A Mortgage for a home for most people will be the largest debt they will incur in a lifetime. This also means that it will take the longest time to pay off and will incur the most amount of interest.
Banks and lenders will generally structure a home loan over 25 or 30 years. This makes it affordable to pay off for the “average’ person but it comes at a cost….. and that is a “lot of interest” paid to the financial institution over a person’s lifetime.
Credit cards can be a great way to purchase goods and services as it allows you to defer the payment until the credit card bill is due. Many credit card companies entice consumers with interest free periods, low introductory rates, bonus points and other rewards. However once these periods are finished these credit cards can easily turn into 30% interest rates which can double and even triple the minimum monthly payments initially required, causing you financial hardship and stress especially if you have multiple credit cards. So how do you reduce your credit card debt?
“Financial Stress” is increasingly becoming a popular term these days and not only does it occur in many homes across the nation but it often puts extreme pressure on our families and relationships without us even realizing it!
It is important for all us “borrowers” to understand the difference between Good and Bad Debt.
The reason we should borrow money is to purchase things that we cannot afford in one hit such as a House or a Car. Not smaller items such as a Television or even a computer. Also try to remember that buying goods that we don’t “need” on credit can often get us into trouble! And these are often the so-called Bad Debts.
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There will come a time in your life when you’re faced with deciding whether to borrow money. You may be a student needing some funds to pay bills or buy a car or perhaps you’re considering buying a car or a home.
Debt isn’t necessarily a bad thing as long as you stay in control of your borrowings and use them for your personal gain and not for an impulse buy.
As most of us are aware, “Bankruptcy” has been around for many years and is a method to legally declare a person “unable to pay your creditors or debts”
With recently released figures indicating that the use of credit facilities in Australia has increased, more and more people are receiving calls from their creditors regarding payments. This can be attributed to a number of factors such as recent unemployment, lack of work over holiday period or reduction in income.
We are all very “dependant” on our Credit Ratings in this day and age. Many consumers tend to borrow to fund their lifestyles and then pay it all back in instalments.
We live in the world of Credit Ratings otherwise named as Credit Scoring; everyone is rated for credit worthiness in this World, from Countries to individuals.
Due to the continual increase in household expenses and bills, it is Imperative that every household must have a budget.
With recently released figures from the Federal Reserve Bank showing a marked increase in credit card use for the month of September, even though the global financial crisis was in full tile, indicates that the majority of Australians have continued to use their cards regardless of fees and charges. This increase in spend has also resulted in an increase in payments on fees and charges. With future rates rises more likely than not, we here at Debt Negotiators have formulated an 8 tip guide to saving. These tips may seem simple but it would surprise you how few Australians actually have a savings plan and thus are using credit cards for not only major purchases but also to pay day to day bills.
With another Christmas gone and a new year having just begun, more and more people are likely to find over the coming weeks a harsh reminder of Christmas and those nasty credit card bills. With numbers showing that spending over Christmas increased to just under $40 million dollars, it is likely that some Australians are in for a rude shock with their next credit card statement arrives.