Economy Alliances

Posts Tagged ‘Credit Card’

An unexpected disability can greatly affect your personal finances. You may have to access emergency funds to liquidate personal assets, debt or examine carefully the credit card to cover initial emergency recovery and in progress. Now that you or your loved one is beginning to focus on rebuilding a new life to suit their disability should consider where you are financially and create a strategy on how to continue to recover financially from the unexpected change. For example:

* How will you fund your support personal savings in case of emergency?

* What credit cards are maintaining a balance and what is your plan to pay for them and finally settle?

* If you take out a home equity loan or other personal loan, how much should the loan and how to pay for it?

* What is your current income or that of your loved one from here on out and meet your living expenses “after rehabilitation and outstanding debt obligations?

* How the disability has affected your financial goals and long-term intermediate and their ability to reach those goals?

It’s a good idea to go back and reconsider your budget. You may need to create a new budget that reflects your new financial position and needs. You may also want to consider working through our “Savings and Investments Managing your finances” to gain confidence in their ability to create a strategy to get back on track financially.

A gold credit card has many advantages over traditional credit cards. First, most gold cards are really charge cards. They don’t encourage their cardholders to carry a balance from month to month like a credit card does. Since gold card issuers don’t make an money from interest charges, they charge annual fees for the use of the card. A gold credit card will have a very high interest rate to discourage people from carrying over balances and they are not issued to people unless the gold card issuer feels the person has the financial resources to pay the balance in full each month.

A gold credit card typically has no pre-set spending limit. Many people use gold cards for airline tickets and travel expenses because of the reward points offered for travel purchases and these purchases tend to be expensive. A gold credit card isn’t issued to people who would have trouble paying off their balance each month, even if the balance is high from travel expenses. This is why gold cards are considered more prestigious than traditional credit cards.

A gold credit card has one primary advantage for the cardholder, it offers rewards for purchases. These rewards are redeemed by accumulating points from purchases charged to the card. The rate at which the points accumulate, and the rewards which can be obtained with the points vary depending on the card issuer.