Credit card convenience can become a problem

Posted by administrator | 24/07/12 | Tagged Credit Card Debt

Credit card convenience can become a problem
News from WATE-TV:

KNOXVILLE (WATE) – Although credit cards offer many conveniences, they can create many problems when they become hard to control.

Americans owe more than $ 800 billion in credit card debt, according to a report from Equifax. The average household has more than $ 16,000 in debt.

Certified financial planner John Fawaz presented some tips Tuesday morning on Good Morning Tennessee on what to do when credit cards become a problem.

Many people have problems paying off the debt because it compounds over time. If you have $ 10,000 in credit card bills you can expect to pay $ 10,000 in interest in just four years if you don’t pay down the principle.

Fawaz says it is sometimes possible to ask credit card companies for a lower interest rate to help you make payments. If your credit card company won’t do that for you, shop around for another company.

When debt builds up too large to handle, you may be able to lower the interest rate and spread out payments by paying off the debt through a home equity loan. The key here is to use discipline and not add more credit card debt on top of it.

Of course, the best practice to handle rising debt is to stop using your credit cards. Don’t add to the problem while you’re trying to get it under control.

John Fawaz is president of Financi…………… continues on WATE-TV

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Out of Debt Infographic: Three Stages to Get Out of Debt
News from Virtual-Strategy Magazine:

New educational infographic empowers consumers to reduce their debt

Los Angeles, CA (PRWEB) July 24, 2012

As unemployment starts to decrease and residential construction increases, people throughout the US are breathing a collective sigh of relief. But for many, the road to economic recovery is still an intangible destination, blocked by a mountain of debt that has accumulated over the last several years. Many consumers are faced with this mountain of bills and are uncertain if they will ever get back on financially solid ground. recently published a new infographic that was designed with these Americans in mind.


Titled “Dig Yourself Out of Debt”, the infographic outlines three general debt scenarios that people typically face and then provides tips to follow for each situation.

“We’ve found that many consumers are still trying to pick up the pieces after experiencing reduced or complete loss of income during the recession,” said Charles Tran, founder of, a credit card comparison and financial education website. “It can be difficult to find reliab…………… continues on Virtual-Strategy Magazine

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WATCH: How To Responsibly Use A Credit Card, From Maria Bartiromo
News from Huffington Post:

Financial expert and anchor of CNBC’s “Closing Bell” Maria Bartiromo discussed how to use a credit card responsibly when she visited me to chat on Mondays With Marlo.

If you’d like more financial knowledge and advice on how to make your money grow, check out Maria’s advice:

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    continues on Huffington Post

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Credit card settlement unlikely to help stores charge fees
News from Chicago Tribune:

NEW YORK (Reuters) – Stores may not find it easier to charge shoppers fees for paying by credit card as a result of a $ 7.25 billion class action settlement with Visa Inc. and MasterCard Inc, a problem that may delay or derail its approval, an analyst said on Monday.

The proposed settlement between retailers and the two biggest credit card companies would resolve stores’ claims that Visa and MasterCard conspired with major banks to fix swipe fees—- the amount paid to process debit and credit card payments.

In addition to a $ 6.05 billion payment and temporary $ 1.2 billion swipe-fee reduction, the deal would also allow stores to start charging so-called checkout fees to customers who pay with MasterCard or Visa credit and debit cards.

But senior Bernstein Research analyst Rod Bourgeois wrote in a July 23 report that retailers would in reality not get much help from the deal in offsetting the swipe fees by charging customers more.

“We think the settlement’s much-touted surcharging provisions (as currently written) actually have no real usefulness to merchants,” he said.

Buried in the fine print of the agreement are provisions that undercut the stated intent of the settlement, he said.

For example, if retailers force customers to pay more for using Visa and MasterCards, they essentially must charge consumers more when they…………… continues on Chicago Tribune

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