with the effort to you.
for more information on credit, budgeting, debt or debt management, visit www.solveyourcreditproblems.com
ted is a florida native with a bumpy financial past. after struggling to get his own finances under control, he began working to educate others on the perils of poor monetary decisions.
article source: http://ezinearticles.com/?expert=ted_monroe
Credit Cards: Making Your Dreams Come True
people have always had to choose the right credit card for them. but in the past, this choice dealt mainly with interest rates, grace periods, and credit limits. all of this is still true, however, there is one more aspect you will want to consider - customer loyalty plans!
what is a customer loyalty plan?
some of the most well-known customer loyalty plans are the frequent flyer programs of the major airlines. programs such as these have been used to keep customer loyalty for many years. loyal customers are often treated better than those that buy on the spot. the idea was to reward your customer for being your customer. and the credit card companies, seeing a good idea, do what all smart companies do when they see a good idea - they copied it!
it started with cash back bonuses. cards like discover offered a percentage back for everything spent - money you got back for using their card. then airlines started letting people earn frequent flyer miles not just by flying their airline, but by using their airline visa or mastercard. and from there, the sky has been the limit!
what kinds of plans are available?
besides cash and plane tickets, you can go to disney world, earn free gas for your car, get merchandise from your favorite store like rei or saks fifth avenue, or even get free groceries. but dont let your mind stop on the obvious!
have you ever wanted to own your own island? well, that may be a bit far fetched, but you can use your credit card to earn enough points to rent your own island!
is you child just dying to go to space camp? find a card that will let you earn the credits to send him to nasa for five days!
some cards are very specific and allow you to only use your points towards something specific, like a gm car. others offer you the ability to use your points towards a variety of opportunities. so, whatever you have always wanted to do or see or buy, now is the time to find a credit card that will help you turn that dream into a reality.
calculating the costs
just as not every card is created equally in the interest department, neither are they created equally in the point department. some give you one point for every dollar you spend. some give you more and some give you less.
just as importantly, however, is what is the redemption like? is one point worth a dollar when you redeem your points? probably not! most cards average about $1 for every 100 points.
there are times, usually with special promotions, that you can earn more points for every dollar spent. if you get a loyalty rewards card, it is very important to be aware of these promotions. if you are planning to buy a plane ticket to florida, it might be best to do so oct 15th when the rewards points are doubled than wait until the 16th when the promotion has ended!
and speaking of spending, be sure to put all your purchases on your credit card to accrue your points more quickly. however, this is true only if you have the money to pay the balance in full at the end of each month. if you dont, then the interest paid will quickly end up costing you more than the points are worth.
finding a credit card that meets your needs is getting easier and easier to do. simply determine what you like to do and then go out there and find a card that will help you pay to do it!
coolcreditcarddirectory.com makes it easy to find the right credit card to fit your needs quickly & easily. find all the top credit cards and free credit card resources you need to get your credit card fast. to claim your new credit card visit: cool credit card directory
article source: http://ezinearticles.com/?expert=neil_bartlett
Secured Credit Cards - the Basic Facts
credit card is a part and parcel of modern life. the credit card offers us the ease and simplicity to spend money without carrying cash, is versatile and handy to use and provides us the means to establish and recreate our credit rating. the secured credit card is however, not without its disadvantages, the main one being high interest rates charged on it.
how would you rate your capacity to purchase a home or the car you want or the loan you simply need? how significant is it for you to have a good credit rating? in order to establish and spruce up your credit score, the best possible option is to have a secured credit card.
a secured credit card is in effect the opportunity to regain a sound financial position.
due to the easy accessibility of credit reports through well-established credit bureaus today, credit issuers rely increasingly on these reports to make their final decision on providing you credit. a credit card is often denied to you when you do not have a credit history. this is often in the case of the young adults who have never taken out a loan or have so far used a credit card through a parent. it can also occur in the case of divorced people who have never had a credit card in their name.
secured credit cards thus provide the best means for anyone to establish a credit history. the secured credit card by virtue of being secured by your own money allows the issuer to feel safe, ensuring their money back in case you default. since the issuer is also holding your money, they persuade you to make your payments regularly instead of losing your security deposit on the secured credit card.
secured credit card - a credit card with a security deposit
very often when you rent an apartment, the landlord will ask you to deposit an amount equivalent to a month?s rent into a special account. this amount acts as security and is not used till you move out. when you move, this money along with interest is returned to you. you will not owe the landlord any money if you leave the apartment without any damages. the same rule applies to the secured credit card. in a secured credit card you have to deposit an amount as security equivalent to 50-150% of your credit limit in a special account with the credit card issuer. the credit card issuing company will provide you with a secured credit card which is used like a regular credit card. the only difference being that only you and your credit card issuer know that the secured credit card has attached to it a security deposit.
provided you use your secured credit card wisely, the security deposit will not be used. this means that the secured credit card will be used to make reasonably priced purchases and the monthly bills will be paid regularly and fully as far as possible. to increase the credit available to you on your secured credit card, you can either increase your security deposit or get as many secured credit cards as possible. the credit card issuer will soon increase your credit limit from 50% of your deposit to anywhere between 75% and 100%.
the interest rates on secured credit cards are usually quite high. in the even that you have been rejected for credit by some companies you will be thought of as a significant credit risk. the issuing companies are taking a huge risk in lending you money through secured credit cards, and these interest rates are based on these risks.
a secured credit card is not suitable for people with a solid and established credit rating as they can avail of credit cards with lower rates, rewards and other benefits. a secured credit card is for people who have had a bad credit or no credit to start with and need to mend their credit scores through a responsible show of credit card handling.
to read more about credit cards visit creditrunner.com
article source: http://ezinearticles.com/?expert=mark_henderson
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