02 Jun
Posted by Mary Sanders as Credit Cards
The group warned that spending money on credit cards that have been used for balance transfers could cost people hundreds of pounds in interest because in most cases repayments are used to clear the cheapest debt first.
As a result, repayments will not be used to clear any additional spending until the money that was transferred to the card at 0pc interest has been cleared.
The group estimates that making a purchase of just £50 on a card to which a £2,500 balance had been transferred could cost up to £106 in interest over 12 months.
From the beginning of next year, credit card companies will be required to use customers’ repayments to clear their most expensive debts first, but until then many firms are continuing to use them to pay down the cheapest ones, enabling them to make more money through interest charges.
Kevin Mountford of moneysupermarket.com said: “Despite this issue receiving a lot of publicity over the last few years, it is worrying that many credit cardholders still make the crucial error on their cards of using them for both balance transfers and purchases.
“Although many cards advertise 0pc rates for balance transfers and purchases, the majority of cards only offer short-term deals for purchases. On
In the 1800s and prior, if you stopped making payments on your debt you could be thrown into debtor’s prison. Today, this is no longer a punishable crime. However, because you agreed to a contract when you accepted the Terms and Conditions of the credit card, lenders can sue you in civil court. If that occurs, the court can rule that you must repay your debt.
The legal process a lender can take to force you to legally repay your credit card debt is called obtaining a judgment. This judgment is a legal case in which the lender shows evidence that you agreed to the terms of that credit card offer and that you used the credit card.
31 May
Posted by Shannon Reyes as Credit Cards
Credit Card Companies’ Questionable Practices
Have your credit card rates been hiked for no apparent reason? Or maybe your credit limit’s been reduced, or one of your accounts has been closed. If so, it’s possible that you were a victim of a form of profiling that in effect punished you for your prudence.
Suppose, a couple of years ago, you had responded to the recession by being less extravagant. Maybe you bought some casual clothes from the sorts of store you wouldn’t normally have frequented during better times. Perhaps you purchased a lovely antique gift from a pawn shop instead of your usual jeweler. You mig
29 May
Posted by Mark Wood as Financial Articles
Getting threatened with foreclosure is tough.
Actually being foreclosed on is tough.
Particularly when the mortgage company has foreclosed illegally.
But then to add insult to injury, you will receive a letter demanding you leave your home or you will be sued.
Remember this – if the foreclosure was wrong .
It may seem simple enough to look through the various credit card offers available and choose the one that offers the lowest APR, but times have changed. Due to the Credit CARD Act that went into effect on February 22, 2010, there are new stipulations on credit lenders regarding APR. Lenders have had to make changes to the way they do business in order to accommodate these new federal requirements while still being able to turn a profit. As a consumer, you will need to pay more attention to the details of any credit card offer before accepting it.
Read the Fine Print
As you compare credit card offers you may be lured in with promises of zero percent interest rates on balance transfers or low introductory rates.