tag:blogger.com,1999:blog-21543377556360069962023-11-15T05:19:11.416-08:00DebtRidden? Rid Your Debts!Find out how you can eliminate debt, or steps to systematically reduce it and be debt free for the rest of your life.Unknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2154337755636006996.post-56440110331998206532008-02-03T21:37:00.000-08:002008-02-03T21:39:59.054-08:00Disadvantages Of Using A Prepaid Credit Card<span style="color:#3366ff;"><strong>There are many advantages to using a </strong></span><a href="http://ridyourdebt.blogspot.com/"><span style="color:#3366ff;"><strong>prepaid credit card</strong></span></a><span style="color:#3366ff;"><strong> if you were someone in debt or are not eligible for a standard credit card for one reason or another.</strong></span> However, have you ever considered that if you were in such a position in the first place, should you even be considering using a prepaid credit card? While there might be a lot of benefits and positives to having one, there are just as many disadvantages or negatives that should put you off from acquiring and using such a credit facility.<br /><br />First of all, if you are already in debt, or worse still in credit card debt due to overspending and overuse, then being in continued possession of a credit card, prepaid or otherwise, definitely spells disaster. The existence of such a facility in your wallet means that you will be tempted and inclined to continue spending, regardless of whether the money is yours in the first place. A credit card offers a convenient way of spending on both big and small ticket items, without the feeling of guilt or accountability, simply because the lack of visibility of handling cash will make you value your money less. Therefore, if you have a habit of spending, using a prepaid credit card will not allow you to curb such behavior nor will it help you to manage this problem.<br /><br />Secondly, using a prepaid credit card has a lot of hidden costs associated with it. While you do not need to pay interest on the money or credit used, because you own the money in the first place, you will still be charged for using the card because the banks or credit card companies will charge you for using their services of providing the facility. Further to that, you will also need to pay a fee whenever you choose to deposit money into the account. This amounts to paying someone to be able to use your own cash. While the prepaid credit card advocates will explain it as being completely normal and justified for paying for someone else’s services, why would you want to spend more to do so when you could simply use your own money and paying via cold hard cash? Of course, carrying cash around can sometimes be risky and dangerous, but you should only do so when required, and at all other times, only have as much money in your wallet as you really need. Which is not a lot for most people.<br /><br />There have been some arguments about using prepaid credit cards as a means of improving your credit score. The best and truest way of improving your credit ratings is to simply control your spending and watch your finances. Adding a credit facility like this will not improve anything except to deepen your bank’s pockets as your money flows to them continuously.<br /><br />The above are just some of the disadvantages of using a prepaid credit card, but are also the strongest reasons why you should not use such a credit facility. While there would always be benefits to using them, they can only mean one thing for people who are engaged in debt, and that is to possibly continue sinking them further in owing more and more money to banks and other financial bodies. Remember that to rid yourself of debt, the best way is to save and then invest your money, not to spend it. A prepaid credit card only allows you to spend, and not to save.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2154337755636006996.post-49995455684291568462008-02-02T20:56:00.000-08:002008-02-03T20:43:37.450-08:00How Does A Prepaid Credit Card Work?<span style="color:#ff0000;">A </span><a href="http://ridyourdebt.blogspot.com/"><span style="color:#ff0000;">prepaid credit card</span></a><span style="color:#ff0000;"> is just like a traditional or normal credit card in the sense that you can use it the same way, except that it is for people who might not have good credit at the moment and provides another means of having a credit card facility at a lower risk.</span> The lower risk is from the fact that you are unlikely to get more debt from using a prepaid credit card, simply because whatever credit you are using has to come from your own cash. In short, you need to be able to provide cash of your own to build that credit line to be used whenever that prepaid credit card is swiped in a transaction.<br /><br />Therefore, how a prepaid credit card works is simply that you as the owner of the card, has to dictate how much credit you can use on your card, and therefore how much you can spend. The only money that you will be spending is your own money. If you choose to deposit $1,000 as your line of credit for the card, you cannot spend more than that amount until you have put in more money to your account. And the only way you can fall further into credit card debt using such a card is if you put way too much money into your account, including money that comes from other credit facilities, and you spend all that cash without the ability to pay it back or replace it.<br /><br />While there are no interest fees charged on using the prepaid credit card itself, which is a great advantage for those who need such card services, there are however, fees to be paid when you choose to deposit or load money into the card account to be used. The fees can be quite high, and it can work as a deterrent for people who are addicted to using cards, even if the money is from their own pockets. The key here is not to rely so much on using cards, and to use cash in most, if not all, transactions as much as you possibly can. In essence, using prepaid credit cards can be as bad as having to pay to use your own money. While the convenience offered in the form of a credit card can be attractive, why should we have to pay others to use our own money in the first place?<br /><br />Another advantage of a prepaid credit card is the safety aspect of using it. If you ever lose your wallet with money and cash in it, in most cases up to 99 per cent of the time, you will never ever get your wallet or money back. However, with a prepaid credit card, your money is safe in a credit facility even if your wallet is lost or stolen, and if you are worried about someone else using your card, just make a call to the card company to have the card frozen or stopped to prevent fraudalent use of it. In this way, a prepaid credit card is as safe as money in the bank.<br /><br />Therefore, how a prepaid credit card works is in that you provide your own money to build a credit line to be used whenever you need the facility, but there are fees to be paid to deposit that cash into your credit account. There is no interest rate fees charged for using the money once it is in the account, but there are still costs to providing that money. So consider the advantages and disadvantages of prepaid credit cards and determine if they are necessary in your life before taking the plunge.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2154337755636006996.post-2644929708067416062008-01-31T06:14:00.000-08:002008-01-31T06:26:54.704-08:00What Is A Prepaid Credit Card?<a href="http://ridyourdebt.blogspot.com/"><span style="color:#ff0000;">Prepaid credit card</span></a><span style="color:#ff0000;"> is a credit card that is primarily used for people who have bad credit and for them to recover from it.</span> It can be quite a useful tool, especially for someone like me who has bad credit due to overspending on too many credit cards. In fact, this qualifies me absolutely for a prepaid credit card simply because my credit score is low and bad. And because this will not be a factor in the decision to award me the card, due to the card companies not checking on such details at all.<br /><br />However, before you get all happy about getting a credit card in the form of a <strong>prepaid credit card</strong>, do not count your chickens before they hatch. You will need to have some money first to use such a facility, because that is what the name prepaid means. You need to have some cash to deposit to use as credit so that in a way it can help to control your spending using the card, but with the convenience of having it to be used at many outlets, stores and retail shops that accept credit cards.<br /><br />But before you sink yourself deeper in by jumping on a <strong>prepaid credit card</strong>, make sure you double check the fees required to use it. You will often be charged a variety of types of fees, so shop around and compare which ones are the best and offer you the best value. While you want the convenience and flexibility of using a prepaid credit card, you do not want to end up spending more on fees than actual usage of the credit line, which is in the first place, your own money. If you cannot get accepted by normal credit cards, prepaid credit cards are your next best bet, but that does not mean you sink yourself further in debt just to have the facility.<br /><br />So now that you know what a prepaid credit card is, which is just another credit card but with a credit line that is actually funded by your own cash, go and shop around for the one that offers the best benefits and lowest fees. Only then will you be able to benefit fully from a prepaid credit card without getting yourself further into trouble with your credit rating, debt and family at the end of the day. A <strong>prepaid credit card</strong> is useful, but make sure you check online for the best deals for your own benefit.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2154337755636006996.post-90412263257557845402007-09-30T00:07:00.000-07:002007-09-30T00:17:39.660-07:00Credit Card Debt Home TruthsMany people claim that using credit cards has its upsides - such as promotional deals included with the card, rebates and airlines' frequent flyer miles. With all these included, they tell you that you can even save more money by using your credit card!<br /><br />Unfortunately, through my own learning the hard way, I can tell you that there are no positives in using credit cards. None at all! In fact, with all these in mind (specials, rebates etc) your mind will tell you to spend more, because you are saving! Credit card companies and friends will also tell you that as long as you pay on time, it never hurts to use the cards. It would be like free money!<br /><br />But most people will not pay on time. They end up accumulating the credit card debt, and in due time, are paying off the interests for countless years. That is what's happening to me now.<br /><br />Why Do You Spend More With Credit Cards?<br /><br />When using cash, the pain of parting with the money is evident. However, with credit cards, you never see the money. All you need is a swipe of the credit card and your simple signature - and you get that designer bag easily or even a car all 'paid up'! You do not get emotionally attached to the idea of parting with any cash!<br /><br />Unfortunately one of the worst situations that could result from credit card usage is the debt that one accumulates by using the credit cards as a form of business loan. I cannot imagine how many people's lives have been destroyed from that practise alone.<br /><br />I have learnt that personal finance is 80% behaviour. You have to learn to be prudent in your spending, and not rely on extended loans. There is just no way you can get free money and eat it too.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-2154337755636006996.post-55461769859823331112007-09-29T02:52:00.000-07:002007-09-29T02:55:44.606-07:00More Seniors Dying In DebtThis video highlights a new survey that shows that more seniors in the US are retiring and dying in the red - in debt. This is a worrying trend and the video reports on how it is. I certainly would not wish to end up in the same situation.<br /><br /><div align=center><div id="cubeDiv" style="position:relative;"><span style="position:relative; z-index:2;"><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" id="swfclipv764251" width="351" height="551"><param name="allowScriptAccess" value="always" /><param name="movie" value="http://www.thenewsroom.com/mash/swf/cube.swf?a=v764251&m=143549&v=1" /><param name="base" value="."/><param name="wmode" value="transparent"><embed src="http://www.thenewsroom.com/mash/swf/cube.swf?a=v764251&m=143549&v=1"base="." wmode="transparent" width="351" height="551" name="swfclipv764251" allowScriptAccess="always" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer"></embed></object></span><span id="voxAdv764251" style="position:absolute;z-index:2;"></span></div></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2154337755636006996.post-50772661711563282642007-09-29T02:37:00.001-07:002007-09-29T02:43:59.499-07:00Some Credit Card Debt Help TipsThe following are some credit card debt help tips that I have been advised on and am trying as much as possible to help myself get out of debt. I am sharing it here on my blog so that you might be able to consider them for your own credit card debt situation as well.<br /><br />So here goes:<br /><br />1) If you keep spending with your credit card, it will be an endless loop of spending and accumulation of debt. Therefore, stop spending with all your credit cards. Put them in a freezer or simply cut them up.<br /><br />2) Draw up a budget for your spending, so that you will be aware of your financial priorities. Make sure your budget is drawn up with your credit card debt in mind as well, such as including your credit card debt or bill payments.<br /><br />3) I managed to call up one of my banks and renegotiated on the credit card interest rate. I told them that I would like to cancel the card, and requested for a transfer of the whole amount to another bank, unless they could help me out with the interest rate. They agreed to lower the rate by a small percentage, which still added up to a significant amount due to my debt amount and this helped me out a lot.<br /><br />I have also been advised to find out more about credit card debt help services, but I believe that I would be able to wipe out my debts through my own efforts. If I do seek out this avenue or find out more information, I will share what I discover on this blog.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2154337755636006996.post-54287501330945797772007-09-24T08:24:00.000-07:002007-09-24T08:54:48.694-07:00My Basic Method To Rid My Credit Card DebtsBefore I even think of making any money online to supplement my efforts in clearing my debt, the most basic method I will be using is through my regular salary. I am fortunate enough to still have a job and a portion of what I earn each month will have to go back to paying off my credit card and credit line bills. This method is something I heard of from a friend who cleared his own credit card debt using it, and I believe it can help with my own efforts.<br /><br />What I did before this:<br /><br />- List down each of my credit cards' outstanding amounts in a spreadsheet to be kept track of<br />- List them in order of the highest amount<br /><br />And this will be my fundamental method each month:<br /><br />1) I pay off each credit card bill's minimum monthly amount<br />2) Starting with the credit card with the lowest total amount owed, I will pay off this credit card monthly with the very first minimum amount used, until the whole credit card is paid off.<br /><br />For e.g. if the first minimum amount of the credit card with the lowest total amount is $100, I will continue to pay $100 each subsequent month for this card, until the whole total is cleared, even if the monthly minimum continues to become lower.<br /><br />3) Once this first credit card is totally paid off, I will now add the monthly amount paid from this card to the monthly minimum amount of the card with the next lowest total amount owed. And then repeat this monthly payment until this whole credit card is paid off.<br /><br />For e.g. after paying off the first card, I will add the $100 to the monthly minimum (e.g. $150) of the next card with the lowest total amount owed. The new monthly minimum to be paid for this second card would then be $250 flat until the whole card is paid off.<br /><br />4) I will repeat this cycle for each card until all cards are paid off.<br /><br />Now, you may ask - this process will take time, considering that minimum amounts were created by the credit card companies to fleece you of more money. Yes it is true, but considering that I don't have that big a monthly salary, this would have to do for now. On top of that, I am aiming to shorten the length of time required to pay off the massive debt, by doing the following:<br /><ul><li>Save on other areas in my life and expenses and use the savings to pay off outstanding amounts</li><li>Try my best to make some money online and whatever revenue I generate will go to paying off my debts</li></ul><p>In subsequent posts, I will explore the methods I can try to make some money online to help clear my debts, and also how I will try to save on other areas of my life and expenses. I am no expert on how to make any money online, so any insights and thoughts are welcome!</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2154337755636006996.post-34677988775513329872007-09-24T07:52:00.000-07:002007-09-24T08:14:51.856-07:00Join Me On My Journey To Rid All Debts!I am a man with a lack of (monetary) discipline, which has led to my submerged in an ocean of debt, just from credit cards alone. The extent of my debt is as follows:<br /><ul><li>5 credit cards with money owed</li><li>3 credit lines with money owed</li></ul><p>The monetary total of my debt amounts to $24,973.48 currently.</p><p>And I now aim to clear this debt within 2 years, while avoiding further debt, by paying it off with any money I make online, as well as from my regular pay. I have to recognise the fact that I owe certain entities money, and I should clear them all, be responsible, and make sure I become financially secure and free.</p><p>I have decided to share my journey with you out there on this blog, so that I can be disciplined in my efforts, through constant reporting of my progress, and also what methods I decide to use in saving money and making money to pay off this amount.</p><p>The road to redemption will be difficult, and since I cannot wipe out the debt at one go, interest payments would have to be dealt with together.</p><p>Through this blog, I hope you, the reader and my guardian, will provide me with some encouragement, whenever I encounter any obstacles and feel at a loss or overwhelmed.</p><p>If you are a fellow friend in debt, and are as determined as I am in clearing our debts, then please do visit my blog and share your thoughts and experiences with me. Perhaps my methods would also inspire and help you in your endeavours.</p><p>Good luck to me and your support will be golden!</p>Unknownnoreply@blogger.com0