Barclays entices students into debt

[ Bookmark this page! ] [ get HTML Version ]

Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans to you - a loan based on your equity in your home even if your credit has slipped or isn't as perfect as it could be. By taking out a bad credit home mortgage or home equity loan, you can consolidate a... Read article



Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans to you - a loan based on your equity in your home even if your credit has slipped or isn't as perfect as it could be. By taking out a bad credit home mortgage or home equity loan, you can consolidate a... Read article



Barclays entices students into debt
BARCLAYCARD, Britain's biggest credit-card firm, has angered anti-debt campaigners by doubling the amount of credit available to students taking out its new card, writes Jessica Bown.

Launched to coincide with the beginning of the university year, the Student Barclaycard will allow first years to borrow up to £600 straight away - up from a typical limit of £300 in the past.

The firm said it would also offer students an interest rate of 14.9% on both purchases and cash withdrawals, down from 17.9%. This is lower than the rates on specialist student cards from rivals such as HSBC and Lloyds TSB, which charge 18.9% and 17.9% on purchases and 21.47% and 17.95% on cash advances respectively. But cash advances on Barclaycard will still be subject to a 2.5% handling fee.

Consumers groups argue that students should not be borrowing on credit cards anyway, and certainly not at the start of their first term.

Frances Walker of the Consumer Credit Counselling Service, said: "Our advice to students would be to make use of the cheaper forms of credit available to them, such as student loans and interest-free overdrafts, before turning to credit cards of any kind."

Card companies know students can get cheaper debt elsewhere, which is why they try to entice them with marketing gimmicks.

Barclaycard is offering a 12-month interest-free loan facility to those buying a Dell Inspiron laptop using their card. The loan is paid off in interest-free instalments of £30 a month. Those who take up the offer are under no obligation to spend on their card and are also restricted to an initial credit limit of £240 because the £360 price is subtracted from the £600 limit.

James Le Brocq of Barclaycard said: "We have tried to create a card that will help students to get the most out of student life."

Debt counsellors warn, however, that such offers are suitable only for people who are disciplined enough to resist putting any extra debt on their plastic.

Sue Edwards of Citizens Advice said: "Spending on credit cards should be avoided wherever possible."

Students who are struggling are advised to approach their bank about increasing their overdraft above the 0% limit instead, as the rates are still likely to be lower than on a card. Barclays, for example, charges 8.9%.

Bookmark this page | Search this site | E-mail to a Friend



Credit Card Advantages

Ask any financial advisor and they will tell you that credit cards, in general, are not a good idea. But they aren't all completely bad. The problem isn't necessarily the card, it is the way the card is used.

The average American family has approximately $7,000 to $10,000 (or higher, by some reports) of credit card debt. For most people, credit cards are a major obstacle between them and financial security. They are just too tempting. Too easy to use. And it is too hard to get out from under them.

But if you are one of the few people who have the self control to pay off your credit card bill each month -- every month -- then credit cards could have some advantages.

If you pay off your bill each month, you are basically receiving an interest free loan from the time you make your purchase until your credit card bill arrives. But the key is that you have to keep a close eye on how much you are spending, you must have the money to pay it off in full. Or you will pay interest on what you can't pay.

Many credit cards offer protection for your purchases for a certain amount of time after the purchase is made. Airline tickets purchased with credit cards often offer free life and baggage insurance during your vacation. Some provide rental car insurance. A number of cards let you earn points for every $1 you charge. Others offer you cash back on your purchases. Many of these "reward" cards can be found with little to no annual fee.

The most popular of the rewards cards are the airline credit cards. These allow you to earn points toward free tickets or other upgrades with each dollar you spend. Almost all airline cards have annual fees, but these are sometimes waived for top customers. If you have used your card a lot during the year, you can request to have your fees waived.

There are many other card programs out there -- all intended to draw customers in. There are cards that pay towards your home mortgage loan. Some will donate to your favorite charity. You can find a card linked to almost anything nowadays.

The reason that credit cards take the risk that you will take an interest free loan and pay off your bill in full is simple. First of all, anytime you make a purchase with a credit card, the store you do business with must pay the credit card company anywhere between three and seven percent of the amount charged.

The other way they stay in business is by charging credit card holders who don't pay their balance each month high interest rates. These rates are even higher for those who miss a payment.

Credit cards are banking on you not paying your balance in full. The majority of their card holders don't. They encourage you to charge by offering money transfers, convenience checks and other incentives. They want you to be surprised when you receive your bill each month at how much you owe them.

But the fact is that credit cards are only a good deal if you pay off your balance in full each month and you only buy things that you have the money for at the time you buy them.

So that leaves many advisors to ask: why not just use your money and forgo all of the trouble? The benefits to the rewards cards are so minimal, they often aren't worth the risk.

While cards are the downfall of many, if you have self-control and use them wisely, there are advantages. Many people do find that they can save money by using them. Be careful and keep track of your spending, and you should find that they not only improve your credit score, but provide many other benefits as well.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!




Top rated articles for credit cards

1. Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans t... Read article

2. Credit Card Switching - Advantages and Disadvantages
If you're thinking of becoming a credit card jumper, you need to be well informed. Here's what you need about how credit card jumping can work for you.

What Is Credit Card Jumping?

... Read credit cards article

3. Home Mortgage: Bad Credit Won't Rule Out a New Home
When you're looking for a way to afford your dream home, home mortgage bad credit options can offer a way to get you into the home that you want to buy. Not long ago, people with less than perfect cre... Read article

4. Wedding Loans
Wedding is the heavenly bliss that is showered on you. It is not just the bonding of a couple, but the bonding of two families, their traditions and the cultures also. It is one of the most special da... Read credit cards article

5. Erase Bad Credit With A Little Help
Everyone has a little trouble now and then. If your little trouble ended up recorded in your credit history, it may take a little effort to erase bad credit and get a clean start, but it's an effort w... Read article

6. Best Way to Track Credit Card Spending
Credit card spending can be hard to keep track off if you are not disciplined, but it is important to monitor your spending in order to stop yourself getting into huge debt. If you are having trouble ... Read credit cards article

7. Credit Card Consolidation - A Fine Way
You can adopt various methods to reduce your debts. Methods such as bankruptcy, debt consolidation, debt settlement, debt management, debt forgiveness, and debt payoff are all methods which can bring ... Read credit cards article

8. Canadian Credit Card
Canadian credit cards are very similar to those offered in the United States. All of the major credit card companies offer credit cards to Canadians and some major retailers do as well. There may not ... Read credit cards article

9. Credit Card Debt - A Low Interest Rate Credit Card
Credit cards have provided many people a convenient way to make purchases without using any cash. In fact, many cardholders have credit limit that are twice that of their monthly income. This feature ... Read credit cards article

10. Power of Balance Transfer Credit Cards
Have you given in to the temptation of balance transfer credit cards? You will be able to transfer the balance off other credit cards to balance transfer credit cards. You will then benefit from bonus... Read credit cards article


Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Barclays entices students into debt
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

Add website or submit URL link of your site to 1000 free directory