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Chapter 5: Securing A Low Interest Rate Credit Card

Synopsis

In actual fact all credit card interest rates are high when comparing to other sources of money advancing facilities. However most people don’t realize this or don’t want to realize these high rates simply because of the easy access the credit cards provide to making desired purchases. Getting carried away is one of the very real dangers of credit usage; therefore there is a need to actually actively source for a credit card that can provide for lower interest rates by comparison.

Low Interest

The interest rates charged on the amounts reflected by the credit card purchases or usage will eventually feature very significantly on the interest rates charged to the individual if the said amounts are not paid for in full by the due date.

When the purchases are rather considerable, it is often harder than imagined, to clear the full amounts by the expected date stated on the statement of accounts.

Therefore taking the trouble to source for credit cards that provide lower finance charges may come in handy in such circumstances.

These charges can be calculated to be much more in favor of the individual (if this was at all realistically possible) whereby the individual would end up playing much less than other conventional interest rate payments would be.

However even this has some rather complicated connotations to it where in actual fact the there is no tangible positiveness for paying the finance charges anyway.

In this scenario the individual is really simply paying for the convenience of having the outstanding amounts differed.

One should also be weary of some credit cards that offer lower interest rates also offer lower minimum payments which initially seem an exciting feature, but upon proper calculations the individual could possibly end up paying even more than other conventional credit cards.

Chapter 6: Curbing Your Charge Card Spending

Synopsis

One of the most drastic and dramatic ways of doing this, is the recommendation to have the cards cut up or returned to the issuing merchants which are usually the banking institutions that prey of the weakness of individuals. This of course is an extreme measure and usually one that is hard to do but very necessary when the amount charged to the card are phenomenally high and there is really not viable means available to clear the amounts in the near future.

Cut Down

However there are some tips that can be used in order to create some elements of discipline when making use of credit cards and the following are some worth considering:

Keeping the credit cards out of easy access, is one way to limiting its use. Leaving the credit cards at home when going shopping will help the individual realize the enormity of the purchasing power that has been severely curbed. It will also give the individual some insight to the possible frivolous spending that has been practiced as a norm previously.

Without the use of the credit card facility the individual is now forces to make purchasing using cash and this can be a real disciplining exercise for the individual, as it help to exercise control.

Seeing cash actually becoming lesser as the purchasing exercise commences, will keep frivolous purchases from being part of the shopping experience.

Making a conscious effort to scrutinize previous spending habits and actual purchases being made will help the individual better understand where the “money” was going and to eventually learn to avoid such establishment in the quest to curb the unnecessary spending.

Avoid planned outings that revolve around shopping sprees or at shopping friendly locations. When there is no temptation to shop there is no unnecessary buying, thus positively contributing to the efforts to curb using credit cards.

Chapter 7: Staying On Top Of Your Charge Card Balances And Negotiating With The Company

Synopsis

Sometimes in the quest to try to clear the seemingly endless credit card commitments, there is a possibility of trying to negotiate with the card companies to come to some kinds of acceptable settlement scenarios. Though this may not be an easy course of action, where results are easily experienced there is certainly the fair chance of finally bringing the endless bills to some kind of closure.

Keep Up

The following are some steps that can be tried to facilitate the above mentioned possibility:

If there is a possibility of being able to clear the entire amount in a lump sum payment, then negations to cut the interests calculated to be paid can be tried. These lump sum payments can be usually be broken up into two or three huge payments, where the principal sum and the possible new negotiated interests can be paid off.

There is also the possibility of approaching the credit card establishment to consider a proposal where the bank agrees to eliminate or lower the interest rates incurred to help ease the burden of the individual until some financial stability is achieved. In some cases assessing punitive fees such as late fees and over-limit charges may also be requested to be waivered. However the trade off here would most likely be, that the cards in question would be frozen, cancelled or suspended for a specific period of time.

Debt management program - in this scenario the individual would have to seek the expert advice, from sources trained for the purpose of helping people better handle and sort out their debt ridden situation. This is of course a better option than having to deal with the mounting debts with no apparent relief. There are groups that provide this service free or for a very nominal charge.

Chapter 8: The Disadvantages Of Being In Debt

Synopsis

Credit cards can be an individual’s best friend or their worst nightmare. When the cards are used in a controlled and wise fashion, then there is very little likelihood of it becoming a financial burden to the individual, however when used without caution the resulting scenario can be detrimental both mentally and physically.

Warnings

Being in debt, especially credit cards debts is sometimes very hard to come out of, due to the style of the interests charged. Thus the never ending cycle can really be stressful and often consuming, leaving the effected individual very little room for others things that may require the individual’s indulgence.

Being unable to effectively contribute to even the minimum payments due will also create the negative assessment on the individual’s credit ratings or credit scores, which is vital to any future investment opportunities.

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Chapter 6: Cutting Expenses And Putting Money In Savings

Synopsis

If an individual is disciplined enough the ideal situation or mindset would be to cut as much as possible spending and expenses budgets to facilitate higher savings possibilities. This of course is by no means easy, and most of the time it fails to materializes in a disciplined fashion, that is consistent over a long period of time.

Saving

Having some tools in place to ensure such savings are done in an unwavering and committed fashion will be very beneficial to the individual in the future though it may not always seem so in the present.

Learning how to identify and cut unnecessary expenses may be difficult to do, but with consistent practice there is always a possibility in being able to cultivate the positive action into a beneficial habit.

When such expenses have been identified, and steps are taken to enforce the cutbacks, the said fund should then be directed into a saving plan that cannot be accessed by the individual easily.

This is due to the fact that there is always be some emergency or another that will require the funds to be tapped into thus eventually leaving the amount less than desirable.

Therefore finding a savings plan that is both fairly committing in style and also one that has all the benefits that would ensure the funds put away accumulate the desired projected interests and the likes, should be a top priority.

Identifying the monthly expenses and breaking it down in a very realistic and committed fashion, will help the individual identify some of the expenses that can be eliminated or down sized and yet still keep the individual is relative comfort and enjoyment, during the working phase of the adult life.

This is important so that the individual will not feel resentment of having to be constantly pressured to save for the future, while not being able to enjoy the present.

Chapter 7: Think About Your Future Health Care

Synopsis

Most people plan their retirements without actually taking into account the realism of the health care issues that might arise in the phase in life. Medical care is not only very costly but can also be quite a nightmarish affair. Therefore when planning for retirement there should be a very effective and functional medical plan included in the plans.

Your Health

For most people the most common choice would be to take out an insurance heath plan that will ideally cover such needs during retirement.

However this is not always adequate as many poorly informed individual can attest to. Most people depend on the advice and directions given by agents who supposedly act in the best interest of the individual, but in most cases the fine print on the policies will dictate otherwise.

Therefore it is important to be as well informed as possible on the policy choices before making a commitment to any plan.

Starting with a suitable fidelity investment summary will help to give the individual some helpful guidelines towards calculating the estimates of the retirement costs and determine the percentages suitable to be included for health coverage.

Disability insurance is another option that is also very popular and should be carefully considered for its more obvious benefits. There is no disadvantage to looking into such possibilities even if its percentage of unfolding is rather limited.

Being ready for any health issues, that might arise just before or during retirement, is something that should be considered with a certain amount of urgency tagged to it. It is also wise to consider some form of long term care insurance. This will help to ensure the individual is able to have access to proper and consistent health care that is of a better quality.

These may include after care and 24hour assisted medical help, should any illnesses occur during the retirement stage.

Chapter 8: Understand Social Security

Synopsis

Simply put social security is an income to be enjoyed during retirement or any other phase in the adult life where normal working conditions cannot be expected due to illness or certain forms of disabilities. However, ideally social security income should not be the only income to be enjoyed by this section of society. Studies have shown that it is far from being adequate. It usually meant to function as an assisting source of income and it would be a folly to make it the only source of income for the retired individual.

Social Security

The following are some of the benefits to be enjoyed as a social security benefactor:

A retirement income upon reaching the age of 62 though this may vary in different parts of the country. Such income can be received in the form of monthly payments to help the individual through retirement.

There is also the rather surprising and equally beneficial payment that can be received by the spouse of the social security subscriber even though the spouse has not actively contributed to such a fund.

There is also some form of medical support given to the individual seeking such assistance during the retirement phase of his or her life.

However it should be noted here, that this assistance may not be optimum care nor will it be available instantaneously, unless the individual is in a critical condition where immediate attention is imperative.

There is also the benefit of being able to receive full medical care from the system that is designed to cater to such retirement age needs. This is also usually extended to the spouse who may not have contributed in any way to the social security plan.

There are also allocations made to accommodate any disabled, minor or dependent children even after the death of the social security contributor.

Wrapping Up

The most popular goal most people have when it comes to the subject of retirement is that there should not be any more debts to pay off. Meaning all commitments such as homes, cars, insurances should all be paid for by the time retirement comes around. Become educated so that you will be able to meet your retirement goals.