Need a Passport? Put it on Your Credit Card!

The Ministry of Foreign Affairs and Trade announced that it will make it possible for people to pay for their passport with a credit card this year. "Starting this year, passport applicants can pay with credit cards on the Internet,'' a ministry official said. Officials went on to further explain that they could not accept credit cards thus far due to fees imposed on passport issuers.

The Korea Times reports that in 2009, credit cards will be accepted for both online and off-line applications for passports. The ministry plans to issue electronic passports, which contain the holders' fingerprints and other details, to diplomats and government officials on a trial basis in March and to the public in July.

To learn more about credit cards and all things relevant to credit, please visit Credit Card Details.

Credit Card vs. Debit Card

For someone applying for his/her first credit card, the process can be somewhat confusing due to the high number of options. You may hear terms like “Prepaid, Secured, Student, and Low APR Credit Cards,” and while some of these are self-explanatory, others will have you reaching for the dictionary. Our site is designed to help you understand financial terms in order to help you select the card perfect for you. This article however serves a simpler purpose: to answer the most common question I get “What is the difference between a credit card and debit card?”

A debit card is issued by your bank and tied in with your checking account. Every time you use your debit card, the money will be automatically withdrawn from your checking account. The advantage of a debit card is that it helps you keep track of your spending. It’s a cash card and the cash will disappear instantly from you account instead of being credited on your bill 30 days later. This helps take away from the mindset of “free money” and spending more than what you have. A debit card can also easily be used at ATMs to withdraw money from your checking account.

Although credit cards are to blame for much of our frivolous spending, they do have their advantages. For example, if your credit card is stolen, the money cannot be taken out right away. So, by the time the thief is able to do some spending, you can contact your credit card’s theft department and report the card stolen. Most banks handle theft well and do not charge you for the items been purchased after the card was stolen. Credit cards also help you build credit, that is if you use them responsibly and pay your bills on time. And best of all, many credit cards offer rewards or a point system that you can use toward airline tickets, vacations, electronics, and even Starbucks!

It’s your decision which card is better for you. If you have the financial mentality “only spend what you have,” a debit card may work best for you. If you have larger expenses that you cannot afford at time of purchase, a credit card may be for you. Although, we mentioned debit cards often help people become a bit more financially responsible, there is no reason those with credit cards can’t hold themselves to the same esteem. Especially, now that every major credit card company allows you to access and track your account online at any time. By tracking your account, you can avoid spending more than you have while still taking advantage of the additional security and rewards.

To learn more about credit cards and all things relevant to credit, please visit Credit Card Details.

How to Recover from Holiday Debt

Okay, it’s apparent that even after our “Your Credit Card Bill - The Day after Christmas” article, some of you are still afraid of opening up your credit card bills. I will make a second attempt at pacifying our readers with advice on how to recover from last month’s colossal spending spree.

It’s not too late for a New Year’s resolution. Let’s make one together. This is the year that I will tackle my debt head on. Now say it with confidence! Let’s get started. Pick the bill with the lowest balance and pay it off first to gain some momentum. The next step is obvious: Stop charging your credit cards! Believe me, many spenders overlook this important step and of course the bill pile gets taller and the stress becomes greater.

If you are heavily in debt, there are a few options. You can seek help from a nonprofit, accredited credit counseling agency. They can take a look at your financial situation and find the most effective solution. You can also practice “need-based” shopping. Many frivolous purchases are things we want, not need. Separate the two in a list and post it on the refrigerator where you can be reminded every day. This will help you create a new, strict budget that will put you on the path to financial freedom. Now that you’re living the simple life, you will notice many unnecessary things around your home. Sell off unneeded items on Amazon.com, eBay or craigslist for some extra money- just remember you are NOT on these sites to shop! If you come up with an extra $100, put it toward the high interest rate credit cards first. Continue with the rest until all credit cards are paid off.

Since you have felt the desperation of sinking into the pool of debt, hopefully next year’s holiday spending habits will be different.

To learn more about paying off debt and all things relevant to credit, please visit Credit Card Details.