Will consumers take on personal credit card debt to make business purchases?
News from Debtmerica Relief:

These days, more consumers are making business related purchases as part of their jobs, but fewer are doing so using their personal accounts, as many may be trying to avoid increased credit card debt.

Today, 21 percent of credit card users say they make business purchases as part of their job – up from 17 percent in October 2008 – and of that number, only 45 percent do so using personal credit cards, according to the latest Cardbeat study from the Auriemma Consulting Group. That’s down from 62 percent a few years ago.

The majority of people who use their credit cards to make business purchases do so when traveling for work, the report said. In all, 60 percent of respondents put meals or hotel accommodations on those accounts. Lenders may do more to encourage this type of spending, such as by partnering with hotel chains, because the amount is more likely to be repaid thanks to employer reimbursem…………… continues on Debtmerica Relief

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Credit card balance transfers can help you tackle debt, but be disciplined
News from Hamilton Spectator:

A credit card balance transfer can seem like a great way to tackle your debt and lower your interest rate. But there are many reasons to be cautious when playing the credit card balance transfer game.

A balance transfer is a marketing tool used by credit card companies to bring in more customers. The credit card company will agree to move your high-interest card debt to a new account with an attractive interest rate for a set period of time. This is profitable for credit card companies because many can’t pay off the debt before the transfer promotional rate expires.

How a balance transfer works

It isn’t hard to find a new credit card that offers a balance-transfer option. Many cards now offer zero per cent interest rates on balance transfers. Once you have made the transfer, you will have a certain period of time to clear the balance before the promotional period expires and your interest rate increases.

Understand the costs and penalties

There is usually a transaction fee applied to each balance transfer you make. For example, when I opened an account for an MBNA credit card, I noticed that the fine print said they charged a fee equal to 1 per cent of the balance-transfer amount. Some cards charge as much as 5 per cent. If I had wanted to transfer $ 5,000 from another card onto my MBNA credit card, I…………… continues on Hamilton Spectator

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A necessity or a danger? Why we love and hate our credit cards
News from Phys.Org:

A new University of Sydney study has revealed the full extent of Australia’s love-hate relationship with credit cards and those who use them.

While 56 percent of us feel sorry for people who get into credit card debt, more than half of us also believe that people in credit card debt have only themselves to blame.

The survey of 584 credit card users conducted by Associate Professor Paul Henry, Professor Ellen Garbarino and Dr Ranjit Voola at the University of Sydney Business School, which will be published in the Journal of Public Policy and Marketing, also found that while more than 80 percent of respondents agreed that credit card marketers should be much more tightly regulated, 52 percent thought that individual responsibility would work better than tighter regulations.

“Consumers like their credit cards, they are a necessity, but at the same time they are seen as something to be wary of,” says Professor Paul Henry, who believes the ambivalent relationship has important implications for both public policymakers and credit card marketers.

“The results indicate that we should be adhering to protective regulations more tightly, but there i…………… continues on Phys.Org

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Why you shouldn’t use your credit card to withdraw cash
News from Firstpost:

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Getting your first credit card can be exhilarating as it indicates you’ve finally ‘arrived’.  With no requirement to pay cash immediately, the tendency to swipe your card to buy almost anything can be incredibly tempting. But if you’re not careful, it can also wipe the smile off your face.

The Economic Times’ personal finance supplement, ET Wealth, has some guidelines for credit card newbies:

Stick to a budget: The conveni…………… continues on Firstpost

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