Debt

Articles on Money Q&A about debt and credit cards and how they affect and interact with your family’s personal finances.

Infographic: The Generation Gap In Student Debt

by

Back in the 1940s, you could get a four-year college degree for under $500, even at the most prestigious colleges. Back then, it wasn’t even necessary to get a degree. It was seen as an accomplishment for those going over and beyond their standard education. Nowadays, a four-year college degree is the equivalent to a … Read more

There Is No Better Time To Organize Your Debts

by

Should you invest or pay off debt?The financial crisis was a wake-up call for those who needed to reign in their spending and limit the amount of debt they carried. If you want to end the year with less debt than you started with, then taking out a consolidation loan could be the answer.

What is a Consolidation Loan?

Basically these loans cover the existing balances on all your other unsecured debts, leaving you with one monthly repayment. They can cover anything from credit cards and store cards to personal loans. As the loan is secured on your property, some lenders can offer poor credit history loans. However, if you miss repayments, you could put your home at risk of repossession.

Read more

Your Credit Rating: Knowing How It Works And How To Improve It

by

credit-scoreApplying for a mortgage, personal loan or even some credit cards can take a while. Searching for a lender that has the best value product in terms of payable interest is a potentially lengthy process, while completing an application often takes up even more time. However, the most time-consuming part of applying for credit is the wait to see if your credit rating is good enough.

Everyone over the age of 16 with at least minimal financial responsibilities has a credit rating to speak of, but what do they mean? In short, they’re the score given to individuals that determines whether or not they’re worthy to loan money to in the form of a cash loan, mortgage or any similar product. The higher a credit rating is, the more likely a credit application is to be accepted.

What makes a good credit rating?

Every credit rating is calculated by a number of factors. The most important are previous financial history, current levels of debt, previous instances of financial irresponsibility, previous failed applications for credit, missed or non-payment of bills and constant changes of address. Errors made in previous or your most recent application can also cost you, as can multiple open bank accounts.

Credit ratings are worked out by three main agencies: Experian, Equifax and Call Credit. All three work for the majority of major lenders in the UK, process key data and pass it onto lenders who then use it to decide whether or not to lend money to credit applicants. From the first two, you can find out what your current credit rating is and work out how to improve it.

Read more

Benefits Of A Prepaid Credit Card For Your Finances

by

gold credit cardWhen you go to the shops what do you use to pay for your goods? Most people these days use a credit card or a debit card. But, do many of you own a prepaid credit card? There are many advantages associated with a prepaid debit card or a prepaid credit card that are worth taking into consideration. There are benefits of a prepaid credit card that you should consider.

What Is A Prepaid Credit Card

First of all it is important to establish what a prepaid debit card or prepaid credit card actually is. This type of card is exactly as it sounds. It is simply an account that is opened via depositing money into it. The owner of this account is then presented with a credit card that can be used just as any other credit card can. However the amount of money available is determined by the amount of money the individual initially deposited.

What Are The Benefits Of A Prepaid Credit Card

There are many benefits associated with a prepaid credit card or prepaid debit card. They first began to become popular in America in the 1990’s because many people were not able to qualify for a standard credit card. This is often if not more so the case today. With a prepaid credit card you won’t have that problem because the account is based merely on the deposit you pay up front, not your previous credit ratings. This makes a prepaid account the perfect answer for those with a bad foregoing credit history.

Read more