Understanding credit card terms can help you to be more aware of precisely what is stated in the fine print of your credit card application and contract.  Here are some of the most important terms in the field of credit cards and what they mean for you.
 
Average Daily Balance: The Average Daily Balance is the average dollar amount that exists on the card at any given point in time.  Over a period of time, usually thirty days or the number of days in a month, the total balance is added up and then divided by the total number of days.  The Average Daily Balance is used by credit card companies in the Average Daily Balance Method to determine the amount of interest due on a credit card.

Annual Percentage Rate:  The Annual Percentage Rate is the total amount of money that a person will pay each year in interest on the amount of money that they spend with the help of their credit card.  It is important to be aware that you will not just have the pay interest in the form of the Annual Percentage Rate, but there will also likely be simple interest attached to your purchases as well.  The lower APR you can secure with your credit card, the better.  Credit Card companies are required by law to reveal to you the APR for their cards.

Cardholder Agreement: A Cardholder Agreement is probably the most important document that you will receive from the credit card companies with which you work.  This agreement will cover all specifics of the agreement that applicable to your relationship with the credit card company including any legal options available to you if you have a problem with the company.  All questions dealing with the terms and regulations of the agreement can be found in this document.

Cash Advance Fee: When you use your credit card in order to get cash up front, you will be charged a specific fee just for getting this cash.  This is an up-front fee that needs to be paid by the card holder.

Finance Charge: Finance charges can take the shape and form of many different charges on your credit card bill.  In general, a finance charge is any amount representing the cost of using or borrowing money, in this case through the use of a credit card.  These fees can include interest and transaction fees, late fees, over the limit fees and more.

Grace Period:  The Grace Period is the length of time between the due date of your payment and the date on which penalties will start to accrue, due to the lateness of the payment.

Minimum Payment:  This is the very least amount of money that needs to be paid to the credit card company that you utilize.  It is a fraction of your total balance due.

Periodic Rate: The Annual Percentage Rate (APR) is used in order to calculate your annual interest rate, but the periodic rate looks at the amount of money due in interest for each period.  Usually, the period of a credit card is one month.  You can determine your Periodic Rate by dividing your APR by the twelve months within a single year.  If your APR is twenty-four percent, you would divide twenty-four by the twelve months in a year, and the Periodic Rate would be calculated as two percent.

Variable Interest Rate:  Your variable interest rate will move up and down over time, based on the changes that may occur in the market.

Balance Transfer:  Transferring your debt from one credit card to another is known as a balance transfer.  The entirety of the amount due on your one credit card will be transferred to the other through this process.

Not being able to pay your mortgage is a serious problem.  However, this does not mean that there are no options available to you.  Here are five separate options that you can consider if you are in a position that makes you unable to pay your mortgage.

Repayment Plan

Sometimes, in order to get the money that they are owed, lending institutions will work with you in order to create a repayment plan.  This is beneficial for you since you will be able to keep your home and it will be beneficial to the bank in that the lending institution will be able to recoup the money that they have invested in you and your home.  This is a great option for individuals to consider since it can cause the least amount of stress and strain on your life.

Modification

If you are having problems with your mortgage and you do not foresee any end to the financial strain in your life, you can discuss the problem with your lending institution.  They may be able to provide you with a mortgage modification.  This modification has the ability to change the terms and regulations of your mortgage in order to make it possible for you to afford the payments of your mortgage and keep your residency.

Deed in Lieu of Foreclosure

To avoid foreclosure, you may be able to offer up the deed from your home to your lender.  This would wipe out your debt without the stigma of foreclosure.

Short Sale

A short-sale is negotiated by the lender in order to sell your home for less than the amount of money that is owed on the home.  While this would end your debt, it also would leave you with no equity for your next home.  Nonetheless, it is a great option if you are really trying not to foreclose on your home.

Foreclosure

Lastly, if you cannot afford your mortgage, you may have no choice but to foreclose.  When you apply for a loan on your house, you often provide the home as collateral for the lending institution.  If you cannot afford your mortgage, you may need to give up your home in order to pay your debt to the lending institution, referred to as a foreclosure.

While to many people it may seem that life is pretty much over after filing for bankruptcy, there are things a person can do to still appear financially attractive to financial establishments. Everyone makes mistakes and bankruptcy can count as a mistake.  The important thing for people to remember after filing for bankruptcy is to keep moving in a forward manner and not dwell on the past, which cannot be changed.  By taking the appropriate steps, even people who file for bankruptcy can become financially responsible. You will not get satisfaction right away.  Improving your credit will take time and it is important to remain patient throughout the procedure. 

Getting a secured credit card is advisable for the individual immediately following their filing for bankruptcy.  Collateral is used for the card to set the limit so the individuals who have this type of card will not be spending more than they can afford. This will help build up credit and help you stick to a budget.

Track your credit and remember to pay everything on time. To improve your standing even more, pay over the minimum payment as much as you can.  This will make you appear responsible, while at the same time your debt will decrease faster than if you were just paying the minimum amount due. If you want to take complete control of your finances you should pay off your debt in full each month. If you are using more credit each month than you can pay off, you probably need to look at how you are spending money.

Identity fraud is a growing concern and individuals can be forced to file for bankruptcy if someone steals their identity and racks up debt.  It is often scary when you have a lot of debt, but ordering your credit report at least once a year can save your credit if you find any issues during the checkup.

In general, it will take time to build your credit back up.  This does not mean there is nothing to be done about the situation.  By continuing to be positive and work in the right direction, you can still appear as the financially responsible, dependable individual you would like to be.

Declaring bankruptcy is usually a last resort for people, but sometimes it does need to happen.  There are certain key aspects that individuals may be able to identify in their finances that would tip them off that their finances may be sending them to file for bankruptcy.  There is no easy answer when it comes to a person asking if they specifically should file.  It can be very difficult, without seeing that person’s finances, to determine whether or not they are prime candidates to file.  Instead, individuals need to identify that on their own after looking at some of the warning signs for irresponsible finances.

Individuals need to keep track of the money that they spend.  Having a debt to income ratio that is too high is one of the fastest ways a person could allow themselves to file for bankruptcy.  Debt needs to be kept under control.  Individuals should not be using their credit cards for standard monthly purchases, such as groceries.  Items like groceries should be budgeted in monthly expenses.  If a person has no clear cut budget, this is not a positive aspect either.  Having a budget will help individuals stay on top of their debt in order to improve credit as quickly as possible.

If someone is threatening you to garnish your wages or take other such actions against you, you probably are not as on top of your finances as you could be.  Credit gets worse the longer a person maintains debt, misses payments and acts in other financially irresponsible manners.  Declaring bankruptcy actually allows an individual to start over.  Their credit score could improve and the individual(s) threatening to subtract from your wages may not be able to do so if you choose to file for bankruptcy.