All About Credit Cards in New Zealand

Chances are, you are one of many in New Zealand who have clocked up consumer debt – including revolving credit, be assured that you are not alone. It’s time to get savvy to your credit card! This article leads you step-by-step through the process so that you can begin to be free.

One of the best things about having a credit card is the ability to make purchases quickly and easily. In many ways they have saved time and stress.  Problems arise when the credit card is not used well. Credit cards are designed to aid you, not to be used as your own source of payment.

In terms of credit card debt, here is a hard reality: if you were to pay the minimum payment on the average credit card debt, it would take some thirty years to pay off.  Obviously, it won’t be just the amount that was borrowed, but the interest added to it as well.

GET MORE TIPS TO GET CREDIT CARD SAVVY!

Finding yourself in a bad credit situation, may be making you feel anxious and stressed. The good news, is that you can take steps to repair bad credit – but be assured, it is not an easy task, and will take time.

You will need: a good dose of motivation, mixed with an ounce of time, with a bucket of patience and a load of dediction.

Repair Bad Credit Step One:

Find out exactly how bad your credit rating is. You are entitled to this information, so make it your business to find out.

GET MORE BAD CREDIT TIPS TO REPAIR BAD CREDIT

One of the attractions of having a credit card is the reward system…and yet so many people end up not enjoying their rewards or benefiting from their rewards but end up struggling to keep up with their payments and getting no rewards!  Why is this?

One major reason is that reward credit cards come with very high interest rates. Some people spend more on their reward credit card just for the purpose of collecting points without paying attention to their monthly balances. As a result, they have to put off their monthly payment and get charged with a high interest.

It is easy to lose control of your spending if you do not keep a  a sense of obligation and self-discipline. One thing to remember about reward credit cards is that the rewards should come as a bonus, a perk, an incentive. It should not be the primary reason that drives you to spend more on your credit card than what you really can afford!

READ MORE TIPS ABOUT USING YOUR CREDIT CARD REWARDS SMARTLY

When it comes to choosing a credit card, there is are so many options. Companies WANT you to choose them, as this is how they make money!

14 Top Tips For Choosing the Right Credit Card for You:

1. The percentage rate is the first place you’ll start – it is an excellent way of comparing various credit cards.

2. Try and beat an interest rate of 13%.  You should be able to do this if you have good credit.

GET MORE TIPS FOR CHOOSING A CREDIT CARD

Is debt overwhelming you? Do have credit up to your eyeballs? Debt collectors knocking on your door? Trouble paying the bills, let alone trying to save money for your retirement? The truth is , you are far from alone, and you might like to consider credit counseling.

Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But be aware that just because an organization says it is ‘non profit’ does not guarantee that its services are free or affordable or that its services are legitimate. In fact, some credit counseling organizations charge high fees, some of which may be hidden, or urge consumers to make ‘voluntary’ contributions that cause them to fall deeper into debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

READ MORE ABOUT CREDIT COUNSELING

If you, like many New Zealander’s have found yourself in a situation where your credit report is negative, then your credit ranking will be in trouble. If you have done all you can to check that your credit report is accurate, then the only thing that will repair your credit report is going to be time, and effort. But your credit report can be repaired.

A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. There is a standard method for calculating the seven-year reporting period. Generally, the period runs from the date that the event took place.

Your credit file or credit report may not reflect all your credit accounts. Most national department store and all-purpose bank credit card accounts are included in your file, but not all. Some travel, entertainment, petrol card companies, local retailers, and credit unions are among those that usually aren’t included.

READ MORE ABOUT WHAT YOU CAN DO ABOUT BAD CREDIT REPORTS

Nobody likes to be on the receiving end of debt collection agencies, but if you find yourself where creditors are knocking on your door, it is worth knowing and protection your rights so that you know that the debt collection agency is being fair.

When a debt collection agency contacts you:

The first time a debt collection agency contacts you; it must give its name and address, and the name of the original creditor (the business or person you owe money to). It must also tell you in writing the amount of the debt and any fees which have been added, such as, interest or collection fees. You must also be informed of your right to dispute the information.

READ MORE ABOUT YOUR RIGHTS WITH DEBT COLLECTION AGENCIES

When it comes to credit card debt, if it gets too much, it can really push you, or a family member over the edge. You, or someone you know might do something that you , in your normal state would NEVER do. This is due to the fact that credit card debt can feel so overwhelming, that you might be seeking a desperate solution.

The amount of debt you are in determines, in part, how stressed and desperate you become is as a result of financial problems. However, what caused the debts and how one deals with these financial obligations tells more than amount of debt about a personís reliability, trustworthiness, and judgment.

READ MORE ABOUT IS THE PAIN OF CREDIT CAUSING YOU HARM

You head to the mailbox, desperately wanting there to be no more bills, and suddenly you find it – a credit card company who has sent YOU a letter saying that you have been prescreened or have prequalified for one of their credit cards!! Could this be the answer you’ve been waiting for?? Hang on!! What does it actually mean??

READ MORE ABOUT PRESCREENED CREDIT CARDS