Students and Credit Card Debts - Realise The Seriousness Of Getting Into Debt!!

You've just got your first credit card. What do you do with it? Well you use it of course. That is what millions of students are doing. Everything from gig tickets, to text books and groceries go on the card.

The wonder of having your own plastic is just too much. It is like an emblem of adulthood. Once you have that little piece of plastic in your wallet you seem to be a free and independent person.

Students and the interest they pay are making a fortune for the credit card companies. Students may have great grades in every subject but no one ever thought of teaching them about personal finance.

It's no good being moralistic about student debt. Debt is a way of life for students. They take out loans to pay their fees and living expenses. They know that their parents have debts. These kids were raised on credit and they expect to be in debt when they graduate.

But credit card debt needs to managed carefully. Credit card debt is different to other forms of debt. It grows and grows.

The problem with credit card debt is that is expensive debt. The interest rates on a credit card are always higher than those on personal loans or even authorized overdrafts. Once a debt begins to mount on a credit card it builds up quickly. It soon reaches a size that is out of all proportion to the original debt. This is especially so if the student gets late payment fees slapped on top of the debt.

Most students think they will be able to clear their debts when they graduate and get a job. Some employers even offer "golden hellos" to clear student debt, or at least they used to, that is increasingly becoming a thing of the past. In the present climate few students will be able to clear their debts quickly, or at all, when they graduate. Starting salaries are typically lower than they were. If the economy goes into recession unemployment may hit graduates too.

So it is important to have a realistic view of debt. A student cannot afford to come out of college with a debt that is beyond their ability to pay. It will be a crippling expense and may harm their credit score when they come to buy a house.

The credit card can be a terrible trap for the unwary student. It's best to chose other forms of debt first. Student loans are usually available at better interest rates. It may be possible to agree a bank overdraft at a reasonable rate.

A credit card should be the last resort. Generally speaking the credit card is best kept for internet purchases where it gives some security or for sums that can easily be cleared within the month.

Avoid making a minimum payment only. This is the way debts build up on the card. The credit card companies rely on our inertia to make money out of us. Clear the credit card every month. If this sound seriously uncool then just don't tell your friends about it.


What Your Credit Card Company Doesn't Want You to Understand

The best customer for a credit card company is the one who makes the company the most money. The person who pays their minimum monthly payment, while slowly but surely his balance increases. The truth of the matter is this person is the one creditors want. There is little money to be made by the person who pays their balance in full each month. If you let a balance remain on your credit card, interest rates will compound and before you know it you are up to your eyeballs in debt. Ask yourself, why do people let this happen?

Have you looked at your at your statement lately? Notice how enticing the minimum monthly payment is at an average of just 4%. This low payment encourages people to pay just that amount. In today's economy a lot of us are just squeaking by, and we believe that paying the minimum balance is enough. Many of us fool ourselves into believing that if we pay the minimum balance, next month will be better and we put off paying more than we have to with the theory that "if I pay this amount now, next month I'll pay more". The sad reality is that next month you will most likely be in the same situation and by paying the minimum your balance will have increased with more interest, and it will be even harder to pay more than the minimum next month. With this in mind, always try to apply as much as possible to pay off your balance each month, and for best long term results you should pay you credit cards off every month.

Another ploy of credit cards in offering a "low interest introductory rate". Remember, your credit card company is just like every other business, and this is nothing more than a gimmick to get you in. The concept is that with a low interest rate you will be able to sit on a balance for a few months with only a small amount of interest accumulating. Often times however people charge things they normally would not, with the idea of being able to pay it off before the introductory rate expires. Unfortunately, this rarely happens and all of a sudden that nice low interest rate skyrockets to a much higher one. Uh Oh! What now? And don't forget the people who play the game of switching debt to a new credit card with a low introductory rate every few months. Remember though this takes a lot of work, and keep in mind that a lot of credit inquiries could do a number on your credit score. Not to mention the fact that if you miss your introductory period you could find yourself facing a higher interest rate than you started with.

Have you read the fine print lately? Credit card companies like to use language not easily understood to hide fees and rules to confuse the consumer. Although many claim that federal regulations require this language, it is imperative that you understand it.

What this means to you is if you exceed your credit limit by even $1, you'll get hit with an "over the limit fee". Ouch! And be just one day late with your payment, and BAM!... a late fee occurs. And the real tragedy is that oftentimes, even if you've never been late with a payment before, miss just one deadline and watch your low interest rate go out the door.

And of course there is what creditors refer to a universal default. Every payment you ever made could have been on time, you've never exceeded your credit limit, and all of a sudden out of know where comes a notice from your credit card company advising you that because you applied for a car loan and the dealership ran multiple credit inquiries, or if you were late with your mortgage one time, you will now be paying a higher interest rate on your credit card, or even that your credit limit was decreased. And guess what, if they lower your credit limit, and you had a high balance, you now have an over the limit fee. Oh My! Changes to your credit score can affect your credit card terms and interest rates.

With this information in mind, watch out for the pitfalls of credit card companies, and if you do find yourself facing problems, be sure to consult with a professional.


The Growing Trend of Credit Card Debt Lawsuits - Will You Be Served a Summons?

It used to be that once a creditor charged off a debt as "bad debt" and wrote it off their books, the debt was done. No more, my friend. Today, collecting on old and even "out of statute" debt is big business. One large collection agency or "junk debt buyer" as they are commonly referred to, is purported to file an average of 279 credit card collection lawsuits per day!

That's 66,960 lawsuits from just one company! Scary.

A collection lawsuit is often a final attempt to collect a debt. If the harrasing and illegal phone calls were not enough, now you have Mr. Process Server knocking on your door!

The good news is that by the time these predatory debt collectors get to you, there's a good chance your debt is out of statute. The SOL on credit card debt can range from 3 to 10 years, the average seems to be about six years from the date of last activity (DOLA) or the last time you made a payment.

Can I just ignore the lawsuit?

No! Once a default judgment is entered (which is what happens when you do nothing) all of the potential defenses to the lawsuit are lost and the collector does not have to prove their case.

The collectors are literally banking on the fact that the majority of consumers do not respond. Default judgments are goldmines for creditors as it means they do not have to prove you owe the money, how much you owe and most importantly the agent for the credit card company or other creditor does not have to come to court.

A default judgment grants the creditor the right to garnish your wages, freeze a bank account and/or put a lien on your property.

How to Respond

You need to file what is called an "Answer". However, you have to be careful. In some jurisdictions all of the defendant's (you) affirmative defenses must be filed at the same time the original response is filed with the court or the defenses are lost forever.

An example of a defense to a debt lawsuit would be out-of-statute, statute of frauds, improper plaintiff, invalid debt transfer, and violation of the Fair Debt Collection Practices Act just to name a few.

You need to file an "Answer, Affirmative" document which will line-by-line answer each numbered paragraph in their complaint with an Affirm, Deny, or Lack Knowledge Of statement. You then go on to assert your defenses to their lawsuit. This should usually be done on 28 lines pleading paper.

If you are sued, it's best to contact an attorney to help determine what defenses might be applicable. If you are unable to afford one, you can check your local legal aid office for help.

However, it is very possible to defend yourself (called being a Pro Se litigant) in this type of lawsuit. Many people I've corresponded with have successfully "Answered" their lawsuit and had their cases dropped. If you are proactive and fight these collectors head on, they often buckle and move on to the next "default" prospect.


Advantages of a Small Business Credit Card

A small business credit card is absolutely essential for starting a new business and maintaining a business into the future. With all the challenges of running a small business, having a credit card can help track and control spending. The monthly statements will give you an accurate record of all expenditures.

Separating personal charges from business charges is the most obvious advantage of this strategy. Tax time will be made much simpler when expenses can be taken from monthly statements. Some companies even send a quarterly recap with expenses broken out into categories. If an audit of expenses does come up your statements will all be on record.

The card should be registered in the name of your business so there is no confusion with your personal account. Keep all personal expenses on your personal card and business expenses on your business card. Even if you can easily tell the difference you might have a more difficult time convincing an auditor. With all of your expenses on this card and regular on time payments your credit score will go up and your credit line will increase. Some issuers will do this automatically. You can also request an increase and will get one if all of the issuer's criteria have been met. A larger credit line can be a life saver in slow times for your business or an emergency.

Take the time to compare small business credit cards before you apply. The key points to compare are interest rates (APR), grace periods, annual fees, late fees, rewards and other benefits. If you are currently carrying a balance on your business card, you may want to look at a balance transfer card to eliminate interest charges. Be sure you know the time limit of the 0% interest term, there will be a limit.

Since you will be the person who guarantees payment you never want to miss or be late on a payment. Credit history gets shoved to the back burner until we need it. Protect and respect this important part of your financial stability. On time payments are crucial to good credit. Use your card for normal business expenses only and you will alleviate the problem of monthly bills that cannot be paid.

Credibility with your vendors is enhanced when you use your card to pay them. The vendor gets his funds immediately and you have a record of the purchase at the end of the month. Instead of writing ten checks to your suppliers you can write one to the credit card company. Using a small business credit card has many advantages. Your record keeping will be the best, you will be building credit and you will be building credibility.


Seek a Permanent Weapon For Financial Trouble-Shooting With Instant Approval Credit Cards

The arrival of credit cards in the modern-age world of finance, has undergone a remarkable transformation. Needless to say credit cards have redefined the established parameters of the finance world. Now almost every kind of financial transaction or obligation can be discharged by the channel of credit cards. In the due course of time, more and more people are now going the credit card way. This is an encouraging sign especially after considering the miserable failure that the concept of credit cards faced in its initial stages after its launch in the Indian economy.

However, despite a miserable start, credit card companies have made up for it. Today almost every major name in the credit card industry is riding high with the success. Increasing profit margins and customer base are the two chief factors that have contributed a significant part of the total business undertaken by some prominent credit card concerns. However, even today there are many people who fear from the concept of credit cards. Unfortunately, in the wake of existing liquidity crisis, these fears have multiplied to a large extent. What has been more unfortunate is that people are not willing to suspend the false perception pertaining to credit cards. Most of the people regard credit card as an effective instrument that drains out finance from the pockets of user. In addition to it most of the people cultivate the perception that they will be subjected to extra costs and expenses once they start using the credit cards. Thus, in a bid to eliminate such misconceptions about the credit cards, another radical concept has been launched by the name of 'instant approval credit cards'.

Instant approval credit cards belong to the same species of normal credit cards with certain modifications to suit the demands and needs of customers. As the name suggests, instant approval credit cards main highlight is their application process. Yes, the instant application process adds irresistible charm to these cards. Free from any kind of hassles in the form of legal formalities and tedious documentation, these cards can be procured from the concerned credit card issuing authority on the same day itself. The application form and process is a quick one and the applicant almost instantly can find out whether his/her application plea is rejected or not. This saves time and imparts a customer-friendly outlook to the entire concept. However, customers are advised to make some preliminary investigation regarding the cards before actually applying for them. As that will give the applicant a more clear idea of the precise rules and regulations needed to followed before applying.

For gaining in-depth knowledge, one can certainly take the route of Online channel. Yes, Internet not only will broaden the horizon of search but will also help the applicant in exploring the pros and cons of the deal. It will also help them in attaining a satisfactory explanation of all the related financial queries circulating around these instant approval credit cards. Add on utility features like applying through Internet also adds lucrativeness to this cost-effective proposition. Some websites dealing in credit cards and related finance functions even offer the feature of compare credit cards of different concerns. This is one feature that allows people to take a better decision at the time of confusion.

As far as the obtainment of credit card on the same day is concerned, applicant must have a sound credit profile to back his/her claim. Besides this, an applicant also need to furnish all the necessary and correct information to the concerned authority when asked to do so. Following these basic fundamental principles can actually help in increasing his/her chance to get the credit cards.

Basically these instant approval credit cards are meant to serve the purpose of shopping through Online mode. This is one perfect instrument to handle all kinds of immediate financial urgencies. However, it is advised to the prospective buyer of these instant approval credit cards, to get all the relevant information about the concerned authority (past history, future prospects) that he/she has zeroed in to get the card.


All About Credit Cards For Pay Per Click Marketers

Pay Per Click marketing has grown to a massive industry in the past few years thanks to the efforts of Google, Yahoo, and now Microsoft. Pay per click advertising allows online marketers to put their websites in front of folks on the search engine results pages. They are charged for every click that is made on their PPC listing.

The competition in the industry has become really intense, and most fields have become highly competitive. Bidding for general terms such as "credit card" could cost you as much as $25 per click. While there are many small niches that don't require that high of cost per click to gain proper visibility on search engines, the cost are high enough to drive most newbie marketers out of business.

Top PPC marketers spend thousands of dollars ever week to bring leads to their partners and earn commissions. A few marketers market their own products and have to compete with others in the same niche. Owning the right PPC credit card can enable marketers to bid on competitive keywords with more flexibility and earn money back in the process.

PPC credit cards come in both consumer and business flavors. If you have taken time to form your own business entity (LLC, corporation), you can apply for business credit cards such as Advanta Custom card to earn rewards on every dollar spent and also receive low interest on your monthly balances. A lot of marketers don't realize their commissions (profits) on a monthly basis, which means they will need to take on debt for a little while before they are able to pay their balances in full. In those cases, it is essential to sign up for a credit card that offers 0% APR on dollars spent for a significant period of time (12-15 months). You can also use a low interest balance transfer card to transfer your PPC balances from a high interest card.

As a PPC marketer, you should also consider PPC credit cards that allow you to earn rewards and cash back on your dollars. Companies such as American Express give you up to 5% cash back on your advertising expenses, which means you are getting a portion of advertising cost back with every dollar spent. You can also go with travel cards to earn enough points to travel to pay per click conferences around the nation.

At the end of the day, PPC marketers should choose a PPC credit card that gives them the biggest bang for the buck. The ideal card comes with a low APR and low fees in addition to a rich rewards or cash back structure.


How a Student Credit Card Can Be Beneficial

There's no denying that the popularity of college student credit cards is on the rise. These days, both parents and students prepare for college by getting a student credit card Usually, parents provide their kids with student credit cards because it is a more convenient way of giving financial support. Still, there are working students who can afford to get a college credit card on their own.

Credit Card for College Students - How Beneficial

Primarily, student credit cards are designed to help young people establish their own credit history as early as possible. Even while in school, students with credit cards are already starting to build up their credit scores- certainly an important preparation as they enter the corporate world.

Nevertheless, building a good credit history would greatly depend on how a student handles his or her student credit card account. Needless to say, a student may be able to establish an early credit history but because of frequent late payments or maximizing their credit limit, there is also the danger of developing a poor credit score or bad credit history.

Therefore, before opening an account, students must first be made aware of their responsibilities as student credit card holders. Parents can play a big role in teaching and training their kids on how to handle their finances effectively. Of course, setting a fine example to their kids is crucial as kids often look up to their parents for learning.

Help Your Student Choose

If you're a parent, help your kids understand the specific factors that should affect their choice. For instance, does the student credit card report to the major credit reporting agencies? Since you'll be using your student credit card to build credit history, you need to make sure that your payments would be reported to the credit bureaus accordingly.

What are the costs of the credit card? Naturally, a student credit card with a low rate of interest is what you want. However, a low APR does not always guarantee the best deal. Aside from the APR, you'll also want to check out the rest of the fees that your college credit card charges. Consider these questions when doing your search for a potential student credit card:

Does the credit card for student carry an annual fee?

If yes, is it reasonable?

Is there an over the limit charge? If yes, how much?

How much is late penalty fee?

Does it provide a sufficient grace period? (usually credit cards provide 25 days while other provide as long as 30 days of grace period) Remember, a longer grace period gives you more time to pay back your balances without incurring the additional interest payment.

Considering the above points means taking more time in searching and comparing different student credit cards. Don't sign up for the first credit card offer you receive in your mail just because it sounds like a great offer. Remember, the only way you can be sure of your choice is by doing comparisons and by understanding the details of the fine print.


Why America Turned on Credit Cards

Banks are tightening even more on their lending practices from home mortgages to credit cards and business loans. The Federal Reserve said in its quarterly survey of bank lending practices that most banks are tightening their credit guidelines even further.

The Fed found 85 percent of banks tightening their guidelines for commercial and industrial loans, which were up from June survey which reported 65 percent.

Even further 95 percent of the banks reported tightening guidelines for lines of credit. Number of larger banks reported tightening credit for credit cards and loans where 60 percent of banks responded with tightening credit card debt, while 65 percent responded with tightening on consumer loans.

With Fed survey there is a sign on Wall Street that banks are increasing their credit supply. Even with tighten credit banks are now considering changing their credit guidelines.

For credit cards, banks are still not willing to take any further chances with many borrowers and now many of consumers see their limits reduced. A survey of credit card industry showed that 62 percent of credit companies will plan to reduce lines of credit because of economic conditions.

American Express changes credit limits 20 percent of its customers every year and more limits are being lowered than raised.

Many companies are working on to lower their risks if customer defaults on credit card payment. By cutting credit limits or closing accounts can have a negative affect on credit reports score. One way credit score is calculated is debt to available credit ratio. The closer the debt is to a credit limit, the lower the score.

Any credit changes will be corresponded by bank in writing, in which case you can leave it as is or move your debt into another credit card.

Other chance is to reverse the decision by calling a bank if your credit score is still good. Bank will investigate and provide you with their decision.

If you have a card that has not been used, use it for small purchases which will also help you to increase your score.

Most important part is not to miss a payment. Fees will accelerate after you miss a payment and it will be hard to catch up.

It is important in today's credit crunch to save money. Downsizing is one option as large homes and fancy cars make people look, but behind those fancy things is debt. Right now many consumers should be looking to lower their standard of living.

If you are living paycheck to paycheck avoid credit cards at all cost. If you have credit cards start to lower your debt. Don't use credit cards if not needed and don't always make minimum payments.

To save money you can add to 401K or open up a new account that will withdraw fund from your paycheck automatically and deposits them into high-interest saving account.

As holidays are approaching many consumers will be saving even more and buying only what is necessary. U.S. economy will improve and when it does many consumers will be still paying off their credit balances.


Does it Make Sense to Use Credit Cards?

Is it any wonder that credit card companies target college students, many who are on their own for the first time in their lives? Also, why is it that low-income people are the ones who receive numerous offers for credit cards every day? The truth is that credit cards are not inherently evil, as many would argue. Sure, the companies have little oversight and are not in the habit of fact-checking the people who are applying for cards. They are structured to give people every chance to fail, and the sad fact is that most people will eventually.

Credit cards make sense to use if you know and understand how to use them correctly. Americans abuse credit cards, mistaking them for "free money" and opening many different cards at the same time to satisfy their thirst for expensive things and, ironically, things they can't afford. For many people, once they open a credit card, they will never pay off the balance completely because they only pay the minimum due. This is exactly what the credit card companies are banking on. People who pay the minimum due will always have a balance, which means more money made in interest and penalties in the long term.

It is not terrible to have a credit card for emergency purposes only. Unfortunately, if you carry that card around with you and you rationalize buying something you can't afford once, it's sure to happen again, and again, and again. Studies show that the longer a person has a credit card, the more likely they are to begin abusing them after a while. Having a credit card and using it appropriately means that you have diligent habits when it comes to paying your card off.

The problem is the culture that surrounds us. We have forgotten what it means to save-up for something that we really want; we used to understand it when we were kids. How many times did mom and dad say something like, "If you really want that bike, you'll have to work hard around the house and save up your allowance to buy it." As kids, we understood that, although it wouldn't be any fun, if we wanted that bike, we would have to work for it. The same is true as adults, but many people have forgotten the virtue of having to save for something they really want. Citizens in the United States have the lowest rate of savings when compared to all other civilized, first-world countries. What's the problem here?

So, how does one go about using a credit card correctly? LIVE WITHIN YOUR MEANS. Don't rack up a large balance on your credit card. If you charge something, pay it off by the end of the month. Don't let the credit companies get rich off of your interest payments any more. For emergency purposes take a little money out of every paycheck and put it into a savings account. Yes, for emergency purposes, we should not fall back on our credit cards anymore. Be smart. Don't spend money you don't have.


Is There Such a Thing As a Credit Card For Teens?

It is not often that you see a teen talking about budgeting, finance, saving, and investments. As a teen, the only reason to discuss money is usually to see if there's enough to buy the next big thing. Most parents can't trust a credit card to a teenager because so many don't understand what happens when you charge something to a credit card. In fact, they probably don’t even think about it. Swipe the card, get your purchase. It probably never crosses their mind that they will have to pay for it out of pocket later down the road, especially if their parents pay the monthly bill.

Credit card companies know that teenagers have little responsibility when it comes to credit cards. They charge and charge, and that's what credit card companies want them to do. They charge everything, pay the minimum, the interest builds, and then they are struggling to pay it when it catches up to them. If the credit card companies are lucky, the parents will pay for it all. Some parents will continue to bale their kids out of trouble, paying for their mistakes whenever they come. This is no help to them because they will never learn from their mistakes.

I remember when I was nearing high school graduation and through most of college. My mailbox was stuffed with credit card applications claiming I was pre-approved. They basically told me I had free money just waiting for me. Were these credit cards meant for teens? Were they made specifically affordable to teenagers so that they could afford what they needed in life to get by? Of course not. In fact, most of these cards have a much higher interest rate then normal because credit card companies see teens as a risk. They see innocent teenagers that don't know any better, and figure there's a chance they won't pay, but if they do, they can suck a lot of interest money from them.

Teenagers are often irresponsible with money and should never been given a credit card unless they have proven financial responsibility. There are some teens out there that budget, save, and even invest their money, but there are very few. Most of these teens probably wouldn't get a credit card anyway because they understand the consequences. If your teen is asking you for a credit card, your better off denying them, for their sake and yours. If they can't pay for it out of pocket as a teen, or even as an adult, they don't need it.


6 Reasons to Eliminate Credit Card Debt

Like you really need a reason to not have to pay someone else for buying something you don't need to have in the first place. But for those of you who do, here are 6 great reasons (I can think of) why having a credit card balance stinks.

6 reasons to get out of debt

1. Interest costs and fees alone can accrue to 2, 3 or even 5 times the original cost of the product depending on your credit card rate and current balance. And you thought you were buying that item on sale. The next time you purchase something with a credit card, first triple the cost of the item you want to buy, and then ask yourself whether the item is really worth it.

2. Changes in notices for your credit cards over the lifetime of your debt can really make it harder for you to pay anything off. Do you ever get those changes in your credit card agreements? Ever read them? Neither do I, except once. It is simply amazing the amount of changes that can affect your ability to pay. They can change your statement date, the interest rates, the default period, the fees, the time you have pay, and whatever else they can legally do. Since you did receive notice, you have been fairly warned. So by keeping a balance on a credit card, you run the risk of incurring a charge to your credit card you may have overlooked.

3. Preventing hardship is certainly the best cause for getting out and staying out of debt. I am sure most of us have been unemployed at one time or another. The bills keep coming in, along with the credit card statements. Now imagine if you paid off those credit cards before you even told your boss off and got fired. There would be fewer bills to worry about at the end of the day, which helps prevent making a hard situation even worse.

4. Psychological freedom is what happens when you don't owe anymore to "the man." You feel a big weight has been lifted, and you can now take your seat belt off and run about the cabin.

5. Adding to your monthly income is rarely considered. Think how much you have to pay in credit card debt a month ($50, $100, $200 or more)? Paying off that amount is equivalent to giving yourself a raise of that same amount. Saving $200 a month is the same as getting an annual $2400 raise in your salary, which could be used to help your to retire early by building your retirement plan.

6. Opportunity costs are those things you could have spend money on that you sacrificed by having to make credit card payments. Imagine what you could do with that extra loot every month. Well, this may be a good thing because who needs another gaming system. On the other hand, stick with an investment plan.

Let's face it. No matter what reason you choose, credit card debt is not fun, it's legally binding, and it doesn't go away. And because credit cards are tied to your credit score, it can affect your cost of borrowing. Would you really want to pay a higher interest rate on a new car or house because you couldn't handle a few hundred or a few thousand dollars in debt? It really doesn't make sense when you think about it.

How to get out of debt?

Step 1: Take a pen out, collect your bank and/or brokerage statements, and make a budget. You can't start to get out of debt until you know that you will have enough after tax income to cover all your expenses. With a little bit of frugal living, you can determine which expenses can be cut. I wrote one post that may give you tips on how to save money. When you have found a way to create additional income to pay off your credit cards, go to Step #2.

Step 2: Talk with the credit card companies and negotiate a lower rate. Here's one way to start:

You: "Hi ****, I have a pretty high rate with you guys, but I have been getting lower offers from other card companies. I really want to stay with you guys. Could you lower my rate? [Pause for response]

You: My rates I have been getting are *** [if you have].

You: Is that the best you can do?" [Remain silent... bite you tongue if you need to]

If this doesn't work, you can try a different credit card company. The point here is to negotiate a lower rate so our new found income from Step #1 will go further to pay down our debts than with a higher rate.

Step 3: There are actually several approaches to paying down your debt. Start by laying out all of your credit card statements in front of you. Your objective is to focus on ONLY one credit card and pay as much as additional income you created from Step 1 towards getting it paid off and then pay the remaining balances for the rest of the debts. So where do you start?

- Highest balance

- Highest rate

- Smallest balance (snowball method)

The Snowball Method: There are advantages and disadvantages to each method. Finance experts recommend the snowball method where you are paying the smallest balance first. While this may not be cost efficient, snowballing has a significant psychological affect. Paying off the lowest let's you see your effects immediately. You pay it, and the lowest balance goes down quicker. You immediately see results and are encouraged to move to the next credit card balance, and pay that off as well (just like a snowball moving down a hill).

The highest rate method: This is when you just focus on the credit card with the highest interest rate amount, and pay it off. While 1% or 2% difference may not matter, 5% or 10% may make a big difference in the long run. This tends to be more economically efficient, depending on your situation. But it may also take longer to pay off than snowballing, depending on your balances.

The highest balance: This can be compared to climbing a mountain before climbing a hill. It takes a great amount of perseverance and willpower to pay the highest balance first, and over time you may get disheartened. If you normally seem to get easily discouraged, start with the Snowball method. You will see results faster.

There is no one set way to start because everyone's balances, rates and number of credit cards are different. But one way to assure success is to choose a method and stick with it.


Instant Approval Credit Cards - Where to Find Them

When you go in for instant approval credit cards, you will usually receive a verdict on your application flat within minutes In some cases, more time may be required to process your application and you will be told after a few moments whether or not you have been accepted for the same. Good to excellent credit rating by you is usually required to get instant approval for an online decision credit card.

Instant Approval Cards

The greatest advantage about applying for a credit card online is that not only can you choose among the best credit card offers available, you may also be able to get an instant response to your credit application which you have entered online.

Online approval for instant decision cards is a great convenience because you do not have to wait for weeks to find out whether you are approved or not. by means of online approval credit cards, you usually get a reply within less than a minute. So if one corporation decline your request, you have the alternative to attempt with a different card company immediately. Various convenient online tools are available to compare credit cards to choose from a list of the ones that are available and in which you are interested in.

Of course, not to forget even with instant credit card approvals, you still have to wait in anticipation of your recently approved card arrives through the snail mail previous to you can start using it. That will usually take at least 5 to 7 business days.

Would you like too know how companies offer credit cards with immediate endorsement make a decision so fast? The decision is made by the computer and based mainly on your credit score, in addition to a match of your social security number, address and phone number. Before mailing out the credit card, the card issuer will take time to double-check the information that you have submitted, and make the decision about how high a credit card limit can be issued.

It is always recommended that you do not apply to more than 2 or 3 cards at one time. Applying to many cards in a short period of time will definitely affect your credit score.

Many more credit card offers available do not unavoidably give instant sanction but still have great features. If you look for a transfer balance, cards offering 0 apr for an introductory period will work well.