DEBT---------- Views & Ideas

Debt is invariably a financial term frequently used and is created when a Creditor agrees with a Debtor to lend some money/ assets for some fixed tenure with an expected repayment and is usually borne with Interest attached with it. In Other terms we may say that debt refers to consuming or using future purchasing power in present. Standard of Deferred Repayment denotes the process and agreement on basis of which repayment shall be done having consent of both the parties.

There can be various Types of Debt depending upon the nature and characteristics:-

1) Secured

2) Unsecured

3) Private

4) Public

5) Syndicated

6) Bilateral

Apart from these there are some debts that have mixed features of the above mentioned.

Debt is often sought after and required for business purpose, investment strategies, purchasing goods and services at present with debt having used future purchasing power. However Debt has a long term effect on any country. Over volume debt has long term effect on National output and economic growth, infact there remains an impact with inflation as well as deflationary situation of a country.

Thanks

Pamela

Concept and Charges of credit card.

CREDIT CARD is often refereed to as plastic money and invariably has come up as one of the modern day variant of hard cash. It has developed a lot of convenience though it’s service does not come for free. There are a lot of charges and fees attached with it.

Let us sum up some important ones out of them.

FEES mainly include Annual fees. Annual fees depicts the charge which comes as a service charge a person pays to the credit card company. It varies anything between $15 and $ 60. Again there are exceptions to this feature since a lot of credit card companies don’t charge annual fees. It has also been seen that even after availing chargeable card, the charges have been waived off.

COST may include total annual cost which is quite important to ponder on. This follows a mathematical rule of fees (annual) plus the interest charges accrued plus any other charges. For a better usage of cards it is often said to understand the facts and figures.

RATES include Introductory Rate which is a charge applicable when a card is issued though nominal, is often variable. Talking about Annual Percentage Rate, it is an interest rate charged on any carry forwarded balance. There are two variety of APR and usually we see that fixed APR remains a bit higher than variable APR. But there always remain a problem with variable rate since it’s floating in nature, we don’t know what the rate can be.

Other fees will apply on your credit card varies due to various reasons. Late payment regularly draws late fines and charges. One should always remember the credit limit. ATM withdrawal service does not come for free and such charges have a different interest rate than a charged purchase.

However it all depend how a person realizes his strength and weaknesses and judicial approach to deal with their credit card.

Thanks

Pamela