Low Interest Credit Cards

For the average American, it is often difficult to accumulate sizable credit card rewards in a timely manner. Spending enough to get a free airline ticket may take you a couple years. However if you’re a business and you funnel your purchases through a card, we all know how easy it is to rake up big rewards. The government is the biggest “business” out there, so who’s getting those credit card rewards? Or even if a credit card is not being used, who’s being awarded the frequent flyer miles on those purchases?

Is A Recent CNN Article Evidence of Fraud?
CNN recently ran an article titled World Is Small For Mileage Millionaires. It’s an article about – you guessed it – those whom rake up millions in frequent flyer miles and how they do so. While readi

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Raise your hand if you use a charge card. OK. Put your hand down if you are over 30. I see. There are no hands up. Well, at least that’s what I’m guessing.

American Express is hoping I’m wrong, though. Its new Zync card, unveiled Dec. 8, is a charge card targeted at 20-somethings. The company hopes to lure a younger demographic to a type of payment card dominated by older cardholders by offering a lower annual fee and customizable point offerings.

A charge card, for those who don’t know, is a special piece of plastic that requires the user to pay the balance in full each month. That means no dodging your debt; you gotta pay up every month. This is generally viewed as a good thing because you avoid charges, but still have the convenience of deferring some money when you have to.

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A number of visitors have been justifiably angry at Chase for raising their monthly minimum payment requirements on fixed for life balances from 2% of the balance owed to 5% of the balance owed.  For many, the new payment required is mortgage sized and, in some cases, more than $1,000 a month.

Most of the consumers who have left comments on the matter have had no luck dealing with customer service.  However, the post below is from a visitor who was able to negotiate a lower monthly payment, although he was forced to accept a substantial interest rate increase.  Here is his story:

“Like many others, a week ago I got the rude surprise that Chase was raising the payment on my two cards from 2% to 5% of the balance. I had earlier transferred high interest cards to these life-of-the-loan 4.99% offers. I always paid on time–in fact, electronically a week prior to the due date to be sure I retained the excellent rate. I also paid above the minimums. With t

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Consumers are turning to debit cards over credit cards this holiday season. According to the National Retail Federation’s 2009 study on Holiday Consumer Intentions and Actions, consumer debit card use is up and it’s growing steadily.  42.5% of shoppers will pay mostly by debit card or check card this holiday shopping season. That’s up 2.5% from 2008. Other findings saw credit card use drop 10% from this time last year; just over 28% plan to use credit cards compared to 31.5% in 2008. As the banks continue to raise credit card fees and rates, the debit card seems to be the more attractive choice for consumers.  However, it could be a case of jumping out of the frying pan into the fire if the consumer ignores the fine print.

How Debit Cards Work

Debit cards look like traditional credit cards with the MasterCard, Visa, or bank logo embossed across the cards, but rather than borrowing from a bank, debit cards are directly linked to the user’s bank account. There are n

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Before you reach the precipice and you feel your debts are about to create a financial avalanche, start managing a plan to pay off credit card debt. Before starting any credit card reduction program, identify areas where you can cut down your expenses, including fancy lunches on your Visa or spontaneous shopping sprees with your AmEx. Paying beyond the minimum due on a credit card is the second step in paying down credit card debt. But which credit card do you pay off first?

The Debt Snowball

Personal finance author and radio personality Dave Ramsey proposes that consumers can pay down their debt by paying off the credit cards with the smallest balances first, and bravely work up to the larger balances. For example, a family might have cut back on expenses to find an extra $300 per month they can apply to paying down credit card debt.

If they take that $300 and put it towards their Discover card, which has a balance of $900, they can pay off that card in three months.

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