Credit Cards compared...

Credit card companies are trying to put a halt to new Government plans which could affect the ways that lenders handle the debts that they may have accrued on their credit cards.

“

The plans, which mainly include higher minimum repayments in order to quicken the time of overall repayment, have been criticised by the national credit card regulator. This has been because of the way that some believe it could make matters worse for lenders who are already struggling to meet repayment targets as it is.

Meanwhile, there have been calls for the prioritisation of repayments to be constantly reviewed. This way, debts which cause the most interest, or the debts of the highest value, are paid off first in order to reduce the additional amounts of money which some consumers end up repaying as a result of the way their finances are organised.

In the past, there have been negative criticisms of credit card companies that have raised the credit limits of consumers with high debts, making them more vulnerable to further money owed. In the new plans, this would also be reviewed, and credit card companies would be unable to raise limits without consulting their consumers first. It is believed that because of these proposed new rules, the amount of temptation that some indebted borrowers can experience should be reduced.

Interest rates are naturally one of the main areas to be targeted, as this can be one of the main obstacles that prevent a person from fully repaying their debt. In the new rules, interest rates would be frozen to stop an increase in the amount of interest being paid on a monthly basis on top of the money owed. Failing this, the progression to higher rates would be slowed down in order to ease the effects on the consumer.

In 2009, many changes were made to credit cards for bad credit in order to make lenders more honest with the people that they borrow to. These suggested changes have been met with further criticism because of fears that competition would be reduced in the industry, making it more difficult for consumers to find a card that is more tailored to their needs. Others have called the moves ‘a step too far’.

Store cards are also targeted in the suggested changes. However, with extreme changes in the political make-up of Britain expected in the coming months as the country goes to the ballot box, it could take some time for consumers to experience any benefits from the changes outlined so far.

”

Hit a big one? With more and more gambling establishments, keep in mind the IRS requires people to report all gambling winnings as income on their tax return. Gambling income includes, but is not limited to, winnings from lotteries, free online bet, raffles, horse and dog races and casinos. Unfortunately, gambling income also includes the fair market value of prizes such as cars, houses, trips or other non-cash prizes.

Generally, if you receive £600 (£1,200 from bingo and slot machines and £1,500 from keno) or more in gambling winnings and your winnings are at least 300 times the amount of the wager, the payer is required to issue you a Form W-2G. If you have won more than £5,000, the payer may be required to withhold 25 percent of the proceeds for Federal income tax. However, if you did not provide your Social Security number to the payer, the amount withheld will be 28 percent.

The full amount of your gambling winnings for the year must be reported on line 21, Form 1040. If you itemise deductions, you can deduct your gambling losses for the year on line 27, Schedule A (Form 1040). You cannot deduct gambling losses that are more than your winnings. It is important to keep an accurate diary or similar record of your gambling winnings and losses.

To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Face it, the IRS gets you coming and going. Well, I’m off to play poker.

”