Credit Card Trick #2 - Backdated Interest

If you pay your bill late or not in full, most companies will charge interest from the date of your original transactions.

If you're one day late, you could be charged on all transactions up to 55 days ago!

Credit card trick #1

Minimum payments don't cover the interest payable.

People think that by paying the minimum balance they have at least covered the interest... WRONG!!

Card companies reduce the minimum so it doesn't cover the interest.

Paying the minimum means you pay interest on the interest and dig a deeper debt hole!

(With thanks to David Koch in the Daily Tele, June 21, 2010.)
Kind Regards,
nobankruptcy.com.au

Charles Fairlie
Client Development and Marketing Director

m: 0434 52 44 66

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Helping Aussies Avoid Bankruptcy

Have a look at our FAQ's to see how we can help you avoid bankruptcy... http://www.nobankruptcy.com.au/

Distressing debt figures

The debt figures, particularly the amount owing as cash advances, are a real worry...

 

http://www.dailytelegraph.com.au/money/money-matters/aussies-face-avalanche-of-cash-advances-on-credit-cards/story-fn300aev-1225879295178

 

 

Banks should be ashamed!

Article in today’s SMH... For Commonwealth Bank, 63 per cent of workers reported the debt-selling pressure, while 53 per cent of Commonwealth Bank-owned Bankwest employees reported the focus....

 

http://www.smh.com.au/business/bank-workers-fret-over-customer-debt-20100609-xudq.html

Retailers fighting for market share with credit cards

Retailer-branded cards are fighting for market share from other credit cards, but are they worth comparing? RateCity investigates.

May 27, 2010

We are constantly bombarded with options for both credit cards and store cards -just open up your letter box for promotions on credit cards or walk through your favourite department store where someone is bound to hand you a flyer about their store card. But how do you know which is the better card for you?

What's the difference?
Both types of cards offer customers with an opportunity to buy now and pay later; however there are a few unique differences between the two.

A credit card is a plastic card with a magnetic strip that people obtain through financial institutions to purchase goods and services as well as withdraw cash. They are issued with credit limits and both purchases and cash withdrawals incur interest rates. Some also provide points for spending money on the card.

A store card is similar to a credit card in that it is used to purchase items on credit however they can only be used within a particular store or range of stores, for example the Myer Card can only be used at Myer stores and charges a high 21.99 percent per annum at the time of writing.

But as our love of credit cards grows some larger retail chains are upgrading their store cards to offer a credit card with Visa, MasterCard of American Express so that you can use them anywhere which means more often. The GE Money Coles Group Source MasterCard, David Jones American Express Credit Card and Woolworths Everyday Money Credit Card are some examples, you can use them virtually anywhere and there are often bonus promotions for using the card at the card's branded retailer.

So how to choose which type of card?
With so much choice, here are six tips to follow that may help you in deciding which card is best for you and your lifestyle:

1.     Compare credit cards online to find a credit card that offers a low interest rate and more rewards.

2.     Look at the reward programs on offer and see which one will suit your spending habits.

3.     Look at the way you shop, if you regularly shop at one store and it offers a store card or credit card perhaps look at the benefits you will receive versus a standard credit card.

4.     Look out for a card that offers longer interest free days which gives you a period to pay back the balance of your card without paying extra.

5.     Look for a card that is more readily accepted so you won't be limited to where you shop.

6.     Does the card charge an annual fee? If you don't pay off your balance in time each month it may be worth paying an annual fee to receive a lower interest rate.

Dave Ramsay's take on Bankruptcy

The Truth About Bankruptcy

from daveramsey.com on 03 Aug 2009

Myth: I'll just file bankruptcy and start over; it seems so easy.
Truth: Bankruptcy is a gut-wrenching, life-changing event that causes lifelong damage.

Bankruptcy.

That word sends chills up the spine. If you're facing the prospect of bankruptcy or in the middle of it right now, you know it's a living nightmare. It can devastate your job, destroy your marriage and steal your peace of mind.

Kathy called my radio show ready to file bankruptcy. Her debts were overwhelming, and her cheating husband had left with his girlfriend. The house was in his name, as was all the debt except $11,000. Kathy was 20 years old, and her brilliant uncle—a lawyer from California—told her to file bankruptcy. Kathy was beat up, beat down, and deserted without help, but she was not bankrupt. When her soon-to-be ex-husband ends up with all the debt in his name, he may be bankrupt, but Kathy won't be.

Why Avoid Bankruptcy?

Bankruptcy is not something I recommend any more than I would recommend divorce. Are there times when good people see no way out and file bankruptcy? Yes, but I will still talk you out of bankruptcy if given the opportunity. Few people who have been through bankruptcy would report that it is a painless wiping-clean of the slate, after which you merrily trot off into your future to start fresh.

Don't let anyone fool you. I have been through bankruptcy and have worked with bankruptcy for decades, and it is not a place you want to visit. Bankruptcy is listed in the top five life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. I would never say that bankruptcy is as bad as losing a loved one, but it is life-altering and leaves deep wounds both to the psyche and the credit report.

Types of Bankruptcy

Chapter 7 Bankruptcy, which is total bankruptcy, stays on your credit report for10 years. Chapter 13 Bankruptcy, more like a payment plan, stays on your credit report for seven years. Bankruptcy, however, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Ever. If you lie to get a loan because your bankruptcy is very old, technically you have committed criminal fraud.

Most bankruptcy cases can be avoided with proper help, such as our certified counselors and the Total Money Makeover. Your Total Money Makeover may involve extensive amputation of stuff, which will be painful, but bankruptcy is much more painful. If you take the thoughtful step backward to get on solid ground instead of looking at the false allure of the quick fix that bankruptcy seems to offer, you will win more quickly and easily. I know from personal experience the pain of bankruptcy, foreclosure, and lawsuits. Been there, done that, got the t-shirt, and it is not worth it.