Roth IRA Rules
by: Britt Gillette
What are the rules governing a Roth IRA?
That's a great question, because...
Before you open a Roth IRA, you need to know the basic rules of the game.
Luckily, the IRS keeps the rules pretty simple.
The basic rules cover the following topics...
1) Taxation
2) Earned Income
3) Age
4) Income Limits
5) Contribution Limits
6) Withdrawals
7) Investment Options
Learn the IRS rules to the above topics, and you know just about
everything you'll ever need to know about the rules governing a Roth
IRA...
Roth IRA Taxation
You must fund your Roth IRA contributions with after-tax income.
Unlike a traditional IRA, a Roth IRA is not tax deductible.
However, this shortcoming is easily offset by the future tax-free growth
and tax-free withdrawal of those same contributions...
That's right. Once you fund a Roth IRA, you never have to pay income
taxes or capital gains taxes on the investing funds or subsequent
investment gains ever again!
For example, let's say you fund your Roth IRA with $1,000 in after-tax
income. You use that money to purchase $1,000 worth of stock. After three
years, the stock is worth $2,000. You sell it.
But instead of paying capital gains tax on the $1,000 gain, you pay zero
tax. You can then reinvest the entire $2,000 in something new...
Thirty years later, when the $1,000 is worth $15,000, you can withdraw
the entire $15,000 and not owe a single penny in taxes!
Earned Income
In order to contribute to a Roth IRA, the IRS requires you to have earned
income during the taxable year of the contribution...
And the amount of your contribution can not exceed your earned income for
the year.
If your primary source of income is from a current job or business, this
shouldn't be a problem.
However, if you're retired and living off of a pension or social
security, you can only contribute from your earned income...
You can't contribute your social security check to a Roth IRA.
Also, if you're a minor, you can't contribute gifts from grandparents or
family members...
Only money earned and reported as taxable income...
Roth IRA Age Requirements
IRS regulations don't institute a minimum or a maximum age for opening or
investing in a Roth IRA.
The only requirement is that the Roth IRA account holder fund the account
with earned income...
So, if you're a five-year-old with earned income from a lemonade stand...
Or a ninety-two-year-old with earned income as the local Wal-Mart
greater...
Then you meet the age requirement for opening and contributing to a Roth
IRA!
In short, there is no Roth IRA age requirement, just an earned income
requirement.
Roth IRA Income Limits
Eligibility to open a new Roth IRA or contribute to an existing one is
limited to people with income in a certain range.
Your "income" in the eyes of the IRS is the same as your Modified
Adjusted Gross Income (MAGI)...
So what's Modified Adjusted Gross Income?
It's convoluted bureaucratic language meaning "your personal income."
Look at your IRS Form 1040 (the one you use for filing income taxes).
Find the number for Adjusted Gross Income (AGI).
Once you add back certain items to your AGI, you'll come up with a figure
for MAGI. Then you'll be able to see if you meet the income limits for a
Roth IRA.
Click here to learn more about Modified Adjusted Gross Income (MAGI) and
how to calculate it.
Anyway, once you figure that out, the Modified Adjusted Gross Income
(MAGI) limits for a Roth IRA are as follows:
1) $169,000 for married individuals who file a joint tax return.
2) $10,000 for married individuals who file a separate tax return and
lived with their spouse at any time during the course of the tax year.
3) $116,000 for individuals who file as:
a) Single
b) Head of household
c) Married filing separately and did not live with their spouse at any
time during the course of the tax year.
Roth IRA Contribution Limits
The annual contribution you can make to your Roth IRA is limited by IRS
rules.
As of 2009, you can make an annual contribution of...
a) $5,000 if you're under the age of 50 and don?t exceed the income limits
b) $6,000 if you're over the age of 50 and don?t exceed the income limits
c) A dollar amount which varies somewhere inbetween as you approach the
upper income limit
d) Zero dollars if your income exceeds the upper income limit
Roth IRA Withdrawals
Unlike a traditional IRA, you can withdraw previously contributed
principal payments from a Roth IRA without incurring an early withdrawal
penalty...
For example, let's say you open a Roth IRA and contribute $2,000.
One year later, the account is worth $2,500.
Under IRS rules, you can withdrawal up to $2,000 without incurring a
penalty...
But the $500 investment gain can't be touched.
Withdrawals of investment gains are different story, though.
In order to withdraw investment gains without penalty, you generally need
to meet two requirements...
1) The funds have been in the account at least 5 years
2) You've reached the age of 59 ½
However, there are exceptions to these rules.
They're called qualified distributions, and they allow you withdraw funds
without penalty for special purposes, such as funding of education
expenses and the purchase of a first home.
Just be sure to do your homework before taking advantage of one of these
special exemptions...
It's probably a good idea to consult with your accountant first.
Roth IRA Investment Options
As a general rule, you can fund your Roth IRA with any combination of the
following investment vehicles...
a) Common Stocks
b) Bonds
c) Mutual Funds
d) Certificates of Deposit (CDs)
e) Exchange Traded Funds (ETFs)
f) Money Market Accounts
g) Savings Accounts
h) Treasury Inflation Protected Securities (TIPs)
i) Real Estate Investment Trusts (REITs)
j) Platinum, Gold, and Silver Coins
While the range of asset classes is wide and varying, not every
traditional investment option is available for your Roth IRA.
A few investments you can't fund your Roth IRA with include...
a) Collectibles (Priceless art, classic autos, antiques, stamps, etc.)
b) Cash Value Life Insurance
About The Author
Britt Gillette is the author of Your-Roth-IRA.com, a website devoted to
answering Roth IRA questions of every type. Visit his site for more
articles on Roth IRA rules and other Roth IRA information:
http://www.your-roth-ira.com/roth-ira-rules.html
Sunday, May 31, 2009
Saturday, May 30, 2009
How Can Bill Consolidation Reduce Your Outstanding Debt?
How Can Bill Consolidation Reduce Your Outstanding Debt?
by: Jason Holmes
If you are finding it really hard to repay your multiple bills/debts,
then bill consolidation may be a feasible option for you. You can combine
all your existing bills (such as, your medical bills, utility bills,
store card bills, credit card bills, etc.), and replace it by a single
one. Bill consolidation is also sometimes referred as debt consolidation.
2 types of bill consolidation
Your multiple bills can be consolidated in 2 ways – Consolidation program
and Consolidation loan. Though both are effective in consolidating your
multiple bills into a single one, yet they are different in the way they
function.
(1) Bill consolidation program
As soon as you enroll yourself in a consolidation program, the
consolidation company will begin to negotiate with your creditors in
order to reduce the interest rates on your bills. The company will
carefully analyze your financial status and decide upon a single monthly
payment that you can afford. It is also the task of the company to get it
approved by your creditors. In this way, your entire bill payments will
get replaced by a single monthly installment. You need to make this
approved monthly payment to the consolidation company, which in turn,
will distribute the payments amongst your creditors.
You need to pay a certain fee to the consolidation company for its
service.
What are the benefits of a bill consolidation program?
Debt consolidation program offers a number of benefits, which are given
below:
• Only one monthly payment – You need to make a single monthly payment
towards clearing your multiple bills.
• Reduces stress – Your creditors and collection agencies will stop
making any more harassing calls.
• Decreases interest rates – The interest rates on your multiple bills
will get reduced.
• No late payment fees – Your late payment fees will either get reduced
or get completely waived off.
How do you choose which consolidation company is best for you?
There are a number of consolidation companies, out of which, you need to
decide the one that can benefit you the most. Therefore, it is advisable
that you compare the rates as well as the terms of agreement that the
consolidation companies offer. You should also verify how efficient they
are in handling your accounts.
(2) Bill consolidation loan
You can take out a personal loan and with the help of that you can repay
your multiple bills. In this way, you’ll be able to replace all your
bills into a single one. Moreover, you’ll have to make a reduced monthly
payment in comparison to the sum of your multiple installments. You can
take out this personal loan from any financial institutions or any
lender; sometimes, consolidation companies also offer personal loans.
Though debt consolidation offers a number of advantages, yet there are
some disadvantages that you should know before you opt for it. If you
choose consolidation program, it will reflect in your credit report.
However, consolidation is a better alternative than filing bankruptcy, as
the latter has adverse effects on your credit report.
For more information, you can visit:
http://www.debtconsolidationcare.com/forums/bill-consolidation.html
About The Author
Jason Holmes is a reputed author and she has been writing articles on
debt consolidation. She has also written for the Debt Consolidation Care
community. Some of the articles written by her include Debt free, Debt
negotiation, Bill consolidation, Ameriloan and Legacy Visa. Her write ups
are very informative and have proved to be very helpful those in debt.
For more information, you can visit:
http://www.debtconsolidationcare.com/forums/bill-consolidation.html
by: Jason Holmes
If you are finding it really hard to repay your multiple bills/debts,
then bill consolidation may be a feasible option for you. You can combine
all your existing bills (such as, your medical bills, utility bills,
store card bills, credit card bills, etc.), and replace it by a single
one. Bill consolidation is also sometimes referred as debt consolidation.
2 types of bill consolidation
Your multiple bills can be consolidated in 2 ways – Consolidation program
and Consolidation loan. Though both are effective in consolidating your
multiple bills into a single one, yet they are different in the way they
function.
(1) Bill consolidation program
As soon as you enroll yourself in a consolidation program, the
consolidation company will begin to negotiate with your creditors in
order to reduce the interest rates on your bills. The company will
carefully analyze your financial status and decide upon a single monthly
payment that you can afford. It is also the task of the company to get it
approved by your creditors. In this way, your entire bill payments will
get replaced by a single monthly installment. You need to make this
approved monthly payment to the consolidation company, which in turn,
will distribute the payments amongst your creditors.
You need to pay a certain fee to the consolidation company for its
service.
What are the benefits of a bill consolidation program?
Debt consolidation program offers a number of benefits, which are given
below:
• Only one monthly payment – You need to make a single monthly payment
towards clearing your multiple bills.
• Reduces stress – Your creditors and collection agencies will stop
making any more harassing calls.
• Decreases interest rates – The interest rates on your multiple bills
will get reduced.
• No late payment fees – Your late payment fees will either get reduced
or get completely waived off.
How do you choose which consolidation company is best for you?
There are a number of consolidation companies, out of which, you need to
decide the one that can benefit you the most. Therefore, it is advisable
that you compare the rates as well as the terms of agreement that the
consolidation companies offer. You should also verify how efficient they
are in handling your accounts.
(2) Bill consolidation loan
You can take out a personal loan and with the help of that you can repay
your multiple bills. In this way, you’ll be able to replace all your
bills into a single one. Moreover, you’ll have to make a reduced monthly
payment in comparison to the sum of your multiple installments. You can
take out this personal loan from any financial institutions or any
lender; sometimes, consolidation companies also offer personal loans.
Though debt consolidation offers a number of advantages, yet there are
some disadvantages that you should know before you opt for it. If you
choose consolidation program, it will reflect in your credit report.
However, consolidation is a better alternative than filing bankruptcy, as
the latter has adverse effects on your credit report.
For more information, you can visit:
http://www.debtconsolidationcare.com/forums/bill-consolidation.html
About The Author
Jason Holmes is a reputed author and she has been writing articles on
debt consolidation. She has also written for the Debt Consolidation Care
community. Some of the articles written by her include Debt free, Debt
negotiation, Bill consolidation, Ameriloan and Legacy Visa. Her write ups
are very informative and have proved to be very helpful those in debt.
For more information, you can visit:
http://www.debtconsolidationcare.com/forums/bill-consolidation.html
Friday, May 29, 2009
Financial Survival Tactics for Today’s Economy
Financial Survival Tactics for Today’s Economy
by: Charrissa Cawley
Today’s economy has economists, government officials, and investors of
all kinds scratching their heads trying to figure out not just what broke
the economy, but how best to go about fixing it. Fear seems to be the
word of the day, so if fear is ruling your life, keep reading. I’m going
to give you some must-have financial survival advice that will help you
to keep your sanity – and maybe even get rich at the same time.
Take Stock of Your Finances – You may be one of the millions of Americans
who have seen jobs disappear. If you have, my heart goes out to you. If
you haven’t, it’s critical that you realize that in today’s economy,
there’s no such thing as job stability. Your employer can decide at the
drop of a hat that they’re eliminating ‘X’ number of jobs tomorrow. If
yours happens to be one of them, you’ll join the ranks of the unemployed.
It’s more important than ever before that you examine your personal
finances and see exactly where you stand. Gather all of your financial
data and do a balance sheet. How much do you owe – and how much do you
have? If you don’t have a rainy day fund with a minimum of 3-6 month’s
worth of your necessary living expenses, it’s critical that you get one
started today.
Cut Unnecessary Expenses – Successful businesses lives by a budget and
you should, too. In normal economic times, you might be able to fly by
the seat of your pants and pay what you can as your income allows,
knowing that you can easily make up for a temporary financial shortfall
the following month. You may not have that luxury right now, so set a
budget. Once you’ve established a budget you can live with, slash some of
the luxuries.
While you may think that you can’t survive without hitting the
drive-through every day for a $5 cup of coffee or that breakfast biscuit
and hash brown, keep in mind that drastic times call for drastic
measures. If an expenditure isn’t a true need, get rid of it. You may
discover a lot more pork in your budget that can be sliced and diced than
you knew existed.
Cut the Plastic – Credit cards can be a useful tool that can help you
achieve some of your financial and real estate investing goals. They can
also be a crutch that can put you deeper into debt by enabling you to
make purchases that are beyond your current ability to pay. If you have a
documented track record of financial blunders, this may be the best time
for you to re-take control of your financial destiny by removing your
ability to add to your debt by cancelling unneeded credit cards.
If you are responsible with your cards, but you’re currently carrying
balances on some of your cards, consider paying off these balances or
transferring them to low-interest cards. Keep in mind that you might save
a few points in interest expenses by transferring your balances, but most
cards charge at least 3% of the amount transferred (with a minimum fee)
so do the math. If you won’t clearly come out ahead by transferring the
balances, leave them where they are and pay them down as quickly as
possible.
Invest in and for your future – While you want to survive financially
today, you also want to thrive tomorrow. If you haven’t already started
investing in some of the bargain properties available in today’s real
estate market, it’s time for you to get started. While the stock market
is a fool’s paradise, with stagnant or falling numbers, and limited
opportunity except for a lucky few who catch a lucky bounce or happen to
get wind of a hot “insiders tip”, real estate investing doesn’t have the
same limitations. You can generate positive monthly income which will
continue coming in regardless of what the overall real estate market
does. When the market comes roaring back – as it always does – you’ll be
poised to ride the equity wave to the crest of massive profits.
If your current education base doesn’t give you the confidence you need
to take advantage of today’s opportunity, it’s time to invest in your
financial future. The good news is that educational opportunities abound
– and not all of them cost money. To discover some of the knowledge you
need in order to take advantage of the current real estate investing
opportunities, head over to http://www.REIconferences.com (Link:
http://www.REIconferences.com)
Financial survival isn’t always a matter of being the sharpest tool in
the drawer. Sometimes it’s simply a matter of making the correct
financial decisions at just the right time so you’re in position to
capitalize on opportunities as they present themselves. There’s an old
proverb that says, “Give someone a fish and they’ll eat for a day; teach
someone to fish and they’ll eat for a lifetime.” Your financial survival
is very much like this old proverb. But you also have to know when to
reel in a fish when you feel a tug on the end of your line. Only then
will you truly eat well – and survive even the most severe economic
downturn.
About The Author
Charrissa Cawley has a long standing reputation for excellence as a
gifted speaker, real estate trainer and wealth coach. Her strength lies
in training entrepreneurs in the areas of real estate, investing and
financial literacy. Her passion is bridging the gap between learning and
doing. She has helped thousands of entrepreneurs all over the world
seeking financial growth by equipping them with the tools, resources and
specialized knowledge to succeed. Charrissa offers accurate and proven
strategies to investors of all different levels and is the founder of
http://www.reiconferences.com, one
of the fastest growing real estate investment training organizations in
the US in addition to http://www.rewexclub.com, the top rated Real Estate Investor Community
on the web today.
by: Charrissa Cawley
Today’s economy has economists, government officials, and investors of
all kinds scratching their heads trying to figure out not just what broke
the economy, but how best to go about fixing it. Fear seems to be the
word of the day, so if fear is ruling your life, keep reading. I’m going
to give you some must-have financial survival advice that will help you
to keep your sanity – and maybe even get rich at the same time.
Take Stock of Your Finances – You may be one of the millions of Americans
who have seen jobs disappear. If you have, my heart goes out to you. If
you haven’t, it’s critical that you realize that in today’s economy,
there’s no such thing as job stability. Your employer can decide at the
drop of a hat that they’re eliminating ‘X’ number of jobs tomorrow. If
yours happens to be one of them, you’ll join the ranks of the unemployed.
It’s more important than ever before that you examine your personal
finances and see exactly where you stand. Gather all of your financial
data and do a balance sheet. How much do you owe – and how much do you
have? If you don’t have a rainy day fund with a minimum of 3-6 month’s
worth of your necessary living expenses, it’s critical that you get one
started today.
Cut Unnecessary Expenses – Successful businesses lives by a budget and
you should, too. In normal economic times, you might be able to fly by
the seat of your pants and pay what you can as your income allows,
knowing that you can easily make up for a temporary financial shortfall
the following month. You may not have that luxury right now, so set a
budget. Once you’ve established a budget you can live with, slash some of
the luxuries.
While you may think that you can’t survive without hitting the
drive-through every day for a $5 cup of coffee or that breakfast biscuit
and hash brown, keep in mind that drastic times call for drastic
measures. If an expenditure isn’t a true need, get rid of it. You may
discover a lot more pork in your budget that can be sliced and diced than
you knew existed.
Cut the Plastic – Credit cards can be a useful tool that can help you
achieve some of your financial and real estate investing goals. They can
also be a crutch that can put you deeper into debt by enabling you to
make purchases that are beyond your current ability to pay. If you have a
documented track record of financial blunders, this may be the best time
for you to re-take control of your financial destiny by removing your
ability to add to your debt by cancelling unneeded credit cards.
If you are responsible with your cards, but you’re currently carrying
balances on some of your cards, consider paying off these balances or
transferring them to low-interest cards. Keep in mind that you might save
a few points in interest expenses by transferring your balances, but most
cards charge at least 3% of the amount transferred (with a minimum fee)
so do the math. If you won’t clearly come out ahead by transferring the
balances, leave them where they are and pay them down as quickly as
possible.
Invest in and for your future – While you want to survive financially
today, you also want to thrive tomorrow. If you haven’t already started
investing in some of the bargain properties available in today’s real
estate market, it’s time for you to get started. While the stock market
is a fool’s paradise, with stagnant or falling numbers, and limited
opportunity except for a lucky few who catch a lucky bounce or happen to
get wind of a hot “insiders tip”, real estate investing doesn’t have the
same limitations. You can generate positive monthly income which will
continue coming in regardless of what the overall real estate market
does. When the market comes roaring back – as it always does – you’ll be
poised to ride the equity wave to the crest of massive profits.
If your current education base doesn’t give you the confidence you need
to take advantage of today’s opportunity, it’s time to invest in your
financial future. The good news is that educational opportunities abound
– and not all of them cost money. To discover some of the knowledge you
need in order to take advantage of the current real estate investing
opportunities, head over to http://www.REIconferences.com (Link:
http://www.REIconferences.com)
Financial survival isn’t always a matter of being the sharpest tool in
the drawer. Sometimes it’s simply a matter of making the correct
financial decisions at just the right time so you’re in position to
capitalize on opportunities as they present themselves. There’s an old
proverb that says, “Give someone a fish and they’ll eat for a day; teach
someone to fish and they’ll eat for a lifetime.” Your financial survival
is very much like this old proverb. But you also have to know when to
reel in a fish when you feel a tug on the end of your line. Only then
will you truly eat well – and survive even the most severe economic
downturn.
About The Author
Charrissa Cawley has a long standing reputation for excellence as a
gifted speaker, real estate trainer and wealth coach. Her strength lies
in training entrepreneurs in the areas of real estate, investing and
financial literacy. Her passion is bridging the gap between learning and
doing. She has helped thousands of entrepreneurs all over the world
seeking financial growth by equipping them with the tools, resources and
specialized knowledge to succeed. Charrissa offers accurate and proven
strategies to investors of all different levels and is the founder of
http://www.reiconferences.com, one
of the fastest growing real estate investment training organizations in
the US in addition to http://www.rewexclub.com, the top rated Real Estate Investor Community
on the web today.
Thursday, May 28, 2009
Are You Underestimating Your Credit Card Debt?
Are You Underestimating Your Credit Card Debt?
by: Jacque LaMantia
Have you fallen into this trap? Repeatedly, reliable survey sources tell
us that most of us do not realize how much we spend every month using our
credit cards. Investigations reveal that when consumers thought their
total credit card debt was about $20,000, in fact it was closer to
$40,000. Scary difference - consumers are spending a lot more than they
think! When we routinely pay for everything with the plastic card and
don't keep track of what we spend, these careless spending habits all too
often lead to debt problems - problems which can easily be avoided.
To add to the problem, most of us have several credit cards, so if you
use them to pay for everything, then you also transfer the balances from
time to time to get a better interest rate, it’s easy to miscalculate how
much you’re spending. With so many credit cards and with so many
different payment options, it is easy to see how overspending can occur.
Six out of ten consumers don’t even know their account balances, so funds
could be withdrawn in fraudulent transactions without them even realizing
it! Now if you don’t keep track of your money, who else is going to? So
what you need to do, if you haven't done so already, is sit down and get
an understanding of where you stand with your credit card debt. Double
check what’s coming in and what's going out, make sure everything
balances at the end of the month, then continue to keep a tighter grip on
your accounts.
Tighten Your Belt
Do you find yourself in this situation? Do you worry about reducing your
debt? Life is certainly easier and more convenient if you have at least
one credit card, but it needs to be used properly. Credit cards ideally
should be used only when they are paid off each month or in the case of a
true emergency. Credit card companies love it when we only pay the
minimum payment every month, but if you only pay the minimum payment
every month on a large balance and continue using your credit cards, you
will never pay them off!
The banks and credit card companies are merely adding on more interest,
and it will take longer for you to pay off the credit card bills. So what
began as a small credit card bill could escalate into thousands of
dollars, because they are raking it in while the interest rates are
crippling us. . Say your credit card statement arrives and your balance
is $2000 and the minimum payment is $40, which is 2% of your balance. If
you continue paying only the minimum payment, most of your $40 is paying
the interest and hardly any is going towards your balance.
If your debt is escalating out of control, it is time to tighten your
belt and begin the process of becoming debt free. The best way to reduce
your credit card debt is to stop using your credit cards, or better yet,
cut them up (to avoid temptation). This will be painful at first, but it
will save you a substantial amount of money in the long run.
Sit down and calculate how much more you can pay each month than the
minimum payment. Once you have worked that out,stick to it even when you
see on your statements that the minimum payment required is going down.
Don’t be tempted to reduce your payment or you'll be back to square one
in no time. If you have more than one credit card, make the highest
payment each month that you can to the card that has the highest interest
rate. Keep paying the minimum payment on your other cards until the card
with the highest interest rate is paid off, then add that payment to the
minimum amount you are paying on the next highest card until it is paid
off, and so on until all your cards are paid off.
Let's Look at a Case Study
Let's take a look at a case study of one creditor who had stopped using
her credit card and was trying to pay it off, but who felt like she
wasn't getting anywhere. And, in fact, she wasn't. Like many others who
don't fully understand financial matters, she believed that if she
stopped using her credit card and paid the minimum monthly payment, she
would soon be debt free.
But here is a simplified example of what really happens (the numbers, of
course, would be different depending on the total amount owed, the
interest rate, etc.). Let's say her credit card statement showed a
balance of $5810.00, at an interest rate of 18%, with a minimum payment
of$120.00 per month. Based on the way her bank calculates the minimum
required monthly payment, If she never uses this credit card again and
continues to only make the minimum required monthly payment, while
interest charges continue to accrue every month, it will take her 96
months (that is 8 years!) to pay off this balance. She will pay total
interest of over $10,000.00!
If, however, she can pay more than the minimum payment each month, say
$200.00, she could actually pay this debt off in about half the time. By
paying $200.00 instead of $120.00 per month, she would then pay off this
credit card in 42 months (3.5 years) rather than 96 months (8 years),
paying only $7,362.00 in interest instead of $10,000.00, saving $3524.00
in interest charges. See what a difference this makes?
You Can Be Debt Free
Millions of Americans have tightened their belts and managed to pay off
heavy credit card debt using just such methods. There is no reason you
can't be one of them. But in order to get rid of credit card debt, it
isn't enough to merely make the minimum monthly payment. You need to
calculate a plan to pay as much more than the mimimum payment each month
as you can, and you will not only get out of debt in a shorter time
frame, but you will save hundreds or even thousands of dollars in
interest charges. This is one of the simplest ways you can start right
now to begin your program to become debt free.
About The Author
Jacque LaMantia has extensive business and administrative experience in
multiple fields. She now works from home in Internet Marketing and likes
to share information and resources with the public and other
entrepreneurs. You can visit her websites at
http://www.debtcreditrepairpro.com; http://www.affiliateincomesource.com;
http://www.affiliateincomesource.com/blog, or you can email her at j-la@debtcreditrepairpro.com
by: Jacque LaMantia
Have you fallen into this trap? Repeatedly, reliable survey sources tell
us that most of us do not realize how much we spend every month using our
credit cards. Investigations reveal that when consumers thought their
total credit card debt was about $20,000, in fact it was closer to
$40,000. Scary difference - consumers are spending a lot more than they
think! When we routinely pay for everything with the plastic card and
don't keep track of what we spend, these careless spending habits all too
often lead to debt problems - problems which can easily be avoided.
To add to the problem, most of us have several credit cards, so if you
use them to pay for everything, then you also transfer the balances from
time to time to get a better interest rate, it’s easy to miscalculate how
much you’re spending. With so many credit cards and with so many
different payment options, it is easy to see how overspending can occur.
Six out of ten consumers don’t even know their account balances, so funds
could be withdrawn in fraudulent transactions without them even realizing
it! Now if you don’t keep track of your money, who else is going to? So
what you need to do, if you haven't done so already, is sit down and get
an understanding of where you stand with your credit card debt. Double
check what’s coming in and what's going out, make sure everything
balances at the end of the month, then continue to keep a tighter grip on
your accounts.
Tighten Your Belt
Do you find yourself in this situation? Do you worry about reducing your
debt? Life is certainly easier and more convenient if you have at least
one credit card, but it needs to be used properly. Credit cards ideally
should be used only when they are paid off each month or in the case of a
true emergency. Credit card companies love it when we only pay the
minimum payment every month, but if you only pay the minimum payment
every month on a large balance and continue using your credit cards, you
will never pay them off!
The banks and credit card companies are merely adding on more interest,
and it will take longer for you to pay off the credit card bills. So what
began as a small credit card bill could escalate into thousands of
dollars, because they are raking it in while the interest rates are
crippling us. . Say your credit card statement arrives and your balance
is $2000 and the minimum payment is $40, which is 2% of your balance. If
you continue paying only the minimum payment, most of your $40 is paying
the interest and hardly any is going towards your balance.
If your debt is escalating out of control, it is time to tighten your
belt and begin the process of becoming debt free. The best way to reduce
your credit card debt is to stop using your credit cards, or better yet,
cut them up (to avoid temptation). This will be painful at first, but it
will save you a substantial amount of money in the long run.
Sit down and calculate how much more you can pay each month than the
minimum payment. Once you have worked that out,stick to it even when you
see on your statements that the minimum payment required is going down.
Don’t be tempted to reduce your payment or you'll be back to square one
in no time. If you have more than one credit card, make the highest
payment each month that you can to the card that has the highest interest
rate. Keep paying the minimum payment on your other cards until the card
with the highest interest rate is paid off, then add that payment to the
minimum amount you are paying on the next highest card until it is paid
off, and so on until all your cards are paid off.
Let's Look at a Case Study
Let's take a look at a case study of one creditor who had stopped using
her credit card and was trying to pay it off, but who felt like she
wasn't getting anywhere. And, in fact, she wasn't. Like many others who
don't fully understand financial matters, she believed that if she
stopped using her credit card and paid the minimum monthly payment, she
would soon be debt free.
But here is a simplified example of what really happens (the numbers, of
course, would be different depending on the total amount owed, the
interest rate, etc.). Let's say her credit card statement showed a
balance of $5810.00, at an interest rate of 18%, with a minimum payment
of$120.00 per month. Based on the way her bank calculates the minimum
required monthly payment, If she never uses this credit card again and
continues to only make the minimum required monthly payment, while
interest charges continue to accrue every month, it will take her 96
months (that is 8 years!) to pay off this balance. She will pay total
interest of over $10,000.00!
If, however, she can pay more than the minimum payment each month, say
$200.00, she could actually pay this debt off in about half the time. By
paying $200.00 instead of $120.00 per month, she would then pay off this
credit card in 42 months (3.5 years) rather than 96 months (8 years),
paying only $7,362.00 in interest instead of $10,000.00, saving $3524.00
in interest charges. See what a difference this makes?
You Can Be Debt Free
Millions of Americans have tightened their belts and managed to pay off
heavy credit card debt using just such methods. There is no reason you
can't be one of them. But in order to get rid of credit card debt, it
isn't enough to merely make the minimum monthly payment. You need to
calculate a plan to pay as much more than the mimimum payment each month
as you can, and you will not only get out of debt in a shorter time
frame, but you will save hundreds or even thousands of dollars in
interest charges. This is one of the simplest ways you can start right
now to begin your program to become debt free.
About The Author
Jacque LaMantia has extensive business and administrative experience in
multiple fields. She now works from home in Internet Marketing and likes
to share information and resources with the public and other
entrepreneurs. You can visit her websites at
http://www.debtcreditrepairpro.com; http://www.affiliateincomesource.com;
http://www.affiliateincomesource.com/blog, or you can email her at j-la@debtcreditrepairpro.com
Wednesday, May 27, 2009
Credit Unions: A Cheaper, Friendlier Alternative To Banks
Credit Unions: A Cheaper, Friendlier Alternative To Banks
by: Paul Hazen
In Raleigh, North Carolina, new homeowners John and Jennifer Hall made a
smart decision: instead of choosing a risky mortgage scheme from a bank —
a decision that has been catastrophic for so many of their
contemporaries, the couple applied for a loan through the North Carolina
State Employees’ Credit Union (SECU).
The couple did their homework, and concluded that it made better sense to
work with a non-profit financial cooperative to purchase their first
home. Aside from lower fees and closing costs, SECU did something the
others didn't: a credit-union employee sat down with the couple to
explain the pros and cons of the various mortgage options. Because credit
union employees are non-commissioned, there was no pressure, enabling the
couple to see the credit union as a trusted advisor.
"There are so many young folks who don't realize the advantage of going
with a co-op," says John, who believes that all North Carolinians benefit
from non-profit financial cooperatives that help to keep other financial
institutions in check by ensuring citizens remain eligible for
competitive rates and fees. "Being a member can make a tremendous
difference in your financial life!"
You Belong
Are you are frustrated with your bank? You may be tired of paying endless
fees, high interest rates and receiving poor customer service. And in
light of the current financial crisis, you may find yourself among those
with good credit experiencing trouble getting a car or home loan, the
result of tightened lending standards due to the banking industry’s own.
Fortunately, you have options.
Credit unions offer are a fresh alternative to corporate banks while
providing the same kinds of services. As a credit union member, you can
open a checking or savings account, buy a certificate of deposit and get
a loan. Some credit unions can even help invest for your retirement or
take financial planning courses before you buy your first home.
Credit unions are co-operative businesses, owned by members (depositors)
who share something in common, such as where they work, live or go to
church. Because credit unions tend to be smaller and cater to a select
group of people, you can expect a more personal relationship between the
staff and the members.
Unlike commercial banks that generate profits for owners and outside
shareholders, credit unions channel profits back to members in the form
of lower fees, better interest rates and higher dividends. According to
the American Banker/Gallup poll, credit unions consistently rank high
among consumers for service and customer satisfaction every year since
1983.
Keep Your Money Safe
Credit unions have emerged as a safe haven for consumers. Because credit
unions avoided the risky loans and exotic investments that brought down
so many banks, they remain relatively untouched by the recent financial
crisis, credit union members have peace of mind knowing their money is
safe.
Credit unions are financially solid because they stick to conservative
banking practices, such as requiring down payments and income
verification on mortgage loans. While many banks were chasing ever more
exotic ways to make money, credit unions stuck to the basics.
Many people are leery of putting their funds in the hands of a credit
union because they believe the credit union isn’t FDIC insured. Nothing
could be further from the truth. Like banks and savings institutions,
credit unions deposits are insured up to $250,000 by the federal
government, providing the same level of protection for investor assets as
any banking institution.
Credit Unions Still Lending
Commercial banks have recently curtailed lending, even people with good
credit. The result is that many consumers are having trouble getting home
and car loans due to tightened lending standards.
This is not the case with credit unions, which continue making loans
available to people with good credit histories. In fact, credit unions
are now experiencing higher loan volumes as consumers turn to them in
greater numbers since the recent banking sector meltdown.
According to the CUNA, credit unions made 36 percent more small business
loans in the first half of 2008 than the same period in 2007, a
reflection in part of the ability of credit unions to lend while banks
horde cash.
Now, as conventional banks avoid lending even to credit worthy buyers,
credit unions are poised to take a much larger share of the traditional
lending business – including homes, cars and small business loans.
Join a Credit Union Today!
Though once associated with trade unions, hospitals, universities and
other large employee groups, credit unions are increasingly open to the
general public. There are also “select employee groups” that offer credit
union members to a network of affiliated businesses.
You'll find many reasons to join a credit union, including:
• Unlike many commercial banks, credit unions are still lending
• You have access to great products and services.
• Be heard. Your voice counts — your co-op truly cares what you think.
• You’ll be part of a values-based organization that puts people ahead of
profit.
• Share in the financial success of the organization.
• Contribute to a thriving local economy.
• Invest in a business that is locally owned and democratically
controlled.
• Be part of a strong and proud cooperative tradition.
• Help change the way business is conducted in America and around the
world.
As of 2005, there are 9,346 credit unions in the United States, which
means that just about any consumer can find a credit union they are
eligible to join.
About The Author
Paul Hazen is CEO and President of the National Cooperative Business
Association (NCBA), the only cross-sector member association representing
all cooperatives in the United States. To view a video that shows why
credit unions are the better choice and for more information about NCBA,
please visit http://www.thebetterchoice.coop
by: Paul Hazen
In Raleigh, North Carolina, new homeowners John and Jennifer Hall made a
smart decision: instead of choosing a risky mortgage scheme from a bank —
a decision that has been catastrophic for so many of their
contemporaries, the couple applied for a loan through the North Carolina
State Employees’ Credit Union (SECU).
The couple did their homework, and concluded that it made better sense to
work with a non-profit financial cooperative to purchase their first
home. Aside from lower fees and closing costs, SECU did something the
others didn't: a credit-union employee sat down with the couple to
explain the pros and cons of the various mortgage options. Because credit
union employees are non-commissioned, there was no pressure, enabling the
couple to see the credit union as a trusted advisor.
"There are so many young folks who don't realize the advantage of going
with a co-op," says John, who believes that all North Carolinians benefit
from non-profit financial cooperatives that help to keep other financial
institutions in check by ensuring citizens remain eligible for
competitive rates and fees. "Being a member can make a tremendous
difference in your financial life!"
You Belong
Are you are frustrated with your bank? You may be tired of paying endless
fees, high interest rates and receiving poor customer service. And in
light of the current financial crisis, you may find yourself among those
with good credit experiencing trouble getting a car or home loan, the
result of tightened lending standards due to the banking industry’s own.
Fortunately, you have options.
Credit unions offer are a fresh alternative to corporate banks while
providing the same kinds of services. As a credit union member, you can
open a checking or savings account, buy a certificate of deposit and get
a loan. Some credit unions can even help invest for your retirement or
take financial planning courses before you buy your first home.
Credit unions are co-operative businesses, owned by members (depositors)
who share something in common, such as where they work, live or go to
church. Because credit unions tend to be smaller and cater to a select
group of people, you can expect a more personal relationship between the
staff and the members.
Unlike commercial banks that generate profits for owners and outside
shareholders, credit unions channel profits back to members in the form
of lower fees, better interest rates and higher dividends. According to
the American Banker/Gallup poll, credit unions consistently rank high
among consumers for service and customer satisfaction every year since
1983.
Keep Your Money Safe
Credit unions have emerged as a safe haven for consumers. Because credit
unions avoided the risky loans and exotic investments that brought down
so many banks, they remain relatively untouched by the recent financial
crisis, credit union members have peace of mind knowing their money is
safe.
Credit unions are financially solid because they stick to conservative
banking practices, such as requiring down payments and income
verification on mortgage loans. While many banks were chasing ever more
exotic ways to make money, credit unions stuck to the basics.
Many people are leery of putting their funds in the hands of a credit
union because they believe the credit union isn’t FDIC insured. Nothing
could be further from the truth. Like banks and savings institutions,
credit unions deposits are insured up to $250,000 by the federal
government, providing the same level of protection for investor assets as
any banking institution.
Credit Unions Still Lending
Commercial banks have recently curtailed lending, even people with good
credit. The result is that many consumers are having trouble getting home
and car loans due to tightened lending standards.
This is not the case with credit unions, which continue making loans
available to people with good credit histories. In fact, credit unions
are now experiencing higher loan volumes as consumers turn to them in
greater numbers since the recent banking sector meltdown.
According to the CUNA, credit unions made 36 percent more small business
loans in the first half of 2008 than the same period in 2007, a
reflection in part of the ability of credit unions to lend while banks
horde cash.
Now, as conventional banks avoid lending even to credit worthy buyers,
credit unions are poised to take a much larger share of the traditional
lending business – including homes, cars and small business loans.
Join a Credit Union Today!
Though once associated with trade unions, hospitals, universities and
other large employee groups, credit unions are increasingly open to the
general public. There are also “select employee groups” that offer credit
union members to a network of affiliated businesses.
You'll find many reasons to join a credit union, including:
• Unlike many commercial banks, credit unions are still lending
• You have access to great products and services.
• Be heard. Your voice counts — your co-op truly cares what you think.
• You’ll be part of a values-based organization that puts people ahead of
profit.
• Share in the financial success of the organization.
• Contribute to a thriving local economy.
• Invest in a business that is locally owned and democratically
controlled.
• Be part of a strong and proud cooperative tradition.
• Help change the way business is conducted in America and around the
world.
As of 2005, there are 9,346 credit unions in the United States, which
means that just about any consumer can find a credit union they are
eligible to join.
About The Author
Paul Hazen is CEO and President of the National Cooperative Business
Association (NCBA), the only cross-sector member association representing
all cooperatives in the United States. To view a video that shows why
credit unions are the better choice and for more information about NCBA,
please visit http://www.thebetterchoice.coop
Tuesday, May 26, 2009
Loan Modification Still the Best Option for Avoiding Foreclosure
Loan Modification Still the Best Option for Avoiding Foreclosure
by: Bridget Toomey
According to the latest data coming out of the US housing market,
foreclosures have risen to record figures in the first quarter of 2009.
More than 800,000 properties received a default or auction notice which
is a 24% rise from last year. With industry watchers saying foreclosures
have not peaked as yet in the nation, more and more lenders are likely to
file foreclosure notices in the coming months.
The numbers are extremely disturbing especially since a number of steps
had been announced by the Obama administration since the start of the
year including the much awaited mortgage stimulus plan announced in March
of this year. It would seem though that the measures so far have not been
able to stem the number of foreclosures being filed every month.
The main concern for homeowners has been the uncertainty they face on the
job front. Most mortgage borrowers feel that job security is the number
one priority for them as without that, they would not be able to pay
their monthly mortgages on time. A lot of people are ready to take a pay
cut in their respective jobs rather than losing the job completely.
In the given scenario, most analysts believe that a home loan
modification still remains the best option for homeowners in order to
avoid foreclosure. As long as the homeowner still has a job, they should
immediately contact a loan modification consultant and apply to get their
mortgages modified before it is too late. If the homeowner has indeed
been given a pay cut in their jobs, then it is even more important you
apply for a loan modification as it would be easier to convince the banks
about the difficulty to pay the monthly mortgage payments. At the same
time, the fact that the homeowner still has a job, despite a pay cut,
would mean the banks are more likely to modify their existing mortgages
as the homeowner would be in a position to pay the monthly mortgages
under the new payment plan.
The two main criteria for the mortgage lenders to approve a loan
modification is whether there is a genuine difficulty or hardship in
meeting the current payment plans and also the ability to pay the
modified mortgage payment. Banks are extremely cautious to make sure the
homeowners would be able to meet the new mortgage payments if they
approve their loan modification application.
That is the reason why homeowners must make sure they apply right away
especially if they are at risk of losing their jobs. Of course, in
special cases, even borrowers who have lost their jobs and are collecting
unemployment income can get their loan modified. For this you need to
make sure you contact an experienced loan modification consultant who can
negotiate with the bank on your behalf.
Since there are still some loan modification consultants who do not
charge any upfront fees until your loan modification application is
approved by your bank, you have nothing to lose by applying for a
mortgage loan modification. The important thing though is you act fast if
you really want to save your home from foreclosure.
About The Author
Bridget Toomey is a licensed real estate and loan modification consultant
in the state of California. Since the economic downturn in early 2007 she
has focused her time on assisting homeowners who have home loan
modification needs. To know more about her or if you have any questions,
please visithttp://www.loanmodificationfoundation.com
by: Bridget Toomey
According to the latest data coming out of the US housing market,
foreclosures have risen to record figures in the first quarter of 2009.
More than 800,000 properties received a default or auction notice which
is a 24% rise from last year. With industry watchers saying foreclosures
have not peaked as yet in the nation, more and more lenders are likely to
file foreclosure notices in the coming months.
The numbers are extremely disturbing especially since a number of steps
had been announced by the Obama administration since the start of the
year including the much awaited mortgage stimulus plan announced in March
of this year. It would seem though that the measures so far have not been
able to stem the number of foreclosures being filed every month.
The main concern for homeowners has been the uncertainty they face on the
job front. Most mortgage borrowers feel that job security is the number
one priority for them as without that, they would not be able to pay
their monthly mortgages on time. A lot of people are ready to take a pay
cut in their respective jobs rather than losing the job completely.
In the given scenario, most analysts believe that a home loan
modification still remains the best option for homeowners in order to
avoid foreclosure. As long as the homeowner still has a job, they should
immediately contact a loan modification consultant and apply to get their
mortgages modified before it is too late. If the homeowner has indeed
been given a pay cut in their jobs, then it is even more important you
apply for a loan modification as it would be easier to convince the banks
about the difficulty to pay the monthly mortgage payments. At the same
time, the fact that the homeowner still has a job, despite a pay cut,
would mean the banks are more likely to modify their existing mortgages
as the homeowner would be in a position to pay the monthly mortgages
under the new payment plan.
The two main criteria for the mortgage lenders to approve a loan
modification is whether there is a genuine difficulty or hardship in
meeting the current payment plans and also the ability to pay the
modified mortgage payment. Banks are extremely cautious to make sure the
homeowners would be able to meet the new mortgage payments if they
approve their loan modification application.
That is the reason why homeowners must make sure they apply right away
especially if they are at risk of losing their jobs. Of course, in
special cases, even borrowers who have lost their jobs and are collecting
unemployment income can get their loan modified. For this you need to
make sure you contact an experienced loan modification consultant who can
negotiate with the bank on your behalf.
Since there are still some loan modification consultants who do not
charge any upfront fees until your loan modification application is
approved by your bank, you have nothing to lose by applying for a
mortgage loan modification. The important thing though is you act fast if
you really want to save your home from foreclosure.
About The Author
Bridget Toomey is a licensed real estate and loan modification consultant
in the state of California. Since the economic downturn in early 2007 she
has focused her time on assisting homeowners who have home loan
modification needs. To know more about her or if you have any questions,
please visithttp://www.loanmodificationfoundation.com
Monday, May 25, 2009
How to Make a Rewards Credit Card Reward You, Not the Company
How to Make a Rewards Credit Card Reward You, Not the Company
by: Margaret Winfrey
A rewards credit card can very often represent excellent value and
present real benefits to the consumer. However, it is important not to
sign up for a credit card based on the reward alone, and it will be
important to take two things into consideration.
The first aspect to consider is whether the card itself represents good
value in terms of the available limit, the interest rate charged and any
fees, in addition to costs that might be incurred for general maintenance
of the account. The second aspect to look at is the reward itself, and
whether this represents one which best suits your own personal interests,
needs and habits.
Very often, reward credit cards work by providing you with points on your
account whenever your credit card is used to purchase goods or services
from companies which are either subsidiary ones of the credit card
company itself, or part of an affiliate network of finance and retail
companies and organisations. One typical example many people come across
is a credit card which offers consumers reward points for purchasing fuel
from a particular garage or retailer. With a set number of points per
litre or per gallon, these points can be accumulated until a specified
number have been reached.
This then allows the consumer to choose from a number of different
rewards. In some cases, these can be items such as hampers, glassware,
holidays or other material goods. In other cases, it could be vouchers
for holidays and flights, and still others provide money off coupons or
cash back. In this case, you might spend a hundred dollars and receive a
1% cash back reward.
One of the issues that you need to look into when evaluating any reward
is how easy it is to accumulate points. Knowing that you can achieve a
free weekend break when you reach a certain level of points, you might
then ignore the interest rate in order to attain the points. Exactly the
same situation exists with store reward cards. People will pay more in
the more expensive store just to get points on their card, and a nice
lump sum pay-out later, rather than save the odd cent or two now. That is
one of the attractions of reward credit cards, and one that is enough for
many people to use them by choice.
But before signing up for a rewards credit card it will be important to
evaluate how likely it is that you will be able to realistically earn
enough points to acquire the reward itself, and whether any changes to
your shopping that may be required will impact on the amount you're
likely to spend. However, if you don't see any real need to change your
regular shopping habits, and you really will be able to earn points,
prizes or money off coupons, then certainly it makes good sense to
consider applying for a rewards credit card in place of a standard credit
card which does not offer any kind of reward.
As previously referred to with regard to store cards, one of the ways in
which rewards work well for companies is by encouraging loyalty, and by
encouraging you to use that particular credit card more often for your
purchases rather than any other credit card you may have. However - make
sure you don't fall into the trap of using your credit card to pay for
goods instead of using either cash or a debit card, if you are then
likely to forget to pay off the balance of the credit card at the end of
the month. Putting all your bills on the credit card and then forgetting
to pay the bill on time could result in you paying a good deal extra in
interest.
A rewards credit card is a great idea, and a real help if you already
shop in a way which could provide you with privileges without you having
to make any real changes. If you use a credit card regularly, such as in
business for example, whereby your company reimburses your expenses, then
a reward credit card is likely the best type for you to have - so long as
you pay the bills when your company pays you for what you have spent!
About The Author
For more information on rewards credit cards and more, go to
MyCreditCard.com where you can compare rewards credit cards as well as search and apply for reward credit cards and other credit card offers and
applications from major banks and issuers.
by: Margaret Winfrey
A rewards credit card can very often represent excellent value and
present real benefits to the consumer. However, it is important not to
sign up for a credit card based on the reward alone, and it will be
important to take two things into consideration.
The first aspect to consider is whether the card itself represents good
value in terms of the available limit, the interest rate charged and any
fees, in addition to costs that might be incurred for general maintenance
of the account. The second aspect to look at is the reward itself, and
whether this represents one which best suits your own personal interests,
needs and habits.
Very often, reward credit cards work by providing you with points on your
account whenever your credit card is used to purchase goods or services
from companies which are either subsidiary ones of the credit card
company itself, or part of an affiliate network of finance and retail
companies and organisations. One typical example many people come across
is a credit card which offers consumers reward points for purchasing fuel
from a particular garage or retailer. With a set number of points per
litre or per gallon, these points can be accumulated until a specified
number have been reached.
This then allows the consumer to choose from a number of different
rewards. In some cases, these can be items such as hampers, glassware,
holidays or other material goods. In other cases, it could be vouchers
for holidays and flights, and still others provide money off coupons or
cash back. In this case, you might spend a hundred dollars and receive a
1% cash back reward.
One of the issues that you need to look into when evaluating any reward
is how easy it is to accumulate points. Knowing that you can achieve a
free weekend break when you reach a certain level of points, you might
then ignore the interest rate in order to attain the points. Exactly the
same situation exists with store reward cards. People will pay more in
the more expensive store just to get points on their card, and a nice
lump sum pay-out later, rather than save the odd cent or two now. That is
one of the attractions of reward credit cards, and one that is enough for
many people to use them by choice.
But before signing up for a rewards credit card it will be important to
evaluate how likely it is that you will be able to realistically earn
enough points to acquire the reward itself, and whether any changes to
your shopping that may be required will impact on the amount you're
likely to spend. However, if you don't see any real need to change your
regular shopping habits, and you really will be able to earn points,
prizes or money off coupons, then certainly it makes good sense to
consider applying for a rewards credit card in place of a standard credit
card which does not offer any kind of reward.
As previously referred to with regard to store cards, one of the ways in
which rewards work well for companies is by encouraging loyalty, and by
encouraging you to use that particular credit card more often for your
purchases rather than any other credit card you may have. However - make
sure you don't fall into the trap of using your credit card to pay for
goods instead of using either cash or a debit card, if you are then
likely to forget to pay off the balance of the credit card at the end of
the month. Putting all your bills on the credit card and then forgetting
to pay the bill on time could result in you paying a good deal extra in
interest.
A rewards credit card is a great idea, and a real help if you already
shop in a way which could provide you with privileges without you having
to make any real changes. If you use a credit card regularly, such as in
business for example, whereby your company reimburses your expenses, then
a reward credit card is likely the best type for you to have - so long as
you pay the bills when your company pays you for what you have spent!
About The Author
For more information on rewards credit cards and more, go to
MyCreditCard.com where you can compare rewards credit cards as well as search and apply for reward credit cards and other credit card offers and
applications from major banks and issuers.
Sunday, May 24, 2009
Health Insurance After Layoff
Health Insurance After Layoff
by: Bernz Jayma P.
The economic crisis is making it hard for everyone to earn a decent
living. During the last year, millions of Americans lost their jobs
because of the recession. But aside from the emotional and financial
consequence of losing a steady paycheck, there are other concerns you
need to deal with as well. One of the issues that a lot of laid-off
employees are concerned about is their health care.
An employer effectively stops paying for the employee’s health care on
the last day of the month when employment ended. It is critical for a
person to look for health insurance while he is in-between jobs. This is
because even if he finds employment immediately, his health coverage will
only restart after 30 days of employment on the first day of the next
month.
There is at least a two-month gap that should be filled. In addition, a
person can be considered lucky if he is able to find work immediately.
Today’s tough economic times have effectively halted hiring in a lot of
industries. Below are some alternatives a laid-off employee can look into:
Short Term Medical Insurance – this health insurance plan can range from
a single month to three years. It has been specifically designed to fill
the gap from one plan to another. This insurance is inexpensive but it
does not cover the cost of treating existing medical problems. Another
drawback is that it also cannot cover serious long-term illnesses and
pregnancy. But those with predictable expenses such as prescription and
outpatient therapy should consider this insurance.
COBRA – if you worked for a company with 20+ employees, you are allowed
to keep your health insurance for up to 18 months at your own expense.
Because of its high monthly premium, a lot of people avoid this option
unless they have an existing condition that requires ongoing medical care.
Individual Conversion – this has the same results with the COBRA option
but it is designed for the employees of smaller enterprises. Individual
conversion allows employees to convert their program from a group plan to
an individual plan without the need to provide eligibility requirements.
These three options allow employees who had been laid-off to enjoy
medical benefits until their next employment.
About The Author
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog,
dedicated to helping people expand their knowledge about their personal
finances. Learn up to date investing strategies and retirement planning
by visiting http://www.Invesmint.com
by: Bernz Jayma P.
The economic crisis is making it hard for everyone to earn a decent
living. During the last year, millions of Americans lost their jobs
because of the recession. But aside from the emotional and financial
consequence of losing a steady paycheck, there are other concerns you
need to deal with as well. One of the issues that a lot of laid-off
employees are concerned about is their health care.
An employer effectively stops paying for the employee’s health care on
the last day of the month when employment ended. It is critical for a
person to look for health insurance while he is in-between jobs. This is
because even if he finds employment immediately, his health coverage will
only restart after 30 days of employment on the first day of the next
month.
There is at least a two-month gap that should be filled. In addition, a
person can be considered lucky if he is able to find work immediately.
Today’s tough economic times have effectively halted hiring in a lot of
industries. Below are some alternatives a laid-off employee can look into:
Short Term Medical Insurance – this health insurance plan can range from
a single month to three years. It has been specifically designed to fill
the gap from one plan to another. This insurance is inexpensive but it
does not cover the cost of treating existing medical problems. Another
drawback is that it also cannot cover serious long-term illnesses and
pregnancy. But those with predictable expenses such as prescription and
outpatient therapy should consider this insurance.
COBRA – if you worked for a company with 20+ employees, you are allowed
to keep your health insurance for up to 18 months at your own expense.
Because of its high monthly premium, a lot of people avoid this option
unless they have an existing condition that requires ongoing medical care.
Individual Conversion – this has the same results with the COBRA option
but it is designed for the employees of smaller enterprises. Individual
conversion allows employees to convert their program from a group plan to
an individual plan without the need to provide eligibility requirements.
These three options allow employees who had been laid-off to enjoy
medical benefits until their next employment.
About The Author
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog,
dedicated to helping people expand their knowledge about their personal
finances. Learn up to date investing strategies and retirement planning
by visiting http://www.Invesmint.com
Saturday, May 23, 2009
6 Credit Repair Tips You Can Try Now
6 Credit Repair Tips You Can Try Now
by: Rick Goldfeller
What does everyone that constantly takes out loans want? That would the
best rates and terms of course. The effective way to ensure that you do
receive the best rates and terms would be to have an impressive credit
score. This is the number that says a lot about you when it comes to your
worthiness as to being accepted for the loan. It’s also the number that
determines how much interest they’ll be charging you and the terms you’ll
be agreeing with – the higher the FICO score, the better. So if you’ve
any intentions of getting nothing less than the best end of the deal with
your creditors, you better follow the 6 credit repair tips, which will be
stated here: the first tip is to dispute any errors stated on your credit
report (if any).
Taking it up with the bureau that issued the report is but of the utmost
importance; writing them a letter is the best way to go about making a
complaint. You also wanna inform your creditors about it, so that they
can look upon you as someone a little more trustworthy, and make the
necessary adjustments regarding the “details” of the loan you wish to
avail. Let’s go to the 2nd credit repair tip, which is: don’t get too
many credit cards, get the ones that you really need. Opening up too many
accounts lowers your average account age, which in turn directly affects
your FICO score, by lowering it as much as 10 points.
This brings up the 3rd tip, which is to manage your cards responsibly.
Having them can in general improve your score, just as long as you don’t
use it constantly for shopping sprees and other costly activities. The
3rd tip brings up the 4th credit repair tip, which is to keep your card
balances low. Never max these suckers out, or you’ll be looking at a
minus of somewhere near 65 points (ouch). Moving forward, the 5th pointer
would be: do not close your old accounts. The act of doing so also lowers
the average account age, which in turn, lowers your FICO score.
6th and last credit repair tip would be to pay your bills on time. Having
any delays with your payments can affect your score negatively. Incurring
default payments has even worse effects, so try to pay on time. Paying on
time does come with its benefits, how? Doing so for a month can actually
up your score as much as 20 points, which is a good thing (obviously). By
following the tips exactly as they’re stated above, it won’t be long
before you start seeing drastic or somewhere near drastic improvements,
as early as 2 months – having serious doubts because of your bad credit
history? Again that won’t be a problem if you play things smart, and
follow the said pieces of advice.
Once you’ve finally gotten back on your feet, you’ll be (finally) able to
pull out that loan and finance whatever it is you had in mind. Also,
you’ll be getting better deals with the lending institutions – so start
repairing your score now.
About The Author
The author of this article Rick Goldfeller is an underground Financial
Analyst who has been successfully running campaigns for several wealthy
clients.
http://twitter.com/RickGoldfeller
Rick finally decided to go public and share his knowledge and experience
through his website http://www.finanzine.com You can sign up for his free newsletter and join his coaching program.
by: Rick Goldfeller
What does everyone that constantly takes out loans want? That would the
best rates and terms of course. The effective way to ensure that you do
receive the best rates and terms would be to have an impressive credit
score. This is the number that says a lot about you when it comes to your
worthiness as to being accepted for the loan. It’s also the number that
determines how much interest they’ll be charging you and the terms you’ll
be agreeing with – the higher the FICO score, the better. So if you’ve
any intentions of getting nothing less than the best end of the deal with
your creditors, you better follow the 6 credit repair tips, which will be
stated here: the first tip is to dispute any errors stated on your credit
report (if any).
Taking it up with the bureau that issued the report is but of the utmost
importance; writing them a letter is the best way to go about making a
complaint. You also wanna inform your creditors about it, so that they
can look upon you as someone a little more trustworthy, and make the
necessary adjustments regarding the “details” of the loan you wish to
avail. Let’s go to the 2nd credit repair tip, which is: don’t get too
many credit cards, get the ones that you really need. Opening up too many
accounts lowers your average account age, which in turn directly affects
your FICO score, by lowering it as much as 10 points.
This brings up the 3rd tip, which is to manage your cards responsibly.
Having them can in general improve your score, just as long as you don’t
use it constantly for shopping sprees and other costly activities. The
3rd tip brings up the 4th credit repair tip, which is to keep your card
balances low. Never max these suckers out, or you’ll be looking at a
minus of somewhere near 65 points (ouch). Moving forward, the 5th pointer
would be: do not close your old accounts. The act of doing so also lowers
the average account age, which in turn, lowers your FICO score.
6th and last credit repair tip would be to pay your bills on time. Having
any delays with your payments can affect your score negatively. Incurring
default payments has even worse effects, so try to pay on time. Paying on
time does come with its benefits, how? Doing so for a month can actually
up your score as much as 20 points, which is a good thing (obviously). By
following the tips exactly as they’re stated above, it won’t be long
before you start seeing drastic or somewhere near drastic improvements,
as early as 2 months – having serious doubts because of your bad credit
history? Again that won’t be a problem if you play things smart, and
follow the said pieces of advice.
Once you’ve finally gotten back on your feet, you’ll be (finally) able to
pull out that loan and finance whatever it is you had in mind. Also,
you’ll be getting better deals with the lending institutions – so start
repairing your score now.
About The Author
The author of this article Rick Goldfeller is an underground Financial
Analyst who has been successfully running campaigns for several wealthy
clients.
http://twitter.com/RickGoldfeller
Rick finally decided to go public and share his knowledge and experience
through his website http://www.finanzine.com You can sign up for his free newsletter and join his coaching program.
Friday, May 22, 2009
Forced Discipline And Simple Tricks Help You Save Money
Forced Discipline And Simple Tricks Help You Save Money
by: Joel Weaver
When it comes to saving money, you need to stay on top of your finances
every hour of every day. It should be all-consuming. You should think
about it all the time. Just kidding. It can be simple and fun, even.
Everyone needs to save, but sometimes it becomes difficult. It’s easy to
spend everything you make, especially in times where the cost of living
is a little more than it was last year and your salary was frozen as a
company money-saving initiative.
Sometimes you can “trick” yourself into saving a little here and there if
you feel a little apprehensive about saving in a big chunk. Look for the
small ways to save a little and reap the rewards at the end of the week,
the month, the year, and beyond.
Here are some quick, easy and fun ways to save some money.
1. Create a budget.
This will be the most difficult, but can also yield the biggest reward.
Any number of resources can be found on the Internet for creating a
budget just by doing a search. You can purchase any number of budget
software, and some programs have options to help you create a budget
built-in. The important thing is to be honest with what you spend. Keep
track of your spending habits for three months to come up and average of
what you spend and what you take in each month. Some people will use the
“envelope method” and put the money for each category in envelopes. When
the money’s gone at the end of the month, that’s it. Just make sure you
stick to the budget. Most people will find that frivolous spending
diminishes when they think about how much they actually spend.
2. Forced discipline works.
Many people take advantage of direct deposit. If this is available, use
it to save. Set up a savings account with your bank or credit union and
put 5% of your take home pay in the account. This is an amount most
people can live with and will not miss. It is vital that you “pay
yourself first” when budgeting, so make sure to save every month. Even if
it’s only $20 a week, at the end of the year, your account will have over
$1,000.
3. Use pre-tax contributions as a way to save.
Whether you use it for medical expenses, insurance, cafeteria plans, or
retirement contributions, every dollar you save is significant.
4. Utilize employer contributions to your retirement plan.
First, make certain that you’re putting away money for retirement. If
you’re not, you’re missing out on a big savings opportunity. If your
employer will match retirement funds up to a certain percentage of your
gross income, take advantage of it. An average employer contribution is
half up to 6%. Check with you payroll or human resources department to
see what programs are available. It’s free money!
5. Refinance your house.
One by-product of a down economy is lower interest rates. If you’re
planning to stay in your home for a number of years, you could see
significant savings every month simply by refinancing your home. As an
example, at 7% interest, our payment was $989 a month. Dropping the
interest rate to 5% saved us $157 a month in interest. Our payment is now
$832 a month. That’s $1884 a year and more than $56,520 over the life of
a 30-year loan.
6. Brown-bag it.
Take your lunch twice a week. That’s not too much to ask of yourself.
Bring leftovers from dinner the previous night. For argument’s sake,
let’s say the average lunch costs $8. That’s a savings of $16 a week.
Doesn’t really seem like much, but remember, we’re going for long-term
here. It’s $832 a year… one extra mortgage payment.
7. Speaking of extra mortgage payment…
Did you know that if you pay one extra mortgage payment a year, it will
deduct eight years of payments from your repayment schedule? This is the
most complicated math we can do for the sake of this article. If you
reduce your payment schedule by eight years, at $832 a month that’s a
savings of $79,872. Don’t forget to subtract the additional money that
you’re paying. The savings over the life of the mortgage will be $61,568.
(Quick…add that to the savings of refinancing. That’s over $118,000
savings in 30 years. Think about that in relation to how much you paid
for your house.)
8. Use a passive saving technique.
The best example of this is saving change in a jar. A lot of people do
it. It’s amazing how much a jar full of change is worth. Try kicking it
up a notch. Look at your dollar bills. There are 12 (A through L) and it
denotes the regional Federal Reserve Bank that issued the bill. Pick one
of the letters and save every dollar bill you come across. You won’t miss
a dollar here and there, will you? At the end of the month, put it in
savings. We have the kids do this. We hope it will teach them the value
of saving, a little about our money system, and maybe even some
geography. We pick a different letter each month and put the bills in the
college funds. One person we know does it with $5 bills by saving every
bill he finds with the smaller Abraham Lincoln on it. He averages about
$80 a month.
Remember, every little bit helps. Stick to it. Make it fun. Saving is
addictive. When you realize how much you can save by just taking small
steps, you’ll find ways to save more without really feeling it.
About The Author
Joel Weaver is the Community Manager for Geneva Roth Companies.
http://www.genevakc.com
by: Joel Weaver
When it comes to saving money, you need to stay on top of your finances
every hour of every day. It should be all-consuming. You should think
about it all the time. Just kidding. It can be simple and fun, even.
Everyone needs to save, but sometimes it becomes difficult. It’s easy to
spend everything you make, especially in times where the cost of living
is a little more than it was last year and your salary was frozen as a
company money-saving initiative.
Sometimes you can “trick” yourself into saving a little here and there if
you feel a little apprehensive about saving in a big chunk. Look for the
small ways to save a little and reap the rewards at the end of the week,
the month, the year, and beyond.
Here are some quick, easy and fun ways to save some money.
1. Create a budget.
This will be the most difficult, but can also yield the biggest reward.
Any number of resources can be found on the Internet for creating a
budget just by doing a search. You can purchase any number of budget
software, and some programs have options to help you create a budget
built-in. The important thing is to be honest with what you spend. Keep
track of your spending habits for three months to come up and average of
what you spend and what you take in each month. Some people will use the
“envelope method” and put the money for each category in envelopes. When
the money’s gone at the end of the month, that’s it. Just make sure you
stick to the budget. Most people will find that frivolous spending
diminishes when they think about how much they actually spend.
2. Forced discipline works.
Many people take advantage of direct deposit. If this is available, use
it to save. Set up a savings account with your bank or credit union and
put 5% of your take home pay in the account. This is an amount most
people can live with and will not miss. It is vital that you “pay
yourself first” when budgeting, so make sure to save every month. Even if
it’s only $20 a week, at the end of the year, your account will have over
$1,000.
3. Use pre-tax contributions as a way to save.
Whether you use it for medical expenses, insurance, cafeteria plans, or
retirement contributions, every dollar you save is significant.
4. Utilize employer contributions to your retirement plan.
First, make certain that you’re putting away money for retirement. If
you’re not, you’re missing out on a big savings opportunity. If your
employer will match retirement funds up to a certain percentage of your
gross income, take advantage of it. An average employer contribution is
half up to 6%. Check with you payroll or human resources department to
see what programs are available. It’s free money!
5. Refinance your house.
One by-product of a down economy is lower interest rates. If you’re
planning to stay in your home for a number of years, you could see
significant savings every month simply by refinancing your home. As an
example, at 7% interest, our payment was $989 a month. Dropping the
interest rate to 5% saved us $157 a month in interest. Our payment is now
$832 a month. That’s $1884 a year and more than $56,520 over the life of
a 30-year loan.
6. Brown-bag it.
Take your lunch twice a week. That’s not too much to ask of yourself.
Bring leftovers from dinner the previous night. For argument’s sake,
let’s say the average lunch costs $8. That’s a savings of $16 a week.
Doesn’t really seem like much, but remember, we’re going for long-term
here. It’s $832 a year… one extra mortgage payment.
7. Speaking of extra mortgage payment…
Did you know that if you pay one extra mortgage payment a year, it will
deduct eight years of payments from your repayment schedule? This is the
most complicated math we can do for the sake of this article. If you
reduce your payment schedule by eight years, at $832 a month that’s a
savings of $79,872. Don’t forget to subtract the additional money that
you’re paying. The savings over the life of the mortgage will be $61,568.
(Quick…add that to the savings of refinancing. That’s over $118,000
savings in 30 years. Think about that in relation to how much you paid
for your house.)
8. Use a passive saving technique.
The best example of this is saving change in a jar. A lot of people do
it. It’s amazing how much a jar full of change is worth. Try kicking it
up a notch. Look at your dollar bills. There are 12 (A through L) and it
denotes the regional Federal Reserve Bank that issued the bill. Pick one
of the letters and save every dollar bill you come across. You won’t miss
a dollar here and there, will you? At the end of the month, put it in
savings. We have the kids do this. We hope it will teach them the value
of saving, a little about our money system, and maybe even some
geography. We pick a different letter each month and put the bills in the
college funds. One person we know does it with $5 bills by saving every
bill he finds with the smaller Abraham Lincoln on it. He averages about
$80 a month.
Remember, every little bit helps. Stick to it. Make it fun. Saving is
addictive. When you realize how much you can save by just taking small
steps, you’ll find ways to save more without really feeling it.
About The Author
Joel Weaver is the Community Manager for Geneva Roth Companies.
http://www.genevakc.com
Thursday, May 21, 2009
Negotiating With Your Creditors
Negotiating With Your Creditors
by: Elizabeth Williams
Many people turn to debt management companies and credit counseling
services to get help lowering payments or interest rates with their
creditors. There is another way you can do this which simply involves a
do-it-yourself approach for negotiating with your creditors. If you are
looking to settle your debt (pay less than you owe) or get lower interest
or a lower monthly payment – why not take the initiative and attempt to
negotiate for yourself? You can sometimes get just as good of a
settlement when you do it yourself, and it won't cost you any fees.
Here is what you should know about negotiating a settlement or lower
monthly payment with your creditors:
Know What Your Financial Rights Are
In order to have the best possible chance of negotiating with your
creditors, you should take some time to look at what your financial
rights are. The Federal Trade Commission has established the Fair Debt
Collection Practices Act (FDCPA) which applies to all debts of a
personal, family and household nature for people in the United States.
Most of the rights under this act involve what debt collectors can and
cannot do, including that they are prohibited from engaging in unfair,
deceptive, or abusive practices when they attempt to collect debts.
Some of the guidelines under the FDCPA mean that debt collectors:
May not contact you before 8 a.m or after 9 p.m.
May not contact you at work if you've asked them not to or your employer
disapproves.
May not harass, oppress, or abuse you verbally or otherwise
May not falsely imply that you have committed a crime, or otherwise lie
to you to intimidate you into paying a debt.
Must identify themselves to you on the phone.
Must stop contacting you if you ask them to do so in writing.
Figure Out How Much You Owe and to Whom
Once you know what your rights are, you will want to gather an accurate
list of creditors and how much you owe them. Get a credit report if you
do not already have a recent one. Verify first that everything on your
credit report is accurate (take steps to correct anything that is not
accurate), and then start contacting your creditors one at a time to
negotiate.
Negotiations
Creditors would rather settle your debt than go into litigation or lose
all money through a bankruptcy. This puts you in a position of strength
and you should use that to your benefit when looking to negotiate your
credit. Creditors will probably lose money if the matter is taken to
court, and they stand to lose much more if you file bankruptcy. For this
reason, many are willing to settle the debts for less than what you owe –
particularly if the debts you are attempting to negotiate are unsecured.
Unsecured debt means the creditor has nothing they can take from you to
sell and recoup their money.
Do Not Let Emotions Get in the Way
Don't let emotions rule your actions when you negotiate. When decisions
are made as a result of emotions, they are often poorly made decisions.
If your call with the creditors are badgering your emotions, terminate
the call and try again after you've had a chance to calm down again.
Stick to the Settlement
If you've arranged a settlement that you and the creditor agree with that
fits into your budget, make sure you keep to the settlement arrangement.
Be sure you get the details of the settlement in writing from the
creditor to make sure that there are no problems later on and that
everyone is on the same page.
If you are unable to negotiate a satisfactory settlement, you might then
try to find an outside agency to help you.
About The Author
Elizabeth Williams, Editor-in-Chief for http://www.CreditCardFlyers.com
Need to transfer higher interest credit to a lower interest credit card
to save money? http://www.CreditCardFlyers.com is the leader in online balance transfer
offers. Compare balance transfers and find the one that meets your needs.
by: Elizabeth Williams
Many people turn to debt management companies and credit counseling
services to get help lowering payments or interest rates with their
creditors. There is another way you can do this which simply involves a
do-it-yourself approach for negotiating with your creditors. If you are
looking to settle your debt (pay less than you owe) or get lower interest
or a lower monthly payment – why not take the initiative and attempt to
negotiate for yourself? You can sometimes get just as good of a
settlement when you do it yourself, and it won't cost you any fees.
Here is what you should know about negotiating a settlement or lower
monthly payment with your creditors:
Know What Your Financial Rights Are
In order to have the best possible chance of negotiating with your
creditors, you should take some time to look at what your financial
rights are. The Federal Trade Commission has established the Fair Debt
Collection Practices Act (FDCPA) which applies to all debts of a
personal, family and household nature for people in the United States.
Most of the rights under this act involve what debt collectors can and
cannot do, including that they are prohibited from engaging in unfair,
deceptive, or abusive practices when they attempt to collect debts.
Some of the guidelines under the FDCPA mean that debt collectors:
May not contact you before 8 a.m or after 9 p.m.
May not contact you at work if you've asked them not to or your employer
disapproves.
May not harass, oppress, or abuse you verbally or otherwise
May not falsely imply that you have committed a crime, or otherwise lie
to you to intimidate you into paying a debt.
Must identify themselves to you on the phone.
Must stop contacting you if you ask them to do so in writing.
Figure Out How Much You Owe and to Whom
Once you know what your rights are, you will want to gather an accurate
list of creditors and how much you owe them. Get a credit report if you
do not already have a recent one. Verify first that everything on your
credit report is accurate (take steps to correct anything that is not
accurate), and then start contacting your creditors one at a time to
negotiate.
Negotiations
Creditors would rather settle your debt than go into litigation or lose
all money through a bankruptcy. This puts you in a position of strength
and you should use that to your benefit when looking to negotiate your
credit. Creditors will probably lose money if the matter is taken to
court, and they stand to lose much more if you file bankruptcy. For this
reason, many are willing to settle the debts for less than what you owe –
particularly if the debts you are attempting to negotiate are unsecured.
Unsecured debt means the creditor has nothing they can take from you to
sell and recoup their money.
Do Not Let Emotions Get in the Way
Don't let emotions rule your actions when you negotiate. When decisions
are made as a result of emotions, they are often poorly made decisions.
If your call with the creditors are badgering your emotions, terminate
the call and try again after you've had a chance to calm down again.
Stick to the Settlement
If you've arranged a settlement that you and the creditor agree with that
fits into your budget, make sure you keep to the settlement arrangement.
Be sure you get the details of the settlement in writing from the
creditor to make sure that there are no problems later on and that
everyone is on the same page.
If you are unable to negotiate a satisfactory settlement, you might then
try to find an outside agency to help you.
About The Author
Elizabeth Williams, Editor-in-Chief for http://www.CreditCardFlyers.com
Need to transfer higher interest credit to a lower interest credit card
to save money? http://www.CreditCardFlyers.com is the leader in online balance transfer
offers. Compare balance transfers and find the one that meets your needs.
Wednesday, May 20, 2009
Debt Credit Counseling - Beware of Scams and Rip-Offs
Debt Credit Counseling - Beware of Scams and Rip-Offs
by: Jacque LaMantia
Are you totally sick of hearing about, talking about, eating, drinking
and breathing the subject of DEBT??? Talk of our national debt is in the
news constantly, and it is frightening and appalling. How could this have
happened? And what can we do about it? How it happened is probably
because too many of us have not been paying enough attention. We have
become complacent and free-spending. We have believed money was easy to
come by, the future will always be brighter, and we can worry about debt
tomorrow....let's live for today! Unfortunately, tomorrow has caught up
with us. It is time to take action.
There is little we personally can do about our nation's trillions, but we
can take action on our own debt.
So let's take a look at the positive side....talk of millions, billions
and trillions of dollars actually makes our own debt look pretty tiny!
But don't be fooled. You know....perhaps painfully so....if your personal
debt is out of control, and now that it has your attention, it's time to
do something about it.
We don't go into debt on purpose and often are taken by surprise at how
quickly things get out of control. Situations in life often come up that
are outside of our control. We have all had to make purchases for
important items or emergencies when we didn't have the money on hand.
Whenever those situations occur, having a credit card can be a real
life-saver. Or perhaps at other times, our impulses get the best of us,
and we just can't resist using our credit card for that hot new toy or
gadget everyone is drooling over. Then the bills start rolling in.
When we allow things to get out of hand is when we suddenly realize we
face a mountain of credit card debt. If you are also feeling uneasy about
the security of your job or the stability of your company, it is time to
buckle down, stop using your credit cards, and establish a strict payment
plan for your existing debt. You may have difficulty paying it down
otherwise, and you'll wind up paying a ton of interest for years after
the purchase was made.
Since you have likely not yet racked up millions, billions or trillions
of dollars in personal debt, you can take control and do something about
it. Besides that, there are several options available to you. Some people
can dredge up some self-discipline, roll up their sleeves, put on their
money management hats, and figure things out. So they would rather deal
with their credit card debt themselves. They know where they went wrong,
they know they can fix the problem, and they need to just set up a plan
to do it.
Most people with too much debt have more than one credit card or loan; so
if you're going it alone, the first thing to do is list and review all
your obligations and face up to that ugly place where you have arrived.
Once you have all your information together, the next thing you should do
is give your credit card companies a call. Ask the customer service
representative if you can get a lower interest rate on your account. The
call is usually toll-free, and within minutes you will know if you are
eligible for this service. This might help lower your payments and make
your plan more manageable.
There are a number of resources available that can either give you advice
or that can help you get back on track in your goal to eliminate your
credit card debt, including websites, books, and tapes on debt
management. Some websites can link you live to a representative who will
walk you through the steps you need to take to get your debt under
control.
But what if you feel overwhelmed....don't know where to start....are
uncomfortable dealing with credit card companies....or just aren't sure
if you can ever pay off such a mound of debt? In these instances, debt
credit counseling services and the use of a debt agency or debt
settlement agency makes sense. If you feel you just can't handle it on
your own, then you are right to seek professional advice.
A legitimate credit counseling service deals with the credit card
companies and your other current creditors on your behalf to get you a
better rate and more reasonable repayment schedule. Since they work with
these companies on a regular basis and are experienced in what to say and
how to day it, they can often succeed in working out the most effective
payment schedule for your particular situation....better than if you were
to call them yourself.
Now, you've done well so far by deciding to take control of your credit
card debt, so don't fall down on the job now! You need to beware, as this
is where the scams and rip-offs can come in. You must do your research to
make certain that you select a good credit card debt settlement agency.
There are excellent debt credit counseling services out there which can
help with either debt elimination or with debt consolidation, but don't
be sucked in by unrealistic promises! No one can work miracles, so do not
believe the ads of credit card debt settlement agencies that promise to
erase your debt overnight and get you a higher credit rating to boot. It
isn't going to happen.
4 SUSPICIOUS SIGNS OF A SCAM OR RIP-OFF
No Accreditation - Look for credit counseling services that are members
of the National Foundation for Credit Counseling
Upfront Fees - Many times credit counseling is a free service. If they do
charge, it should be a minimal fee. Run the other way if you are asked to
pay a large upfront fee.
Ask How They Work - Legitimate agencies will clearly explain their fees
(if any), the methods they use to help manage your debt, and what you
will be expected to do for the most favorable outcome.
Unrealistic Promises - Only con artists will tell you they can settle
your debts for little or no money and that your credit rating will not be
affected. You do owe the money and you do have to pay it back.
Whether you use credit counseling services online or in person, their
role is to help you reduce your debt and to help you establish good
financial habits. They can help you figure out where you went wrong, what
you can do to fix things, and steps you can take to keep from getting
into the same boat again. A good counselor will help you work out a plan
that suits your situation and decreases your debt one step at a time. The
services will work with your current creditors to get your interest, and
possibly even payments, lowered. Credit card counseling can help you get
your credit score back up and keep it there.
About The Author
Jacque LaMantia has extensive business and administrative experience in
multiple fields. She now works from home in Internet Marketing and likes
to share information and resources with the public and other
entrepreneurs. You can visit her websites at:
http://www.debtcreditrepairpro.com
http://www.affiliateincomesource.com
or you can email her at j-la@debtcreditrepairpro.com
by: Jacque LaMantia
Are you totally sick of hearing about, talking about, eating, drinking
and breathing the subject of DEBT??? Talk of our national debt is in the
news constantly, and it is frightening and appalling. How could this have
happened? And what can we do about it? How it happened is probably
because too many of us have not been paying enough attention. We have
become complacent and free-spending. We have believed money was easy to
come by, the future will always be brighter, and we can worry about debt
tomorrow....let's live for today! Unfortunately, tomorrow has caught up
with us. It is time to take action.
There is little we personally can do about our nation's trillions, but we
can take action on our own debt.
So let's take a look at the positive side....talk of millions, billions
and trillions of dollars actually makes our own debt look pretty tiny!
But don't be fooled. You know....perhaps painfully so....if your personal
debt is out of control, and now that it has your attention, it's time to
do something about it.
We don't go into debt on purpose and often are taken by surprise at how
quickly things get out of control. Situations in life often come up that
are outside of our control. We have all had to make purchases for
important items or emergencies when we didn't have the money on hand.
Whenever those situations occur, having a credit card can be a real
life-saver. Or perhaps at other times, our impulses get the best of us,
and we just can't resist using our credit card for that hot new toy or
gadget everyone is drooling over. Then the bills start rolling in.
When we allow things to get out of hand is when we suddenly realize we
face a mountain of credit card debt. If you are also feeling uneasy about
the security of your job or the stability of your company, it is time to
buckle down, stop using your credit cards, and establish a strict payment
plan for your existing debt. You may have difficulty paying it down
otherwise, and you'll wind up paying a ton of interest for years after
the purchase was made.
Since you have likely not yet racked up millions, billions or trillions
of dollars in personal debt, you can take control and do something about
it. Besides that, there are several options available to you. Some people
can dredge up some self-discipline, roll up their sleeves, put on their
money management hats, and figure things out. So they would rather deal
with their credit card debt themselves. They know where they went wrong,
they know they can fix the problem, and they need to just set up a plan
to do it.
Most people with too much debt have more than one credit card or loan; so
if you're going it alone, the first thing to do is list and review all
your obligations and face up to that ugly place where you have arrived.
Once you have all your information together, the next thing you should do
is give your credit card companies a call. Ask the customer service
representative if you can get a lower interest rate on your account. The
call is usually toll-free, and within minutes you will know if you are
eligible for this service. This might help lower your payments and make
your plan more manageable.
There are a number of resources available that can either give you advice
or that can help you get back on track in your goal to eliminate your
credit card debt, including websites, books, and tapes on debt
management. Some websites can link you live to a representative who will
walk you through the steps you need to take to get your debt under
control.
But what if you feel overwhelmed....don't know where to start....are
uncomfortable dealing with credit card companies....or just aren't sure
if you can ever pay off such a mound of debt? In these instances, debt
credit counseling services and the use of a debt agency or debt
settlement agency makes sense. If you feel you just can't handle it on
your own, then you are right to seek professional advice.
A legitimate credit counseling service deals with the credit card
companies and your other current creditors on your behalf to get you a
better rate and more reasonable repayment schedule. Since they work with
these companies on a regular basis and are experienced in what to say and
how to day it, they can often succeed in working out the most effective
payment schedule for your particular situation....better than if you were
to call them yourself.
Now, you've done well so far by deciding to take control of your credit
card debt, so don't fall down on the job now! You need to beware, as this
is where the scams and rip-offs can come in. You must do your research to
make certain that you select a good credit card debt settlement agency.
There are excellent debt credit counseling services out there which can
help with either debt elimination or with debt consolidation, but don't
be sucked in by unrealistic promises! No one can work miracles, so do not
believe the ads of credit card debt settlement agencies that promise to
erase your debt overnight and get you a higher credit rating to boot. It
isn't going to happen.
4 SUSPICIOUS SIGNS OF A SCAM OR RIP-OFF
No Accreditation - Look for credit counseling services that are members
of the National Foundation for Credit Counseling
Upfront Fees - Many times credit counseling is a free service. If they do
charge, it should be a minimal fee. Run the other way if you are asked to
pay a large upfront fee.
Ask How They Work - Legitimate agencies will clearly explain their fees
(if any), the methods they use to help manage your debt, and what you
will be expected to do for the most favorable outcome.
Unrealistic Promises - Only con artists will tell you they can settle
your debts for little or no money and that your credit rating will not be
affected. You do owe the money and you do have to pay it back.
Whether you use credit counseling services online or in person, their
role is to help you reduce your debt and to help you establish good
financial habits. They can help you figure out where you went wrong, what
you can do to fix things, and steps you can take to keep from getting
into the same boat again. A good counselor will help you work out a plan
that suits your situation and decreases your debt one step at a time. The
services will work with your current creditors to get your interest, and
possibly even payments, lowered. Credit card counseling can help you get
your credit score back up and keep it there.
About The Author
Jacque LaMantia has extensive business and administrative experience in
multiple fields. She now works from home in Internet Marketing and likes
to share information and resources with the public and other
entrepreneurs. You can visit her websites at:
http://www.debtcreditrepairpro.com
http://www.affiliateincomesource.com
or you can email her at j-la@debtcreditrepairpro.com
Subscribe to:
Posts (Atom)
