Gift a Gift Card

Ever spent hours wandering from store to store, looking for a gift for someone that would be useful yet not commonplace? Consider an option that’s been around for quite a while, but is still relatively unknown – a prepaid gift card.

Fashioned after a gift voucher and a debit card, a prepaid gift card is worth a fixed sum of money and can be swiped at any store. The value of – or the amount loaded on – the card is entirely up to you.

For instance, if your gifting budget calls for a spend of Rs 1,000, you can buy a gift card worth that amount. The person you gift it to will be able to make purchases up to Rs 1,000.

Features

A gift card is unique in terms of the flexibility it gives to the receiver in relation to what they can shop for, and where they can shop. It looks much like a debit or credit card, with a magnetic strip and signature panel on the back, which must be signed by the person who is to use it.

A gift card can be used multiple times, at different establishments, for varying amounts until the amount loaded on the card is exhausted. Any establishment that accepts a debit or credit card will accept gift cards as well. The card can even be used for online purchases.

But keep in mind that a gift card may be used for purchases only. Cash cannot be withdrawn from the card; inserting it into an ATM will show you only the balance on the card.

The card cannot be topped up either – meaning, once the amount loaded has been exhausted, more money cannot be loaded onto the card.

These cards come with an expiry date, which can range from a year to five depending on the issuing bank. If there is any amount left on the card at the time of expiry, the bank usually returns that amount after deducting bank charges.

Banks impose a time period after the date of expiry within which the card must be returned in order to collect the outstanding balance. If the amount on the card has been exhausted before expiry, simply return the card to the bank.

It may be a tedious task to keep track of the amount already spent and the balance remaining on the card. Therefore, each card comes with a net banking user name and password, as well as an ATM pin. The balance may be checked either through the issuing bank’s net banking services or its ATMs.

Purchasing a card

Not all banks offer prepaid gift cards; there are only a handful that do, namely, Axis Bank, IDBI, HDFC Bank, ICICI, IndusInd Bank, SBI and a few others. Purchasing a card is a fairly simple process done over the counter.

To begin with, you are not required to hold an account in the bank in order to purchase a gift card, given that card is paid for before issue of the card. But you do need to carry copies of proof of identification and address as well as photographs. Of course, if you hold an account in the bank, these proofs aren’t necessary.

You also need to carry the amount you intend to load onto the card, either in cash or via a cheque.

If you are an account holder in the bank, the amount will most likely be transferred directly out of your account, dismissing the need for cash or cheque.

Purchase of the card simply requires the filling out a form and handing over the money. You will receive the card immediately, but activation of the card will take at least a day. In case the payment is made through a cheque, the cheque must be realised before the card is activated.

Fees and limits

Processing your card application requires a fee, but these are usually minimal at Rs 100 to Rs 200. It is higher in some banks such as Axis and IDBI, where fees are one per cent of the amount loaded onto the card if the value of the gift card is more than Rs 10,000.

A gift card can be got for any denomination, starting from Rs 500 in most banks. The ceiling on the gifting amount, though, varies widely depending on the bank. The cap ranges between Rs 10,000 (HDFC Bank) and Rs 50,000 (ICICI and Axis).

Potential hassles

Though the procedure for purchase is simple and, theoretically, requires an hour at most, you can run into unforeseen trouble. So don’t try to get a gift card at the last minute.

For one, the cards are meant to be available at all branches, but this is not always the case. Smaller branches may not stock cards at all times and may direct you to a bigger branch. Two, your cheque may take a couple to days to be processed and the card will be activated only after that.

If the gift card has been presented to the benefactor and if that person uses it immediately, the transaction will be declined.

Other prepaid cards

Gift cards are only one type of prepaid cards offered by banks. Other types include forex cards, such as those offered by SBI and HDFC, which can be used for purchases and cash withdrawals in the required foreign currency overseas.

There are other prepaid cards also, but these are primarily meant for corporates and not individual consumers.

Another form of a gift card is those issued by retail establishments instead of banks. In this case, a retailer will give you a card instead of a voucher and you can use the card more than once as long as it is in the same establishment.

This type of card is one step above a gift voucher, as multiple transactions can be carried out, even if purchases are restricted to that establishment. Landmark, for example, has cards such as these.

A gift card is a hybrid between a gift voucher and a debit card. It offers the advantage of the former with the flexibility of the latter.

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Register your Credit card for Online shopping

Are you planning to shop online in the near future? Or is there any other online transaction, involving the use of plastic money, high on your agenda?

If yes, better get registered with your bank, otherwise you won’t be able to use your credit or debit card online just after a week’s time. For, the RBI has made it mandatory for all online transactions to have an ‘extra’ level of authentication from August 1, 2009 onwards. And some banks have already started complying with this mandate.

Although lots of ecommerce players are concerned about losing their business in the short run, as they believe that many shoppers, who are still not aware about the RBI mandate, may simply ditch the buying decision at the checkout process, bankers view this as one more step towards moving closer towards a fraud-proof world of online transactions.

“This is just to add an additional layer of security for online transactions. This requires that a password in addition to information available on the credit card itself be given to ensure that it is the card holder himself who is authorizing the payment,” says Harsh Roongta, CEO, ApnaPaisa Pvt Ltd, adding, “typically even as you are shopping, the payment gateway will allow you to verify your credit card under the ‘Verified by Visa’ or ‘Verified by Mastercard’ programme by providing details that are not stored on the credit card.”

Thus, anyone shopping online from August 1 onwards will be required to first register one’s existing card for this service. One can do this either by visiting the website of one’s respective bank or by choosing to accept the registration process on the merchant websites. In case of the former, a customer can create a password and a shared secret instantly. However, for getting registered while shopping online, you need to select the goods or services you want from a Verified by Visa/ MasterCard SecureCode online store and proceed to the payment page. There you will have to enter your card number and the online store will connect with your bank to check whether your card is enrolled for this service.

The users who are registered for this service will be asked to put their password, while the users who are not registered for this service will be prompted to activate the same by creating the password and shared secret on the merchant website itself. Once the identity is verified, the transaction will be completed. Based on the authentication provided by the issuer, the transaction will be processed and the user will get a confirmation.

“This service, thus, assures cardholders of additional security while shopping online using their existing Visa or MasterCard credit card. It confirms the cardholder’s identity through a simple check process when he/she makes online purchases,” says an SBI Card spokesperson.

In other words, this registration will make the online transactions more secure as in order to process the payments, the merchant website will
ask for the password to be input. And transactions will not be processed without the password. Thus, even if your card gets stolen, one won’t be able to make any online purchase in the absence of the password.

“Incidentally, even for shopping transactions offline where the card is ‘not present’ will now require that the bank send an SMS to the credit card holder for amounts larger than Rs 5,000,” says Roongta.

On the flip side, however, the service of card authentication will only be eligible/applicable to merchant websites who are also compliant with this service. This means that this authentication will not be required for transacting on portals which are not compliant with this service or those based outside India. This has left many big ecommerce players worried as they believe that this may affect their business, at least in the short run. Bankers, however, think otherwise and say that online transactions will not be affected much as the customers would, sooner or later, be aware that this is for the security of their own card and hence for their own benefit.

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Credit Card Options

The modern credit card was the successor of a variety of merchant credit schemes. It was first used in the 1920s in the United States, specifically to sell fuel to a growing number of automobile owners.

With the advancement of banking systems, credit cards have evolved from a simple way of doing cashless transactions to multiple types with different interest rates, fees and reward programs.

Irrespective of the credit card issuer, credit cards come in the following types:

• Standard Credit Cards
• Reward Credit Cards
• Specialty Credit Cards

Standard credit cards

These credit cards are the most common and are readily available from most banks and financial groups. These cards provide the basic functionality of a credit card — doing cashless transactions and nothing more.

For e.g. Mr Kumar uses the card to purchase fuel on the card. However, he is charged fuel surcharge since he is using a standard credit card.

Reward credit cards

These types of cards have become popular in recent times. These cards allow users to earn incentives for making purchases with their credit card. Points accumulate for the amount charged on the card, and cardholders can redeem these points for various rewards. These cards can be sub-divided into:

Cash back credit cards

This type of credit card allows you to earn cash rewards for making purchases. The more the card is used, the more cash rewards you receive. Most cash back cards earn users around 1 percent of total purchases, excluding interest and finance charges.

For example, Sameer purchased a couple of books online for Rs 10,000. He got Rs 100 credited back to his credit card account.

Hotel or Travel credit cards

These credit cards are specific to hotels and travel. Some of these cards are co-branded with hotels. These credit cards allow you to earn points for all purchases, in addition to bonus points for the money spent on stays at the respective hotel. You can redeem your points for free nights and discounts on food and beverage services.

For example, Mr Sahni used his credit card to stay at a hotel and when he redeemed the points accumulated on that card, he stayed one night at the hotel, free of charge.

Retail credit cards

These credit cards are co-branded with major retailers and points are accumulated by making everyday purchases, though cardholders are awarded with double or triple points for making purchases from the co-branded retailer.

For example, Sam paid some purchases at the major retail brand he frequently visited and on redeeming his points he was able to purchase an item free of charge.

Airline/Frequent Flier credit cards

These cards are associated with one airline. Typically, the cardholder accumulates points from both making purchases with the card and by flying on the specified airline. A user can fly a certain amount of miles free of charge by redeeming the 'miles' accumulated.

For example, Mr Bhatia uses the points on his card to fly free the first leg of his journey when he is going on a business trip.

Specialty Credit Cards

These types of cards are for consumers with unique needs for their credit use. Examples of such speciality cards are:

Business credit cards

A business credit card offers the business owner the opportunity to keep business and personal expenses separate. The credit card may offer special business rewards and saving opportunities that go above and beyond what the individual credit card owner may have. Since money management is essential in successfully running a business, the card may offer an expense management service that will allow you to keep track of the outgoing money.

Prepaid Debit Cards

Prepaid debit cards has grown significantly in usage in recent years. Although they work like a traditional credit card, with prepaid debit cards, you have actually prepaid and set the credit limit by depositing money onto the debit card.

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Big Credit Card Purchase requires ID proof

In an effort to curb fraudulent use of credit cards, cardholders may be asked to furnish proof of identity while making big-sum purchases.

The move has been encouraged by banks issuing credit cards and associated merchants, like Visa Inc., MasterCard Worldwide to check deceptive use of credit cards.

Indicating the loss burden due to fraudulent transactions, a banking official said, “The fraud to sales ratio in India is at 0.12 which means of every Rs100 spent 12 paise is lost,” said the senior official from a payments processing company quoted in the first instance.

Hit hard by the mounting losses due to increasing number of credit card frauds, most banks have asked merchants to ask for proof of identity for verification when a customer makes a high-value purchase using a credit card.

Praveen Bansal, deputy general manager, transaction banking department, Union Bank of India, said, “written to all our credit and debit card holders to register their mobile phone numbers with the bank. For transactions over Rs500 on credit or debit cards, we send an SMS to the customer giving details of the transactions”.

ICICI Bank the largest credit card issuer in the country with a base of around 8.5 million has asked its customers for cooperation, informing them they might be required to furnish their ID for verification, when making high-value purchases using bank’ credit card.

Another bank, IDBI Bank has instructed the merchants to ask customer making purchases on credit cards of amount exceeding Rs10,000, to furnish ID proof.

The head of personal banking group, IDBI Bank, C.S. Jain, said, “IDBI Bank debit card holders receive SMS alerts for any transaction over Rs10,000. These are the steps the bank takes to check frauds.”

According to RBI, on May 31, 2009 there were 48.42 million credit cards in use in India, with outstanding amount of Rs. 9,748.31 crores, but the overall credit card business is on downside.

A senior official with Axis Bank, explained - “Fraudsters usually rob cards and make purchases of electronic items and jewellery as they have resale value.”

Axis bank has a base of 600,000 credit card customers and 125,000 point-of-sale (PoS) terminals across the countr

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SBI Card and Polo Club offer

SBI Card and Polo Club wrist watches have come together to give us to buy watches at 87% discount from the estimated market price of the watch. As you may remember the SBI card’s previous offer on Polo Club and now they have come up with another offer/offers with their wrist watches. This offer is only valid through SBI Card. They are selling three special Polo Club watches with this offer.

The first watch is the Polo Club Swarovski Watch. It is a stainless steel watch with 36 pieces of Swarovski crystals. The estimated market price is said to be Rs. 6900 but with this offer of SBI Card you can buy it for Rs. 899.

The second watch is the Polo Club Multi-Dial Watch. It comes with dual time and leather strap and stainless steel case back. The estimated market price is said to be Rs. 5950 which you can get it for Rs. 799.

The third is the Polo Club Dome Watch. It is a limited edition designer watch with stainless steel case back. The estimated market price is Rs. 4650 but you can get it for Rs. 749 using this Time to Flaunt offer with SBI Card.

All the above watches are water resistant watches and comes with guarantee card, original box packing, and user manual.

There are no additional shipping charges or hidden charges, all the price mentioned above are inclusive of all.

You can order the watches from www.watchpromo.co.in. You can also call 1800 22 4700 or 1800 22 8200 between 9 to 9 p.m. on all days to place an order. This offer is valid till September 30, 2009.

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Credit Card Safety one more measure

If you frequently use your credit/debit card to make online payments and are worried about the security of the transactions, relax. Another safety net is coming.

From August 1, a new authentication system will be in place to provide extra safety to your online card transactions. The Reserve Bank of India has made it mandatory for all online card transactions to have an extra level of authentication.

For Visa Card users, for example, the new rule would mean they will have to register under the ‘Verified by Visa’ service being offered by their banks.

“ ‘Verified by Visa’ is a new way to add safety when you buy online. Adding a password to your Visa card, ‘Verified by Visa’ ensures that only you can use your Visa card online,” says a note on the portal of Visa.

The card-holders need to set up their ‘Verified by Visa’ password and activate their cards through the issuer.

Pop-up message

The extra level of authentication works in the form of a pop-up message during an online transaction that asks for the password.

“Currently, the safety parameters adopted by the banks include the card number, date of birth and the Card Verification Value (CVV) number printed on the back of the card. In some cases, the date of birth is not mandatory, making the transaction insecure,” explained an official of HDFC Bank.

The new systemwould make unauthorised transactions nearly impossible. “Many customers are not even aware that the CVV number on the cards should be erased to prevent misuse,” explained a senior official of Andhra Bank.

Credit Card Rewards.. are no more rewarding

Even as credit card companies rush to raise rates and fees before a reform law takes effect in February, they are moving to reduce one thing

-- rewards.

Card issuers struggling with huge credit losses are making it more expensive and less attractive to redeem rewards. And it could get worse ahead of possible legislation to reduce so-called interchange rates, the fees banks charge to merchants.

Issuers use the proceeds from the fees to finance their rewards, so any haircut in those charges would trim loyalty programs, analysts said. For customers, that means having to use their cards more often to earn the points they need to fly somewhere, or get cash back.

"To the extent that interchange is cut, you will see a pretty lineal impact on rewards," said Scott Valentin, an analyst at FBR Capital Markets. "You could see rewards being 10 or 15 percent more expensive for consumers."

The discussion in Congress promises to be long and slow as retailers fight to cut costs, while card companies try to boost revenue as loan losses soar.

Last year, interchange fees rose 14 percent to about $48 billion, ranging from 1.6 percent to more than 2 percent of total purchases.

"You either cut rewards or raise fees, because you have to have a credit card industry that is viable and generates a reasonable return," said Morningstar Inc analyst Michael Kon.

Credit card companies -- from American Express Co to JPMorgan Chase & Co and to Citigroup Inc -- enjoyed hefty profits in recent years due to an explosion in credit, but they are now losing billions as debt-burdened Americans lose jobs and default on loan payments.

Analysts even estimate the industry will not make money until 2011.

Earlier this year, Citigroup modified its "Thank You" rewards program to require many more points to be redeemed for domestic flights.

JPMorgan, meanwhile, has limited the spending categories from which customers receive cash back on Chase Freedom cards.

Such steps could intensify in coming months.

"If you have a 25,000 reward points for an airline ticket, it might go to 35,000 or 40,000," Valentin said.

Bill Hardekopf, chief executive of Lowcards.com, a credit- card comparison website, also said that, even if reward targets do not change, customers might have problems redeeming points.

"Even though you may be getting the rewards, it may be harder to redeem the rewards," he said.

Credit Card for Farmers

In an innovative move, Hyderabad based, Central Bank of India has came up with a special credit card scheme in an effort to support people engaged in farming and allied activities.

The so called, ‘Cent Kisan Gold Card' will provide one-shop stop financial solution to the cultivators and those engaged in agri-related activities.

Under the scheme, the bank will provide credit limit of up to Rs 10 lakh, for a period of five years, based on the `land valuation' used for farming and/or non-farming activities.

The non-agri activities bracket includes the investments credits for creation of assets like farm equipments, tools, pumps and tractors. Agri-credits include production credits for the main crops.

The rate of lending on housing loans, under the scheme is up to 8 percent, on crop loans (up to Rs 3 lakh) is stated to be up to 7 percent, while on other agricultural loans is up to 8.5 percent.

The bank will also avail consumption loans of up to Rs 50,000 or mortgage up to Rs 2.5 lakh for people engaged in farming-allied activities.

The mechanism for advances via credit cards has been evolving in India. Recently, Bharti Wal-Mart Pvt Ltd in alliance with Kotak Mahindra Bank launched ‘Kotak Best Price Business Card'to avail easy credit to retailer and wholesale suppliers in the supply chain.

Another player, Metro Cash and Carry India Pvt. Ltd plans to offer similar B2B business card.

With launch of Cent Kisan Gold Card, the credit cards are reaching the producer end of the supply chain.

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Credit Card Privileges

We are living difficult times, nobody would argue with the higher rates of delinquency, for that reason people are not comfortable with having cash in their bags anymore. When they go shopping, they use their credit card to pay for everything that they want to buy. Credit cards are in some ways better and safer to use than cash.

Given that you have been using your credit card for a number of years now, do you know that you are provided with certain privileges as its user? If you do not know anything about it, then it is time you teach yourself about these rights. For instance:

1. If you buy a damaged product using your credit and the company refuses to replace it with a new one, you can have an option. You can either refuse to pay for it or you can stop the payment on your credit card and file a dispute.

2. If you find errors on your periodic account, the law will grant you a way to correct these.

3. If you lost your credit card or if it was stolen from you, your responsibility for unlawful charges is restricted provided you follow appropriate noticeable actions.

Will the company claim extra identification?

Most credit card businesses require only that a company match your signature on the proof of payment with the signature presented on your card and make sure that the card is still valid. When a clerk obliges you to write your address and telephone number or demands that you present your drivers license, he or she is breaking a law. If this happens to you, file for a protest.

Will you present your card when you write down a check?

Writing checks for your purchase is one of the positive aspects in using a credit card. But, in some U.S states, the company does not have the right to write the credit card number on your checks. Getting your card number will still not secure the company in any manner especially if you did not sign in a credit card receipt. If for example your check bounces, the company is forbidden from charging your card for the bounced check payment.

Therefore, before using any credit cards ask for the card company about your rights to avoid any unnecessary situation between you and any other businesses. This way your credit card will become that useful tool that you always wanted.

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Credit Card Debt

Are you hammered out over unpaid credit card bills? Do you find that 90 percent of your credit card payment is going toward the interest on your account? You do have options for credit card debt help. You are not alone, and there are programs that can help you find debt freedom.

If you are looking for help with your debt, there are 3 types of repayment options that are available. Here is a brief overview of what to expect from each of these options:

Debt Consolidation Loan-Typically a debt consolidation loan is secured with your home. So, if you do not own a home or are not credit worthy, this alternative will not work for you. You can consolidate high interest unsecured debt at a much lower interest rate and the interest is tax deductible. But there is a downside and that is that if you default on this loan the lender can foreclose on your home. You must also be aware that more than half of all people that consolidate their debts with a home equity loan have credit card debt again within a year. This reason alone makes this debt relief option less than desirable.

Credit Counseling-This is a form of debt consolidation that does not involve a loan. If you feel you need debt help, but have not gotten more than 2-3 months behind, this option will work well for you. You unsecured debts are consolidated through the credit counseling service. Your interest rates are reduced and fees are eliminated. It is important that you follow the agreed upon arrangements, because some lenders will drop you from the program if you do not make a payment every month. Debt counseling can have you debt free in 5 years with little negative impact to your credit. One of the biggest advantages to consumer credit counseling is the one monthly payment that you make to the agency. They will take care of disbursing that payment to your creditors.

Debt Settlement-This debt help alternative is a repayment of reduced balances of your unsecured debt. This option is a good alternative to bankruptcy. You must be aware that debt negotiation will impact your credit negatively, but most people that use this option have overwhelming debt or debt that has not been paid on in more than 3 months. At this point, your credit has already been affected negatively. The debt settlement company will negotiate reduced balances on all your credit cards and you will make monthly payments to an account. When there is enough money to pay the negotiated balance, it will be paid off. This will be done until all your balances are paid off.

Which one of these options you choose will depend on your current financial situation and your discipline. Getting credit card debt help is a big step, but it will be your first step toward debt freedom and financial stability.

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Credit Card loyalty programmes

Credit cards come with the convenience to shop now and pay later. But credit cards are more than just a payment tool. If used wisely, they can help you get up to 10 per cent return on your spend. Before we learn how to choose the right loyalty programmes, let’s understand what these schemes are and how they work.

Most loyalty programmes give card members reward points for spending on their credit card. The points can be redeemed (or “burned”) for travel, shopping, dining and entertainment benefits.

Many of us dismiss these schemes as marketing gimmicks; but the fact is that these programmes are designed to work for the benefit of the card members, merchants and credit card companies.

It is easy to be confused by the proliferation of loyalty programmes in the marketplace. A wrong choice more often than not will not give you the intended benefit due to unimaginative or needless redemption choices. Invest a little time to understand which Credit Card provides you the best returns and helps you “earn while burning”.

Rate of Earning

Normal Earn: As a part of the product value proposition, most credit card companies offer reward points for spending through cards. Typically, a card member can get one point for Rs 40 to Rs 200 spent. This, however, depends on the card and the bank. For instance, American Express gives one point per Rs 40 spent on its cards. Some programmes don’t give reward points on certain categories of spending, like fuel-purchase transactions. Customers should carefully study the exceptions and check the value (the earn/burn ratio) of these points.

Bonus Points: Some programmes offer bonus points, allowing customers to earn double, triple or even 10 times the points for the same spend. Check if restrictions apply, such as a limited period offer, for all spend or limited to selected merchants and try to maximise your earnings.

Don’t forget to check the lasting power of your points. All your hard work would go waste if your points expire. Therefore, customers should select programmes offering non-expiry points. As non-expiry points allows customers to accumulate points from year to year.

Rate of Burning

Redemption potential: Compare the value of reward against spends.

The value of a point can be calculated by checking the worth of the reward against spends made, to earn that reward. Therefore, customers should choose a programme offering higher reward earning potential.

Reward categories: Most programmes have started offering a range of redemption options, including garments, home appliances, cosmetics, gift vouchers and donation, to charities. However, you should choose the programme that offers maximum number of redemption options that suit your lifestyle needs.

Air miles: Some banks now offer an option to convert reward points to air miles, enabling their customers to buy air tickets using their reward points.

Also, compare the minimum number of points required for rewards.

A scheme that offers one point per Rs 100 spent and rewards starting from 2,000 points, for example, is a better deal than one that offers two points per Rs 100 spent and rewards starting from 20,000 points.

Understand reward fulfilment: Customers should look for a programme that offers easy-to-use rewards redemption processes and faster delivery of rewards. Some loyalty programmes provide convenience of Web-based redemption, home delivery and online order tracking.

Reward delivery time can be anywhere between three days to two months.

One must avoid long delivery time by choosing the right programme.

Flexible points plus pay option: To speed up redemption of rewards, some loyalty schemes give points plus pay option whereby customers can simply use their accumulated points and pay the balance to get their desired reward.

Using points optimally: Now that you know how to choose the right loyalty programme, let’s understand how to use them optimally. To make loyalty programmes work best to your advantage, you need to plan a bit. Here are few simple steps to earn your rewards faster.

Consolidate your spending: Consolidate your spending with a single credit card so that you can accumulate your points faster. Big ticket items (especially family-related spending) should always be consolidated into one single card.

Everyday spends: Make it a habit to charge all your spending and purchases on the card, especially daily spending such as at supermarkets, gas stations and cinemas. One can earn more than one can think of by purchasing intelligently.

Paying utility bills: You can earn valuable reward points simply by paying your electricity bills, insurance premium and phone bills using your credit card. These bills, which are always seen as liability, may earn you a free trip.

Several card companies provide bonus points to members for giving standing instructions to pay utility bills such as electricity, phone and insurance premium.

Savvy consumers are aware of the various reward programmes and intend to patronise merchants who can help maximise their spending power.

However for card members to fully utilise all the credit card benefits, they must use the cards responsibly and pay the minimum monthly amount before the scheduled date to enjoy the unending benefits of owning a credit card.

Happy earnings through happy spending.

SBI's Master Card Moments Offer

Use your SBI Card and avial special discounts and offers on following Brands.

ADORA - 17% off on Adora Jewelry.

ALLEN SOLLEY - 15% off on all Allen Solley watches

THE APOLLO CLINIC - Special health packages for Master Card holders.

BENQ - 10% off on Benq Joy Books.

BIG FLIX - Buy 3 months subscription and get 1 month subscription of Big Flix free.

CAFÉ GADGETS - Rs.500/- off on minimum purchase of Rs.3500/-.

CHOICE HOTELS - 15%-25% off on Room Tariffs

GKB OPTICALS - 10% off on all purchases (except Rayban, Oakley, Killer Loop and accessories) and Free eye test for all Master Card holders.

LEMON TREE HOTELS - 10% off on all packages

PARKER - 50% off on selected Parker Pens on MRP.

PIERRE CARDIN - 10% off on Pierre Cardin watches

SANGINI - 12% off on min purchase of Rs.5000/- and above.

SPARKLES - 15% off on Sparkles Jewelry.

WEL HOME - 10% off on purchase of Rs.1000/- on home furnishing

RELIGARE SRL DIAGNOSTICS - 25% off on well women packages & 10% off on all other tests

All the above offers are valid till 31^st December 2009. For more information and terms and conditions long on to official SBI cards site.

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From Drowning to Swimming in Credit Card Debt.

The Special effects of credit card bills can engulf all parts of life, affecting your job, your family life and even your health. In fact, if you have large credit card debts, you may feel completely overwhelmed already and circumstances may appear hopeless.

Don't worry; there are many options available to help people free them of debt. If you're in over your head, read on for some tips to help you stop sinking and start swimming.

The grip

The out-of-control mall shopper is a caricature of the imprudent credit card user. But you don't have to be reckless to amass large credit card debts. Perhaps you tapped financial resources to advance your education, or your job was unexpectedly outsourced. Maybe a long-term illness touched you or your partner, or you started a business that never quite caught on.

*Credit Default Settlement - Step by Step Guide

When individuals use credit cards, they generally think it will be a short-term safe passage. Unfortunately, life has a way of taking twists and turns, which is often how credit card debt becomes a longer-term trap.

Credit card users, therefore, must remain alert and vigilant about their spending; even very small balances can quickly and unexpectedly balloon out of control.

In March of 2007, the US Senate looked into the practices of credit card companies, including the perceived lack of disclosure, universal default practices (in which a consumer can be severely penalized by one credit card account for being late on a separate account), and the interest charged on the entire credit card balance, even when customers have made timely payments.

In response to the Congressional inquiry, large credit card companies voluntarily changed some practices. Despite this, now more than ever, it's "borrower beware" when it comes to credit card use.

The Control

If credit card balances and their corresponding payments have made your financial life unsustainable, you might consider taking some of these actions:

Self Preparedness: Taking back the control over your financial life involves educating yourself about personal finance and taking a hard, honest look at the decisions you made to get yourself into your current situation.

Discipline, focus and personal stamina will be required for any debt relief effort. There are no quick and painless fixes.

Can anybody help: Hire an independent financial advisor, such as a Certified Financial Planner, who can look at your particular situation, help you to develop a plan and select a specialist.

The kind of credit card debt management specialist that will be right for your situation will depend on many factors, including the amounts owed, the interest rates involved, the assets you possess and the particular creditors involved. Credit card use can be dangerous but the path to debt relief is also fraught with peril. As such, it's worthwhile to have an independent advisor at your side.

In addition to calling in professional help, you might also consider confiding in close friends or family members about your situation to assess all of your possible resources. Help can come in many forms, and who better to talk to then those that care for you?

If you can replace high interest debt with a personal loan, you may be able to get out of debt more quickly. You may need to swallow your pride to admit your situation, but a much lower interest rate can give you some badly needed breathing room.

More options:

Consolidate the debts: Debt consolidation involves taking out a loan to combine all of your credit card debts and personal loans into one single loan (with one payment). This is generally done to simplify your debt situation and to lower the overall interest rate you are paying.

Debt consolidation companies generally present themselves as nonprofit organizations but this should not lull you into believing they are working for you. Like all participants in the financial community, they are intent on making money from the situation.

It's best to explore the details of debt consolidation only in conjunction with the help of an independent financial advisor. There are many risks involved with loan consolidation (such as the decision to move from unsecured debt to a debt that is secured with collateral). You will want to make sure you're moving into a situation that puts you into less financial risk, rather than more.

Settle the debts: Debt settlement may be an option if you have large credit card debts and can demonstrable a hardship situation of some kind, such as income volatility. In the case of debt settlement, you will hire a debt settlement company to negotiate on your behalf with the credit card companies you owe.

*Credit Card Debt help

It is generally not advised that you call your credit card companies to try to settle debts yourself, as it may make the situation worse. In most cases, a competent debt settlement company can reduce the amount of the debt you owe by 25-50 per cent.

The debt settlement company takes a fee for its services, usually a percentage of the total outstanding debt. The debt settlement alternative is one to consider if you are missing credit card payments and are on the way to complete default.

Debt settlement appears on your credit report as a collections or settlement and as such, adversely impacts your credit rating for the period of the time you are accumulating the agreed upon settlement amount to the credit card company, plus six months. In practical terms, this means a black mark on your credit report for three to five years (or even more).

It is advisable to first seek a personal financial planner to help you examine whether this option makes sense for you and to help you select the best debt settlement company for your unique credit card debts.

Bankruptcy: No one likes to think about declaring bankruptcy, but the truth is bankruptcy is a legal financial tool that adults can use to gain a fresh start. In some cases, bankruptcy is the only way to get financial resources productive again.

*Disha Financial Counselling

Bankruptcy can legally appear on your credit report for up to 10 years but its effects on your overall credit score depends on many factors, including how you go about rebuilding your credit history as soon as your bankruptcy case is closed.

Changes made to bankruptcy laws in 2005 made it more difficult for individuals to declare bankruptcy, although rules vary by state. If you are seriously considering this option, see an independent financial planner before you consult a bankruptcy attorney for advice.

Towards the Climax

Eliminating overwhelming credit card debt can be difficult and complex. The first step is to educate yourself, ask for help and seek advice from an independent financial planner who can look at your unique situation and help you to navigate the array of debt relief choices that exist.

Debt consolidation, debt settlement and bankruptcy are a few possibilities that are available to you. Taking responsibility for your own financial education, planning and financial decisions will help you to gain the strength to help you to avoid a difficult debt situation in the future.

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