0% on purchases

0% on purchases

By: Stephanie Wendy

You see great interest free balance transfer credit cards advertised everywhere, but if you're the disciplined type who has managed to avoid building up a hefty credit card debt, these offers won't mean much to you.

But you can still use 0% on purchases offers to your advantage. Rather than going for a balance transfer card, opt for one that offers interest free shopping.

Is this the right type of card for me?

These cards are only beneficial to people free of credit card debt. If you're already carrying round a large balance, you need to work to pay it off with a low APR credit card of zero per cent balance transfer card, rather than thinking about future spending.

You need to be absolutely certain that you'll pay the full balance off by the end of the promotional period to ensure that you don't pay any interest on your spending - as this will cancel out any benefits you get from the card. If you're sure you'll pay it off in time, a 0% on purchases card can be used for large purchases just like an unsecured loan - and it can even make you money.

How can my credit card make me money?

Look for a card that offers cashback as well as 0% on purchases. That way you can earn up to around five per cent back on all your shopping without ever having to pay interest on it. A riskier way of making money from these cards is by using it for as much of your normal spending as possible - even paying your bills and mortgage if your credit limit permits.

Then put the money you would've normally used for these things into a high interest account for six months to a year, removing it only to clear your credit card just before you have to start paying interest on the balance.

Although this sounds like a simple way of making free money, it shouldn't be taken lightly. At the end of the interest free period, you're likely to be paying in excess of 17 per cent so you absolutely have to have cleared the balance before this date - 17 per cent on a balance of £5,000 will cost you £70 in interest in the first month alone.

Are there any drawbacks?

Make sure you know exactly what is meant by 0% on purchases - it might seem obvious but some banks will charge a higher rate of interest on things like gift vouchers or online gambling - which might also be exempt from the promotional offer.

Stephanie Wendy writes for CreditChoices.co.uk that offers price comparison tools and consumer guides for loans, credit cards, 0% Balance Transfers, mortgages and savings accounts.

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Debt Reduction Is the Best Way to Being Debt-Free

Debt Reduction Is the Best Way to Being Debt-Free

By: Ajeet Khurana

Debt problems do not last forever. You may be indebted today, but could soon be debt-free. But in order for you to clear your debt once and for all you have to be in it for the long haul. Debt is easy to accumulate but hard to eliminate. Be ready to make the effort to reduce your burden of debt. Some quick fix measures at debt reduction are designed as damage-control measures which try to get around the problem without eliminating it.

Ideally, you should not be looking to these quick fix measures because they only end up adding to your troubles. Of all the methods for getting rid of debt, debt reduction is the tried and tested way to go.

Of course, if you are much too deep in debt and bankruptcy is imminent, the last ditch effort to pay back your dues is through an aggressive form of debt reduction called debt settlement. What happens here is that you hire a debt settlement agency to negotiate with your creditors to reduce the amount of debt that you currently owe them.

In the meantime, you are obliged to save enough money for a bulk settlement payment. If the settlement is approved, you will receive a notice from the creditor that the debt has been settled or paid. After this, it will be left to your creditor to notify the credit bureau that you have managed to clear all the dues that you owed. Settlement is particularly appealing for creditors during times of tough financial situations for the debtor, when he is near to the point of filing bankruptcy; in which case the creditor is faced with the possibility of losing more money by getting only a trifle portion of the original.

Debt settlements are only applicable to unsecured debts such as those concerning credit cards and medical dues. Also, remember that this is an emergency measure. After this, a number of after-effects could arise and you would have to be prepared for them. This would include things like a damaged credit rating, an increase in collection calls, the possibility of lawsuits, tax obligations, and that all-too-familiar necessity of coming to a terms with your creditors.

If your situation is not as dire as the one previously mentioned, then you can get out of debt easily enough. All you need is determination, patience, and a willingness to try out the most recent of debt reduction methods: debt-snowballing or debt repayment. This mode of debt reduction tends to be especially useful when the aim is reducing debt pertaining to credit cards and the like.

In order to get your debt out of your way, first make a list of all your dues in ascending order from the smallest balance to the largest (notice that the order is not based on interest rate, but on the due amount). If it so happens that some of the debts are of a similar value, place the ones with higher rates of interest above the others. Thereafter, make an effort to pay off the minimum that you need to on all your debts.

If surplus funds are left, add this to the dues on the smallest debt, and keep focusing on completing your dues on the smallest debt until it is paid off completely. As soon as the smallest debt is off the list, do the same steps for the next ranked spot, this time adding the previous minimum payment for the cleared debt onto the funds allocated for the next.

If you adhere to this mode of debt reduction long enough, you could become debt-free in no time at all.

On a debt reduction plan, get a debt consolidation loan. We will get you a debt loan consolidation.

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Debt Consolidation: The Wise Way to Settle Debts

Debt Consolidation: The Wise Way to Settle Debts

By: Garry Marshal

These days, there are so many people who are facing bad debts. In the UK, too, the amount of debts that people incur is on the rise. One of the best ways to come out of debts is through debt consolidation. This facility helps people to merge their existing debts into one, thereby bringing down the interest rate applicable. It also facilitates easy repayment of debts as they can be settled under one account.

Debt consolidation is a viable option for those under the burden of credit card debts. The consolidation service can work in two ways for them: secured and unsecured. Since these services are available online, it becomes an easy fare to settle credit card debts. It is advisable to compare quotes as available with different lenders online. This increases your range of options and helps you find deals suitable to you. They also offer expert advice along with debt help.

Credit cards, store cards and personal loans are the most preferable means of seeking credit for the ease of transactions that they offer. However, they, at the same time, also incur huge debts upon you due to the high interest rates that they charge. Many people who are lax initially and rest easy on this slip deeper into the debt-trap. Credit card debts can be the heaviest of all, because of the rate in which they multiply. They can climb on you rapidly such that they can be extremely difficult to settle. In the end, one thing that can bail you out of this is debt consolidation loan.

If you go for secured debt consolidation loan, you secure your loan against your property which gets you loan at low interest rate. And if you go for unsecured loan, you are free of risk of repossession of property, but this costs you higher in terms of interest rates applicable. Here the choice is yours.

The author has been in the financial industry for a considerable period of time and has been assisting quite a few reputed banks and other financial institutions. Now he has his own set up and counsels people on debt related queries. He is also assisting OnlineDebtAdvice and their customers on debt related issues.

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Four Simple Tips that Guarantee you'll Get Out of Debt

Four Simple Tips that Guarantee you'll Get Out of Debt

By: Melissa Kellett

If you are having difficulties paying your bills, if you can’t meet the minimum payments on your credit cards, if you’re receiving threatening calls from debt collectors, it may be time to get yourself committed to eliminating your debt. By following this advice you’ll be able to become debt free in a short time and stay on the right track to avoid having to suffer all the above annoyances anymore. Many people go through the situation you’re experiencing now almost everyone at least once in their lives. There are many unexpected circumstances that may arise and compromise your financial position. Don’t despair, it can be overcome, it requires discipline and a bit of sacrifice but you’ll get peace of mind in return and it’s worth it.

Prepare a Budget

First of all you need to prepare a budget; you need to state your income and your expenses. This is for you to know how much money you’ll be able to destine to eliminate debt, so don’t conceal anything, be honest with yourself.

Contact your creditors

Now without exaggeration, it’s time to be honest with your creditors, tell them you’re having trouble breaking even, and agree to a new and more flexible repayment program. They won’t have a problem with extending the repayment periods and consequently lowering the monthly payments. You could even get a cut on your debt’s principal if you are good at bargaining. Remember that if you have to face bankruptcy, you won’t be the only one loosing money. Thus, the lenders will accept any reasonable offer that you make to them. Be prepared for some bargaining on their side too.

Consolidate your debt

You can also get a consolidation loan, this kind of loans are specially designed for those in your situation, with the amount of money you’ll get from this loan you’ll need to cancel all your debts, this way you’ll end up with a single monthly payment with fewer interests. Consolidation loans are not so hard to get, there are many lenders willing to approve loans for people with bad credit, no credit and even bankruptcy. So whatever your financial situation is, if you want to consolidate and get a single monthly payment, you should search for a consolidation loan lender.

Search Online

Consolidation loans are the best way to reduce your debt and get a fresh start, in order to find the best terms available, search online for loan quotes. There are sites that offer access to many lenders dealing with this kind of loans and you’ll be able to compare the terms and get a great deal. When requesting loan quotes read all the information carefully and watch the fine print closely so you don’t miss any hidden fees that can turn the loan more onerous than it seems.

Melissa Kellett is an expert loan consultant who can help you get approved for Debt Consolidation and Bad Credit Loans. Just visit http://www.speedybadcreditloans.com/ where you'll find all the information you need.

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Factors to Consider Before Getting a Mortgage in Turkey

Factors to Consider Before Getting a Mortgage in Turkey

By: Berk Akman

The Turkish residential mortgage market has grown significantly over the last few years mainly driven by falling interest rates. The "New Mortgage" law that passed in March 2007 further strengthened the legal background for both primary and secondary market triggering a sudden increase in the mortgage product variety. While there were only a few mortgage products before the new mortgage law, currently there are more than 20 different mortgage products for consumers. However, the fast growth in the market has not been absorbed by the general public. Surveys show that more than 50% of the people don’t have sufficient understanding of the new mortgage system. Moreover, most people have the perception that the new mortgage system is a miraculous system that will let them buy houses without any savings and with very low monthly payments. This article addresses some of the misconceptions and draws attention to the reality by focusing on the real costs of mortgages.

Length of Loan and Interest Rate Relation: While some banks have started to offer mortgage loans up to 30 years in Turkey since the new mortgage loan passed in March 2007, currently the mortgage rates in Turkey are too high to get a loan with loan length of longer than 10 years. The consumers would be better off with loans less than 10 years. To demonstrate the irrationality of getting a loan with a length of more than 10 years a simple comparison of monthly payments in a few cases will be sufficient. When monthly interest rate is around 1.30% for most banks, as it is in November 2007, monthly payment of only 2-year loan would be 4,877 New Turkish Lira (YTL). Extending the length of the loan to 10 years, would decrease the monthly payments to 1,650 Turkish Lira, a 82% reduction in the monthly payment. While 82% reduction in monthly payments is significant by extending the length of the loan by 8 years, a further extension in the length of the loan does not decrease the monthly payment significantly. For example, if the length of the loan is assumed to be 20 years, the monthly payment will decrease to 1,361 YTL, an additional 18% reduction from the monthly payment in one-year loan. So increasing the length of the loan an additional 10 years decreases the monthly payment by only 18% more. Even more interestingly, for 30-year loan, the monthly payment decreases to 1,313 YTL, an additional 4% reduction in the monthly payment for another extension of 10 years in the loan. Let’s note that if the interest rates were lower, the optimum point for length of loan would be more than 10 years. For example, if the monthly interest rate were 0.5%, the reduction in the monthly payments would be 87%, 35% and 16% for 10 year, 20 year and 30 year loans respectively (as opposed to 82%, 18% and 4% with 1.3% monthly interest rate). Similar length of loan comparisons can be computed with a mortgage payment vs. length of loan (i.e., mortgage vade-taksit karşılaştırma ) comparison calculator.

Cost of the loan: Interest rates, commissions and fees The most important thing consumers should do is calculating the real cost of the loan. The cost of loan includes the interest rate, expertise costs, insurance costs and most importantly, fees and commissions. While interest rates of the banks are usually available on their web pages, most banks do not choose to publicize the commissions and fees upfront. There are cases when consumers apply for mortgage and goes through all the paperwork without any clue about the fees up until the last steps. Since it is usually known that fees are overlooked by the consumers, some banks offer low interest loans with significantly higher fees, which turn out costlier than the high-interest loans. Such incidents can be avoided if the consumers search internet for the mortgage costs. Kredihavuzu.com provides comprehensive information about the mortgage costs for every bank. Effective interest rates should be calculated to compare the real costs of the loan across different mortgage products with fees included in the costs.

Early Closure Fees: Early closure fees up to 2% of the remaining loan apply to the fixed interest mortgages. Adjustable rate mortgages can be closed without any closure fees.

Expertise Expenses : Before applying for a mortgage, consumers should make sure that the real estate that they plan to buy is eligible for mortgages. Otherwise, consumers may need to pay the expertise expenses (between 250 to 600 YTL) without being able to get the loan.

Berk Akman is working for KrediHavuzu.com, Turkey's leading online mortgage services company dedicated in providing up-to-date interest rate and fee information of the lenders, various mortgage tools and products for optimal mortgage design.

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