Use your time productively to become debt free.
To become debt free, you must understand your responsibility of productivity. Always approach life and work with the right attitude. Go an extra mile to take the initiative to do the things that you may consider finding someone else to do. In our society, many simply lack the initiative to put themselves to work. Don’t go through life looking for handouts. Instead, have the attitude of the ant: it works without respite and without supervision. Be a self-motivated worker! Without self-motivation, success in life would always seem out of reach.
Being debt free requires you to work industriously and to utilize your time gainfully.
Time is your tool. Time is a gift evenly distributed to all. You may be blessed with more or less gifts than others, but all of us have the same 24 hours a day. If you are blessed with more gifts, more will be expected of you. God is a provider of life and a giver of time. Be a good steward of your time. Your time is limited. Time means a lot to you. Time is a priceless commodity. You are responsible for your own time management. Time is your tool to get yourself out of debt. Time becomes an asset only if you utilize it to make money to get yourself out of debt, instead of getting yourself into deeper debt. Make good use of your time day in and day out.
You may have the problem of having not enough time, but real the problem is how you use your allotted time to achieve financial freedom.
You will never be able to reduce your debt without a plan or a road map. You must be able to access and measure your debt reduction progress. You must plan to manage your money to provide benefits for the present as well as the future. And that requires good time management.
Managing your time is managing your debt.
Stephen Lau
http://www.stephenlau.name
Thursday, July 31, 2008
Thursday, July 24, 2008
How to End the Never-ending Credit Card Debt
How long does it take to pay off a credit card debt? Does your credit card debt seem an unending nightmare?
Well, to give you some perspective: if your credit card debt is, say, $5,000 (which is a fair amount to many people), and you pay only the monthly minimum, it would take more than 25 years to pay off your credit card debt, if the APR (Annual percentage rate) is only 12.9 percent. Most credit cards charge a fixed interest rate, which is the APR divided by 12 months. That is, if your fixed interest rate is 18 percent, you will be charged 1.5 percent of the outstanding amount per month. If the APR is 21 percent for the same amount of $5,000, it would take more than 85 years to pay off your credit card debt.
So to end the never-ending credit card debt, you must know and understand the financial implications of the APR of your credit card. Obviously, the lower the APR, the lower the interest payments become.
The second consideration is that the higher the monthly payments, the sooner you will get out of the credit card debt.
The ideal situation to get you out of your credit card debt is: the lower APR combined with the higher monthly payments.
With the above in mind, here are some strategies to reduce your credit card debt:
• Go to a bank or a lending institution to get a loan with a fixed interest rate for 5 years to pay off your credit card debt. This strategy could reduce 15 to 20 years off the time it would otherwise take to pay off your credit card debt.
• If you cannot obtain a loan to pay off your credit card debt, then try to increase your monthly payments. Always pay more, if possible. This will reduce the payment period considerably - just like getting a bank loan.
• Pay off the credit card with the highest APR first. If all your credit cards have the same APR, then pay off the one with the largest balance.
• Stop using your credit cards. Stop incurring extra charges, such as over-the-credit-limit, or late payment. Don’t use them for convenience; instead, only use them for emergencies.
Go to Smart Credit Cards to choose a smart credit card that will become an asset, not a liability, to your personal finance.
Stephen Lau
Smart Money Management Resources
Well, to give you some perspective: if your credit card debt is, say, $5,000 (which is a fair amount to many people), and you pay only the monthly minimum, it would take more than 25 years to pay off your credit card debt, if the APR (Annual percentage rate) is only 12.9 percent. Most credit cards charge a fixed interest rate, which is the APR divided by 12 months. That is, if your fixed interest rate is 18 percent, you will be charged 1.5 percent of the outstanding amount per month. If the APR is 21 percent for the same amount of $5,000, it would take more than 85 years to pay off your credit card debt.
So to end the never-ending credit card debt, you must know and understand the financial implications of the APR of your credit card. Obviously, the lower the APR, the lower the interest payments become.
The second consideration is that the higher the monthly payments, the sooner you will get out of the credit card debt.
The ideal situation to get you out of your credit card debt is: the lower APR combined with the higher monthly payments.
With the above in mind, here are some strategies to reduce your credit card debt:
• Go to a bank or a lending institution to get a loan with a fixed interest rate for 5 years to pay off your credit card debt. This strategy could reduce 15 to 20 years off the time it would otherwise take to pay off your credit card debt.
• If you cannot obtain a loan to pay off your credit card debt, then try to increase your monthly payments. Always pay more, if possible. This will reduce the payment period considerably - just like getting a bank loan.
• Pay off the credit card with the highest APR first. If all your credit cards have the same APR, then pay off the one with the largest balance.
• Stop using your credit cards. Stop incurring extra charges, such as over-the-credit-limit, or late payment. Don’t use them for convenience; instead, only use them for emergencies.
Go to Smart Credit Cards to choose a smart credit card that will become an asset, not a liability, to your personal finance.
Stephen Lau
Smart Money Management Resources
Monday, July 14, 2008
Smart Credit Card Management and Good Spending Habits
Nowadays nearly everybody has one or more credit cards. Credit cards offer much convenience. Credit cards are an asset when you have good spending habits. Good spending habits mean you plan your expenses in advance, and you stick to your budget no matter what. Smart credit card management and good spending habits go hand in hand.
Pay your credit card bills on time.
Avoid unnecessary charges and fees, wherever possible.
Understand how finance charges are calculated to save your money.
Pay attention to any Notice of Change in Terms arriving with your monthly statement, and read it carefully.
Read your monthly statement carefully. Contact the card issuer immediately when you notice any discrepancy or incorrect charges.
If you pay your credit card bill by check, make sure it will not bounce, or you may be charged a returned check fee.
When you apply for a credit card, find out if the card issuer will charge a fee every time you check your balance through the customer toll free number. If there is a charge, check your balance online instead.
When you apply for a credit card, read carefully the terms and conditions that come with the offer; especially, watch out for teaser rates (extremely low introductory rates for a short period only).
If necessary, use a secured credit card to establish or rebuild your credit record.
Above all, smart credit card management requires selection of a smart credit card.
Stephen Lau
Smart Credit Smart Money
Pay your credit card bills on time.
Avoid unnecessary charges and fees, wherever possible.
Understand how finance charges are calculated to save your money.
Pay attention to any Notice of Change in Terms arriving with your monthly statement, and read it carefully.
Read your monthly statement carefully. Contact the card issuer immediately when you notice any discrepancy or incorrect charges.
If you pay your credit card bill by check, make sure it will not bounce, or you may be charged a returned check fee.
When you apply for a credit card, find out if the card issuer will charge a fee every time you check your balance through the customer toll free number. If there is a charge, check your balance online instead.
When you apply for a credit card, read carefully the terms and conditions that come with the offer; especially, watch out for teaser rates (extremely low introductory rates for a short period only).
If necessary, use a secured credit card to establish or rebuild your credit record.
Above all, smart credit card management requires selection of a smart credit card.
Stephen Lau
Smart Credit Smart Money
Tuesday, July 1, 2008
Why Do You Need Credit Cards?
Everybody needs a credit card - a smart credit card at that.
A credit card has been touted as a "never-empty wallet." Or, does it really get you into debt?
If you use your credit cards to your benefits, and if you know how to exercise your legal rights, then the use of credit cards is indeed an asset, rather than a liability.
A credit card provides you with personal safety. You need not carry a lot of cash with you, and so there is less chance of being mugged or losing your money. As for airport security, you will receive less hassle than you would otherwise if you were to pay for you plane ticket with a check or cash.
Using credit cards will make your life simpler: you need not go to the bank or an ATM to get cash whenever you need it. If you use a premium card, you can get in your monthly statement an organized summary of all your purchases, including your spending pattern.
Using your credit cards may give you freebies, such as cash or gas rebates, discount purchases, free gifts, and free airline mileage.
Ever since the introduction of credit cards before the onset of World War I, smart consumers have benefited from using their credit cards. Learn how to reap benefits from smart credit cards.
Stephen Lau
A credit card has been touted as a "never-empty wallet." Or, does it really get you into debt?
If you use your credit cards to your benefits, and if you know how to exercise your legal rights, then the use of credit cards is indeed an asset, rather than a liability.
A credit card provides you with personal safety. You need not carry a lot of cash with you, and so there is less chance of being mugged or losing your money. As for airport security, you will receive less hassle than you would otherwise if you were to pay for you plane ticket with a check or cash.
Using credit cards will make your life simpler: you need not go to the bank or an ATM to get cash whenever you need it. If you use a premium card, you can get in your monthly statement an organized summary of all your purchases, including your spending pattern.
Using your credit cards may give you freebies, such as cash or gas rebates, discount purchases, free gifts, and free airline mileage.
Ever since the introduction of credit cards before the onset of World War I, smart consumers have benefited from using their credit cards. Learn how to reap benefits from smart credit cards.
Stephen Lau
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