CREDIT AND DEBIT

HOW TO USE WISELY

What is the difference between a credit card and a debit card ?

There are many things you could say about the differences between these two different cards. The first is that the credit card gives you credit. Which means that the company that owns the card you have in your possession; are the ones who are lending you the money for what ever purchase you are going to make, or did make on it. A debit card is a card that is set up to your bank account and takes the money out of our account that you spend. Secondly, there is a time difference between the times that you have to pay with these cards. With the credit card you will receive a credit card statement every month that will need to be payed off by the due date on the statement. With the debit card you will not have to worry about paying it off it will come directly out of your bank account immediately at the time of the purchase. Lastly, if you do not make a payment on time with the credit card you will have to pay late fees plus the interest that you are already paying. With the debit card you will have no interest and no fees because it comes directly from your bank account. I really liked the definition from the website http://www.aquacard.co.uk/credit-tips-advice/credit-card-guide/key-differences-between-debit-and-credit-cards/. Which states " Whilst debit card purchases deduct money from your current account - from funds that you already have available – making purchases on various credit card types is slightly different. Credit cards run up an amount of money that you will owe in the future, a balance that you will be required to pay back at a later date."

What are Five Different Financial Apps and/or Websites That Help People Manage Their Money?

Some really good apps are Digit.co, Tricount, Toshl Finance, Mint.com, and LearnVest.com.

These websites will help you to manage your money more wisely and get you on track for getting out of debit or not getting into it.

Three Ways You Can Develop a Positive Credit History

One way to develop a positive credit history is by paying every bill/ payment on time. A second way is by buying little things like some food with your credit card that you know you can pay off when the bill comes. Lastly, If you are a minor your parents are able to share an account with you so that you can get your parents credit score and they can get yours too. So be careful if you share an account so you and your parents do not get a negative score.

What are Three Advantages and Three Disadvantages of Using Credit

Three advantages to using credit are:

  • Can help you get a loan for a house/car
  • Can help you with buying big purchases so you do not have to Carry a lot of money around.
  • Having good credit can get you a job so that the company that you are trying to apply to knows that you are trust worthy and pay bills/payments on time.
Three disadvantages of using credit are:

  • You could possibly get into debit and loose everything
  • When you have credit you think that you can spend it all but in reality you end up spending more than you have.
  • If you pay in cash,check,or debit you do not have to deal with interest or credit card statements.

What is APR and why is it important to know when applying for a credit card?

APR is your annual percentage rate of interest on your credit card. This is important to know this because, you should know how much you are paying and try to calculate the amount of money you owe to the credit card company.So the credit card company can not over charge you or take advantage of you.

What Does This Charge Do to the Total Amount You Will Pay for an Item?

This charge will make you pay a percentage of interest on everything you purchase and not pay off right away. An example is: a prom dress

Total purchase amount $800

Credit card APR 18%

Planned monthly payment $50

Number of months to pay off
This is how long it will take you to pay off the entire amount.19

Final month's payment
The last payment on this account.$21.63

Total finance charge
This is the total amount of money you have paid toward interest.$121.63

Total cost:$921.63

When and where can you order a free credit report? Why is it important?

You can get your credit report every twelve months for free at every credit reporting company according to www.annualcreditreport.com/index.action. The credit report is important because it shows you and other people if you make the payments on time and if you are responsible. Also, it can help you apply for loans and other things like government assistance. If you ever find errors in your credit report you should immediately call the credit card company to fix it.

What Should a Borrower Do If They are Experiencing Financial Difficulties?

If you are a borrower and you are experiencing financial difficulty there are many things you can do. One thing you can do is get some help. Talk to a financial adviser or a friend maybe you can do something. Second, talk to the company you are borrowing the money from, maybe you could skip a payment. Lastly, If there is no other option you might want to think about filling for bankruptcy.

Credit Counseling Agency

$$$$$$0 Debt Goal Inc.www.0debtgoal.com

Main Address:

130 West Jefferson Street
Tipton, IN 46072
877-376-8070

Delivery Method:

Internet:www.0debtgoal.com