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Debt Consolidation, Credit Card Debt Settlement, Secured & Unsecured ...We at Debt Consolidation Deals help you to get rid of your credit card debt with our debt settlement, secured & unsecured debt consolidation program, debt counseling & credit ... Read full post here. (c) Bank of America | Financial Education and Tools | Credit and Debt ...Here are some of the most common ways to consolidate debt: Take advantage of credit card balance transfer rates; Use your home equity; Refinancing your home Read full post here. (c) Secured Credit CardsYou pay for the credit card before using it, this is why it is called a prepaid or secured credit card.This type of credit card requires you to deposit or pre-pay a specified amount of money, sometimes called a "security deposit," in the bank of the card issuer.Most of the time, you will have to pay an amount between $200 and $500 as a security deposit and your credit line is limited by the amount of security paid. Traditional credit cards are issued on a basis of whether or not you have a suitable credit rating, and when you are approved you will most likely have a specified credit line available to you.Traditional banks usually will deny the use of a credit card or line of credit to those who have a damaged credit rating or no credit. The closely enforced credit rating requirements that most traditional lenders go by may be eliminated on prepaid credit cards as sometimes they may not even do a credit check or verify your employment.Your credit card's line of credit is guaranteed by the security deposit which you made before receiving the card, so the card's issuer will receive payments if you happen to default on them.The prepaid credit card is a good way to establish credit or rebuild poor credit and nearly everyone is eligible because these cards are guaranteed for payment by the prepaid credit card deposit.Although you may get instant approval on these prepaid credit cards, there could be restrictions, such as having to be at least 18 or 21 years old or you may have to be a citizen of the U.S.. You can conveniently use prepaid credit cards like traditional cards, where ever MasterCard or Visa is accepted.These prepaid credit cards can be used to pay bills online and over the phone and to withdraw cash from an ATM, and you can also use them to make purchases online or offline. Some of the advantages of prepaid credit cards include the ability to establish or rebuild a good credit rating and help to avoid making late payments.Other advantages of the prepaid credit cards are the elimination of the need to write checks and money orders and make trips to the post office to pay monthly bills, and your paycheck could be deposited directly onto your card. Some things that are disadvantages of the prepaid credit card are higher interest rates and over the limit fees, and a monthly maintenance fee.Some of the disadvantages of using the prepaid credit card may be the possible inability to rent a car at most car rental agencies and that security deposit that has to be paid before using the card. It is of utmost importance for you to be on time with your payments and you must not go past the preset credit limits on your credit card agreement when you are trying to establish or rebuild your credit.Prepaid credit cards were added our list of financial sources to help us learn to keep track of where our money is going and how we can control what we are spending. It can be too easy to get caught up in the late payment trap and before you know it, you are 60 to 90 days behind and the fees are continuing to add up.If your payments are made on time consistently, many credit card companies will increase your credit line limits and may possibly return your deposit with interest. Alisdair Cosgrove is a freelance writer specializing in personal finance. You can read more of his work at http://www.JSNet.org for credit card comparisons including prepaid credit cards and also offers a comprehensive list of cash back credit cards . You can read more about credit cards from his on site article, 'prepaid credit cards are helpful for teens'.
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Credit Cards and APR Fees
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