Money Advice Guide

If you have less than perfect credit, you may have seen ads
promising you a credit card regardless of your credit history
or job status. Most of these ads are actually for a secured
credit card, which can be a great way to rebuild your credit.
Your credit may need rebuilding if you have a history of
unpaid credit card bills, bankruptcy, repossession, or divorce.
However, you need to be aware that there are scams out there
promising a credit card for people with bad credit but not
delivering.

A Secured Credit Card

Many people do not know the difference between a secured credit
card and an unsecured card. The main difference lies in where
the money comes from when you make purchases. An unsecured
credit card is the standard card issued by most lenders. You
borrow money to pay for your products and services and then
you are allowed to pay the lender back with interest via
credit card bills. A secured credit card for people with bad
credit requires an initial deposit to set you. You deposit
anywhere from two hundred to two thousand dollars into an
account before making any purchases. What you buy is paid
for using the money in your account. So you have control of
your credit limit with how much cash you put up front.

Unfortunately, in order to open an account for a secured credit
card you must have the hundreds, or even thousands of dollars,
it takes to secure the credit. This up-front cost makes it a
prohibitive credit card for people with bad credit, who are
usually on a very strict budget as their debt takes up most
of their extra income. Along with the initial deposit, you
might have to pay application or set-up fees, and you could
be charged a fee when you make future deposits to your account
in order to raise your credit limit. These fees show up on
your credit card bills.

Credit Card Scams

There are legitimate promotions for a secured credit card out
there and you may find several on the internet if you search
reputable banking institutions for their offers. However,
some companies try to lure consumers into calling a false
number. The phone number listed in the ad is not toll- free,
but is a 900 number that you will be billed for using. The
scammers might lead you to believe that you can get the secured
credit card as soon as you call the listed number. In these
false ads, there is usually no mention of set-up fees, initial
deposit amounts, eligibility requirements, or credit card
bills, which will be larger than normal due to annual fees
and high interest.

How To Spot A Scam

If someone offers you easy credit with no qualifications to get
a credit card, this person or company is probably not telling
you the whole truth. Any reputable lender must check your
credit report before offering you a line of credit. This
precaution is especially true when providing a credit card
for people with bad credit. Also beware of calling 900 numbers.
These numbers are not set up to provide you with a service.
They are set up to make the company a profit and your phone
bill could show a charge up to $50 for a few minutes.

Need A Credit Card. Checkout http://www.Search-Quality-Credit.com
For The Best APR’s And The Hottest Reward Programs!

Tags: credit card bills, credit for people with bad credit, secured credit cardcredit card bills, credit for people with bad credit, secured credit card

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Are you finding it harder and harder to keep up with your credit card debt? If so, and you’re looking for ways to free yourself of debt once and for all, you’ve come to the right place.

The Internet is full of informative websites that will provide you with tips to help you get rid of your credit card debt.

As consumers we incur credit card debt for many different reasons sometimes it’s the result of accidents, illness or job loss. Others times we’re so caught up with keeping up with the Joneses and living in a buy-it-now society that before we know it our once manageable credit card debt has gotten away from us.

An underlying problem is many of us don’t have a clue how to live beneath our means. Living beyond our means has become a habit and the only way we’ve found to do this is to continue using our credit cards. And unfortunately our debt keeps growing.

First off, when you’re looking to get rid off your credit card debt you need to create a budget and then stick to it. Begin by making a list of all your income sources. Then start with your fixed expenses (mortgage payments, insurance premiums, auto loans).

Next, write down variable monthly expenses (groceries, utilities, gifts, entertainment, clothing). Don’t forget to factor in some allowance for unexpected expenses that come up like when your washer or dryer quits or your roof leaks. It’s wise to put a little money aside each month for just this purpose.

Credit card debt is also an unsecured debt. Since no collateral has been put up most lenders will report any default to a credit reporting agency or will contact you via mail or telephone frequently in an attempt to get their money.

You can effectively get rid of your credit card debt and any telephone calls from persistent creditors by budgeting, credit counseling, debt consolidation or in some cases bankruptcy.

It basically comes down to self discipline, how heavy your debt load is and if you can see a substantial change in your income.

With some serious self discipline you can get rid of your credit card debt once and for all. The second step (after budgeting) in taking care of your credit card debt is to stop charging. The last thing you want is more debt to compound the problem.

Start by prioritizing your credit card bills. Then make a plan to pay off as much as you can afford on the card with the lowest balance. Once that debt is paid in full you can move onto your next credit card debt. Paying off one card at a time will help you dissolve your debt faster as will putting every extra cent you have towards repayment. Over time an extra five or ten dollars here and there can really make a difference.

Further, you may wish to look into acquiring a home equity line of credit or a second mortgage. Do your homework and be sure that this is a direction you wish to take as both are secured loans that require collateral.

Similarly debt consolidation has its disadvantages. You’ll end up with a longer repayment term and sometimes when you factor in the related fees you can end up paying more than your original debt amount.

As a last resort, you can turn to bankruptcy to get rid of your credit card debt. This is advisable only in extreme cases. It’s important to note that a bankruptcy will show up on your credit report for 10 years. As a result, you’ll have difficulty obtaining credit, getting life insurance or purchasing a home during this time.

When looking to free yourself from credit card debt it’s best to explore all your options before deciding on a direction to take.

Sherrie Le Masurier is a freelance writer/editor who believes in being a wise consumer and living within her means. Her blog http://www.doityourselfdebtreduction.blogspot.com features information on how to get out of debt, debt reduction strategies, credit card debt reduction, debt consolidation, debt management tips and general debt reduction help.

Tags: bankruptcy, credit card bills, credit card debt, debt consolidation, home equity line of creditbankruptcy, credit card bills, credit card debt, debt consolidation, home equity line of credit

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