Prepaid Debit Cards – One stop solution to live debt free

Debit Card

Debt Free Debit Card

Are you one among the thousands breaking your head out to repay your debt? Are you tired of losing your money in the name of credit cards? Do you need a smart advice on how to spend wise? The single answer to all these questions is a prepaid debit card. These cards are safer and secure unlike credit cards and can help you plan your finances in a more clear and controlled way. They also help you save your hard earned money which you may end up losing by paying debts and interests to your credit card company.

Debit vs Credit Cards

Most people are often confused when they are asked the question of which is better, a credit card or a debit card? The answer to this is quite tricky too. Most people who see things just as they happen answer as credit card as they have the leverage and luxury to spend more with it and repay it later. But those are wise and who knows the nuances of financial planning would opt for debit cards as these allows them to plan in future their spending and restrict unnecessary things. Prevention is always better than cure and these debit cards help you prevent a debt and thus saves you a bigger trouble.

Prepaid Debit Cards

These are the next generation debit cards and can be used without even having a bank account. How it works is simpler as its name. All that you need to do it load it with a given amount of money and use it when you need. The amount of money you load in your card is fully controlled by you and you shall be allowed to spend only this amount. There are different ways to load money into these cards. A few among them include payable cheque, a bank transfer from a checking or saving account to your card or a money deposit through a customer care executive. While most of these methods to deposit money into these cards are free, some are chargeable depending upon the bank you opt to go.

Unlike credit cards you can’t overuse these cards once there is no more money and thus helps you cut on your lavish spending. There are always two sides to a coin. So there is some disadvantage of these prepaid cards too. When you don’t plan your expenses or foresee the risks in advance you may end up depositing less money than needed in your card. This may result in an emergency when you have to have enough money and thus may prove fatal. So, if you prefer to go with a prepaid debit card you must first plan your spending. Make sure you don’t have the exact amount you need to spend but a buffer to accommodate the unseen risks. In other words you need to be a smart spender who will know in advance how much he or she is going to spend when he goes on a trip.

Prepaid Debit Cards Make Budgeting Easy

Some shoppers simply can not resist the temptation of becoming a credit card user. Unfortunately, traditional credit cards are a known cause of debt for thousands of people. When it comes to purchasing goods and services, a prepaid debit card is a far better option. Here are some of the advantages of owning a prepaid debit card.

Prepaid Debit Card

Prepaid Debit Card

Restricts spending

A prepaid debit card does not allow the user to overspend. If the person does not have the required funds in their bank account, they will not be allowed to purchase the particular item. This is a major benefit to people who have a difficult time in sticking to a budget.

Privacy

A traditional credit card company tracks every expense of the customer. On the other hand, a prepaid debit card allows the user to shop anonymously. Although the person will be able to track their own transaction history, no marketing companies will be able to invade their privacy.

Simplicity

Prepaid debit cards are very easy to use. Although some people still use checks and money orders to make payments, these methods are becoming less popular with each passing year. The prepaid debit card can even be used to make online purchases.

Use at surcharge-free ATMs

A Kaiku prepaid debit card can be used to obtain cash at various ATMs across the country. Although the prepaid debit card can easily be swiped at a store, there are times when a person may need paper money.

How to pay for your car

Car Finance

Car Finance

If you are considering buying a new or used car, you don’t need to be told about the huge variety on offer. City cars, SUVs, saloons, hatches and crossovers all vie for your attention and your hard-earned cash. Now you also have a choice of the traditional fuels of petrol or diesel or the newer power systems like electric cars, hybrids or fuel-cells. It is a vast market and most buyers will spend some considerable time evaluating many different options before making their choice. Sadly, having done so, far too few drivers spend a similar amount of effort in deciding how to finance their car. This can mean spending too much money, negating any good deal that was negotiated on the car. Looking at the main types of car finance on offer can help decide which type of finance produces the best deal.

Cold, hard cash

If you have sufficient funds, simply putting down a pile of notes (or more likely a debit card) has many advantages. You will be paying absolutely no interest on your car, and you will own the vehicle outright from the first day. There are no credit checks or agreements to worry about. Should you decide to part company with the car, the proceeds from the sale are yours. You are completely free to decide to sell the car whenever you want, and there are no restrictions at all on your car. This may all sound perfect, and for some it is, but there are some things to consider before parting with all of that cash. Firstly, you need to make sure that you are not over-committing, especially on larger purchases. If you leave yourself short of cash you could become exposed financially and be forced to sell the car at a considerable loss. Next, you need to decide if your money can work harder for you elsewhere. If your dealer is offering you a zero percent or low interest deal on your new car and your cash is happily making a bundle of interest elsewhere, paying in cash is costing you extra money.

Hire Purchase

This is a very well-known way of paying for a car and something many of us are comfortable with. Here, you will pay a deposit and then pay off the balance of the purchase price with monthly instalments. The loan is secured against your car, which can make the terms more competitive than an unsecured loan. There are a few things you need to check and be aware of. A major consideration is the interest rate or APR. This is how much borrowing the money is going to cost you. Make sure that you understand the amount of interest you are paying and that you are happy with that. Always ask for the APR of the deal and the total amount payable on the deal. Compare this with the cash price of the car to see how much you are paying and make sure that total price includes any administrative or one-off charges. You should also consider the terms of the agreement. You are committing to having the car for this period and any cancellation could incur penalties. You do not own the car until the final payment is made, and if you sell you will have to pay off the finance company in full.

Personal Contract Hire (PCH) and Personal Contract Purchase (PCP)

PCP and PCH deals have become very popular of late. This is largely due to the big car makers having large amounts of inventory that they need to shift and consumers finding it harder to get loans on the High Street. A PCH deal is simply a form of leasing. Many deals will see you making a larger initial payment, perhaps equal to three monthly instalments, and then a period of monthly payments spread over a few years. The key attraction here is that those payments only have to cover the depreciation of the vehicle over the duration of the agreement, making them sometimes cheaper than a car loan. It is important to realise, though, that PCH is a form of rental. You do not actually own the car. This means that you cannot modify the car in any way without permission from the finance company. There may also be financial penalties if you exceed a certain annual mileage. If your circumstances change and you find yourself doing lots of commuting, this could make your PCH deal very expensive. At the end of the agreement term, you can simply hand the car back or, in some cases, you may be offered a deal to buy the car by making a final ‘balloon’ payment. This option is not usually guaranteed in a PCH deal, and if you want to make sure that you have the option to buy the car, you should choose a PCP deal. This is identical except for that right to buy at the end of the term. The PCP and PCH deals can keep your monthly outgoings down, and they are predictable costs, except where excess mileage is incurred.

Credit cards

This is not as crazy as it might sound. If you have sufficient credit and a low or even zero percent interest period, buying a car on a credit card can be cost-effective and efficient. You will not have to undergo any credit checks or sign up to any agreements as your credit is already in place with the card company. You will also benefit from some additional protection offered to credit card customers. There are, however, a few considerations to bear in mind. If you haven’t paid off the car by the time that your interest free or low interest period runs out, your costs could well rocket, and using your credit card could prove to be an extremely expensive way to borrow money to finance your car. You will also be tying up a significant amount of your credit, meaning that it is unavailable for other uses.

Dealer finance

Dealer finance usually takes the form of a car loan or hire purchase agreement. Conditions are the same as those mentioned above, but be especially careful of the conditions. Remember that the car dealer will most likely be motivated to sell you the finance package they offer. They are not shopping around for the best deal and they are not considering how the finance suits your circumstances. That is your job and before accepting any dealer finance you need to be sure it is competitive and right for you. Don’t be seduced by your enthusiasm for your chosen car. It can easily be bought with other, potentially cheaper and more suitable, finance packages.

Using a car finance broker

Thankfully, there are car finance brokers online where you can type in your details and get a choice of finance packages. This gives you an objective comparison and allows you to make a judgement on what’s best for you in the comfort of your own home, free of any pressure. Getting your finance sorted out before you visit the dealers will put you in the driving seat for any negotiations and ensure you get the best deal possible. It will also save you hours or even days of time, traipsing around the High Street or calling up providers.

Credit cards – how they can work for your finances

Credit Card

Credit Card

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.

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German Debt Sharing Plan Reanalysed in Bid to Gain Support

Proposals on debt sharing in the euro region are being reanalysed by the German Chancellor Angela Merkel and her council of economic advisers, said Lars Feld, a council member.

Feld, a professor of economics at the distinguished Freiburg University, also indicated that the government were slowly edging towards the council’s proposal for a European redemption fund. As a result, he said that the council consisting of five members was now backed by opposition parties and is now seeking votes from government ministries on the fund’s proposals.

Three areas have been focused on in order for the plan to be more widely received however, Feld revealed in a Berlin based interview earlier on today. These are addressing “opposition to its sheer size” with the council obviously being viewed by many as rather too small, worries it may fail to correlate with Germany’s constitution and diplomatic treaties and the range of its proposals on the liability of member states.

The proposal was launched by the independent council of advisers in November, and Merkel then said that by it, legal concerns were being raised.

Due to a range of requests made by German opposition parties in return for supporting new European fiscal rules in parliament, the proposal has been chucked back unto debate board. Both sides have set a deadline of June 13th by which the proposal must be studied.

Thus those in the euro zone, desperately seeking to compare credit cards and whatever other means by which they hope to alleviate themselves of the continents grappling debt, may find a euro in the council.

With an expected worth of $1.8, the fund is supported by the gold reserves of euro member states. Debt worth over 60 percent of Gross Domestic Product would be capable of being transferred by countries, which are labelled as jointly and severally liable for the fund, the council’s paper has revealed.

However, Merkel’s government says it has “considerable reservations” about the fund, concerning the possibility of it violating the international treaties and just as importantly – if not more – the German constitution, according to Steffen Seibert, Merkel’s chief spokesman today.

Feld’s answer to the conundrum of garnering more support for the fund rests in a substitution of “joint and several liability” for the fund, by “several liability”. Whether this will work or not remains to be seen, however it is probable that this will succeed in limiting the potential fallout to states on a scale based on their economic weight.