Posts Tagged ‘Credit Cards’
The use of credit cards that allow you to “fill their pockets” and increase Chile’s debt. Some experts even talk about that could mimic the financial crisis that hit U.S. consumers and that caused the sub prime crisis we all now know. But on the track with the national reality, the truth is that politicians have expressed concern about this issue.
Socialist Senator Jaime Naranjo and Carlos Ominami presented a project to curb the high debt in which they cause in Chile as the two lowest income quin tiles allocate in 2006, 67.10% of their income to pay debts.
According to the Superintendence of Banks and Financial Institutions to March 2008 total card debt amounted to U.S. $ 9,385,000, of which 6530 million related to commercial firms and U.S. $ 2,855,000 to the banking institutions.
Of this debt, approximately 24% are in arrears, which is about 2180 million dollars. Of this amount, 1885 million related to commercial firms (86.5%) and 295 million dollars to the bank plastics (13.5%).
This project aims to prohibit senators commercial house and bank and financial institutions issue credit cards and without consultation. That is, only able to provide the type of card when someone has shown a willingness to apply.
The initiative also provides credit cards to prevent minors without written permission from their parents. Meanwhile, according to the National Institute of Youth, Injure, 1.2 million young people between the year 15 and 29 are outstanding.
December is one of the months when people spend more money, and also when the greater the debt.
When not enough for the cats often use credit cards and commercial banking. The National Corporation of Consumers and Users of Chile (Conduces) calls to make responsible use of the cards in order to not acquire debt that cannot be paid in the future.
While the recommendation is to try not to use them, the truth is that few Chileans save. So Conduces indicates that in case of using the plastic money “should try to buy at the time that the card has promotions or buy a single share to 30 days.”
After the debt, Herman Ruiz Calderon, president of Conduces, remember that fees must be paid on time, because the non-compliance with the dates mean interests. It also stresses that it must be remembered that all cards have maintenance costs or administration; therefore, you should look at what cost in order to have clarity in the final installment.
In the same vein, the leader of the consumer organization said that “usually the bank cards charge less interest than retail, because they always charge a fee that is conventional maximum limit.”
Finally, Herman Calderon said that if you want to have a good holiday and save a “headache” in the coming months, “we must always be comparing the cards, know what the interest that each has” information that can be obtained the bank or trading house.
Although credit cards have many years between we, there are still people who do not know in detail the operation of them, leading them to use it improperly for its own interests, because they end up paying more than they should.
How exactly do credit cards?
Unlike debit cards, the credit is not deducted directly from the user’s account payments are made. All expenses charged to the credit card accumulate and are paid once a month-end, usually in arrears.
It is therefore a loan that the lender provides the user of the card, which obviously takes some interest, so the consumer ends up paying more than they had thought.
However, the biggest problem appears cards when making a payment over the bank account balance. Then, the interest banks charge really high, sometimes up to 20%, making a dent in the pocket of consumers who are often not aware of it, to be divided in convenient monthly payments.
Do not leave, therefore, that the convenience of payment is not possible to understand the interests that are being paid by the delay of payment.
It is not easy to control our finances. Therefore we should be able to maintain good financial habits, keep track of total spending well so we know what we are doing is correct yam. Here are some ways that we can do to overcome the financial problems:
Tips 1: bad and good habit Habit
Almost always the way to work, back in the car with a friend. I’m very protective of those I love or anyone entering the car so I demand that you please use your seat belt, accidents are accidents and you never know when, where and with whom it will. The first few months every day I had to ask my partner to put the belt, now you do unconsciously. This is a good habit, not using the belt a bad habit.
Financially the same. Bad habits can be compulsive or impulsive spending, debt, always use credit cards, do not manage the finances, etc.
So the advice here is to try to target these bad financial habits you have and try to change them. If you smoke, it probably does by habit, but when it is known that smoking is doing. Then with the money yourself, you know when you are managing or using your money in a way that can hurt you.
Try making a list or write when you see those bad habits, then keep them in a place where the display.
Fraud identity theft and fraudulent use of credit cards are rising. But while the criminals have managed to get away and find sophisticated ways to steal the identity of people, there is much you can do to protect yourself.
Here are some tips that according to the Federal Trade Commission (FTC for its acronym in English) can really help protect yourself:
- Sign your credit and debit cards as soon as you receive
- Carry your cards in a place separate from your purse or wallet in a zippered compartment or pocket in a wallet or in a purse.
- Keep in a safe place a record of your account numbers, expiration dates and card phone numbers and addresses of each company.
- When you make a purchase with your card, do not lose sight of and recover them as soon as possible.
Initially all the cards have been prepared as a means of financing purchases on credit and not the money available because it involves additional costs. Learning to use a credit card is very important, the most important principle is to distinguish between the use as a means of payment and not as a means of providing cash quickly and easily.
Withdraw cash from credit card at an ATM or bank to bring the cost of at least 4%, in some cases may be much higher. For example, if we withdraw € 500 directly should pay 20 € for a loan, not to mention the commission to perform cash register, if not the same entity as the card.
Payments vary depending on each card. In any case, delay the payment of money provisions can be very destructive and expensive. Some cards set to pay off debts in monthly installments at the end of the month, in this case the customer does not pay interest on money that is removed, but every other setting interest rates.
Other useful tips on how to make credit card purchases on credit provided they do not wear a flower on it. suggestion is to keep capital in the account and pay interest every month of purchase. In this way we use capital returns and buy on credit without paying interest.