Credit Card Debt

By Don Burnham

Credit cards have been considered to be a luxury in the past but have in recent times become more of a necessity for people around the world. People nowadays depend on credit card more than before and almost all of them possess one credit card for sure.

Now, however, the credit card industry and credit card holders are posed with a big problem called "Credit Card Debt." In order to understand what 'credit card debt' actually means, we need to understand the how credit cards actually work-- away from the point of sale.

Credit cards are used by people to purchase things on credit, which means one can purchase things without having to pay for them upfront. The credit card represents the credit account that a person holds with the firm issuing the credit card. The more you use your credit card for purchasing items it adds to your credit card account, thus creating your credit card debt.

The total amount that is owed by a credit card holder to the credit card supplier adds up to be the total credit card debt, and needs to be paid back every month. Due to this the credit card suppliers issue monthly statements to the credit card holders and they are expected to pay back their dues within a particular date. Any delay in payment would result in the person having to pay extra money in terms of late fee and interest charges.

There is an option of making partial payments for clearing the credit card debt that people can avail. However this proves to be disadvantageous for the people as they would be paying back higher interest rates, thus increasing the amount of their credit card debt. The only advantage is that they will not attract any late fee.

Furthermore, the interest charges added on to your credit card debt each month form the new balance or the new credit card debt amount, and interest is charged on the previous month's interest. If you continue making partial payments (or no payments) the interest charges (and late fees) are calculated afresh on the new credit card debt. So you end up paying interest on the last month's interest too.

Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don't control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works. - 23305

About the Author:

Are you a credit card user and willing to know how exactly the credit card works? Then here is a website http://www.weknowthewayback.com from Don Burnham which explains you everything about Credit Cards.

Easy Penny Stocks Tips You Can Use To Cash In!

By Sam Lockwood

Since the 19th century, penny stocks have been part of the American investment world. This is where the stocks got their names, since modern penny stocks almost never cost a penny. They're usually more like ten cents to five dollars. Now, let's look at the risks of working with penny stocks, then the opportunities they can provide.

Penny stocks are share offerings made by companies that are either too new or too small to be listed in the major exchanges. These have a potential to grow a lot for a relatively small initial investment, but they can also be part of unpleasant pump and dump schemes. Like anything else in the over the counter (OTC) market, the buyer should beware.

Choosing penny stocks in a reasonable fashion means having the business model of the company selling them independently appraised. This is like buying shares in any other company that's being publicly traded. It's important to understand the company's business model, what they're doing, who's competing with them, what they make and what products are being offered.

The thing that makes penny stocks so appealing is that most businesses offering them are actually extremely simple. One typical example of a penny stock company is that of a mining company that profits only when the price of the material it extracts reaches a certain number. There are also a few oil exploration stocks that are valued in this way.

Penny stocks are rated as a high risk vehicle by the Securities and Exchange Commission. Some of the risks involved include incomplete or indirect reporting of finances, fraud, and limited liquidity. People playing using a day trading strategy, sudden demand on penny stocks can create wide ranging volatility, which also makes it hard to short sell them.

The financial reporting guidelines on penny stocks are actually pretty loose. Unlike the national exchanges, not much is required of companies that list this way - in fact, sometimes these stocks will just de list for a few days! In the investment type called Pink Sheets, penny stocks have nearly no regulatory requirements at all, including few to no minimum accounting standards or reporting guidelines.

Because there are no generally accepted standards or standardization for penny stocks, they're an area that's extremely vulnerable to fraud and manipulation. People can pose as independent observers, then run up the price of penny stocks. All they have to do then is de list it, leaving buyer with nothing in what's classically called a pump and dump scheme.

That doesn't mean you should be scared away from these kinds of stocks completely. There are plenty of reasonable startup companies, and they need somewhere to start. If you're able to pick a winner out of them, you'll get a significant return.

If you're able to spot a company with lots of promise, you could get an enormous payday. Even if you lose four out of five of your picks, the single winner you get will give you enough to forget about the other losses. - 23305

About the Author:

To Find more penny stocks tips make sure to take a look at our website - it's there for people looking to make money! Click Here for a proven penny stock system that delivers phenomenal results!

Forex Investing Tips That Will Help You Make Money

By John Eather

The forex investing market sure has changed. In the old days, it was different and there are tons more people using it. Forex investing has become very easy to do, all thanks to the Internet. In the older days, not many people were able to turn to forex trading to make money. Is it because today's world holds more risk takers?

What currency is being traded on the forex market today? There are many different currencies that are being traded, but some of the most popular are: Swiss franc, pound, Canadian dollar, Yen, Aussi and he Euro. When it comes to each one of the currency pairs, the first one is referred to as being the base currency, while the second one of the quote currency or the counter currency.

Each one of the currency pairs will be quoted with both an asking price and a bid. Take note that the bid will always be lower than the asking price. The bid price is the price your broker is willing to buy it at, which means the trader should see it at this price.

When you are dealing with the forex market, you will hear pip more than once. What exactly is a pip? It is the minimum move that a currency pair is able to make. Pip stands for Price Interest Point. What is the main purpose of trading? It would be to buy low and sell high, of course.

When we look at the forex market, we see that it is an unusual market and there are a number of reasons why. First of all, there are not many markets that are free from outside controls. It is also known for being the biggest liquid financial market. Some of the trades reach anywhere from 1 to 1.7 trillion US dollars each day. If you are looking into forex investing, then you are making a wise decision. - 23305

About the Author:

Sign up for John Eather's Free eCourse on Forex Investing. Remain in touch with the latest information concerning Automated Trading. Click on http://www.moneymakingfxtrader.com to get more details.