28
Feb

Benefits of Using Credit Cards

Credits are known to land many people in unnecessary debts, and for this reason, personal finance advisers discourage the use of credit cards. Nevertheless, plastic money, when used responsibly, come with numerous advantages that you should not miss.

Here are some of the benefits of using credit cards:

Provide a Safe Method to Transact

credit card are safe to useEven though debit cards are convenient, fraudsters target them because they get direct access to your account once they hack them. But without credit cards, hackers have no access to your account or your money. If you have scheduled payments, it bounces due to insufficient funds, and it will reflect on your credit report, affecting your credit score. This is regardless of whether the money went missing due to hacking. In identity theft cases, you can contact your credit card company and notify them of unauthorized use of your credit card, and you won’t have to pay for that. Since a credit card is not linked to any of your accounts, it offers you absolute security.

Allow You to Track Finances

credit card are easy to track expensesCredit card companies send a statement of your spending every month. With this, you can see how you spend your money and on what. From this, it allows you to strike out any unnecessary spending in the future. Additionally, at the end of the year, some companies send a summary of your spending throughout the year, making it easy to file your taxes and track your finances.

Offer Great Convenience

convenience using credit cardWith a credit card, you can shop, pay for bills in restaurants or gasoline anywhere, any place. They are accepted across the globe, so you need not worry when traveling for business or holidays. You are covered. This allows you complete peace of mind, especially when you are traveling, as you need not carry cash or your debit card and stand the risk of losing your money. It saves the agony of looking for an ATM to withdraw some money all the time.

Offer Bonuses and Reward Points

For every dollar you spend, you receive a point or points, which is how credit cards operate. Many credit card companies reward you with points that you can redeem for travel, restaurants, or hotels once you reach the threshold. The more you spend with your credit card, the more points you gain and the more likely bonuses you will receive when shopping for groceries, gasoline, and meals in restaurants.

7
Mar

Methods of managing debt

For the very long time, I have always believed that I had the weakest skills in matters regarding the personal finance. It is because of the agony that is currently living surrounded by debts from the corner. The worst comes when the creditor comes to demand for their nucleated debts. At this time, you need Debt Help to get out of the situation. I have witnessed personal belongings such as houses, cars, and lands auctioned at the lowest prices in the market to cater for the costs. Well, all of us do not want such scenarios to occur to us. Let us do our budgets and accommodate funds to manage the debts.

Will I Stop Debt Accumulation?

One may not even realize that they are creating a crisis for themselves when they accumulate debts. Whenever they get monies instead of clearing the debts, they think about entertaining themselves to the highest limits. It until the funds are on the verge of completion they realize the funds are not even enough to cater for their personal expenses before the next paycheck. At this time the funds borrowed keep on accruing penalties as well as the interests. Such a person living such kind of lifestyle would take the longest period of debt accumulation before they are coerced to pay since it’s not easy for them to think about making such payments.

Accumulation dollar

Why Incur Debts?

Poor debt management makes a person keen on borrowing funds from financial institutions and individuals so as to finance their lifestyles. The worst decisions that human beings make regarding debt management is the idea of borrowing funds for personal expenses. It is the worst decision that an individual of sound mind can ever make. People borrow to finance their business activities. Well, such is a welcome because the borrower will make funds from other people funds. However, if an individual has poor financial discipline 50% of the fund’s borrower will be utilized in the indented projects while rest misused.

Managing debts

We don’t want our valuable belongings auctioned by the financial institutions and repeated visits by bankers demanding we clear our debts. Right? We can always make personal budgets regarding our expenditures and the net incomes received for a period. After that, we need to prioritize on what is important and what can wait. Personal budgets aid in making decisions regarding whether we are capable of meeting our expenses.

Managing debts

The debts expenses should always be listed among top three priorities. Otherwise, it would not be possible to make the payments. One can also clear that debts through disposing of items not used in the house and the proceeds used to pay the debts.The best thing about debt clearance they enable one build their creditworthiness. It also enables one to live a peaceful life without the fear that their equipment may be auctioned they do not pay their dues.