Credit Calamity by Conner Nolan

Our Group! Also Our Sources!

nolan_conner — 2015-09-15 20:02:40 UTC

Team Members: Conner Nolan, Demi Zarvos & Tyler Rainer

Source List: Tips on How to Get Out of Debt (video), Hidden Credit Card Fees (video), and 8 Things You Must Know About Credit Card Debt (article)

Quick Tips on Managing Your Credit Card Debt

nolan_conner — 2015-09-15 20:06:38 UTC

- Make sure you look at the fine print of your credit card payments.

- If paid one day late, you could be charged with a fee of $20-$30.

- If paid late more than twice, your interest rate could increase by 25%-30%.

- Pay back loans quickly, so interest doesn't cumulate.

- Pay high-interest balances first and foremost.

- Only charge what you know you can pay back by the next payment.

- If you are spending 1/3-1/2 of your income servicing credit card debt, use your assets like savings or mutual funds to pay if off.

-Use extra income to bring your savings back to where they were.

- In extreme cases, consolidate credit cards and use all savings necessary to pay off principal.

- If 50%-100% of your income is used to pay off debt, just get rid of all credit cards at this point.

Credit Card Management From the Pros! (Or, More Accurately, Three College Freshmen)

nolan_conner — 2015-09-15 20:15:24 UTC

People are always trying to escape the pitfall that is credit card debt. There are several ways in which people can prevent falling into debt and managing said debt with ease. For example, paying bills in full can help consumers escape hidden credit card fees. Looking at the fine print is also very important to avoiding debt. If fees are paid one day late, one could be charged with a fee anywhere from twenty to thirty dollars. If fees are paid late more than twice, interest rates could increase by twenty five or thirty percent.

Credit cards have been the cause of some of the most incredible debts in history. Using more than half of your income to pay off debts is not an unrealistic topic to discuss when it comes to these little plastic devils. In a hypothetical situation, the reader of this essay is spending between one-third to one-half of his or her income to service credit card debt. Assets are the first thing to go to help pay these. Assets include savings or mutual funds. Any extra income can be used to rebuild those savings used. When debt becomes so extreme that it is taking one-half to all of one's income to be paid off, all credit cards should be gotten rid of or consolidated. Assets are the most important aspect in keeping debt-free.

One of the main problems that people run into when dealing with credit cards, is not being able to pay back what they borrow. This is usually how people fall into debt and can't figure out how to get out of it. To minimize how much is spent, it's best to pay back loans quickly. The faster the loan is paid back, the less interest is tacked on. Another smart thing to do is pay back the higher interest loans first. This minimizes the amount of money owed. As long as all of the above is taken into consideration, as well as the simple point to not borrow what cannot be paid back, dealing with credit cards does not have to be stressful or difficult at all.