Cash Back Credit Cards Or Reward Credit Cards – Which One is Best For You?

13-12-2009 by admin



So, you want a new credit card and figure getting a reward card is the way to go.  But you’re a bit confused about the difference between reward credit cards and cash back credit cards.  It’s not surprising because even many credit card companies use the terms interchangeably.  But they are different.

Make the right choice and you’ll find yourself with “free” gifts or cash.  Make the wrong choice and you might not see any “free” rewards at all.

Invest just a little bit of time online comparing offers and when it comes time to redeem your rewards you’ll get what you want.

Here are some of the more important things to consider:

Would You Prefer Money, Products or Services?

Whereas a cash back credit card will send you cash periodically, a reward credit card issues points or miles for your purchases.  You can then convert the reward points into discounts on travel and/or various services and products.  The rewards vary from one card to the next.

How Do You Get the Most Value?

On the surface nothing beats a financial rebate.  However, reward cards that give you points or miles often offer incentives that  are usually worth  quite a bit more than what you’d get for the equivalent use of your cash back credit card.

Thoroughly scrutinize what you can trade your points for because if you find things you like you will get much better value from reward card cards than from cash back credit cards.

The Big Problem with Reward Credit Cards

Reward credit cards can be a time-sucking hassle because you need to keep track of your points in order to get your rewards whereas cash back credit card companies either send you your money automatically or apply it directly to your balance due.

So, if you don’t want to bother tracking your miles and/or points a cash back credit card would be a better choice.

Debt Settlement VS Debt Consolidation – Don’t Make the Wrong Choice

03-06-2009 by admin



Is debt settlement a better option than debt consolidation?

Debt for consumers is growing by leaps and bounds. More than a billion individuals are truly in debt they cannot handle. In order to understand what type of debt management plan may be best for you, you need to know what they are. Debt Settlement vs. Debt consolidation talks about the two choices you have with a debt management plan. Debt settlement varies in use to the debt consolidation in several ways, which we will look at below. Remember that creditors want to receive payment from you rather than seeing the entire account lost because of a bankruptcy.

How Debt Settlement Works

The first thing you should know regarding settlement vs. consolidation is how settlement works. Settlement will allow a person to lower their debts by 40 to 80 percent depending on the companies you are dealing with, as well as the credit standing you currently have.

Once the debts have been paid off they will be marked paid in full or settled in full. This helps with your credit report and history. During the settlement you will be experiencing a reduction on your credit score, which you will need to repair once the debts are settled completely. It usually takes two to three years for debts to be cleared under this management plan. Debt settlement also allows you to save interest on the debts because you have a smaller amount of debt you owe and are settling at a certain amount. One problem with debt settlement is the tax liability on canceled debt you may owe. This can be as much as 600 dollars.

What is Debt Consolidation?

Consolidation uses your home equity to pay off debts. When you use consolidation vs. settlement you are obtaining one loan, a reduction in interest, and one payment. Debt consolidation is not a reduction of the amount you owe, just the interest unlike Settlement. Usually under debt consolidation it takes three to five years to pay off the balance. The credit score is also going to have a short term affect and the debts will be marked paid in full. A con to debt settlement is the slow pay status you may receive on your credit report as a result of the debt consolidation. However, these marks go away in time, much faster than your original debt would.

Debt consolidation uses a loan which is not considered a secure loan. In some cases you are able to get a secure loan through the home equity loan you will take out. This could pose a small problem as you are endangering your home if you cannot make the repayments.

Take Action!

Debt settlement vs. Debt consolidation is something you need to consider when you end up in debt. We have outlined what each debt plan is as well as looking at the pros and cons of each. It is important that you take action early whether you are using debt settlement vs. consolidation to solve your problems. The longer you wait to take advantage of either debt settlement or consolidation the harder it will be for you to seek help. Companies recognize a proactive stance and are more willing to help you out than if you wait until you are two steps away from bankruptcy court.