Consolidate Your Debt With a Personal Loan

What is Debt Consolidation?

Debt consolidation is the merging of multiple loans into one large loan. Debt consolidation allows people with multiple debts to combine all high interest loans into one bigger loan that offers interest rates relatively low. Generally, the more you borrow, the lower the cost of the loan (the interest rate charged on the loan). Therefore, if you have multiple debts, using personal loans to consolidate debts it could potentially reduce the interest you pay.

In addition to saving money to pay interest, debt consolidation also provides convenience to pay all your debts through a personal loan. In many cases, people usually get mortgages, car and personal loans from different institutions. In addition to a variety of interest rates, these loans also require different payment some at various times that can make you trouble, not to mention a hassle to manage. Consolidate all your debts into a single debt help you easily manage transactions through a single monthly payment.
 

What You Need to Know Before Consolidating Your Loans

Although it may sound alluring, there are a few things you should keep in mind the borrower before taking a personal loan for debt consolidation. While debt consolidation has the potential to save you money on interest rates and help you manage your debts efficiently, still means that you pay a large monthly payment. Therefore, if the borrower does not manage his finances current and future well, they can be trapped into a debt trap.

Therefore, as a first step in creating a healthy financial lifestyle, you first need to know the size of all loans, the different monthly payments and how much longer you are still paying the loan, respectively. This is when a loan calculator is very useful.

The next step is to compare the total debt with your income. Once you have done a summary of your current financial position, began to approach the different banks and compare each of their interest rates, product offers, terms and conditions. Use comparison sites to accelerate this process. While the idea of ​​consolidating your loans is to provide you with a lower interest rate, it is equally important to consider other factors such as convenience and flexibility of loan payments.

In the end, though debt consolidation may reduce the amount of interest you pay on a loan that is different, in some cases, it may not even happen. Consolidation of debt is not a solution to your debt, but only combine all your debts into one lump-sum. If your current monthly payment under the debt consolidation loans seem smaller, it could happen because the longer the loan term, which means you could potentially pay a greater rate than previously.

What is Credit Card

Credit card is a payment card issued by a financial company, where cardholders can purchase the product or service in the form of credit. Currently available a wide range of financial services company credit card issuer in the world, despite the fact that credit card providers in the world there are only three, namely VISA, Master Card and American Express.
 

How is Credit Cards Work Systems?

Credit cards have a way of working as a short-term loan. When you make a payment using a credit card, you basically have to borrow money from the card issuer. And at the end of each month, you are expected to pay back the money you borrowed. Failure to do this will cause you to be fined based on the lending rates of the rest of your bills unpaid.
 

Different types of Credit Cards in Indonesia

Currently, it has provided various types of credit cards with the advantages and usefulness of different. There are a variety of credit card types that you can choose from such as:

• Reward Card: This card type gives Reward Points for every transaction that you make using your credit card. Reward Points can be redeemed for prizes such as vouchers, electronic devices, air tickets, free annual fee or other gifts listed in shopping card issuer catalog.
• Cash Back: Type of this card gives cash back (refund) every time you make a transaction at stores that have been determined.
• Low Annual Charges: Type of this card gives annual fee is lower than other conventional credit cards.
• Traveling Miles: This card type gives mileage points for certain transactions that can be redeemed for flight facilities such as airport lounge or air tickets from airlines that have teamed up with the card issuer.
• Petrol: This card type benefits associated with the purchase of gasoline such as cash back (refund) in the petrol kiosk.
• Premium: This card type offers luxuries such as golf, fine dining, the best range of services and benefits, as well as an exclusive club.

 

Credit Card Interest Rate

Credit card interest rates will wear on you, when you choose not to pay off all of your transactions from bank loans at maturity. Obviously the faster the bills paid, the less the interest to be paid. Make sure you understand the terms and policies of your credit card. The interest rate varies from one card to another card, which generally ranges from 33% to 36% per year.
 

Grace Period and Minimum Credit Card Payment

This is the number of days in which the bank allows you to borrow money without interest. The grace period can vary up to 25 days depending on the bank issuer. The grace period usually applies to new transactions, but only if there is no outstanding balance from the previous month. The minimum payment that you pay a certain amount specified in the card holder's bank for payment of bills. In general, the amount to be paid is worth 10% of the total bill or at least $ 5, -
 

Repayment of the Credit Card Bill

On a specific date each month, the card issuer will send you a monthly bill. Commonly, the cardholder must make a minimum payment of 10% of the total bill (or at least 50 thousand). You can choose between paying a credit card bill in full so that you do not bear interest, or in installments in which you will be charged interest.
 

Due Date and Date Print

To print the date of determination and maturity, every bank has a different date and you must check directly to your bank. However, usually each bank determines the due date 15 days after the date of the transaction printing. For example, print date of your credit card transaction is dated March 1, the due date of your bill is dated March 16. If you make payment before the due date of March 16 as a whole then you will not be charged any interest but if you pay by way of installments, the outstanding balance you will be charged interest on the next month.

Smart Buying a Car With a Credit

When the awaited arrived. You have decided to buy the first car family. Do not worry if you can not buy the dream car in cash, because after all there are still loan options. Well, before the transaction there are a few things you should know to avoid the trap of bad credit.

Realistic

Make sure your monthly income and count how 30% of the income. That's the number that you can allocate to debt and repayments. If at this time you still have other debts or monthly installments, deducted the debt with the allocation of 30% of income. Well, this is the maximum amount of your new car payments.

Suppose that your current income is 10 million per month, meaning that your debt allocation is 3 million per month (30% of 10 million). If you currently have a home mortgage loan at 1.5 million per month, means car payments amounted to a maximum of 1.5 million.

After knowing this figure, adjust the type of car with the maximum amount of your mortgage. Do not force yourself to buy a car that costs far above the capabilities of your mortgage. If this happens, you will most likely get stuck in bad loans.
 

Research

Do not just go to a dealer, if possible go to all the car dealers in your city to obtain the most excellent offers, including offers of credit with the lowest interest rates. If you do not mind a used car, try your luck looking for a used car with excellence condition but low prices.

Remember, do not be too consumed seduction sales staff of dealers to add accessories that you do not need. If necessary you who should be able to convince them to give more rebates or give bonuses accessories.

Protection

If you buy a new car, the dealer usually has been working with financial institutions and car insurance agencies. Make sure the insurance has been in accordance with the conditions and needs. However, do not necessarily reject this insurance because you need this protection, especially if anything happens to you, the credit repayment will be covered by the insurance.
 

Tenor Credit

It is not recommended to take the loan tenor with the longest period of time, 6 or 7 years. Figures installment does look small and according to your realistic budget and also according to the type of dream car, but actually you are paying much more expensive because the interest you pay is the greater. Take a loan tenor of 3 to a maximum of 4 years. If the tenor of the mortgage rate greater than realistic repayments you, consider looking for a cheaper car or even a used car.

Can't Pay The Credit Car, What is the Solution?

Car sales marketing strategy with a minimal down payment incentive to hit the fruitful society with the increasing number of vehicles on the market. However, approximately 70 to 80 percent of the vehicle owners buy with credits system. The problem that then arises is that most people sometimes incorrectly calculate their financial ability to pay off the debt in installments. As a result, after a few months of loan repayments started stagnating, even many who end up stuck.
This will result in a car drawn by a bank or financial institution. Not only that, bad credit will automatically record your name in the blacklist Debtor Information System of the Bank. And once you call listed in the black list, we can be sure you will certainly had difficulties to apply for other loans, such as mortgages.
 

So, what to do if you are no longer able to pay the credit debt?

 Refinancing

This bad credit problems for some people it is seen as a business opportunity then attempt to offer refinancing services. Or rather, a new debt offering to cover bad debts. Indeed, this solution is not very wise because it impressed the lid hole dug hole. However, this solution makes at least you can breathe easier with the debt repayment period is longer. Longer repayment period means nominal monthly installments are also smaller when compared with your initial debt. Thus, you are no longer expected financial flared and can be more loosely arranged monthly finances.

Some of the other advantages is that you will be free from the possibility of inhabiting temporary blacklist of the bank. But do not let these refinancing loans also stalled, because again you will be in the same problem.

Another advantage is the possibility to get additional fresh funds from this refinancing process. How is it possible? Yes, because companies typically provide refinancing loans with a value of 80% of the market price of the car. If the remaining credit value is lower than 80% the price of the car, you can pocket the remaining funds.
 

Refinancing risk

Do not be happy with this solution first, because after all you should consider refinancing minus factor. Most companies refinancing is not a large company, it makes them set a higher interest rate than a large finance company. The longer your installment period, the higher the interest rate will be charged.

Thus, by refinancing you will pay the debt with a larger value. Therefore, do not be too tempted by this solution, take advantage of existing facilities. If you really need refinancing services, adjust its value with a credit score that you need to pay off. Please remember, it is not advisable to take the available funds from the ceiling!
 

Debt Restructuring

There is one more solution for bad credit, i.e debt restructuring. You know you can come to a finance company that you use to repay the car and ask for leniency payment. Well, in this way the interest is usually set too high as the company will not refinance already CreditAdviceService mentioned above.

Indeed, the finance company is not touting these services, but many of them are receiving due to internal restructuring does not want to bother pulling the car from the customer. In addition, selling the car back is not an easy thing to do.

Now, which option is right for you? Whatever it is, still apply the principle of the mortgage debt is not more than 30% of the total value of your income.

How to Choose the Best Car Loan for You

Now a days, have a car sometimes no longer perceived as a prestige but as a necessity. So what if the savings are not enough cash payment? There are many car loan options offered services, but be smart to choose the best for you so do not bother being chased payment later.

Steps to selecting the most appropriate auto loan:

1. Determine Down Payment (DP) or a cash advance that you are able to pay, and installment per month.

Use a financial calculator. Remember the greater DP you paid in the beginning, it means you are to repay the load is reduced. Do not forget to ask for a discount from the dealer, because the purchase with a credit scheme if accumulated certainly be more expensive than cash; typically 1-3% discount of the price of the vehicle can be achieved.

2. Determine the car loan financing institutions: banking institutions or financial institutions?

Do not immediately approve the institution designated by the dealer, check first that there are various alternatives for lighter installment. List of banks that provide car loans and finance companies can be seen in this blog. Check the credibility of banks and financial institutions to prevent fraud or other problems.

3. Beware when filing the credit.

Check all procedures, questions and answers to ensure the promotion in accordance with the reality, and your rights as a debtor. Make sure you understand all that is written in the credit agreement. Perform the calculation of the overall cost of the car loan, do not already excited to see the low cost offered on the face, because it is not necessarily the total overall cost of car loans is also low. Do not jump backwards if there is a screening process or length requirements of financial institutions, which sometimes seem more difficult to process it gives greater protection against debtors also the institution itself.

4. Survey car prices at various dealers and internet

Research for several car dealerships first before making a decision, and before going to the dealer, it helps if you are 'doing homework' first at home, that's by figuring out the price of your dream car in the market. With more effort, you could save up to several million!

5. Select the best interest rate - fixed / flat or effective rate / floating

Read the full explanation about the term of interest rates. If you choose a flat interest rate, it will be safer, while the effective rate (floating rate) You can experience profit / loss as changes in interest rates of Bank Certificates, which is determined by the Bank.

6. Insurance

Lastly, do not forget to explore insurance services to protect yourself from the things that are not desirable. Most banks / financial institutions will also require you to have insurance for the vehicle loan financing, if only there was a car accident or your vehicle is stolen. You can choose between Total Loss Only (only covers about theft) or All Risk (which also includes accidents).

Those are some tips from CreditAdviseService so you can make the right decision will be the selection of your car loan.

Ways to Close The Credit Cards

Many people who decide to close the credit card because they have too many credit cards that were never used, to reduce the burden of mounting debt and to reduce bad shopping habits. So, you do not even bother calling or back and forth to the bank to ask the reason why you still receive your credit card bill after the closing the credit card, follow the steps below:

Read the terms and conditions of credit card

It is important to you read well the terms and conditions that apply especially if the age of your credit card is still young. Usually for closure in a short time will be subject to some penalties.

Cancel automatic payments and pay off bills

If you forget to cancel the automatic payment then you risk paying fines greater result of unpaid bills when it stopped automatic billing. Then, make sure you have paid all the bills for the credit card can not be closed if you still have debt. Repayment can be made ​​via ATM or transfer the rest of the bills, cards closing costs, etc. Then, after a few days, contact your bank to check on receipt of payment of the bill.

Know the effective date to close credit card

To close a credit card, you can call or visit the bank. Be sure to note the name of the officer in charge shut your card, the date and time of the conversation with them. Do not forget to ask effective closing date of your credit card to find out if you still have an obligation to pay the annual fee or other charge cards.

The bank is often difficult for closing credit card and this has been recognized by the Consumers Foundation. So do not be surprised if the sound complaints and complaints from customers who expressed dissatisfaction with the process of closing. For those who want to shut down the credit card, the process is going well hopefully yes.

Easy Ways to Increase Credit Card Limit

Who does not want to raise the credit card limit that they have? Whether to open a business or consumer purposes, most credit card holders always want to add the credit card limit to develop business and purchase goods that have long desired

Follow the steps below to increase your credit card limit.

 

Periodically use a Credit Card

Show the bank that you are a loyal customer and often use your credit card. If not, the bank will definitely think why you require a higher limit cards that you rarely use your credit card for the transaction.

 

Avoid Late Payments of Credit Card Bill

Any delay in payment will reduce your chances to get a higher credit card limit. Banks and card companies will always look at the track record of your credit card bill payments before giving additional credit card limit. If you are often late paying the bills, it means you're giving the signal that the current credit card limit, you have trouble paying your credit card bills. Are you willing to pay if you are given a credit limit higher?

 

Pay More Than the Minimum

By paying more than the minimum payment, you not only save on credit card interest payments, but you also show that you can afford to pay. So, try to show that it is eligible to receive additional credit card limit is to act well at least until you are given a higher limit card.

 

Do not Give Impression Desperate for Money

When applying for  increase a credit card limit, avoid statements like "The addition of this card limit is very important to me because: I recently lost a job / need home credit  / need to pay for the hospital." Bank will not hesitate to increase your card credit  because this proves that you are less able to manage your finances. Change the way your petition becomes "I hope that with the addition of this credit card limit can help me to develop a business / improve credit score."

Just imagine whatever you can buy if you get a credit limit of up to 1 million. With a credit card limit is higher, your purchasing power will also increase. Similarly, the interest or debt that you must pay. Therefore, you should be wise in using the credit card and do not get into debt because credit card limit is lucrative.

What is Credit Score?

What is Credit Score? Credit score is a score that is given to each individual and used by creditors to determine your ability to pay.

Many people think that they do not have a credit score. The reality is, as long as you have a bank account in your name, ever apply for a credit card, mortgage or study loan, you have a credit score.

Low credit score indicates that you have a high risk that the interest rate must be higher to cover the risk of the lender if you fail to pay. In other words, you should try to maintain a high credit score. Credit scores range between 300 - 850 scores above 720 indicate that you are in a safe zone and you can get credit easily, whereas with a score below 640, you will have a hard time finding credit.

Tips to improve credit score

Paying bills on time

Bills unpaid or late payment of bills will be recorded by the creditors. For example, if you are often late paying your credit card bills, the credit card company will report your debt to the bank which resulted in a decrease in your credit score. Then, when you want to ask a mortgage, the bank will see this credit score and make decisions in determining the interest rate etc.. So, try to start paying your bills now because all records of your transactions will be analyzed, especially the most recent transactions.


Reduce Debt

In addition to paying bills on time, you also have to reduce your debt. For those who have more than one credit card, you can consider moving the outstanding balance to a credit card with a lower interest rate. However, you should find out in advance whether the credit card balance transfer offers.

Avoid filling some credit simultaneously

Financial institutions can lower your credit score if found some related credit transactions carried out in the adjacent.

As in the school report card, the credit score report your value in managing the finances. You will feel happy and proud of your efforts with the higher value. Therefore, pay off debt, bills and check your financial statements on a regular basis so that the value of your credit score remains high.

Tips For Go Travel With Credit Card

The story you're getting the chance to holiday abroad. Maybe a summer vacation or are getting assignments from the office. It would be good if in your travels you equipped with a credit card. Will cause many conveniences you would feel when they are abroad.

 Tips For Go Abroad With Credit Card

Having a credit card makes you more flexible when we are abroad. You can pay for airfare, hotel pay, pay to eat at the restaurant using your credit card.

  Even so there are some things you need to consider before using a credit card abroad. Here are the tips.

Call the bank that was issued your credit card.  

Tell that you are going to travel abroad and don't forget to consider the schedule. So that the bank knows and will not block your transaction. Worried, transaction you make abroad will be blocked if not tell first. Because the transaction may be rate as suspicious transactions.
 

Checks for credit card limit and credit card validity period.  

If necessary you can ask the bank to raise the limit on your card.
 

Keep the phone number of bank that issuing credit card.  

So that you can directly contact them if you have problems with credit cards or lost it. Keep your credit card numbers as well. You can store it in a safe place such as a flash drive or on your email.
 

Ask all things about credit card usage abroad.  

Ask your bank about all things surrounding the use of credit cards abroad. Such as the fee charged when using a credit card abroad. There is wearing a fee to 3 percent for each credit card transaction abroad. But there is also not charge any fees. For that, you should first ask this in the bank.
 

Avoid taking cash with credit cards.  

Unless you desperately need, you should avoid using your credit card to withdraw cash. Because there are costs charged when you make a cash withdrawal. Even if you are forced to take cash abroad with a credit card, you should take once in large enough quantities. Not to take a little cash but repeatedly.
 

Keep the receipts while spending abroad.  

Each transaction that you make, you should  save the receipt or proof of payment by credit card. So that on his return to his homeland later you can match it with the credit card monthly usage reports delivered at your bank.