Too Much Credit Card Debt? How to Fight Back and Eliminate Credit Card Debt

If you are experiencing too much credit card debt, there is a way to fight back and eliminate your debt in a lawful way. Although there are various means of eliminating your debt and getting rid of your financial issues, the most significant thing is solving your problems in a legally accepted method. Although there are methods like debt consolidation, bankruptcy and debt settlement, after considering the after effects of these, you should be in a position to select the best method for you.

Debt consolidation should be done when you have multiple debts, but, it is not a solution for your debt problems because debt consolidation is not a way out of you're debt responsibilities. Bankruptcy appears to be a effective solution as it manages to free you entirely from your debts which have always been a worry to you. But, it is not the conclusion of your financial issues, as it brings further problems to you. It definitely destroys all your credit history and even harms your good reputation. In addition it restricts some of your rights very considerably. You will definitely lose your right for acquiring any bank loans in the next fewyears. This has a large effect on you as most businesses depend on bank loans. Therefore, these types of problems can definitely put you in to more trouble if you select bankruptcy.

Whereas debt settlement exclusively brings relief rather than bringing you further financial issues. This is obviously a way of fighting to eliminate your credit debt, you are not directly fighting; instead you are having negotiations with the help of some professionals in the debt settlement field. In this method a series of negotiations are going on between the creditors and the counselors in the settlement company who works for the debtors. Therefore, the success of the debt negotiations solely depends on the ability of the counselors to fight. Thus, your debt settlement will definitely be more successful and you will be able to eliminate a greater amount of money, perhaps 50% or 60% of your due amount, if you go through a very talented and legitimate company. Thus, when selecting the company, you have to confirm the legitimacy of it by going through the contact details and the other given information about the particular company. If you did good research on the company, you will definitely be able to produce a better result and finally be debt free!

Tip For The Best Balance Transfer Credit Cards

Balance transfer credit cards make an excellent choice for consumers looking to transfer a balance from a higher interest rate credit card to one with a lower interest rate. In this way, the consumer can save money by reducing or even eliminating finance charges. When looking for the best balance transfer credit cards, it is important to look at a variety of factors.

The APR is one of the first factors a consumer should consider when looking for the best balance transfer credit cards. Credit card companies are hoping to steal your business away from other credit card companies. As a result, they often make special introductory offers with lowered interest rates for balance transfers. In many cases, this APR will even be 0.00%. Be sure to find the balance transfer credit card offering the lowest APR, and then only use that card for your balance transfer. Don't use it to make any purchases. This is what the credit card companies are hoping consumers will do so they can assess finance charges on the purchases they make with their card.

The length of the special introductory APR varies from card to card. Sometimes, the length is also dependent upon the applicant's credit history. It is important to be sure how long this period lasts and to set goals to have the balance paid in full once the introductory period is complete. The best balance transfer credit cards will keep the special introductory rate in effect on the card for the life of the loan. In other words, the APR stays the same until it has been paid off entirely. For consumers that will not be able to pay off the balance within the introductory period, this is certainly the best way to go.

Most credit cards assess fees when making balance transfers. These fees are generally determined as a percentage of the total amount of funds transferred. Most commonly, balance transfer fees are 3% of the amount transferred. Many balance transfer credit cards will, however, waive these fees during the introductory period. It is best for consumers to choose these balance transfer credit cards. Otherwise, they may be paying large amounts in fees, negating the savings in finance charges.

Some balance transfer credit cards require initiating balance transfers at the time of application for the card. Yet others allow balance transfers to be completed throughout the duration of the introductory period. The best balance transfer credit cards are the former, simply because they allow for more flexibility. Consumers who are sure they will not need to transfer balances later may, however, be happy with a credit card that only allows transfers to be made at the time of application.

Some balance transfer credit cards place restrictions on the types of balances that can be transferred. For example, some business credit cards only allow business expenses to be eligible for introductory rates. It is important for consumers to be sure to understand what type of balances can be transferred before applying for a card to ensure it meets their needs.

Many balance transfer credit cards also have special rewards programs. Consumers need to compare the programs before deciding on a credit card so they can choose the card with the rewards program best suited to their lifestyle. In addition, some balance transfer credit cards do not count the funds that are transferred toward the points system used in the rewards programs. To get the most of the card, consumers should find balance transfer credit cards that do count the transfers toward their rewards programs.

Consolidating Debt to Reduce Interest Rates

For those who have a number of debts in hand currently (especially credit card debts) and are looking for a way to eliminate them as fast as possible, the option of debt consolidation loans would be a useful way to get rid of debts. By utilizing the advantages of debt consolidation, you can now combine and consolidate all your debts into one single account, and instantly reduce the interest rates you pay on your borrowing. When you have several debt accounts open, each account is subject to its own interest rates, after combining all these debts you will realize that you end up paying large sums in interest alone every year to your creditors.

Through debt consolidation you would be able to combine all your debts into a single account that you can manage more easily. You can also forget about late payment charges as the debt relief firm that you deal with would constantly remind you of your payment date to ensure that you don't miss the payment. The company would then pay all your creditors without fail every month, and eventually you could end up debt free faster than you ever thought possible.

If you have multiple debt accounts, then you should consider this option seriously. Run a basic research online to find the best, legitimate debt relief firms out there (make sure that they have a good track record), and approach a few to receive their proposals. Once your financial situation has been assessed and you have received a few different plans to manage your debt through consolidation, choose the one that offers the best rates and terms.

Remember that the lowest interest rates are not always the best deals, you have to look at the overall plan to ensure that you are not charged any unwanted/ hidden charges. There are also government debt consolidation loans out there, either those offered by governmental agencies or backed by the government itself. With only one account to worry about, interest payments are undoubtedly lower, and you would end up being debt-free much quicker than ever imagined before.

Make use of the various debt management firms out there to help you in your quest to overcome mounting debts, and make sure that you deal with legitimate debt relief firms to ensure that you do not fall for a scam or a hoax. With the right debt relief firm, all you have to do is pay the firm that you are dealing with promptly, and you do not have to worry about debt issues anymore.

How to make Property Investments Profitable

If you are looking to amplify your savings by way of real estate investment, you be supposed to be aware of making all the accurate decisions so you go higher up in the property ladder. The notion here is that when you make profits from a sale, you should reinvest the gain with the initial cash into one more property which is higher when home warranty comes to value in comparison to the first one. This will let you to make a much higher profit even when the rate of increase is similar. You could transfer on to a property located in a lot more pricey neighborhood. If you would like, you can just purchase one that might be superior in design and higher in quality than the first one. From beginning with small apartments and then moving on to single family properties, you can end up with a lot of properties for your portfolio.

It would seem relatively sensible to expand around all your savings if you have a lot of it – around two properties or more. It ensures a safety net if in case one of the properties ends up being less profitable. You could also invest home warranty in diverse types of properties in various places and also with different intents. You can purchase one for regular income or you could purchase some that are for making faster gains as they are, for example, foreclosed properties.

Continually remember that real estate investment is a process that is considered as long term. Commonly, growth is created at around thirty years. This type of investment also requires close monitoring and working on. If you just buy a house then sell it in thirty years, you are not actually assessing its worth and value and you can wind up making smaller profits. It is at times best to consider consulting with a professional if you think that you possess little knowledge in real estate.

Knowledge is undeniably power when you are talking about real estate portfolio management and in this case expert advice will help greatly. You should keep close watch on market events particularly when you are already in possession of a property and you are interested in buying another one. Constantly be aware of property sorts, places including needs of buyers and renters.

If you are considering buying and selling properties, you need to have more information about it. These consist of knowing if there are renovation you need to do and the estimate of such a cost. You must need to identify where you can get tenants to rent out such a property as well as the price they are likely be able to shell out. Other things include knowing of another property similar to yours and just how much they go for. Be a little conservative when making estimates of properties and evaluating the worth of one, but expand this approximate if repairs or renovations are vital. This is a good trick in making sure you tend not to end up dishing out excessively for new properties

Ways to improve the return on your savings

If you haven't checked the interest rate on your savings account recently you are almost certainly losing money. Banks and building societies have been cutting interest rates on savings as much and as often as they can. So most savers are losing their purchasing their power as their savings fail to grow in line with inflation.

The most recent numbers showed inflation as measured by the consumer price index (CPI) running at 3.5%. But the average rate paid on an instant-access account is just 0.86%. So even before you take tax into account, you're losing more than 2.5% a year in real terms (ie after taking inflation into account).

Even more shocking are the rates on notice accounts. Usually these are higher than the rates on instant access accounts. You get extra interest as a reward for locking your money away for three or six months. Not so this year. 40 notice accounts are paying less than 0.5%. The Halifax's Extra Income Saver account is paying a mere 0.13% on up to £10,000 at 60-days notice, according to the FT. It's a classic example of a financial product doing precisely the opposite of what it claims to do.

So what can you do to make sure that your money grows rather than shrinks every year? You need to find an account that pays enough interest to beat inflation, even after you've paid tax on your interest. So a basic-rate taxpayer needs a gross interest rate of 4.38%, while a higher rate taxpayer needs their money to be earning 5.83%. If you opt for an Isa then you only need a rate of 3.5% or above, as your money won't be taxed.
Are Isas the answer?

Surely then, an Isa is the option to go for? Well, you should definitely always use your Isa allowance. Any legal opportunity to dodge tax should be grasped with both hands. But this year there aren't any Isa interest rates that really impress.

The best short-term fixed rates are 3.5%. So you'd have to lock up your money for at least three years to beat inflation – Skipton Building Society pay 3.75% on their three-year fixed-rate Isa. But once that money is in an Isa it is protected from tax for life unless you withdraw it. So even though Isa interest rates are pretty rubbish this year it's still worth using your allowance.
Make the most of current accounts

The only bank accounts offering really good rates of return just now are current accounts. Alliance & Leicester's Premier Direct Current Account pays 5% interest on balances up to £2,500, as does its parent company Santander. Meanwhile Halifax pays £5 a month to holders of its Ultimate Reward Current Account.

To get these rates you need to pay a regular sum into the accounts - £1,000 with Santander and Halifax, and £500 with Alliance & Leicester. And you can't earn 5% on both a Santander and an Alliance & Leicester account. If you have both accounts in your name one will earn 5%, and the other 1%. But you could get round this by putting one account in your spouse's name.

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The easiest way to make sure you meet the funding requirements of the accounts is to set up a direct debit moving money between them. So have £1,000 automatically transferred from Santander to Halifax at the same time as you have £1,000 transferred from Halifax to Santander. The banks have confirmed that the regular income doesn't have to come from an employer, so this arrangement is acceptable, reports Ali Hussain in The Sunday Times.

So if you have a £3,500 lump sum and you place £2,500 in the Santander account and £1,000 in the Halifax account (and make sure you set up the regular transfers between the two) then you would earn £185 gross a year. Whereas if you had placed the money in the best one-year bond – the Post Office pays 3.3% - then you would have earned £116 gross. The difference might not sound like much, but it comes with very little effort.
What to do with larger amounts

If you have a large sum that you want to save in a low-risk account then the best account that I can find is Investec's High 5 Account. This account's interest rate is re-calculated each week, as it pays the average of the five highest paying savings accounts published in the best-buy tables of the Moneyfacts website. It is currently paying 3.16%.

The catch is that the minimum deposit is £25,000. You also have to give three months' notice to withdraw your cash. But it's worth it for the peace of mind of knowing your money is always getting a good rate.

To keep your risk to a minimum, only invest a maximum of £50,000 in the account so that you are completely covered by the Financial Services Compensation Scheme (FSCS). If you need a home for more than £50,000 then put the first £50,000 in the Investec High 5 Account, then work your way down the best buy tables in £50,000 chunks. Just make sure that the bank or building society is covered by the FSCS. So if the bank is foreign double-check its guarantee system. Also make sure that you don't invest with two companies that share a banking licence, as then you would only be covered for the first £50,000. You can check which banks share licences here.
Offset your mortgage

If you have a large amount of savings and a mortgage, it may be worth getting an offset mortgage. With an offset, any savings you have are placed in a savings account which is linked to your mortgage. The savings don't earn any interest. But the balance of your savings account is deducted from your home loan.

So if you have a £200,000 mortgage and £25,000 in an offset account, then your mortgage interest payments would be worked out on the basis that the mortgage was only £175,000. If you took out the First Direct offset lifetime tracker at 3.59%, that would save you £897.50 in interest a year.

So don't despair. Savings rates may be low. But there are ways to improve the return you are getting.