Many people feel a little apprehensive when faced with the word ‘credit card’ regarding today’s difficult financial climate. The reality of the situation is that the cost of living in the UK has risen to extremely high levels and many people have found that using a credit card can actually relieve a high amount of financial burden and allow them to make repayments at extremely low rates.
If you are thinking of getting a credit card then it is important that you consider the different forms of credit cards in the UK. Look over the key points below to ensure your finances can cease to be troublesome and understand how these financial contracts actually work.
Think in the long term
When choosing a credit card, regardless of the brand, rates or interest, it is essential that you think in the long term. Rather than just using it to buy the odd non-essential item that may end up hampering your finances, you should work it into your current monthly and annual budgets.
Doing this will not only give you a much clearer picture of your overall finances but will allow you to identify unnecessary spending in any areas. This means you can cut costs where necessary.
Find a low APR
A low APR is essential for your credit card as it will ensure that your payments stay low throughout the year if you pay back the full amount borrowed at the end of each month. Many credit cards are available with extremely competitive APR’s and interest rates and choosing one wisely is a prudent move.
For an online credit card which offers an outstanding APR, shop around and compare the latest deals. Remember that not all credit cards will be suitable for your situation so always consider how they will fit with your lifestyle when evaluating the APR which they offer.
Make sure you don’t default
Defaulting on a credit card payment can be very bad news. Not only will it affect your credit rating overall but if you have not chosen a low rate card it could burden you with several unwanted charges such as a late payment charge or increased interest rates, which, if unchecked could continue to snowball.
Consolidate irregular payments
One thing credit cards can be very good at is consolidating any irregular payments which you might have into one lump sum thus allowing you to see your monthly finances a lot more clearly and account for your entire budget. This is a very popular use for credit cards and something which they are very effective in doing and will also enable you to plan effectively.
As a debtor, you will have to pay off your previous and existing dues which are pending. You need to update your credit score to keep your goodwill intact in the society. Money lenders are not willing to take care of persons whose credit ratings and previous performance in the clearance of debts is not up to the mark. It is obviously a good decision for a debtor to take steps immediately to pay what is still pending.
Good Debt Clearance Plan to Pay off Pending Dues Earlier
If you have a 40 year mortgage plan, you must be active to clear outstanding balance as much as you can before the expiration of contractual term. Many debtors try to pay off previous dues within 10 years or less. They think that through early repayment, they will be able to take another loan to spoon feed business and run families. They are correct when they plan in this way. By clearing debts earlier it will be beneficial to persons to overtake recession. He will have no problems to apply for another loan after the repayment of debt. However, a borrower must have good ideas and compact risk management plans to face the worst condition boldly. During heyday, it is easier to repay debt. The risks will be low. However in different states of America, the mortgage law is different. Contact an experienced lawyer in the area of mortgage and property refinancing. Attorney must be selected from your home town. He will provide you lot of information about the legal procedures of early clearance of pre-existing debt and outstanding balance. For this reason, you need a comprehensive study and research to select eligible money lenders to get tips in relation to the loan repayment, refinancing and debt recovery programs. Upfront payment should not instigate the possibility of official foreclosure of property. Some of money lending institutes claims penalty charges in the event of clearance of interest rates plus principal loan amount prior to the expiry of the deadline to repay dues. However, property foreclosure can be prevented by demanding a temporary stopover order to restrain money lenders from enjoying foreclosure on the mortgage property.
Refinancing is another type of investment idea to reduce the interest rates and loan amount. Due to shortage of financial wealth, you can go to another financial institute which is ready to refinance your mortgaged property. For a span of 15 years, you can opt for good refinancing schemes to deduct the loan amount plus interests. However, it is an extra burden to bear as you are accountable to another money lender to repay interest rates on loan amount borrowed to refinance the property.
You must reduce your regular costs to make heavy down payment. Choose the EMI type of debt clearance scheme to take the financial stringency under control. Instead of waiting for 30 years or more to pay back the whole amount, you will get permanent relief from the debt by paying off all dues which are unpaid till now. Make a debt management plan accordingly to refresh your credit scores to enhance the clarity of your personal image.
Income and asset go hand in hand. But are we sure about our greatest asset in life? When you go in the crowd and ask people this question, the common answer which you will get:
- Some will say it’s their house
- Some will say it’s the bank account
In both the cases the answer is wrong and do you know why? We neither can own a house nor can enjoy a wealthy bank account if we don’t have a good income. The desire for becoming a rich man will get shattered when you don’t have a good income to fulfill it.
So what is income? It is the regular flow of cash or anything equivalent to cash for the work or activities you do on regular basis. We can get regular flow of money from following honest sources:
- Salary or wage
- Interest from capital invested
- Rent from tenant
In spite of the above sources there are various other sources from which we can earn income.
What is an asset? Anything which is tangible or intangible in nature and is capable for the regular production of value having economic value in positive way is popular as asset.
Is a good income the greatest asset?
We all dream to own a house of our own, but wait for a moment to think that how it is possible to pay the EMI of the mortgage loan if we don’t have a secured source of income to earn money. How will you manage to pay for the food you eat, the clothes you wear, the house you rent to stay, the debt you have taken from market and many more are there on the list. So there is no doubt on the fact that without a decent amount of regular income it is not at all possible to lead a life full of valuable assets and enjoyment.
The ability to work to earn a decent income is your greatest asset without any doubt. You cannot support the lifestyle which you dream to keep-up until and unless there is a good income source for you. Before we plan to own any valuable asset for us or for our family, first we need to concentrate on the source of earning. It is also true that we cannot work lifelong to earn the bread for family and some time or the other our working ability will come to an end.
So we need to get serious when it is time to earn a good income to secure the future of the family. It may also happen that due to some serious accident or health issue you may end up facing a physical disability and you are no more in a position to earn livelihood. So you need to own the secure protection of paycheck by availing the insurance benefit at the time of any such situation.
Thus, we can very well understand the fact that a good income source is the greatest asset in our life and we cannot ignore this reality at any cost.
The modern world makes it relatively easy for hard-working people to quickly become embroiled in a never-ending cycle of debt and reliance on credit. Consumer credit is everywhere we turn, and although lending restrictions have tightened slightly in recent years, it is still far too easy to obtain inappropriate levels of debt. Thankfully, a specialist debt counsellor can now work with consumers in order to formulate a manageable repayment plan. Getting out of debt for good often requires help from people who know the law, and it involves a number of decisive actions taken on behalf of the consumer.
Formulating a Statement of Affairs
One of the first things a debt help specialist will do is to create a statement of affairs. This will involve recording all of a client’s income and outgoings. Such a statement will include everything from food to energy bills, and it is designed to provide an accurate reflection of a consumer’s financial position to creditors. At the end of this process, an accurate reflection of a consumer’s disposable income can be established; it is this figure that will be used to dictate how much each creditor will receive every month.
Implementing a Manageable Schedule of Repayment
The last thing a debt management plan should do is put more pressure on the debtor. That is why specialists can work with creditors to come to arrangements which are sustainable and acceptable to both parties. While there is no guarantee a creditor will accept a particular repayment schedule, specialists will know exactly what they are likely to accept. Coming to an agreement with creditors with such a schedule will stop any impending insolvency action, and that could allow people to rebuild their lives.
Continuous Help and Guidance
In a perfect world, all repayment plans would be completed; on time, and in full. However, as we don’t live in a perfect world, debt help specialists are there to support their clients and act on their behalf. Sadly, the threat of unemployment hangs of the heads of many people these days, and that can often mean that a person’s income can change with little notice. Having a trusted debt advisor to rely on for help and advice could mean the difference between facing insolvency and gaining a temporary repayment schedule until an income has been restored. Indeed, it is often the case that consumers repay their debts in full far quicker than an agreed schedule dictates. In these circumstances, a debt advisor could negotiate favourable early repayment discounts on a debt.
The spectre of debt looms large in the lives of millions of hard-working people in Britain. The recent economic problems have led to a sudden increase in loans from short-term loan providers, and the huge cost of such loans has left many people facing severe debt problems. Enlisting the help of a debt specialist is not a guarantee of a debt-free life, but in many cases it will lighten the burden of debt considerably.
When not checked, banking rats in the United Kingdom can be pain at times, which is the reason why one needs to be careful when using any bank’s services. Although many people might not notice it, some banks have hidden charges within their service. This is the reason why it is always advisable for any banker to make sure that he or she understands all the services their bank offers, and whatever rates or charges that comes with the same. Seven out of ten people using banking services are not quite aware of the extra coins they have to pay as bank charges, nor do they care about it. If you do your own math, you will notice that, the charges or bank rates charged on your account per annum can pay a reasonable amount in your bills.
Here are a few ways that can help you save much on banking interests per year;-
Pay all your bills at a go:- many people have a tendency of paying bills bit by bit, and on different days of the month. Doing this attracts more interest rates than you could imagine, because with every transaction you make with a bank to pay a bill, there is a charge to that. However, if you can accumulate all the bills at once and pay them in one go, it will then be cheaper on your side, as the bank will only charge you once. If paying the bills via the bank at one go is not possible, you can then try withdrawing all the cash you need to pay the bills at one go, and then pay in cash. This will be much cheaper than having the bank pay out the bills for you.
Make use of a personal current account:- Most banks offer they personal current account to individuals for free. This means that, there are no monthly fees on the account, and you are only charged when you withdraw cash alone. This is to say that, if ever you have a personal current account, you will have minimal banking rates to pay to your bank, hence the ultimate way to save on the little amount of money you have. Most peasant earners in the UK use this account because it is the only account free from interest rates and monthly fees.
Use internet banking:- banks charge a certain amount of money for ledgers and other banking statements as you request them. If you have to use these statements in your day to day life, then internet banking could be the best way to access your banking records. With internet baking in the United Kingdom, you only need to pay a one-time fee of accessing your account, and with this service, you will be able to access all your records, and evaluate them as you like. This will also help you save much on banking rates.
Use an interest earning account:- if you are in a stable working environment, and with steady cash coming into your account, it is then advisable for you to open an account that earns interest with the amount you have in the account. Every single cent in the account should earn interest with a certain percentage. However, window shopping for such an account is required for you to get the best rates in the market.