Everyone does it: spending too much money at Christmas is almost as certain to happen as Christmas is. When you are thinking about your loved ones, your family, and your friends, it can be hard to stop spending. Nearly everyone splurges on Christmas, and nearly everyone regrets it by the time the New Year rolls around. If you were one of the many different people who spent too much during Christmas 2008, there are a few different steps that you can take to fix the situation. By following these different tips, you can fix that over spending as soon as possible.
Monthly Archives: January 2009
The many benefits of using credit cards is nothing new. Before I go into details about credit card debt in particular, I would like to refresh your mind with a brief explanation on what a credit card is really all about. A credit card is a system of payment that gives the consumer a flexible line of credit, named after the small plastic card issued to users of the system. The issuer lends money to the consumer to be paid later to the merchant, but at the added expense of interest on your purchase. It’s not an overstatement to say that the humble plastic credit card has a large impact in the life of most Australians. However, when you spend too much too often, it’s easy to rack up a lot of bad credit card debt.
If you have a large amount of credit card debt and own a property and have equity then you could consider using that equity to consolidate your debt with a refinance loan. These could even allow having a lower monthly payment, thereby freeing up your finances to let you pay back your credit card debts faster and with less stress!
1. Lower-interest rate
You could save a lot of money by using a credit card balance transfer. By shifting your balance to a card that charges no interest for a set period of time, you can overpay and get rid of your debt faster and for less.
2. Simple and reliable
As I mention before, credit card debt consolidation is quite simple and reliable: it isn’t one of those crazy financial mechanisms we here so much about on the news! In fact it wouldn’t take much more than 30 minutes to move all your debt with a balance card transfer application.
3. More convenient
It’s inconvenient to manage numerous payments to different credit cards, especially if payments are not synchronised to go out on the same day. By consolidating all your credit card debt from your portfolio of accounts into one simple monthly repayment you free up time, have less correspondence to handle and are exposed to a much lower risk of missing a payment and being charged a late penalty.
4. Rebuilding credit history
If you are struggling with credit card debt because you over-extended yourself by spending more than you earn, then you run a high chance of missing payments and damaging your credit score. By consolidating your debt at a low interest rate, you can meet your payments, get rid of your debt and help your credit history.
I’ve compiled a list of the top personal finance calculators online that I find worth using.
Sorted into different groups:
- Fool’s “Should I Remortgage?” calculator which compares the particulars of your current and prospective mortgage to see if there is enough of a saving to remortgage.
- Walletpop’s comparison calc that helps you to decide which is better, fixed or adjustable rate mortgage.