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Archive for Credit Cards

Law Enforces Credit Card Debt Protection

Hiked interest rates, overspending, and not paying bills on time are causing consumers to go into credit card debt.  It is a national issue affecting millions of families across the nation.  However, there is finally a bit of relief in sight.  The Credit CARD Act passes this month, easing the pain of some of the most common factors striking up credit card debt amongst citizens.

Credit Card Rate Tricks Put to a Halt

The Credit CARD Act protects consumers in ways unknown or unforeseen by credit card users.  For instance, credit card companies used to send the monthly bill a few days before it was due to those whom paid the bill in full every month.  The reason is f the consumer receives the mail a tad late or does not have a chance to return it before the due date, then the credit card company hikes up the interest rate, tacks on late fees, and makes lots of money.  It is a terrible practice, which credit card companies implemented each month.

With the Credit Card Act, credit companies no longer allowed to conduct business in such a manner.   For the new law states, credit card companies must send the bill at least twenty-one to fourteen days prior to the due date of the bill.  This is a huge change in business.  It helps many people from receiving late penalty fees.
If you are in need of financial relief, talk to a small business loans expert today.   A professional will be able to guide you in the right direction ensuring your business is not hit by financial trauma due to debt accrued through business credit cards.

How to Eliminate Risk of Debt Amongst Kids

There are a multitude of people in debt, and schools have taken notice.  Elementary, middle and high schools are attempting to encompass courses regarding credit score, balancing checkbooks, and credit card debt to prevent the masses from going into another economic crisis.  But, just as any school subject taught in the classroom, the lessons will not stick without encouragement from home.

Teach Your School Age Kids About Debt

Teaching your kids how to balance money and the value of a dollar should start at a young age.  Start with the simple concept of a piggy bank.  Allow your child to use it to store coins.  Additionally, every time your child receives birthday money, put it in the piggy bank or once the child is older move the money into a savings account.  Teach your kid how much money is in it.  Review adding and subtracting the money whenever money is deposited and withdrawn.  Then, once your child reaches high school, introduce the concept of credit card and credit card debt.

It is alarming to realize the number of high school seniors and college students targeted by credit card companies to open up accounts.  Unfortunately, this is where the problem starts.  A student will open up an account, spend too much on the credit card, and be ignorant towards the payment percentage charged if the monthly payment is not made in full clearing the account completely.  Thus, you need to review with your kids the risk of using credit cards and what it truly means in the long-run.

Discuss Credit Score

While your kids are in high school talk about what a credit score is and why it is important.  Your teenager will not be able to get a car loan in his/her name without good credit.  Pointing this out to a new driver in the house seems to create a clear picture to him/her.  In addition, explain how a good credit score is needed to attain a house when he/she gets older.  Some teenagers are oblivious to the affect a poor credit score has upon their entire lifetime.  Hence, try to prevent your child from ever being faced with debt by offering a surplus of knowledge about the subject.

To find out more about how to teach your kids about getting out of debt talk to a professional.  Speak to lenders, and if you find yourself in a bind, then ask what options are available to create further cash flow and assist you towards attaining financial recovery in your small business.

Categories : Credit Cards, Finance
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