Credit Utilization Ratio and How to Keep it Low

What is credit utilization? Credit utilization is the ratio of your credit balances to the total credits available to you. It is usually expressed in percentage. That is why people usually refer to it as credit utilization ratio or credit utilization rate. Some people may even be more specific by calling it credit card utilization ratio. Whatever the name you call it, it means the same thing. The two main elements involved that you need to consider while calculating credit utilization are your card balances and your total credit limits. You simply divide your card balances by your total credits Continue ReadingCredit Utilization Ratio and How to Keep it Low

Credit Card Minimum Payment and its Effects

What do you understand by credit card minimum payment? Why do the credit card companies encourage minimum payment? What effects does the credit card minimum payment have on your finance? These are the questions this article is about to address. We shall be answering the question one after the other. What is credit card minimum payment? Credit card minimum payment just as the name implies the minimum amount that your card issuer expects you to pay every month towards the repayment of your card balance. In most cases, it is usually expressed as a percentage of card balance. The rates Continue ReadingCredit Card Minimum Payment and its Effects

Debt Free Living-How to Live a Debt Free Life

Is it possible to be debt free in this era of credit economy? The answer can be both ‘yes’ and ‘no’. If you believe that you can be debt free, I will say it is possible. On the other hand, if you think that living debt free life is impossible, then it may be really impossible. However, the essence of this article is to help people that desire debt free living to see clearly how they can easily reach the goal. At the same time, maybe this article will be an eye opener to the category of people who believe Continue ReadingDebt Free Living-How to Live a Debt Free Life