SavvySugar

Definition: Grace Period

SavvySugar — Tue, 02 Sep 2008 15:30:46 -0700

A grace period is the period from the date a statement was prepared by the issuer (statement date) to the payment-due date. No interest will be charged if the whole balance is paid by the end of the period. These interest-free grace periods typically last 25 days, but 20-day periods are becoming more common.

When you're looking for a credit card, avoid cards that don't offer a grace period, because you'll end up paying interest immediately upon purchase. It pays to search for a card with a longer grace period, because the amount of time you have interest-free affects how much interest you'll end up paying overall.

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Back to Basics: Six Money Related Words and Phrases

SavvySugar — Wed, 18 Mar 2009 13:30:07 -0700

There's no such thing as being too well-versed in the world of money words and phrases. Check out these six definitions to refresh your memory, or learn something new about the jargon of funny money.

Interchange Fees	Piggybacking	Debt Snowball Plan
Grace Period	Spot Budgeting	Standard Deduction

Three Credit Cards to Avoid

SavvySugar — Fri, 05 Sep 2008 09:30:13 -0700

While it may give you a temporary headache, reading the fine print on credit card offers does pay off. Consumer Reports composed research to narrow down the best credit cards available, and in the process it found a few so bad it had to warn us to stay away in its October issue. Here are the three cards they say are the pits; if you come across other cards with similar terms, steer clear.

First Premier Bank Card: Its 9.9 fixed APR is fine, but the card comes with first-year fees up to $276! There's a $29 account-setup fee, a $95 program fee, $48 annual fee, a $7 monthly servicing fee, and sometimes a $20 additional annual fee.
American Dream Card from HSBC: Each time you charge something you're entered into a lottery for prizes up to $25,000 and you'll be prompted to fill out surveys for chances to win additional prizes. The card comes with a 15 to 22 percent APR.
New Millennium Visa or MasterCard: There's a $59 annual fee, $100 processing fee, a 19.5 percent APR, and no grace period before your balance begins incurring interest.

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Rate Reduction on Variable Student Loans This July

SavvySugar — Thu, 26 Jun 2008 15:37:39 -0700

Forking over your monthly student loan payment is surely something that makes you sigh with irritation, but here's some news that may make those times of the month less brutal.

If you've already consolidated your student loans and haven't added any new ones then you're not eligible for a rate reduction, but if you haven't yet consolidated consider marking July 1 on your calendar. Find out what rates may be available as of the first when you read more.

Here's the deal: If you have federal variable-rate student loans that were issued before July 1, 2006 and have not consolidated, you are eligible to lock in rates of 3.62 percent to 4.25 percent on Stafford Loans and 5.13 percent on PLUS Loans for graduate students and parents. This doesn't apply to students still in school, and if you're in your six-month grace period you can lock in the lowest rate for loans from your first two years of school.

The lowest rate is about three percentage points lower than the current federal rates. To find out more about consolidating your federal variable-rate loans (as of July 1, 2008) visit the US Department of Education.

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