Marriage Debt-Lock

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Marriage Debt-Lock

By Credit Federal | Published 05/21/2007

Wedlock could become Debt-lock. Avoid and recover from marriage debt.

Surveys reveal that money; mainly high credit card debt, is a leading causes of divorce. And debt can be especially troublesome if one spouse is amassing it behind the other's back. Although one spouse may be generating most of the credit card debt, both spouses are equally responsible for ensuring timely repayment.

Experts strongly advise couples to talk openly and unemotionally before taking on debt, and agreeing to be mutually responsible for repayment.

For many couples, falling into the debt hole can start even before they're married, when they buy the engagement ring, setup ceremoney plans, pay reservation deposits, etc.

The main thing to keep in mind, is that going deep into debt isn't the way to begin a marriage. There are many vital commodities you will need; furniture, kitchen ware, linens, etc. If you spend all your available cash on the wedding ceremony and honeymoon, how will you purchase the necessities? On credit cards? If so, since you couldn't pay cash in the first place, it's not likely you'll be able to payoff the charges within the grace period to avoid interest fees. And; each month thereafter, more interest fees accumulate. You spend money to pay the interest, which reduces your available cash, and then you charge even more items onto your credit card. Welcome to the debt-lock.

The best advice is to avoid credit card debt.

If you didn't heed the advice; or suffered a loss of income that prevented you from avoiding credit card debt, the next advice is to get out of that debt quickly, but strategically.

First, drop all unnecessary expenses, starting with entertainment items like cable/movie channels. Continue cutting expenses as deeply as you can to free up more money for paying off the credit card balance quicker.

Next; if you still don't have enough free cash, consider selling luxury items. Maybe you have a collection of movie CDs... how likely will you rewatch all those movies? Liquidate those CDs into cash.

If those simple solutions still leave you too short, consider refinancing your home or auto. If you refinance an auto, remember that an auto refi is at a much higher interest rate than a new car. Even if the car is only 1 year old, the refi will be under the interest rates of a used auto. You may not want this option unless your credit card debt is costing you much more in interest fees than the auto refinance would cost you.

And remember, if you are reading this alone without your spouse, stop and get your spouse involved right now! Both of you must make a mutually agreeable plan and be equally committed. Just as with marriage counselors, some couples may also want to consider debt counselors to help them draft a mutually agreeable plan.

Get personal finances under control and pay bills timely. Use our free personal budget software to track expenses so you can stop wasteful spending, and use our free bill reminder calendar so you send in your payments on time.

Free desktop software to balance checkbook entries, or use the software as a computer checkbook register.

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Marriage Debt-Lock - by <a href=http://creditfederal.com>CreditFederal.com</a> <div style="text-align: left; font-family: Verdana;">Wedlock could become Debt-lock. Avoid and recover from marriage debt. Surveys reveal that money; mainly high credit card debt, is a leading causes of divorce. And debt can be especially troublesome if one spouse is amassing it behind the other's back. Although one spouse may be generating most of the credit card debt, both spouses are equally responsible for ensuring timely repayment. Experts strongly advise couples to talk openly and unemotionally before taking on debt, and agreeing to be mutually responsible for repayment. For many couples, falling into the debt hole can start even before they're married, when they buy the engagement ring, setup ceremoney plans, pay reservation deposits, etc. The main thing to keep in mind, is that going deep into debt isn't the way to begin a marriage. There are many vital commodities you will need; furniture, kitchen ware, linens, etc. If you spend all your available cash on the wedding ceremony and honeymoon, how will you purchase the necessities? On credit cards? If so, since you couldn't pay cash in the first place, it's not likely you'll be able to payoff the charges within the grace period to avoid interest fees. And; each month thereafter, more interest fees accumulate. You spend money to pay the interest, which reduces your available cash, and then you charge even more items onto your credit card. Welcome to the debt-lock. The best advice is to avoid credit card debt. If you didn't heed the advice; or suffered a loss of income that prevented you from avoiding credit card debt, the next advice is to get out of that debt quickly, but strategically. First, drop all unnecessary expenses, starting with entertainment items like cable/movie channels. Continue cutting expenses as deeply as you can to free up more money for paying off the credit card balance quicker. Next; if you still don't have enough free cash, consider selling luxury items. Maybe you have a collection of movie CDs... how likely will you rewatch all those movies? Liquidate those CDs into cash. If those simple solutions still leave you too short, consider refinancing your home or auto. If you refinance an auto, remember that an auto refi is at a much higher interest rate than a new car. Even if the car is only 1 year old, the refi will be under the interest rates of a used auto. You may not want this option unless your credit card debt is costing you much more in interest fees than the auto refinance would cost you. And remember, if you are reading this alone without your spouse, stop and get your spouse involved right now! Both of you must make a mutually agreeable plan and be equally committed. Just as with marriage counselors, some couples may also want to consider debt counselors to help them draft a mutually agreeable plan. Get personal finances under control and pay bills timely. Use our free <a href="http://creditfederal.com/personal-budget.html">personal budget</a> software to <a href="http://creditfederal.com/track-expenses.html">track expenses</a> so you can stop wasteful spending, and use our free <a href="http://creditfederal.com/reminder-pay-bills.html">bill reminder calendar</a> so you send in your payments on time. Free desktop software to <a href="http://creditfederal.com/balance-checkbook.html">balance checkbook</a> entries, or use the software as a computer <a href="http://creditfederal.com/checkbook-register.html">checkbook register</a>. </div> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.