|
|
How can credit card companies offer zero APR credit cards and still make money? Well, now that interest rates have gone up they don’t so much anymore. But zero APR cards are can still be found if you look, and the Internet is probably the best source. So what’s the catch? There are several:
- Most zero APR credit cards offer zero APR for a limited time, normally no more than a year
Carefully read the fine print to find out exactly how much interest you’ll be paying later. Some people try to transfer their entire credit card balance to a new zero APR card every year in order to extend their “limited time offer” indefinitely, but credit card companies are getting wise to this maneuver. Nevertheless, getting a zero APR credit card can be a smart move as long if you read the contract and follow the rules.
- There is usually a an annual fee.
$20 is no problem, but beware triple-digit fees just to get zero APR for 12 months.
- Zero APR card issuers make money from suckers.
So don’t be one. Late fees are high, so pay on time. How much of an interest rate is zero APR plus a late fee of $25? You can do the math yourself. The card issuer might also jack up the rate for late payers (they call it a “default interest rate”). And a default interest rate may apply not only to existing balances but future charges as well.
Zero APR credit cards can be great value if there is a reasonable interest rate after the limited offer period ends and as if you pay all your card bills as they come due. If you do that, then your low interest rate will in effect be paid for by the suckers who snatch up these cards and then don’t pay on time.
When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.
Cash Method
If you are looking for simplicity, the cash method is probably your best accounting choice. Generally, income and deductions can be claimed when payment is actually received or made. This is best shown with an example.
I open a small business and have to order business cards and stationary. I receive the products and pay the invoice on November 18, 2005. Under the cash method, I can deduct the cost on my 2005 tax return.
Some businesses are restricted from using the cash method. C corporations may only use the cash method if they have less than $5 million in gross revenues for a particular year. Professional Service Corporations can use the cash method without limit, while farming corporations can due so if gross revenues are less than $25 million. Tax shelters are prohibited from using the cash method.
Accrual Method
The Accrual Method of accounting is a bit more complex. Under this method, the focus in on the date the expense is incurred, not paid. Although this may seem a small difference, it can play havoc with your books and piece of mind.
Using our previous example, assume I order business cards and stationary on the December 18, 2005. I receive the products on December 30th, but don’t pay the invoice until January 20, 2006. When can the expense be claimed? It depends on when economic performance occurred.
Generally, economic performance occurs when goods or services are provided to you. In the above example, economic performance would arguably occur when the business cards and stationary were delivered with the invoice on December 30th. Thus, I would be able to deduct the expense for the 2005 tax year.
In Closing
As you can see, the cash method is the easier of the two accounting methods. To determine the best method for your business, speak with a tax professional.
Much has been written about the virtues and dangers of active stock market trading, or “market timing.”
Most of the pundits and so called “experts” will tell you that stock market timing doesn’t work, that it’s dangerous, and that “buy and hold” is the best and only way to invest.
But this conventional wisdom is patently untrue. Here are the facts based on my research and extensive real time experience.
If you want to be a successful stock market timer, you need three key elements:
1. A system that actually works.
2. Discipline to follow the system.
3. Patience to stick with the system long enough to make it work for you.
And it’s tough to do all three.
Here’s why:
Most market timing systems don’t work. Or don’t work consistently enough to be valid. Some will work in trending markets but get slaughtered during flat times. Most systems don’t work in all markets.
Investors lack the discipline to follow a proven system. Once an investor finds a viable program, he or she needs the discipline to follow it. Sadly, some either can’t or won’t do that. When they let their own judgment or intuitions interfere, they don’t get the results they want or could have enjoyed by simply following the buy and sell signals they receive.
Investors lack the patience to stick with their system. Many investors are constantly in search of the Holy Grail, a program that never loses a trade. The fact is, no method will win every trade, and investors without patience will find themselves hopping from advisor to advisor with no rewards to show for their efforts.
However, there are a number of proven systems available that recognize these pitfalls and successfully time the market to massive profits year after year. Anything you hear or read to the contrary is simply not true. Wall Street has a vested interest in opposing stock market timing because it is a threat to their very existence.
Investors have two choices. They can pursue the conventional wisdom of buy and hold and hope for the best, or the modern investor can educate himself and find a timing system with which he is comfortable to protect and grow his wealth. There are a number of proven options available, but the absolute worst thing one can do is listen to the pundits who tell you that “stock market timing” doesn’t work.
In today’s economic situation, almost all items and services are getting more and more expensive everyday. This is why people go to any lengths just to save money. Some people try to save money by purchasing cheaper goods and some try to save on utility expenses, like electricity, gas, and water.
Credit cards are one of the most popular ways to purchase goods and services. It can even be used to pay for your utility bills. With a credit card, you don’t have to carry a lot of cash in your wallet to purchase the things you need in your everyday life. With a single swipe of the credit card, you automatically purchase the items you need.
However, credit cards also have its disadvantages. With a credit card, people tend to lose control in spending their money. People tend to spend more than they can afford. This is why credit cards are only recommended for people who know how to manage their money.
But, more and more people today are applying for a credit card as a way to purchase the items they need even if they still don’t have the cash for it.
There are available banks and lending companies that offer 0 percent APR credit cards. You now wonder what 0% APR credit cards are and what it can do to benefit you.
APR or Annual Percentage Rate is used by credit card companies to calculate the total cost of borrowing. The APR is used by credit card companies to make it easier for them to compare loan options and also to compare lenders.
Today, there are a lot of credit card companies that offer 0% APR on their credit cards. So, you now ask, “What’s in it for me?” Since the APR determines how much you have to pay on interest, a no interest credit is obviously the best. A credit card with 0% APR means that you don’t have to pay for interest, you only have to pay the amount you borrowed with no additional fees.
For you or someone who is looking for a way to save money on credit cards, this offer can be very attractive and you would try and apply for it immediately after the bank offers this kind of credit card to you. However, before you make any decisions, you have to consider a few things first.
First of all, 0% APR credit cards are only available on a limited time only. Sometimes, these offers last for only 6 months to a year. People who are unaware of these things tend to pay more than they have to because of not considering that this offer is only introductory and they find themselves using the credit card way past the introductory period.
For this, you have to find out how long the 0% APR promo will last and also how much the interest rate will be after the introductory period expires. There are times that interest rates can go from 0 to 20% in a single billing period.
0% APR credit cards are great for making balance transfers. A balance transfer is what people do to carry out payments from one card to another. It is a great way to pay off your debt from another credit card. For example, if you have a remaining balance from one credit card with 20% monthly interest rate, you can manage this debt more effectively by transferring it to a card that has 0% interest. This means that you will pay off the debt instead of paying off the interest rate.
Before you do this, however, you need to make sure that you can pay off the debt during the 0% introductory period. Always remember that interest rate can really go up after the 0% interest rate introductory period expires.
Over the past two years, the Federal Reserve has raised interest rates substantially. Consequently, credit card annual percentage rates have followed suit. Nearly all credit cards tie their interest rates to the prime rate, which has doubled to 8% from 4% during the string of rate hikes that began in 2004. This has led to interest rates on credit cards rising by 30% or more. Since August of 2006, the Federal Reserve has kept interest rates steady, and many economists believe the next move may be a reduction in rates. However, the rate reductions have yet to begin, and credit card interest rates remain relatively high.
For those who carry balances on their credit cards, high interest rates have resulted in higher monthly bills, with many seeing their minimum payment increase substantially. Fortunately, now, more than in recent years, 0% credit cards offer a safe harbor from high rates. There are two basic types of 0% credit cards: those that offer a 0% rate on balance transfers, and those that offer a 0% on purchases. The best credit cards offer 0% interest on both. How much savings can these credit cards provide? Let’s take a look at the math.
Let’s assume you’re carrying a balance of $10,000. If you simply pay the minimum each month, you will accrue close to $2000 in interest over the course of a year, thanks to daily compounding balances (too bad savings accounts don’t pay that type of interest). With a 0% balance transfer, you can expect to save all of that money, plus, you’ll be given time to pay down that debt. When the 0% period expires, not only is there a chance your interest rate will be lower, but, if rates do not go down, you can always transfer the balance to another 0% credit card. Plus, if you make a minimum payment of $150 a month, your balance at the end of the year will be closer to $8200, rather than $12,000. That’s quite a difference.
Now, if you’re fortunate enough to have no credit card debt, a 0% interest rate can be handy tool to avoid interest expenses on new purchases and free up some cash in the short term. Need a new fridge? Have to fix your car? Want granite counters for the kitchen? With a 0% credit card, you can defer the cost of these expenses for a year while taking advantage of high interest rates. How? By placing the cash that would have left your bank account into a high-yield savings account and taking advantage of rewards credit cards.
Let’s assume you will make $10,000 of purchases over the next few months. Using a credit card with a 0% interest rate and 1% cashback rewards, coupled with a high-yield savings account with a 4% interest rate can put about $500 extra in your pocket over the course of the year.
Of course, not everyone pays their balance in full each month. With average credit card interest rates in the 12% to 15% range, carrying a monthly balance of only $1000 can cost close to $150 a year. Saving $150 in interest charges may not be a fortune, but its surely enough to buy a nice dinner with a good bottle of wine.
No matter how you use your credit card, a 0% interest credit card can have a positive effect on both short and long term cash flows. Given that the alternative is paying more than 12% in interest, choosing a 0% credit card in this atmosphere of high interest rates is a no-brainer.
Credit cards are one of the most useful tools in today’s world. With a credit card, you can purchase anything you want without actually carrying any money at all. A credit card works like a loan. Once you purchased an item using your credit card, you will automatically agree to pay the loan once the billing statement arrives.
However, aside from the fact that credit cards can offer you a lot of advantages, you should be aware that credit cards also have some disadvantages. People who own credit cards tend to uncontrollably purchase items they don’t really need. Besides, with a credit card, you can really purchase a lot of things without having any money at all. With this feature, people tend to purchase items more than they can afford.
With this kind of spending, many people get into credit card debt that will seem very hard to pay off. Every month that you don’t pay the bill on time, you will see that the interest rate will rise and you will eventually end up paying more for the interest rate rather than the debt.
One way to pay off your credit card debt is through 0% APR credit cards. This kind of credit card started out as a marketing gimmick in the US. But today, it is now considered as part of the credit card industry. 0% APR credit card plays a very important role to help people get out of debt or at least reduce it.
First of all, you need to know what a 0% APR credit card is. APR is short for Annual Percentage Rate. APR is a reflection of the cost of credit. Therefore, a low or 0% APR is better than standard APR that you will usually see in credit cards today.
0% APR credit cards are very useful if you know how to handle it. This kind of credit card is usually used by people who want to reduce or end their credit card debt, if you have a credit card debt that seems hard or impossible to pay off. For example, if you are 10,000 dollars in debt and you have an APR of 20%, you will end up paying 2,000 dollars in interest payments. With a 0% APR credit card, you can use those 2,000 dollars to reduce your credit card debt instead of paying it for the interest alone.
Now that you see the benefits of a 0% APR credit card, it will truly be wise if you transfer you credit card balance to this kind of credit card. Once you transfer it, you can pay off your debt much more easily.
However, you should keep in mind that a 0% APR credit card is usually only an introductory offer by credit card companies to attract new cardholders. Usually, the 0% APR offer will only last for a minimum of six months to a maximum of one year, depending on the introductory offer.
You should choose a 0% APR credit card that offers a longer introductory period for you to be able to pay off your debt effectively. Also, you should keep in mind that you should keep an eye on the expiration date of the introductory offer in order to avoid a high APR after the 0% APR introductory offer is over.
These are the benefits and the things you should remember when getting a 0% APR credit card.
With the plethora of credit card options available today, you can use plastic to pay off debt and save money. Using a credit card to get rid of debt, rather than rack it up, may sound strange. But it is possible with 0% APR credit cards. All of the major credit card companies offer 0% APR credit cards. They are a great way to save hundreds, even thousands, of dollars on interest. If you use them wisely, 0% APR credit cards will help you get one step ahead in the credit card world.
What 0% APR Credit Cards Are
APR stands for the annual percentage rate on your credit card. When credit card companies advertise 0% APR, they are giving you the chance to carry a balance on your card and not pay interest on it. The timeframe for this 0% APR is usually between six months and a year.
Some credit cards only include 0% APR on new purchases. Others offer the 0% interest rate for purchases and balance transfers. With the balance transfer option, you can shift the amount that you owe on a card with a high interest rate to the 0% APR credit card. If you pay off the balance within the introductory period, you will avoid paying high fees in interest.
The savings you’ll receive from a 0% APR credit card can add up fast. Let’s say you carry a balance of $2,000 on a credit card for a full year. If the interest rate is 20%, you will have to pay $400 in interest. This would not be the case with a 0% APR credit card. If the 0% introductory period is twelve months, you will avoid paying $400 in interest. That’s a significant savings!
Read the Fine Print
While 0% APR credit cards offer a great way to pay off debts and save on interest, it is important to understand the details involved. Some companies issue the introductory period based on your credit score. If you have good to excellent credit, you will receive a longer introductory period than if you do not have outstanding credit. Keep in mind, however, that there will still be an end to the introductory period.
This is why it is also essential to look into the “go to” rate. This refers to the APR that will go into effect after the 0% APR introductory offer. This “go to” rate is often higher than other credit card offers. If you check into this before applying for a 0% APR credit card, you will know what is in store for you after the initial grace period.
There are sometimes additional fees involved with 0% APR credit cards. They may charge a certain amount to transfer balances on to the card. Also, the interest rate may be raised if you miss a payment. Some 0% APR credit cards are only available to those with good credit. If you have poor credit, you may be better off with a different credit card.
If you want to pay off some debt or make a large purchase, it is time to look into a 0% APR credit card. You can use the introductory period to pay off balances. Then take the money you’ll save on interest expense and use it for other purchases. Apply today for a 0% APR credit card and start saving.
Credit card debt is widespread amongst the average American household and seeking ways of consolidating debt usually means utilizing the equity in ones home or seeking a personal loan to service the credit card payments. Using the equity in your home to apply for an equity home loan and directing the funds towards debt management is an excellent method for getting your house in order in regards to your finances.
A personal loan without collateral may sound inviting but rest assured any financial institution or broker is going to want a higher return for the added risk. Using the equity in ones home has become a popular form of liquidity to finance and consolidate existing credit card debt, however not without its risks. Be sure you read the fine print & beware of the risks of defaulting on any repayments when using the equity in your home for a equity home loan as you could end up losing your family home to your creditors should you fail to meet the repayments!!!
Consolidating debt for some means digging into their 401K for immediate relief to the detriment of their future well being. Immediate relief from credit card debt and the high fees and interest associated with such debts is a huge incentive for some to look for the 401K alternative. The compromise to such action is that you are forgoing future savings and security for immediate relief, but if the timing is right and you are confident of repaying the loan it certainly is a viable proposition. It is a very appealing short term debt solution which has its benefits as well as draw backs.
It is always wise to stack the advantages against the disadvantages in anything dealing with your finances and when formulating a wise debt management strategy. Any unforeseen event which can disrupt your repayment schedule could mean penalties due in the form of tax installments or the fulfillment of the principal on the borrowed loan.
Tax perks when saving with a 401K account are reduced when borrowing off your retirement, as you are reimbursing the account with after-tax dollars.
Be sure to negotiate a better interest rate on any repayments with any loan whether it be a personal or a home equity loan. The higher the interest rates, the higher the repayments, the less disposable income that is left for savings or other pleasures of life so ensure you manage your credit card debts first as they carry the highest interest rates of any form of credit.
The rate you are able to negotiate your interest will be fixed for the duration of your personal loan and you will be required to make monthly installments to service the loan which will be at a rate much lower than any credit card debt you are carrying. Undisciplined habits of making late and overdue credit card payments tends to incur extremely high fees and even higher interest rates which can become a major problem to most budgets.
A savings account allows you the luxury of redirecting resources to areas of debt which have the potential to erode ones worth very quickly if left unchecked!!! When you compare the interest rate you earn on a savings account and the cost of credit card debt it makes little sense not redirecting funds from you savings account towards servicing debts elsewhere??? Be smart and service your credit card debt before setting up any high yield savings account, you will be thankful you did in the long run.
When it comes to 0% APR credit cards, you may be wondering how you can take full advantage of these offers. There are many f them out there, actually. The ability to offer this service is usually something of a ploy though. To get you into their card products, card issuers may offer 0% APR abilities as an introductory. Yet, even if this is only an introductory offer, you can still find these benefits to be rather rewarding. If you take a few minute to consider what is out there, you may see that you qualify and can benefit from these 0 interest credit cards.
What Are They?
The first thing for you to do is to understand what 0% APR credit cards actually are. Having this card will allow you to use credit without any interest accumulating on the amount that you have borrowed. Any fees including annual fees will still apply, but this amount of money is not something that you have to worry about having a 25% interest rate charge on top of, at least, not at first.
The 0% APR credit card is offered strictly as an introductory rate. It is never offered for the life of the card or even for an extended amount of time beyond say, 12 months. You will most certainly have this 0% interest for just a limited time. Sometimes it is just a few months, other times it can be as long 15 months for some of the longer, extended introductory APR offers. The goal that you should have is to take full advantage of this offer within the timeframe of the introductory offer and consider how it can benefit you.
Your Benefits
First off, you should look very closely at the particulars of each 0% APR credit cards offer that you are considering. Ask yourself the following questions:
* How long does the card offer keep this introductory rate?
* What is the ongoing APR after that introductory period is over?
* Is this an APR that you can live with, especially if you are a cardholder that tends to carry large card balances?
* Are there other fees that you should take into consideration, such as an annual fee?
* How well does this compare to your current credit cards?
* How well does it compare overall to the other offers you are considering?
Since all credit card offers are a bit different, make sure you read the details before you just accept any offer out there.
Your benefits come in when you can take what is being offered to you, in this case a 0% APR credit card, and use it to your advantage to save money, and in some instances, a lot of money. Let’s say that you currently have a credit card that you have a 25% APR on, which is considered anything but cheap. Now, you are looking to find a way to lower the amount but the lender won’t offer a drop in the APR (you should always call and ask for your current lender to lower your APR!) One thing that you should also do is determine if your 0% APR credit card offer applies to purchase, balance transfers or both. If the introductory rate only applies to balance transfers, you should move your outstanding balances to the new account, and ultimately pay it off before the introductory period ends. If the introductory APR applies only to new purchases, you should use this new card
strictly for all new purchases while continuing to pay down the balances on your higher APR cards. And if the 0% introductory APR applies to both purchases and balance transfers, you should centralize all of your card activity around this card for the entirety of the introductory period.
The key to any of these credit card strategies is an aggressive card balance repayment plan that minimizes the compounding effect of high APR finance charges. If you let your card balances continue to roll over, you are likely to end up paying just as much, if not much more, on the credit card anyway. Yet, those six months or more of no interest can be a true blessing to those that pay down their balances aggressively within the timeframe of the introductory period.
‘When Poverty enters from the front door of a house, the Love runs away from the back door’. That is a saying from the past and is equally true in the modern times too. And to safe-guard love at home, as home is where the heart is, we should not leave the door open for the ruinous poverty to slide in, even a little bit. The poverty, the destroyer of love spells doom.
We have seen at least a glimpse of poverty at certain stages in life. Haven’t we?
We see the dreadful shadow of poverty when we loose a job, get laid off even temporally, suffers a heavy financial loss, find unable to make ends meet, encounter deficiencies of income, fall in to heavy debt etc. At such a time a nice house-hold would appear a hell-on -earth to one who is under the shade of poverty.
What causes poverty? Is it ‘the stars and stars above us that that governs our fate’, or is it our own negative thought patterns or is the poverty the result of bad luck. Let us analyze.
As believed from earliest times, if it is the fate that causes poverty, then it can be overcome with determined endeavor as we can see many examples of people who were in utter poverty but with courageous attempts were able to overcome it and build vast fortunes for themselves and generations to follow, Walt Disney’s story is one good example. The world abounds with poof that the fate can be over come with consistent purpose-focused-efforts. The secret is the rubber ball principle. That is a rubber ball bounces back when it is dropped down. Greater its fall higher it bounces. The life too has its falls. The falls are the failures in life. Every time you fall, if you bounce back like the rubber ball, then your failures will support you to bounce back to success. When continued with an unruffled determination you will go on falling and bouncing higher and higher to reach your focused level of attainment.
If it is not the fate but it is ones own negative thought-patterns that slip one in to a poverty situation (as present day theorists believes), then too the poverty can be overcome. The negative thoughts can be replaced with positive thoughts with focused efforts to leave no room in the mind for negative thought patterns to dominate. Once the mind is built up with positive thoughts the pin-point focus should be on reaching your life’s purpose. Then the positive thoughts will give enough power to one to energetically spring up to a high level of prosperity overcoming setbacks at poverty levels. This in other words is putting ‘Think and believe everything is Possible’ in to practice.
If for instance, it is nothing else but one’s bad luck that brings misfortune that leads one to poverty, as many people think, and then too it can be overcome. There is a saying that goes on like this… “Luck is nothing else, but the end product of Pluck.” Yes, ‘Pluck’ means courage.
And with undeterred courage (that can even move mountains) poverty can be moved out of sight. Therefore, we need not worry even if the poverty situation resulted due to bad luck.
As you see what ever the causes of poverty may be, what we need to avoid poverty is focused, unwavering, resolute, dogged courage. With courage you also need cast-iron focus at a vision, a definite goal set high above the poverty level. Importantly, it has to be at a higher level of prosperity well above the reach of poverty. Thus, a goal at super Prosperity level should be the focus. That is a level that ensures Financial Freedom. It will be a level of effortless wealth generations to fulfill your and your loved ones dreams and fill your home with love.
Today more and more people from poverty levels with nothing reach prosperity level than any other time in history. Find out what secrets they use reach such heights in Prosperity by defeating Poverty. What ideas, what proven methods are available today for you to do the same. You can know more about ideas and secrets of wealth generation and on proven methods used by some people to climb from lowest poverty levels to super prosperity levels at my website: http://www.chanano.com
Copyright © Chandrasoma Perera
|
|
