Interest kills your finances. Especially on credit cards. Did you realize that paying the minimum payment on your credit cards just builds a deeper and deeper hole for you?

I have a wonderful strategy for those of you who have credit card debt on more than one card.

Take out your credit card statements and write down the interest rate and the balance of each. For example, lets say you have three credit cards that have interest/balance as listed.

Card#1 13.9% with a balance of $555.00
Card#2 17.9% with a balance of $486.00
Card#3 19.9% with a balance of $322.00

Note that card #3 carries a higher interest rate than #1 or #2. In fact, Card #3 would cost you more than 40% more in interest dollars over a period of a year if they had the same balance! Do you understand what I am saying here?

The plan to eliminate is easy. Pay the minimum balance due on the lower rate cards (in this case Card#1 and #2) and pay as much as you can afford to pay on Card#3. (For example, you are paying minimum payments of $15.00 on Card#1 and #2 and you can pay $100, $150, $200 whatever you can afford to pay. Make it hurt a little.

Continue paying this way until Card#3 is paid off. Cut it up and throw it away. You dont want a higher interest card do you?

Now, apply the same strategy to Cards#1 and #2. Card#2 is the next highest rate (actually 25% higher in interest than Card#!). Pay the minimum payment on #1 and pay the same payment you were making for Card#3 plus the minimum payment you were making on Card#2. You have already seen you can get by without the minimum payment. Do it!

Continue until Card#2 is paid off. Now, follow the same routine until Card#1 is paid off.

I promise you will feel good about yourself. You will save money that you didnt even realize you were spending before.

If you have followed this far, realize you can do the same thing with your hoousehold loans such as your mortgage and car loans. Many car loans have higher interest rates and can be paid down much quicker in this manner.

Remember, start with the highest interest rates and when your way down. Good luck!

Most major credit card issuers now offer their members a variety of different free insurance programs. It is highly recommended that you review the insurance terms of your credit card agreement as in certain circumstances the credit card insurance offered by your card issuer may cover situation beyond those you may originally have thought.

The major credit card insurance programs offered include:

Purchase protection

If you purchase a product on your credit card that is later damaged, lost or stolen, you should be able to reclaim all or part of the purchase price cost from the insurance policy. Not only is this a useful protection to have if you purchase expensive or fragile products, but can also be a very good additional insurance to any home contents insurance policy you have.

Fraud protection

Policy covers you should you be the victim of fraudulent use of your card. With the rise of identity theft, and the ever increasing Internet fraud taking place, this policy not only covers the traditional fraud methods but should also cover you for any Internet or telephone fraud.

Stolen card protection

Provided you report your card stolen at the first opportunity you have once you have become aware of your cards theft, this policy should reimburse you for any transactions processed on your card following your last genuine transaction.

Price protection

Not offered by all card providers, basically this policy will reimburse you the difference between the price you paid for a product and the cheaper price of the same product you later found elsewhere.

Travel insurance

If you purchase your holiday on your credit card there are two useful beneficial insurances you should check to see if you have. The first is a cancellation policy, which covers you in the event that you need to cancel your holiday between the period of purchasing the holiday and the date of travel.

The second is holiday accident insurance, which should cover you in the event that you have an accident including emergency accident evacuation – or are killed on holiday. Both of these are very useful to have as they can be a considerable extra on your holiday travel expenses if purchased independently.

Obviously all of the above credit card insurance schemes are subject to time and monetary limitations, so make sure you check these out. Additionally, you should also make sure that any purchases or use of your credit cards outside of the country of issue are also covered by the policy as, in some cases, they are not.

Owning a credit card is fast becoming a better deal for consumers as the credit card industry (banks and other credit card issuers) starts changing their practices and implementing what can only be construed as more lenient practices, under the pressure exerted by Congress. This article offers the whole story.

In economic figures released by the Commerce Department at the end of May 2007, the U.S. first-quarter gross domestic product (GDP) grew by 0.6 percent. This was the weakest quarterly expansion since the fourth quarter of 2002 and was well under the 0.8 percent growth rate projected by Wall Street economists.

Housing continued to be a drag on the economy and was though likely to remain so in the coming months. However, there were positive signs as well, which could signal a healthier rate of growth towards the end of the year. One of these good signs was personal consumption spending which powers two-thirds of the economy increased by about 4.4 percent versus the 3.8 percent figure in April.

In a related report, the Labor Department reported on June 6 that U.S. worker productivity had also increased at a much slower rate than originally estimated. This report raised fears about possible inflationary pressures as labor costs go up.

Most of the performance figures had already been anticipated.

What came as a surprise was that borrowing by U.S. households had expanded by less than half ($2.6 billion) of forecast ($6 billion) as credit card use actually fell for the first time in 13 months. This increase in consumer credit was the smallest monthly increment in seven months, since October.

It seems consumers are pulling back from taking on more debt. Revolving credit, which includes credit cards, declined $403 million in April, the first monthly decline in the 13 months since March 2006. Consumers may be cautious about contracting more debt while housing remains in a slump and economic growth has been so weak. The decline in revolving credit has been interpreted as a sign that consumers are paying off more of their credit card debt.

In the middle of these mixed signals from the various sectors of the economy, legislators have expressed their dismay over practices being followed in the credit card industry. The House Financial Services subcommittee hearings last Thursday, June 7, called for stronger action by the Federal Reserve to control what lawmakers called the deceptive and predatory practices of credit card companies. Lawmakers subjected executives of major credit card issuing banks to intense questioning during the hearing.

Saying that the average American household carries $13,000 in credit card debt and overall credit card debt runs in the hundreds of billions of dollars, the panel chairwoman Rep. Carolyn Maloney, D-N.Y., was reported to have expressed fears that we will see a perfect storm in consumer credit as these pressures converge on Americans, and that the ripple effect will be felt throughout our whole economy. Maloney cited the success of credit cards in providing for the credit needs of the American consumer but also emphasized that with great success came great responsibility.

Lawmakers think the Fed needs to do more to protect credit card users, and propose to give other bank regulators the authority to curb industry abuses, including policies that confuse consumers and push them into more debt. The Fed is requiring credit card companies to extend to 45 days the notification period to consumers before they implement any changes in the terms of an account. The present practice is that when banks want to make any changes, for instance, to increase interest rates or to impose a higher penalty rate for missed or late payments, they will give only 15 days notice.

The Feds proposed full disclosure requirements would, among other things, allow consumers a longer time to look for another credit card. But legislators feel this is not enough and want regulators to impose an outright ban on abusive practices. They do not want to create new laws, but prefer to see regulators act on the problems.

Legislators are targeting other practices like charging interest on portions of debt that is paid on time during a grace period, and raising interest rates because a customer is late on payments to other creditors (not the credit card issuer) which is termed universal default in the industry. Legislation is being proposed that would make some of these practices illegal.

These are serious concerns being raised by our lawmakers. Other regulators appear to agree with the lawmakers. The Federal Deposit Insurance Corporation chairman is not fully convinced that problems regarding credit card industry practices will be resolved by full disclosure alone. Other federal regulators who were also called to testify expressed support for legislation that would give their offices the authority to curtail practices that are deemed to be deceptive or unfair.

Because of the close scrutiny by Congress, several major banks have started to temper or remove some of their most criticized practices. Banks may need to do more to allay consumer fears, suspicion, and eventually, resentment.

How banks will respond remains to be seen.

Already one of the major credit card issuers, Chase, has begun to articulate its response. The bank has issued a June 12 statement saying that in their view the complex credit card system that exists today will be able to sustain its success if the two principal parties in the relationship the credit card issuers (banks) and the credit card holders (individual consumers) acknowledge that theirs is a shared responsibility. The credit card holder must use the card in a responsible manner; the bank must strive to meet the credit card holders needs.

Overall, the bank says the credit card has broadened access to credit to all consumers. It insists that average interest rates have gone down from close to 20 percent to only 12 percent approximately, and in many cases issuers no longer charge annual fees.

The bank has defined what responsibility should mean for the credit card holder: pay on time; keep within your credit limit; and maintain your creditworthiness. By following this simple equation, the credit card holder gets an interest-free loan for a certain period when they pay off whole balances every month, fraud and loss protection, and other benefits, plus instant and constant availability of credit.

The bank also delineates what it sees as its responsibility: make sure customers understand the terms of their credit card account; show them how to manage their credit cards; give them tools that help them pay promptly time and stay within their credit limits; spot those in trouble and point to avenues for financial solutions; and evaluate more carefully the credit applicants capability to manage debt prior to credit card issuance.

The bank has implemented a set of initiatives to promote greater customer understanding of the terms of their credit card account and to provide tools for managing accounts. This program is channeled mainly through the companys special website, which it says details everything in clear and simple terms. Some of these initiatives involve:

Putting detailed instructions and calculations that clarify the implications of paying only the minimum amounts instead of paying more on the balance, if not paying it off entirely; Outlining procedures that allow customers in the military to keep their credit card accounts current when deployed overseas; Allowing all customers to choose their preferred due date for payments; Providing instructional materials for students and first-time credit card users to guide them in making prompt payments and keeping within credit limits; Installing a system of communications where customers can sign up for timely alerts sent via phone, e-mail and text messages to remind them of payment due dates; Providing for a system of automatic credit card payments; and, Creating an outreach program to reach those who may be having financial difficulties and to determine what assistance and financial programs can best help them.

Individual credit card holders like you have made your opinions heard, to both the legislators and the credit card issuers. By heeding your opinions, and altering the criticized practices, holding a credit card is becoming even better than before.

Credit card debt is a major cause of over one million bankruptcies each year. The reason is that many people get a credit card without researching and reading the fine print. By the time annual fees are added on, along with spending indiscriminately, payments are missed, which causes their balance to skyrocket.

Although we all like to place the blame on the credit cards and the credit card companies, you need to keep in mind that the real cause of your financial mess is you.

One shopping spree does not usually cause high debt. It is usually a pattern that consists of gradually increasing purchases that add up to a large debt. The great thing is that it can be very easy to get out of debt. The key is to start spending less than you make. This is a long-term solution that can help you to whittle your debt down.

Although it may sound simple, it can be very difficult if you have a problem with willpower. It is important to stick with spending less than you make or you will find yourself in exactly the same place as you were before. Overcoming your debt will take willpower and a great deal of time.

It may be difficult to stick with your debt repayment program, but keep yourself strong and you will find yourself out of debt before you know it.

It is important to learn how to get out of debt and then stay out of debt. If you can summon enough willpower and strength towards your finances and spending, then you will find yourself the winner in the game of debt. It may be easy to get into debt, but getting out of debt is much more difficult, but worth it.

One simple phrase can sum up the solution to your financial problems. If you dont have the money to spend, then dont spend it!

So, youve filled out the application and are waiting for your brand new, shiny credit card to arrive in the mail. But when the letter finally arrives, youre not greeted with a new credit card, but a denial letter instead. What to do? Read the fact below and determine your next steps.

1. What are some of the reasons that I can get turned down for a credit card?

There are many reasons that people are turned down when they apply for credit cards. Every credit card company has its own rules and guidelines – and in many cases, those guidelines vary from credit card to credit card issued by the same company. Some of the reasons that you might get turned down for a credit card include:

a) Insufficient income. If your income is $25,000 a year, be sure that you apply for a credit card that will accept someone with a $25,000 annual income.

b) You’ve been recently rejected by too many other companies

c) Your credit history is poor. It will show if you’ve missed payments or made them late, or if you’ve defaulted on a loan in the past. Some lenders will overlook bad credit and offer you a credit card with a higher interest rate, or a secured credit card.

d) You don’t have a credit history. If you have no credit history, many lenders won’t consider giving you a credit card because they have no way of judging whether or not you’ll pay them back.

e) Your credit report may have mistakes in it.

f) Your available credit may already be higher than the credit card issuer is comfortable with. Remember, the more credit card debt or availability that you’re carrying, the thinner your income must be spread to pay them all off.

2. What can I do if I get rejected by a credit card company?

Anytime you’re rejected for credit, the credit card company is required by law to tell you the reasons on which they based their decision. They must also tell you which credit reporting agency they got their information from. If you’ve been rejected, you can write to, call or email the credit reporting agency that they contacted and request a copy of your credit card report for free. Look it over carefully to make sure there are no errors.

3. After I checked my credit history because I was turned down by a credit card company, I found that there were mistakes on it. What can I do to fix them?

Immediately write to the credit reporting agency from which you got your report and ask them to correct the mistakes. The more proof you provide to back up your claim of error, the better your chances of having the error completely expunged, but the credit reporting agency is required to at least note that you have asked for the report to be corrected.

4. If one credit card company turned me down, can I apply to another?

You can not only apply to another credit card company, you can apply for a different credit card product with the same company. Every credit card has different guidelines for acceptance. Just be sure to shop around and only apply for the one or two cards that you feel you have the best chance of being accepted for. Too many rejections in your credit history can hurt you when you’re looking for a loan for something important.

Credit card companies are all over the world and so are credit cards. Some of the credit card companies only offer cards to a specific country or region that they are in. If you live in the UK, then you might need some information about credit cards that are available for you.

Credit cards that you get in the UK are not any different from any other credit cards. The credit card companies offer special incentives to get customers like 0% APR for a specific time period, no annual fees, and you may even be able to apply for the credit cards online. Many credit card companies based in the UK do not give their cards to consumers in other countries due to security reasons. However, if you live in the UK, then there are many companies that are sure to let you fill out an application to receive their specific credit card.

There are many companies that encourage you to apply online. They overwhelm you with ads, promising a 60 second approval.

Credit card use in the UK can cause financial problems just as it does all over the world. People in the UK owe tens of billions of pounds in credit card debt at an interest rate of over 16% and this figure keeps getting higher and higher. Debts over 2500 pounds are common to ten percent of the people in UK and combined with high interest rates, this figure is near impossible to get to come down.

There are some benefits to having a credit card that a great many UK consumers find appealing. Some of the credit card companies offer cash back with purchases, air miles, travel insurance, and insurance for your purchases. A credit card looks good to many UK consumers, especially when you add in the discount vouchers.

When you decide to apply for a credit card, you should research all of your choices to find the one that is best for you. Once you receive it, you need to be careful in using it or you could find yourself in a financial mess. If you use your credit card wisely, then you will find that it will make your life easier, no matter what country you live in.

If you are looking for a credit card company to give your business to, but are unsure of which one to choose, then you may want to consider Chase. They are known for being one of the best credit cards around. They make applying for one of their cards very simple and there are no hidden charges.

When you sign up, they will give you all of the information about any charges that they may charge you. They do not have annual fees and offer a 0% interest introductory rate. Also, Chase offers fraud protection, which is a very important thing to have these days.

It is so easy to apply for a Chase credit card. Applying on their website is simple, too. Their website is also a great place to learn more about their credit cards including the interest rates and pictures of each kind of card.

You can also pay your credit card bill online. This is a fast and secure way for you to pay your credit card bill. If you do not have a Chase credit card, but have heard great things about the company, you can sign-up on their website. If you fill out the form correctly, then you could be a Chase member in just a few days.

Chase offers individual accounts and small business accounts. This is great for those of you who are looking for a credit card to start your small business.

Chase credit cards are accepted all over the world, so you do not have to worry about being able to use it on a trip abroad. Chase also gives their customers air miles for every dollar, so you may be able to take a vacation much cheaper than you think.

Recently, Chase has went through some bad press mainly aimed at their customer service practices, but they have made strides to make their customer service better and to lower their interest rates. If you are looking for a credit card with a proven track record, then you will want to consider Chase.

With the ever rising reports of credit card fraud, fraudulent use, internet phishing and identity theft, people are rightly concerned about credit card security. Fraudulent credit card use can be an annoyance at best, and seriously damage your credit at worst. It’s only reasonable that people have questions about credit card security and authentication methods. Here are some of the most frequently asked questions about credit card security.

1. How does the ATM or store terminal know my PIN number?

PIN (personal identification numbers) are the most often used way to authenticate your identity when you use your credit or ATM card. When you first choose your PIN number, it is ‘encrypted’ – stored in a secret code of letters and symbols – and either stored in a database or on the magnetic stripe on the back of your card.

2. If my PIN number is stored in a database, doesn’t that mean that bank or credit card employees have access to it?

The encryption method that’s used by ATM and credit cards is called ‘one-way encryption’. It makes it easy for the bank’s computer to verify the PIN given the bank’s key and the PIN, but nearly impossible to extract the PIN in text form from the encrypted database.

3. How does the machine ‘read’ my card?

The stripe on the back of your credit or ATM card is called a magnetic stripe. It’s actually made up of thousands of tiny magnetic iron-based particles. The card can be ‘written to’ much the same way that the hard drive on your computer can be written – by means of magnetic interaction changing the charge. Written into the stripe are your account number and identifying data. When you swipe the card, that information is read and sent via modem to an ‘acquirer’ – a company that ‘acquires’ a payment guarantee from the credit card company based on the information stored on your card’s magnetic stripe.

4. Isn’t buying on the internet dangerous and insecure?

Honestly? Your credit card information is in less danger being transmitted over the internet than it is when you hand your card to a store clerk at the counter. The real danger to your credit card information isn’t from hackers hitting online merchants, or stealing your credit card information via modem or phone lines. The real internet security dangers come from two different directions:

a. Hackers using back doors to get into the records of banks, credit card companies and data repositories.

This is the biggest danger. It’s also a danger for stores and companies that have records ‘online’ for billing purposes. There’s a great deal being done to improve security of data repositories, which are far more vulnerable than any data transmission stream.

b. The second big credit card security danger is the practice that’s sometimes called ‘phishing’. In this case, the credit card thieves trick you into giving them your identification and credit card data. They may do this with an email purporting to be from an official of your internet service provider or email, your credit card issuer or anyone else. They also may build sites that are identical to sites like Paypal, American Express and others for the express purpose of capturing your information so that they can use it.

5. How do I protect myself from phishers?

First, never provide your social security number or other identifying data to anyone without first verifying that they are exactly who they say they are. Experts recommend that you never use the link provided in an email to go to the site of someone you do business with. Instead, open a new browser window and type in the known address by hand

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Credit Card Debt Reduction – 3 Tips To Lowering Credit Card Debt

Credit card debt can be reduced through lower rates or negotiating for reduced balances. With reduced interest, you can pay off the principal quicker with the same monthly payment. The other approach is debt settlement, which eliminates part of your debt at the cost of your credit score.

1. Transfer Balances

Credit card companies are always offering introductory deals, such as 0% on transfers. Usually such offers last for several months, giving you the chance to make sizeable payments on your principal.

If you have several credit cards, choose to transfer the account with the smallest amount. Pay off that account, then take that cards monthly payment and apply it to your next lowest balance. Soon you will be creating a snowball affect, swiftly lowering your debt. Make sure to close paid off accounts to raise your credit score and keep from adding to your debt.

2. Negotiate Lower Rates

Credit card companies are also willing to lower rates. You can try to do this on your own, but you will have more success with a debt management company. For a monthly fee, they will lower rates with credit card companies and handle your monthly payments.

Debt management plans can affect your credit temporarily if your creditors report delayed or reduced payments. This might prevent you from opening new accounts for a year or more. However, with such plans you can be out of short term debt in less than five years with a much better credit score.

3. Settle For Reduction In Debt

Debt negotiation is the most drastic step to lower your credit card debt since it has long term affects on your credit. A debt negotiation company can settle some of your debt with creditors. Lenders will then report the reduced amount to the credit reporting agencies, which will keep it on your record for seven years. Debt negotiation is similar to bankruptcy and can prevent you from qualifying for conventional credit for a couple of years.

Reducing your credit card debt will have long term benefits for you. Less credit means better rates when you do want to apply for financing, especially with a home or car purchase. No matter which option you choose, research companies carefully and compare their services and fees.

Learning About Cash Back Credit Cards: Good or Bad Idea?

Getting a credit card that offers cash back always sounds like a good idea. What could be better than getting cash back on all the purchases that you make with your credit card? It sounds too good to be true, doesnt it?

Well, there are cards that give you free cash, but it is usually only around 1% cash back. However, free money is free money, right? Well, sometimes.

If you like to buy a lot of things in one month, this kind of credit card probably sounds great to you. However, you need to keep in mind that they are not going to give you cash back on every purchase that you make. Even if they claim to give you cash back on every purchase, they will only give you up to a certain amount per transaction. The company also has a strict limit on the amount that they will give back to their customers. If you read the little, bitty print on the form that you signed, you will see a paragraph with their limits in the terms and agreements.

This is another way to try to draw in new customers for these companies. It is a good credit card to have and sounds great in theory, but they will have to check your credit rating before they will give you their card.

Research different credit card companies to see what they are offering. You may be surprised to find a cash back credit card that offers you just what you need and want with a high cash back percentage, few limits on the amount they will give you back, and instant cash deposits when you make each purchase with their card.

Although these credit cards seem like a great thing to have, some companies will need your credit rating to be great too. However, there are credit card companies that offer these cards to people with a low credit rating to help them rebuild their credit. Research all of your options.

What should your decision be? If you have a good credit rating, then this card is a great option for you. Research different card companies there are cards out there that offer you up to 3% cash back and impose very few limits. If, however, you have a bad credit rating, you may want to find a credit card that will help you rebuild your credit.