credit cards

Tip Tuesdays: A Method For Repaying Your Credit Card Debt

by Vinaya HS on August 3, 2010

in Finance

If you find yourself drowning in credit card debt and have no idea on how you’re ever going to repay all that debt, you can try the Dead on Last Payment technique. The method focuses on quick psychological wins — definitely what you need when you’re swamped with credit card debt.

Let me know if this method worked for you.

Tip Tuesdays is my initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.

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HDFC Platinum Plus Credit Card: The Myth Of Zero Fuel Surcharge

by Vinaya HS on June 3, 2010

in Finance

A random thought had me rummaging through my credit card statements for arriving at this conclusion:

HDFC_Platinum_Plus_Credit_Card

The fuel surcharge is indeed zero, but you’re still paying the service tax! A good reminder for what I’ve said before: Always check for service tax charges.

Does your credit card do the same?

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Tip Tuesdays: Can I Pay My Credit Card Dues Even Before I Receive a Statement From My Bank?

June 1, 2010

Reader Gopal asks, I can see my total credit card dues over the Internet. Can I pay off these dues even before I receive a statement from my bank? Sure. You can. In fact, I follow this policy [and I'd advise you to] — each time I use my credit card, I wait for the [...]

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Tip Tuesdays: Deposit Your Credit Card Payment Checks Well Before the Payment Due Date

April 27, 2010

Because, The Payment Due Date is the last date by which the bank should receive clear funds post processing towards card payment, failing which, future transactions may not be honored and late payment charges and charges on revolving credit plus service tax will be levied as applicable. Tip Tuesdays is my initiative to share practical [...]

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Tip Tuesdays: Why You Should Not Own a Credit Card From a Bank Where You Also Have Other Deposits

February 9, 2010

Because the bank has the right to dip into your savings and settle your credit card dues. An extract from HDFC Bank’s Most Important Terms & Conditions for Credit Cards (version 1.23) reads: Right of Lien The bank, at any time and without notice, will have lien and right to set-off all monies belonging to [...]

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The Order in Which Your Credit Card Payments are Applied for Settling Dues

February 6, 2010

You might be wondering why your credit card dues simply keep spiraling out of control. The basic reason for this is that once you fall into the trap of not paying your outstanding dues in full, the bank levies all kinds of fees, interest, and finance charges and then tries to recover these before applying [...]

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Tweets on 2009-07-16

July 16, 2009

I’ve previously written about creating a real emergency fund with real cash before you use your credit card for emergencies. It so happens that I’ve had to plan for a personal trip towards the end of the year and which will require me to use my credit card (for accommodation, air tickets, etc.). The earlier [...]

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Case Study #5 — Why I Don’t Own a Credit Card?

July 6, 2009

I also asked D, why she didn’t own a credit card. Her response: I don’t believe in the mechanism of credit — it’s not my money to begin with. By credit, I include credit cards, loans, overdrafts etc. — any money that’s not mine. I’m also not aware of the procedures to repay the amount. [...]

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Case Study #4 — Why I Don’t Own a Credit Card?

July 2, 2009

I was curious to know why a friend of mine didn’t own a credit card — especially in this day and age. My friend’s response: Haasige iddashtu kaalu chaachu (idiom for: I don’t want to spend money that’s not mine to begin with). Add to that the hassles of remembering payment due dates, amounts, etc. [...]

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Awareness Fridays: One Good Reason to Stop Carrying Your Credit Card in Your Wallet

February 6, 2009

Because, Indian banks are now free to charge an annual interest rate of up to 49% from credit card customers for late payment. Read the complete story here. It’s not a great idea to carry your credit-limit-beyond-what-I-can-pay (most often …) credit card in your wallet especially in these lean times. You might be the most [...]

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Tip Tuesdays: Use Your Credit Card for Emergencies Only After You Have First Created a Real Emergency Fund with Real Cash in a Savings Account

January 13, 2009

I have often heard the argument that the credit limit on a credit card serves the purpose of an emergency fund. This strategy by itself is both myopic and dangerous. However, what can make this strategy both farsighted and safe is if you have a real emergency fund with real cash in a savings account [...]

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Awareness Fridays: Easy Reading — Personal Finance Advice from Suze Orman

December 26, 2008

I’m a BIG fan of Suze Orman simply because she gives practical advice on personal finance. I try and catch her show every Sunday on CNBC (here’s the TV schedule). I happened to read this recent interview with Suze Orman where she answers questions posed by a group of personal finance bloggers. Though some of [...]

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Real Experiences: Barclays Priority Circle [of Misery]

December 18, 2008

A reader recently wrote: I have a friend who needs some guidance on a problem she’s facing with her Barclays Credit Card. Barclays is forcing her to avail a membership called Barclays Priority Circle. They call her several times a day asking her to pay around Rs 9,000 as membership fee and late payment charges. [...]

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So You Want to Cancel the Credit Card? Well, What If We Give You a Titanium Card Instead?

December 3, 2008

I have an HDFC Bank Credit Card — one that I haven’t used since I received it over an year ago. I therefore decided to cancel it. A week back, I dropped a request-for-cancellation letter at an HDFC ATM near my house. Today morning, I called to check the status of my request. A few [...]

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Awareness Fridays: Guidelines for Credit Card Operations of Indian Banks

November 21, 2008

Reader Shankar asks, Is there any Master Circular issued by the Reserve Bank of India on Credit Cards issued by Indian Banks? There certainly is: Download the Master Circular on Credit Card Operations of Indian Banks. Download an update to the Master Circular. There’s some pretty useful information in these documents. Again, take some time [...]

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The Hidden Rupee: Kotak Fortune Gold [Credit] Card — Your Happiness Lasts Just 48 Days

August 6, 2008

When you see a financial offer that sounds too good to be true, you should always read the fine print. For example, a recent issue of Outlook Money carried an ad from Kotak Mahindra Bank that touts a 48-day interest free period on cash withdrawals done using the Kotak Fortune Gold [Credit] Card in lieu [...]

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Financial Confessions: The Lure of Credit Cards and the Need to be Responsible

July 29, 2008

In describing my credit card usage policy, I said, I should look at every other option before opting to purchase with a credit card. For reasons that still remain a mystery to me, I recently used my credit card to pay for goods and services when there were a whole set of other options readily [...]

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Know Your Rights: Did You Know That Banks Are Liable to Pay a Penalty for Issuing Unsolicited Credit Cards?

July 25, 2008

Source: RBI Notification. Banks have been advised that unsolicited credit cards should not be issued and that in case an unsolicited card is issued and activated without the consent of the recipient and the latter is billed for the same, the card issuing bank shall not only reverse the charges forthwith, but also pay a [...]

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What’s Your Credit Card Usage Policy?

June 16, 2008

In my financial independence checklist, I mentioned as the first point: I should not have any credit card debt. While this is true today, such was not always the case. A long time ago, I had an outstanding debt in six-figures on an American Express credit card and no bank balance to pay it off. [...]

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Did You Know: Credit Card Companies In India Will No Longer Be Liable For Transactions That Happen Before A Card Loss Is Reported

April 9, 2008

The following is a true account of a close friend’s experience after losing a credit card: How the credit card was lost? My purse was stolen on 20th January 2008 at an IKEA store in Elizabeth, NJ. I lost my Driver’s License, an HSBC credit card, and all my Debit Cards. I contacted the police, [...]

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