A Guide To 0% APR Balance Transfer Card Schemes

July 4, 2010 By Leave a Comment

Whether you wish to transfer the balance from one credit card to another card, or are thinking of ways to lower the cost of a $15,000 car loan with an interest rate of 7%, you are undoubtedly going to want to consider transferring the balance to a 0% APR balance transfer card. Before you settle on a particular card that offers 0% interest, you should probably look around a little first and see what is available to you. Many transfer cards of this kind are indeed available however there are many different types and they will all have different terms, fees, and penalties. Definitely check out as many as you can, take notes and make an informed decision.

Keep in mind that banks have limits on how much you can transfer to this type of card. For this reason, you should read the fine print carefully or contact the company in question before you make any big plans. Furthermore, you need to ensure that these cards do not incur any fees. Balance transfer cards are likely to incur transfer fees according to the amount you send to your new card. If the transfer fee is 6% and you intend to transfer $10,000, thats $600! You will also need to work out when you will be able to pay the loan off in full. You will discover that the majority of cards will only provide the 0% interest for a period of between 6 and 12 months after which the rate skyrockets to the usual interest rate. With research you may be able to find a lifetime balance transfer.

In order to find a 0% APR balance transfer card, you could also try contacting the financial institutions you currently work with and ask them what they can offer you. You may also wish to look online to see what other companies have to offer. Research, either online or via the yellow pages or local banks etc… will reveal many different offers. When searching for any type of loan or credit card, the more options you find, the more likely it will be that you will find a transfer card that works well for your personal circumstances.

Filed Under: Credit Cards, Finance, Get out of Debt, Personal Finance Tagged With: ,

What to do about a Debt Problem

July 4, 2010 By Leave a Comment

It’s almost impossible to go through life without using a credit card at some point. After all, it’s important to build up a good credit rating if we want to make some of the bigger purchases necessary for the future. And most people are reluctant to have a lot of cash handy for safety reasons, not to mention it’s just harder to have as much disposable income. But the problem with credit cards is that they are entirely too easy to use. Some credit card companies advertise cards with all sorts of features that will make them more convenient. But anyone who has debt will know that the last thing we need is more ways to spend using a credit card.

One sign of debt problems is if you can only afford to make the bare minimum payments each month, and of course it’s much worse if you can’t afford them at all. But with interest rates being so high, paying only the minimum amount will mean you can be dealing with that debt for years to come. Many people don’t realize that a few purchases here and there can cost them much more than the initial price. And that’s where credit card companies get us; we end up paying a lot of wasted money that can be used more wisely somewhere else.

In order to pay off credit card debt, it’s important to focus on your largest amount or the one with the highest interest rate. It might be tempting to use other credit cards or instant loans to pay off your immediate debt, but this just prolongs the problems rather than solving it. So if necessary, look into consolidating your debt into one payment with the best interest rate possible. In many cases credit card companies will want to work with you to get their money back because if you happen to go into bankruptcy then they will be left in a precarious position as well. And remember, the most important thing to do at first is to stop spending. So put those credit cards aside for the time being and stick to cash, making sure you only buy what you can afford.

Filed Under: Finance, Get out of Debt, Personal Finance Tagged With: , , , , ,

IRS Wage Garnishment

July 3, 2010 By 1 Comment

I am sure you never thought that you would find yourself in the situation of being sued by a creditor, but here you are! While there are likely many mitigating factors that led to your current situation, the reality is that most of them are not going to help you when it is time to go to court.  Unfortunately, it is almost certain that your creditor is going to win.  You probably expect this already, since you know that you owe them the money.

Once your creditor has received a garnishment against you, one of two things will happen.  They will either allow you to work out a payment plan or immediately go in for a wage garnishment.  It is very likely that they will immediately go for a garnishment since chances are they have already given you multiple opportunities to set up a payment plan.

What a garnishment does is allow the creditor to go directly to your employer.  They provide the court documentation to your employer who then must send your creditor a portion of your paycheck before any money comes to you.  Amounts vary by state, but generally speaking they can take up to 25% of your disposable income for regular debts and 50% for child support debts.

If this is the first account that you have had a garnishment on, you do not have to worry about your employer firing you.  The Consumer Credit Protection ACT prevents this.  You should understand that employers do generally frown on having to deal with the hassle and paperwork associated with a wage garnishment.  If you have subsequent garnishments you may fact losing your job.

The IRS wage garnishment formula is  fairly complex, so you should make sure that both you and your employer understand how your garnishment is being calculated.

Going through a wage garnishment is an extremely unpleasant experience.  If at all possible, you should seek debt relief help before it gets to that point.

Filed Under: Finance, Get out of Debt, Personal Finance Tagged With: , , , , , ,
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