Get Out of Debt - Money That Multiplies
By [http://ezinearticles.com/?expert=Wolfgang_O]Wolfgang O
Today we're going to talk about money that multiplies. It sounds like a crazy Ponzi scheme, but this money does exist. If you're like many modern Americans, you are living absolutely on the edge. You might make $9 an hour, or you might make $90,000 a year. That's not the issue. The issue is that, within a few days of depositing your paycheck, you're playing a bank fee avoidance game that can only get you in trouble. When you're hungry, you don't have enough money for a $150 grocery shopping trip, so you pick up a frozen dinner from the gas station on the way home.
If you are living on the edge, you might say that it's impossible to get ahead. You want to save, but you've heard that it makes no sense to save when you're paying on credit cards that are racking up interest charges. This is bad thinking.
Think about how many banking fees you've paid over the course of the last year. Maybe you only went negative once, and paid $30. Maybe you went over three times, and bounced another check each time, to the tune of $150. Or maybe you're really a habitual offender, bouncing a check every couple of weeks for a total of $625 a year.
What does this mean? This means that if you could just get enough savings to cover your bounced checks and automatic withdrawals, that money will multiply! Even if it means a month of eating Ramen noodles and peanut butter and jelly sandwiches, you have to figure out a way to set up a savings account with $100 in it. Then make sure you have overdraft protection. Ordinarily, I would advise that you just leave the $100 in checking, but in this case, it's worth paying for overdraft protection services, because you're less likely to succumb to temptation with the hundred bucks in a separate account.
It may not feel like it, but that $100 will pay for itself, many times over.
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Article Source: http://EzineArticles.com/?expert=Wolfgang_O http://EzineArticles.com/?Get-Out-of-Debt---Money-That-Multiplies&id=2072320
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The Basics of Credit Card Interest
The Basics of Credit Card Interest
By [http://ezinearticles.com/?expert=Aaron_Ballantyne]Aaron Ballantyne
Most people understand the basics of what credit cards are and how they work. If you ask individuals randomly to tell you what they know about credit cards they will say things like it is a piece of plastic you use to buy things. The majority of people also understand that you get charged interest on balances you carry over from month to month. What is less understood is the actual rate of interest. The rest of this article will help to explain about the interest rates that one pays on credit cards.
So what is the technical definition of a credit cards annal percentage rate or APR? The basic answer is it's the rate of interest that is charged by the card companies on the part of the balance you owe the card company that is not paid by the due date. For those who make a full payment are not charged interest. The actual interest rate is provided to the customers on every monthly statement. That number is the rate for the entire year which is converted to monthly rate by the credit card companies to compute the interest charged on unpaid balances.
The basic calculation of interest charged is as follows. First you take the balance owed and subtract the payment you make which equals the balance that the credit card company charges interest on. Next take the annual percentage rate and divide it by twelve which gives you the monthly interest rate. Finally all you need to do to come up with your interest charged is to multiply your monthly interest rate by the unpaid balance. Some companies might make the calculation slightly more complex by calculating and charging a daily rate of interest but except for very high balances the results will be close to the monthly rate calculation.
Most people understand the basics of what credit cards are and how they work. If you ask individuals randomly to tell you what they know about credit cards they will say things like it is a piece of plastic you use to buy things.
Did you find this article helpful? You can find more articles as well as applications for [http://www.signupforcreditcards.com]credit cards through the link.
Article Source: http://EzineArticles.com/?expert=Aaron_Ballantyne http://EzineArticles.com/?The-Basics-of-Credit-Card-Interest&id=2051893
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By [http://ezinearticles.com/?expert=Aaron_Ballantyne]Aaron Ballantyne
Most people understand the basics of what credit cards are and how they work. If you ask individuals randomly to tell you what they know about credit cards they will say things like it is a piece of plastic you use to buy things. The majority of people also understand that you get charged interest on balances you carry over from month to month. What is less understood is the actual rate of interest. The rest of this article will help to explain about the interest rates that one pays on credit cards.
So what is the technical definition of a credit cards annal percentage rate or APR? The basic answer is it's the rate of interest that is charged by the card companies on the part of the balance you owe the card company that is not paid by the due date. For those who make a full payment are not charged interest. The actual interest rate is provided to the customers on every monthly statement. That number is the rate for the entire year which is converted to monthly rate by the credit card companies to compute the interest charged on unpaid balances.
The basic calculation of interest charged is as follows. First you take the balance owed and subtract the payment you make which equals the balance that the credit card company charges interest on. Next take the annual percentage rate and divide it by twelve which gives you the monthly interest rate. Finally all you need to do to come up with your interest charged is to multiply your monthly interest rate by the unpaid balance. Some companies might make the calculation slightly more complex by calculating and charging a daily rate of interest but except for very high balances the results will be close to the monthly rate calculation.
Most people understand the basics of what credit cards are and how they work. If you ask individuals randomly to tell you what they know about credit cards they will say things like it is a piece of plastic you use to buy things.
Did you find this article helpful? You can find more articles as well as applications for [http://www.signupforcreditcards.com]credit cards through the link.
Article Source: http://EzineArticles.com/?expert=Aaron_Ballantyne http://EzineArticles.com/?The-Basics-of-Credit-Card-Interest&id=2051893
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