Money Talks

Credit card debt is really a menace and a lot of people are grappling with it, all around the globe. Credit card debt consolidation and debt consolidation bank loans are well known as ways of reducing and eliminating credit card debt. In all this confusion, credit card debt negotiation is often ignored.

Credit card debt negotiation starts right from your credit cards where you have the most hard-hitting credit card debt. This means credit card debt negotiation has to be taken up with your current credit providers.

Before you misinterpret it, let me clarify that we are not talking about chucking off a portion of your debt through credit card debt negotiation. We are talking primarily about using credit card debt negotiations for getting the APR on your current credit cards reduced to a lower figure. So, credit card debt negotiation is about talking to your current credit card suppliers for informing them about your intention to clear off your credit card debt, and then using your skills (credit card debt negotiation skills) to agree a lower APR rate with them.

Basically, credit card debt negotiation is about asking your current credit card suppliers for co-operation in clearing off your credit card debt. If credit card debt negotiation is successful, it will save money (due to reduction in APR) but it will also save you the hassle that is associated with looking for a new credit card to transfer balances, or finding a bank loan to pay off the cards.

If the credit card debt negotiation with your current credit card supplier doesn’t yield the desired results, you will still have to look for other credit suppliers who can help you in consolidating your credit card debt. Again, you will need your negotiation skills (again, your credit card debt negotiation skills) to get a good deal from them. Alternatively, move away from credit card suppliers, and take out a bank loan instead.

If your credit card debt negotiations work out well, you might be able to get a really low standard APR or you might get a longer than standard term on 0% APR (or you might get both). Interest rates are really the most important things and your credit card debt negotiations should concentrate more on lowering rates and extending “honeymoon” periods than anything else.

A secondary thing to include in your credit card debt negotiation would be the credit limit and other benefits. Here, you are basically trying out the possibility of getting a better credit card as part of your credit card debt negotiation. For people with really bad credit rating, getting an unsecured bank loan or getting another credit card (for balance transfer) is really difficult. In some cases, refinancing a mortgage is the only available option for credit card debt consolidation.

So, in summary, don’t hesitate in going for credit card debt negotiation. You can gain some tidy benefits and improve your financial position, simply by “using your words” and asking what deals are available.

Image: KM

‘Credit card debt consolidation’ is a phrase that you will have come across often. There are hundreds of websites with advice on credit card debt consolidation. Every now and then your local newspaper will also contain an article or advice on credit card debt consolidation. TV programs host discussions on credit card debt consolidation.
In addition, there are numerous consultants and companies which provide professional advice on credit card debt consolidation. So what is this “Credit card debt consolidation” that everyone is talking about? Why is it such an important topic?

“Credit card debt consolidation” refers to consolidation of the debt on various credit cards into a single credit card (or a couple of credit cards), or possibly a bank loan. Generally, you move from a higher APR (interest rate) credit card to a lower APR one. You might ask ‘why?’

If you look into how the vicious circle of credit card debt works, you will immediately understand the logic behind credit card debt consolidation. Credit card debt grows in two ways - due to addition of new debt on account of fresh spending on your credit card, and due to addition of interest charges to the existing credit card debt. The first type of increase is due to your use of credit card, but the second one is due to interest charges which are calculated on the basis of the interest rate or the APR applicable to your credit card.

A lower APR rate means that your credit card debt will grow at a slower pace and hence switching over to a card with lower APR makes perfect sense. You always want to be paying the lowest possible interest rate.

The process of credit card debt consolidation can be referred to as a balance transfer process (you transfer the balance or debt from one credit card to another). Credit card issuers make the credit card debt consolidation balance transfer offers even more attractive by associating various benefits with them. The simple logic behind offering these benefits is the fact that such a customer would be defecting from one of their competitors.

The biggest benefit offered by these credit card suppliers is 0% interest on balance transfers (or credit card debt consolidation). This 0% APR is generally applicable for a short period of time i.e. 3-6 months, after which the standard APR is applicable. Other credit card debt consolidation offers include things like interest free purchase for a short period, reward points, etc. These credit card debt consolidation offers make the exercise of credit card debt consolidation even more logical and meaningful.

Of course, to really get on top of credit card debt, you need to get rid of credit cards altogether. This means doing your credit card debt consolidation via bank loan, rather than another credit card, and it also means cutting up those plastic debt traps and resolving never to use them again.

Credit card debt consolidation seemsto be a good way of tackling the problem of credit card debt and that is the reason why there is so much of discussion on the topic of credit card debt consolidation.

Gift credit cards can be useful and much-appreciated gifts, but it is important to understand what they are and how they work, and to check the terms and conditions of your particular gift credit card. . . .

Gift credit cards can be useful and much-appreciated gifts, but it is important to understand what they are and how they work, and to check the terms and conditions of your particular gift credit card. . . .

Gift Credit Cards - Read the Fine Print: Gift credit cards can be very useful, and can make great gifts. Like an other financial product, gift credit cards have benefits, risks, and costs associated with them. Terms and conditions can vary…

Gift credit cards are actually not credit cards in the traditional sense of the word. A holder of a traditional credit card makes purchases on credit, and pays the bill later, when it falls due. A gift credit card is a stored value card, or debit card. A certain amount of money is deposited into the gift credit card by the purchaser at the time the gift credit card is issued, and only that amount of money may be spent using the gift credit card.

If you think about the old-fashioned paper gift certificate still issued by many major retailers, you will have a more accurate notion of the nature of a gift credit card than if you think about credit cards in general.

Some issuers limit gift credit cards to use within the USA. Others will not allow gift credit cards to be used for certain purchases, such as air tickets or hotels. American Express will not issue gift credit cards to the residents of five US states, because, according to American Express, "restrictive legislation" makes it prohibitively expensive to do so.

Check your gift credit card terms and conditions to understand the fees payable. In most cases, it is a costly mistake to keep a balance on your gift credit card for more than a few months. Most providers have expiry dates on their gift credit cards, or start charging relatively costly monthly fees after a particular time period has passed. In some cases, the balance on the gift credit card at the expiry date is simply lost. In other cases, the gift credit card issuer will send you balance by check - less an account closing fee and a check drawing fee which can add up to $30 or thereabouts, and often consume the balance completely anyway.

If you have chosen the right gift credit card, you will be able to give a gift which is as flexible as cash, but as personalised as a gift certificate. If you have received a gift credit card, you have no choice about the issuer, so make sure you read the fine print, so you can avoid any unwanted fees or complications.

Visit Money Talks to find the Top 10 Things To Ask Your Gift Credit Card Issuer.

Gift Credit Cards: A gift credit card sounds like a lovely idea, but read the fine print before buying or using a gift credit card. There are benefits of gift credit cards, and problems with gift credit cards, and the…

A gift credit card sounds like a lovely idea, but read the fine print before buying or using a gift credit card. There are benefits of gift credit cards, and problems with gift credit cards, and the difference is all in the terms and conditions.

Blog traffic - without it, the whole exercise of blogging becomes somewhat self-indulgent and pointless, doesn't it? Whether you are blogging to make money online, or just to reach a wider audience with your...