• Debt Settlement
• Debt Consolidation
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• Credit Cards
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• The Debt Settlement Process
• Debt Related Definitions

Should You Apply for that Credit Card

Since its introduction a few short decades ago, the humble credit card has changed the face personal money management. Ideally the only type of individual that really benefits form a credit card is a wealthy person who least needs it. No longer only in the province of the wealthy, almost everyone is eligible for a credit card nowadays.

It is a simple concept really; each person has an ongoing loan with money available up to a preset amount which enables the card holder to purchase goods within that limit. Each month, the owner of the card can decide to pay an installment off the balance plus any interest or repay the owed amount in full. Usually, credit card payments per month range from the minimum amount set by the bank to entire outstanding balance. It is up to the card holder whether he wants to pay over a longer period or not but if he does decide on this option then he will be paying for far longer and eve a small balance will cost considerably more to clear.

Since having a credit card is a responsibility, only those people who are of legal age and have the capability to pay off the amount they are going to spend through their credit card, is allowed to have one. It has become the accepted way of purchasing goods for most adults in America owing to the convenience of this method.

Credit cards in the US have two options; a variable rate of interest and a fixed rate as with the majority of loans. Compared to variable rate cards where rate may be subject to change depends upon the credit card issuer's discretion, fixed-rate carry higher interest rates. Two other methods are the Charge Agreement, where the full balance is repaid each month and the aptly named Installment Agreement where a single set payment is made each month. People that prefer to keep their finances separate from their partners may decide to use an individual credit card rather than a joint account.

Some of the things you should consider is how much will you spend on the credit card monthly, whether you plan to carry a balance at the end of the month and how much are you willing to pay in annual fees. The best thing to do initially is study the available card types, agreements and charges before any decisions are made. Comparisons are often available where they will give information on all the major, and minor, cards currently on the market; use this information to your advantage.

Before you make your final decision, try asking the advice of your accountant or financial advisor as they will be able to help. You probably recognize many of the big credit card companies such as Chase Manhattan, MasterCard, HSBC, Bank of America and American Express although there are many more.

By using your credit card carefully you will avoid the embarrassing situation where even the monthly installment cannot be met. At all costs, avoid the situation where you then have to spend time repairing your credit report.

• Credit Card Responsibilty