Basic Credit Card Shifting

Say I bought a TV for $500, but I didn't even have $500. But - I'm smart - I do have another card! What should I do by the due date? A balance transfer? Well, I'd certainly consider it if I had a current interest free balance transfer offer available. But let's say I don't anymore.

The first thing I'd do is work out my average weekly maximum cardable expenditure (not income) - including everything l usually buy but can buy with credit card purchases. For example, groceries, fuel, some bills (some companies don't accept credit card bill payments, others only in emergencies.) and so on. (Obviously rent or home loan repayments are a big one, but you may or may not be able to pay for these by card depending on who you pay!)

For our examples' sake let's make some figures up for my weekly living expenses. Because all plans work on a multiple of the expenditure, we can take any figure as the expenditure to work out and demonstrate the plans. So let's say:

Groceries $300
Fuel/Transport $100
All Other Bills $100
Total per week $500

If were to put all these living expenses as Purchases on my second card, and used my income to pay off my first card instead of for the living expenses, I would effectively shift the balance from one card to another. A very simply created interest free balance transfer!

By continuing to shift the balance back and forth each month I could have up to $1500 debt ($500 x 3 weeks) and never have to pay interest, or even pay off a cent, ever! (Plus I'll be earning plenty of reward/loyalty/frequent flyer points while I'm at it.) It would look like this:

EndWeek - Card A - Card B
0 ---------- 0 -------- 0
1 ---------- 500 ----- 0
2 ---------- 1000 ---- 0
3 ---------- 1500 ---- 0
4 ---------- 1500 ---- 0 - End Statement Period
5 ---------- 1000 ---- 500
6 ---------- 500 ----- 1000
7 ---------- 0 -------- 1500 - Due Date
8 ---------- 0 -------- 1500

Of course I'd want to pay it off at some stage because I might want to use it for something else in the future. By combining it with a debt reduction plan it really becomes rather sweet knowledge!

Before we move on to better and better methods, there are a few considerations needed to implement any of these strategies. The first thing you need to do is work out your average weekly maximum cardable expenditure (rounded down to give some leeway.) By maximum I mean try to include as much as possible, everything you'd normally pay for with cash. Because the greater this amount, the more you'll be able to swap so the more interest you'll save.

But do not add more than you'd usually spend as that would defeat the purpose! And remember to leave some petty cash spare for places which don't take credit cards. The expenditure figure you come up with is the figure we'll be using in all the outlined plans, so it's worth working out carefully.

Secondly. and as importantly, you will need to keep a record. Do not rely on memory. Who wants to remember how much they spend or owe? So keep all your receipts and add them to your owing total for that card at the end of the day (you may wish to highlight tax deductible items too, if so remember to get itemized bills.) Near the end of the month (or week for later methods) you'll want some kind of running total handy so you know when you're getting close to the desired swap amount.

Included in your record will be a calendar with clearly marked statement periods, due dates and payments made. You may also wish to record when you reach the desired swap total for future reference (so you can adjust expenditure if needs be.)

Last but not least you will need a second card if you don't already have one. There is a section on card selection in the Report.


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Credit Card Debt Consolidation Program - Get Control Over Plastic Related Debts

If you see no positive solution to get out of your debt trap related to credit card spending, you might be overlooking a credit card debt consolidation program. Since interest rates of credit cards are likely to be much higher than regular loans, these types of debts get piled up higher and sooner than other loans.

If plastic money is not meticulously used, then users may end up paying higher dollar bills than the amount that was actually spent. If you find yourself trapped in a similar situation, discover your way out through effective program to consolidate all your loan and dues in one simple loan or card.

Leverage Credit Card Debts To Reduce With Debt Consolidation
People with higher credit card debts generally have a poor credit history. This makes them ineligible to get a loan approval. Even if they get a loan, it is at a higher rate because such loans are considered high risk lending.

However, you should not lose heart because many companies offer bad credit debt consolidation programs to help you get rid of harassing collection call and steep delayed payment and other charges because of credit card dues. When you take a bad credit loan to consolidate credit card debt, you not only ease the debt burden but also improve your credit rating.

A consolidation program to combine dues from multiple credit cards into one convenient loan is an extremely effective tool in alleviating the pressure of never ending losses that you are incurring every month and still getting no reprieve from the total amount showing as outstanding.

The companies that offer loans and or cards for consolidation charge much lower rate of interest that the existing loans and dues and you save substantially on interest payments and charges. Moreover, since these loans for the purpose of consolidating debt are long term, you have to pay an affordable monthly repayment. Thus a credit card debt consolidation plan is all set to help you take a sigh of relief, ease your debt burden and eventually become debt free.

Before you use a program for consolidating plastic money related dues, make sure you have carefully chosen your company. Some companies charge you for their services even before seeing your papers and debt structure. Experts consider these companies a sham.

However, not all operators are unscrupulous and you can easily find a genuine debt consolidation company that can help you to take control of the situation and get out of the debt trap. Such genuine companies begin with seeing your papers, current debt status, then, assess your debt situation to offer you an appropriate program which might consist of a debt consolidation loan, counseling, financial management or a combination of all.

The companies would offer you a free online debt consolidation quote and then after assessing your case, they talk and negotiate with your creditors to relieve you from taking harassing calls from creditors. These companies hire representatives and managers to negotiate minimum payments, interests, late fees and penalties with your creditors. These companies might succeed to get some discount on the total amount due.

Numerous companies are operating in the market providing such free and efficient services. Conduct research on these companies and select a good card debt consolidation program that can deliver visible results in a satisfactory manner, have efficient customer support services, at offer you the most competitive rates.