Things You Need to Know About Your Credit Cards

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You know that little trifold piece of paper that comes in the envelope when you receive a new credit card, the one that it takes a magnifying glass to see the print, the one that most of us choose not to read. That little piece of paper could contain information that could save you a lot of money.

Credit card companies have begun the practice of reviewing your credit report on a regular basis. They are looking for late payments with other creditors or a high debt-to-income ratio. If they find either of these, they may raise your interest rate. The reason they will give for the increase is that if you paid someone else late you are at risk of paying them late or going over your limit.

Credit card payments not only have a due date, some credit card companies have a specific time on that date that the payment is due. Credit card companies do not allow a grace period. Making a late payment will subject you to a late fee that could be as high as $50. If you make two late payments in any twelve month period, you will probably see an interest rate increase also.

Beware of “fixed” interest rates. They are fixed until the prime interest rate goes up. Your interest rate can be raised at anytime as long as you are given a 15 day notice in writing.
Decreasing grace periods is another problem. Typically, a grace period used to be 30 days. Now, many of them are 25 days and some are as little as 21 days.

If you have applied for a credit card with an introductory rate, check the card member agreement to make sure that you have received what you have applied for. Credit card companies have been known to pre-approve you for a credit card with an advertized set of terms and then send you a credit card that has a different set of terms.

The credit card agreement that comes in the mail with your credit card can be very boring and tedious reading, but it will be worth it in the end because it will likely save you money.

The Effects of Debt on a Marriage

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In today’s society about 50% of all marriage fail. If you ask people why they argue with their significant other, most of them will tell your the disagreement had something to do with money. The fights and tension are blamed on many things, but in most cases there is an eroding bank account and mounting debt involved.

If your having problems in your life and feeling down, there is no better “pick me up” than a spending spree and it’s even better if you are not paying cash. However, this feeling of euphoria is going to be very short lived. Not far behind will be the feelings of guilt and those will last longer than the euphoria did.

Many marriages consist of a “spender” and a “saver” and this is where the problem arises. The spender spends, angering the saver because they are usually charging non necessary items. The saver will do the best they can to keep the spender from spending, causing tension and discord to build within the marriage, often times leading to disasterous results.

The constant fingerpointing and belittling will poison the marriage. With this kind of behaviour involved it hinders getting to the root of the problem. Due to resentment and the length of time the arguing has gone on, some couples will never be able to get to the source of the problem–which is, why they have the spending and saving habits that they have.

In a lot of relationships, the debt is the elephant in the room that nobody wants to acknowledge. The first step is acknowledging a problem exists. You can not fix what you refuse to admit exists. Unfortunately, most of our spending habits were instilled in us while we were growing up. You have had most of these attitudes for a long time and it will take some time to change them. A marriage counselor or Debtors Anonymous are excellent places to begin the process of sorting through the excess baggage that comes along with your debt.

An overspender should not be shopping alone and they should completely avoid stores where they normally would overspend. Take someone with you that will help keep the spending under control (Debtor’s Anonymous can help with this). This person should not be your spouse.

If you follow these simple steps, you will see both your marriage and your financial situation change. Don’t forget to budget some fun into your life. This is very important and fun doesn’t have to always cost money. You will find the feeling of having your spending “under control” more powerful than the feeling of euphoria you used to experience after a good shopping spree.