Tips for Paying Down the Credit Card

Using a credit card is fine if it is done in a controlled manner. But it is too easy to overspend and so many people find themselves bogged down in debt that they cannot handle. Credit card interest is very high and so unless you can pay back more than the minimum - which is only interest - you will never reduce your debt. So each time you make a payment, make more than the minimum so your principal is gradually reduced. And at the same time, stop using the card for purchases. If you don't have the cash, then don't buy it.

If your interest is really high, phone the company and ask for a lower rate. This sometimes works; if it doesn't work for you, consider transferring to another card with lower rates. And be sure to pay off the debt before the rates go up. If you have savings, use them to pay off the debt because the interest you are earning on that will be lots less than the interest you are paying on the credit card debt. Once it is paid, start saving the interest that you now don't have to pay.

Once you've paid it off, add up all the extra interest and fees that you just paid. Now just imagine what you could have bought with that money if you hadn't had to pay it away in interest. In the long run, you'll get more by saving to buy, rather than using credit cards.

By managing your bank accounts you can avoid costly interest bills. Try a term deposit if you need to lock away money for a specific period of time. More online http://www.raboplus.com.au/savings/default.aspx

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Ideas for Your Tax Return (Including Saving Some)

Many people look forward to their tax return so they can spend up on some item of luxury like a bigger TV, that they don't truly need. Why not make your money work more efficiently for you instead? Even if your refund is only a few hundred dollars, you can still invest that amount in stocks. By denying yourself immediate pleasure, you can actually start yourself on the road to a better life. Many people who are now rich were once poor; they hauled themselves up the financial success ladder by investing every spare cent they had.

Paying off credit card debt is another good way to use your tax refund. Even if you pay off some and invest the rest, you've done a good thing financially. But don't only pay the interest; pay off the principal too. Or if you are still paying off a mortgage, then adding the tax refund to the payments is being smart.

Other things to do with your tax refund include servicing the car or increasing equity in your home by doing some kind of renovation, putting it away in a term deposit, or saving it in an electronic account with high interest. However, if you never have much fun in life, maybe you could spend some of it on a night out and create a happy memory that will rejuvenate you for the year ahead.

By finding a great term deposit interest rate you can make sure you earn the most and beat the standard savings account rates. More online http://www.raboplus.com.au/term_deposits/default.aspx

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