November 14th, 2013 by Elma Jane
Micropayments provide faster results and some immediate gratification that can keep you motivated. Rather than eating out or splurging on something that you don’t really need, immediately apply that money to pay down your credit card balance. Instead of paying a certain amount once a month, divide that payment in half and pay that amount every two weeks. Consumers can even sign up for an electronic transfer of your funds to take place every two weeks. By the end of the year, you will have made 26 payments or the equivalent of 13 monthly payments. The extra monthly payment resulting from this payment plan will enable you to pay down your debt at a faster pace.
If you are planning to make micropayments, consumers may want to call their credit card company to verify that separate payments can be made and will be credited to their monthly minimum. See if your issuer has any restrictions or limitations on making additional payments.
Holiday shopping is just around the corner, and consumers need to have their credit card balances as low as possible in order to avoid costly interest charges. One way to do this is to make micropayments on their credit card bill. While we are conditioned to pay our credit card bill once a month, consumers can actually make a number of smaller payments throughout the month. Some banks and issuers allow payments to be made as often as once a day. If you carry a balance, micropayments can reduce the interest because most credit card companies charge interest based on your average daily balance during the month. Pay more often and you reduce your average daily balance and therefore the interest you pay that month.
If you have more than one card with a balance, keep paying the minimums for each card, but pick one card to pay off first. Select either the card with the highest interest rate (save more money) or the card with the lowest balance (pay it off faster). Stop charging on that card, using another card for purchases.
There are several other advantages to making micropayments when paying down credit card debt:
You may have better control of your payments. If you are paid weekly or bi-weekly, money can slip away by the end of the month. Designate a specific day after you are paid to send in a payment for your credit card. Four $50 payments or two $100 payments are sometimes easier to make than a monthly $200 payment. It is also easier to add a little extra money to smaller payments.
In time, micropayments can help raise your credit score. An organized, scheduled payment plan can help you avoid late payments and pay more than the minimum due. Both of these are important elements for a good credit score.
Micropayments can reduce financial stress. Making payments right after payday at a time when you actually have the money will likely reduce anxiety and financial stress.
The higher your interest rate, the more you will save.
The disadvantage to the micropayment plan is that it takes time, organization and financial discipline to make the plan work and this may be difficult for some people.
Posted in Electronic Payments, Financial Services, Visa MasterCard American Express Tagged with: balance, bill, consumers, credit-card, credited, debt, elements, financial, interest, issuers, limitations, micropayments, money, monthly minimum, pay, payments, purchases, shopping
November 12th, 2013 by Elma Jane
Since Medical Transcriptions is one of the product and services by National Transaction Corporation under National Transcription Corporation I just want to share this topic.
The abuse of the medical credit card system is growing by the day because many doctors are making these cards appear like an in-house payment program. Most patients are inclined to pay their doctor for their services directly, but they are more hesitant when a credit card is involved. Some medical professionals are masking the true source of their lending services and thus putting their clients at risk.
An example of this form of abuse can be seen by a company called CareCredit. Nearly 90% of New Yorkers in the CareCredit program opted for a program with no interest if the amount was paid in full. A quarter of them ended up paying 26.99% interest on their accounts instead. CareCredit has more than seven million cardholders nationwide, and it is currently the defendant in a variety of civil lawsuits.
If you are offered a chance to take to a credit card to cover your medical expenses, you should fully research the card before signing on the dotted line. Fully understand the terms of the card before agreeing to anything so you don’t end up in heavy debt.
Medical credit cards are designed to help people pay for procedures they may not be able to afford on their own. These cards give patients a chance to undergo the procedures their insurance may not pay for, as well as giving the doctor the opportunity to get their money right away.
While this may seem like a great setup, most patients are pressured into getting medical credit cards without knowing the excessive costs sometimes associated with them. They can fall into a debt trap very quickly.
Posted in Credit card Processing, Electronic Payments, Medical Healthcare Tagged with: amount, cards, clients, credit-card, debt, doctors, heavy debt, interest, lending, medical transcriptions, money, paid, patients, payment, procedures, professionals, risk, services, signing, system, terms
