Quick and Easy Budgets: How To Take Control Of Your Finances

If the thought of making a budget horrifies you, then the chances are pretty
good that you are in need of setting one up. Usually, anyone who cringes as
the thought of a budget is a person who needs help with his or her finances.
What you may not know is just how helpful a budget can be, not only to help
you put away funds for now, but to also help you build your financial future
for the long haul. Besides, you may not realize it, but it could be much
easier than you think to make a budget for yourself that works so well that
you will really enjoy following it.

To get yourself started and on the right road for a budget, you should put
together all of your income information. A good idea is to grab three months
of your pay stubs and so on so that you can figure out a pretty good idea or
a rough estimate of what the average monthly income is for your household.
If you usually work overtime, you may want to leave this amount out of your
calculations, as overtime may not always be readily available and cannot
help you if you are not working it.

Next up, you are going to want to gather up all of your bills from the past
three months as well. Obviously, you should add up all of the amounts that
you owe each month from all of your bills. Then, you can take this total and
divide it by three to see how much you are paying for loans, rent, etc.
every single month.

After that is figured out, you can take and add together all of the amounts
that you have for miscellaneous monthly expenses such as clothes, food, gas
and so on. Then, you go through and divide this total by three just like you
did with your monthly bills. When you add this monthly total to the other
one, this should give you a good idea of where your money is going every
single month.

>From here, you can go through and look at everything that
you are paying out. This is a good time to see if there are any places where
you can cut some corners and maybe save yourself some money in the long run.
Whatever you find yourself cutting out, you can set it aside in a separate
bank account than the one that you use to pay all of your bills and so on.
You would be amazed at just how fast your extra money can build up over
time. Then, you will be able to take some of it out every couple of months
or so and pay off some extra bills. Or, you could even keep the money in the
account and keep it toward a down payment for a new home or maybe even a new
car.

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Liz Roberts is a loan consultant with NHBSInc. They specialize in providing
sub prime financing. Click here for a list of credit cards for people with
bad credit or seeking to rebuild their credit
http://www.newhorizon.org/Info/creditbuilders.htm

Comparing The Home Depot Credit Card

The Home Depot credit card, like all store branded credit cards, offers
consumers some very enticing benefits. For example, the Home Depot card
often advertises specials such as a 0% interest rate and no payments for 6
months. However, there are a number of factors to consider when applying
for a credit card. Perhaps the most important factor is the interest rate.
And the Home Depot credit card scores quite poorly here.

If you a take a look at the online application for the Home Depot credit
card, you may have a hard time finding the interest rate. And, when the card
is presented to you at the store, cashiers generally don't attempt to
influence your decision by mentioning this essential credit card element.
However, the truth of the matter is quite disturbing. Like most other store
credit cards, the Home Depot credit card charges an interest rate that is
forty to over one hundred percent higher than standard credit cards! And
that's for consumers with good credit.

Credit cards issued by most major credit companies presently offer two
things the Home Depot card does not: low long term interest rates and 0%
interest on purchases and balance transfers for 1 year. For a large purchase
that will be paid off over a period of time, the best credit card is a new
credit card that offers 0% interest on purchases for 1 year. Why? Let's buy
new carpeting for $2000 and figure out the difference.

Many credit cards offer interest rates around 11% and 0% introductory rates
for up to 1 year. Using such a card would cost us 0% in interest on our
$2000 purchase during the first year, and, assuming we've paid off $100 per
month, total interest charges would total about $65. Total cost of the new
rugs: around $2065.

The same purchase using a Home Depot card with an average interest rate of
22% and the same payment schedule would cost us $143 during the first year
and close to $100 the second year. In other words, about $200 more. This
assumes that we do not take advantage of the no payments for six months.
Factor that in and we pay an additional $150, bringing our total interest
cost to $350. That means our $2000 rugs actually cost $2350!

In this author's estimation, the most important element of a credit card is
the interest rate. After all, if purchases are not paid off in full each
month, the items we buy end up costing a lot more than they did at checkout.
The best credit card for new purchases, especially large ones, should be the
one with the lowest interest rate and the best 0% introductory rate. The
same holds true if you are stuck with a balance on a high interest store
credit card. Simply transfer the balance to a 0% APR balance transfer credit
card with a lower interest rate. The savings add up. Quickly!

About The Author: To learn more about low interest and 0% credit cards and
apply online for a new credit card, visit the author's website,
http://smartcreditchoices.com/showcategories.php?showcat=inst_appr

5 Easy Steps To Do It Yourself Debt Consolidation

The whole idea of consolidating your debt is to roll all of the money that
you owe into one single secured loan. Instead of paying a large number of
debts off to debtors, each with separate rates of interest, which push your
debt up higher and higher by the month, you will be left with one manageable
payment.

A word of warning though, debt consolidation loans will need to be secured
with a substantial amount of collateral, like your house or your car. If you
don't pay the payments on a secured loan then the lender, or financial
institution can, and will take your secured assets as payment for what you
owe them.
Getting Started With Your Debt Consolidation

Step One: The first step that should be taken before you even consider
arranging a consolidation loan is to work out how much you owe, and whom you
owe it to. By working out your debts, you can come to a balance that you
will be working on paying off in the following months of your life. Be
honest with yourself don't leave any debts out.
Put Away The Credit Cards!

Step 2: No more credit! Put away your credit cards, in fact cut them up so
that you can't use them. If you are really serious about consolidating your
debt and getting it paid off you have to make a commitment to yourself that
you will not do anything else to incur more debt on yourself. Period.
Time To Go Visit A Few Banks

Step 3: Go and visit the bank. Now that you have sorted out how much you
owe, and whom you owe it to, and understand that there will be risks
involved in taking out a consolidation loan, you need to go and visit a few
financial institutions.

Never take the first offer given to you, especially with debt consolidation
loans. Don't apply for too many loans, while you are looking. This may show
up in your credit report and cause even more damage. A good idea is to order
your credit report from one of the three major credit reporting companies
and take it along to show the loan officer.

Interest rates are likely to be higher than an ordinary loan.
This is especially likely if you have done damage to your credit report from
not paying your debts, or you don't have a great deal of collateral to bring
to the table. If you are teetering on the brink of bankruptcy, expect to pay
more in interest rates and charges for a debt consolidation loan, because
you are a high risk to the lender.

With that said, shop around some financial institutions will offer you a
better deal than others, and when you are so far in debt the difference
between 12% or 18% will make all the difference.
How Much Can You really Afford?

Step 4: Work out what you can afford to pay, and how long you want to take
the loan out for. This is where budgeting is vital, work out what you can
afford to pay, and be realistic.
If you end up with repayments that are too high, you may be tempted to live
off of your credit cards for personal expenses and use your income to pay
your bills.

This is a big mistake, and will more than likely result with you in even
further debt then before. Worse still with your consolidated loan you stand
to loose everything if you can't make repayments. Make sure that the
payments are within your reach before you sign up for your consolidation
loan.
You Don't Have To Do This Alone

Step 5: Get advice. Unless you are a financial whiz, and if you were then
you wouldn't be in debt anyway, you need sound advice on how to manage your
current situation. Maybe you could use a professional's help to find a
consolidation loan that isn't too risky, because of inflated interest rates.

Is A Debt Consolidation Company Right For You?

Never be too proud to ask for help, debt consolidation companies will often
give people in serious trouble with debt, a free consultation, and if you
need it, they can work with you, and teach you how to manage your debt.

Not all consolidation companies have your best interests at heart, and you
should be wary of those who are asking for large amounts of money from you,
or urge you to make donations.

A reputable councilor will advise you on the best way to manage your debt,
and have access to free educational sources and workshops. After all,
ignorance is never bliss when it comes to your financial situation.

You don't have to rely on a debt counselor to do everything for you. You can
do this yourself. By going for a free consultation, a counselor can put you
in touch with learning material and put your situation into perspective for
you. A counseling session will usually last and hour, and after that you are
given the choice to book another appointment if you want to.

About The Author: Liz Roberts is a loan consultant & a freelance writer for
http://EzCreditRepairSolutions.com Which specializes in credit repair tips &
helping people improve thier credit. For more articles on do it yourself
credit repair please visit
http://www.ezcreditrepairsolutions.com/DIYcreditrepair.html

Hidden Credit Card Fees

By federal laws, credit card fees cannot actually be "hidden"
from consumers, but that doesn't mean that all credit card users fully
understand how they are charged or what instances will result in fees or
increases to existing rates. Sometimes, the fees are provided in the small
print of the back of your statements, or only in the account disclosure
statement you receive when you first open the account- so it's easy to over
look the fine details of credit card fees- and that is how they got the name
"hidden".

The only sure way for someone to skip the sometimes ridiculously high fees
associated with credit cards is to pay their bill before it's due, each and
every month. In 1998, cardholders paid about $4.8 billion in penalty fees-
which seems like a lot until you consider the fees of 2005- a whopping $12
billion. This leads to the conclusion that people are not paying their
credit card bills on time and are not avoiding the penalties associated with
late payments!

You'll want to take a close look at your card member agreement.
Some credit card companies are now recording receipt of payments received in
envelopes other than the pre-printed envelopes up to
5 days after they receive them! In addition, where as just a few years ago
you could be counted as "on time" if your payment was postmarked by the due
date, now the majority of companies require that the payment must arrive
before noon on the day it is due to be counted as on time. As if that wasn't
stringent enough, there are even many card issuers who have decided to
shorten the billing periods from 31 days to 20 days!

Late penalties on credit cards are anywhere from $15 to $39. If the late fee
puts you over your maximum limits, you'll also get slammed with an over
limit fee. Going over your maximum amount can also cause the card issuer to
increase your interest rate as much as 24%.

Here's a penalty you probably didn't know about: if you are late on any of
your creditors, a credit card lender could raise your interest rate. So even
if you pay your credit card bill on time religiously, if you are late once
with one of your other lenders, your credit card lender has the right to
raise your interest rate! The institute for Consumer Financial Education in
San Diego reports that about 40% of car issuers raise rates if they find
their cardholders are late on other accounts.

How about companies that charge you a fee for having a card without a
balance on it? Wells Fargo's prime rate card will charge you $2 a month in
minimum finance charges if you do not have a balance on the card!

Wonder what they do with all the fees they collect? Banks will explain the
fees are there in order to cover their costs. It's difficult to think they
need these "hidden" fees when the regular and more well known charges like
interest charges are bringing in over $80 billion each year, and an
additional $31 billion a year is collected in cash-advance fees, balance
transfer fees, annual fees and merchant fees!

Can you prevent yourself from having to pay these "hidden" fees if you use
credit cards? Some of them. Try writing your check for at least your minimum
amount due (more whenever possible) the very same day you receive the credit
card bill. Put it in the mail the next day and you'll never have a late
payment.
Even better than doing that would be to pay your bills online automatically
each month, so there's no way to forget to mail it.

You can also save considerably by choosing the right card for your spending
needs and payment habits. Check for the best card on creditorweb.com, where
there are hundreds of cards to choose from and information available on each
to help you make the best selection. Make sure to keep an eye on changing
terms of your card- if the interest rate increases or they begin charging an
annual fee- transfer the balance to a better card.

About The Author: This article has been provided courtesy of Creditor Web,
http://www.creditorweb.com .

Credit Cards - A Quick Guide

A credit card is a piece of plastic card that gives the bearer access to a
specified amount of credit from a financial institution. This piece of
plastic is, in the right hands, a great financial tool, which is also
flexible and convenient.
The credit card is a handy thing to have especially in these times of
internet and phone shopping. The many benefits of a credit card include the
ability to make your life easier and to open up a world of possibilities.

The first thing you should look at in choosing a credit card is thinking
about how you are going to use it. If you usually pay cash for everything
and don't buy anything unless you have the cash in the bank then do you need
a credit card at all? My advice would be to stay as you are, and do without
one. One good side benefit of getting your first credit card is that it is a
good way to establish your credit score, if you keep to the monthly
payments.

Before you decide which credit card is the best one for you, you must have a
look at what your personal requirements are. A credit card differs from a
debit card in that it does not take money from the holders account after
each transaction. If the type of credit card you have is secured, this means
you have to have enough money in your bank account to secure the credit. A
secured credit card is normally available after bankruptcy at a better rate
than an unsecured card.

You must be awake to the fact that owning a credit card is a serious
responsibility and. unfortunately can be a quick way to get yourself into a
lot of long-lasting debt. The problem I have with credit cards is that the
companies will keep offering you a higher limit, thus enticing you into ever
more debt. Don't forget that a credit card is just a loan, and so interest
is applied to any money in the loan you don't pay back within the allotted
time.

If your credit card is ever lost or stolen, make sure you notify the credit
card issuer immediately. A lot of us justify having a credit card for things
like emergencies, but emergencies don't very often happen when you are out
on a shopping spree. If you decide that a credit card is an absolute
necessity for you, please make sure you shop around for the card with the
best deal, like a low interest rate and no annual fee.
You know it makes sense.

About The Author: James Hunaban is the owner of
http://credit-cards.jims-info.com/ and http://www.credit-cards-aplenty.com/
sites dedicated to Credit Card information.

Using A Loan To Achieve Credit Consolidation

There are several options when it comes to managing personal debt when an
individual realizes that he or she is overextended in terms of credit. One
such option is taking out a debt consolidation loan. This is one of several
types of debt loans that allows a debtor to put all outstanding bills
stemming from unsecured loans into a single amount with a lower interest
rate than could be expected from the individual creditors.

There are several benefits in using this type of loan for credit
consolidation. First of all, it is much easier to keep track of payments
both when they must take place and who they must be paid to if they are all
under the same financial umbrella. The debtor stands to save a lot of money
in the long run as well, since the interest that is appicable on the
individual loans is greatly reduced by using consumer debt consolidation.
Paying off the creditors will also mean that you will be able to put off the
collecting agencies that may be hounding you and use the head space and time
gained to come up with some different strategies in order to pay the money
off.
This type of loan is also benefical to the lenders, as they are assured of
receiving their money back, although it is paid at a much lower interest
rate.

If an individual has a bad credit rating, he or she will probably still be
eligible for a consolidation loan. The companies which specialize in debt
consolidation will also be able to help debtors with credit repair,
including encouragement to assist the debotr to get their financial house
back in order.

Some people may make the debt consolidation loan sound like an easy way to
get out from under debt, but in fact it is not.
While these loans will reduce the rate of interest that a debtor will pay,
it also increases the length of time that money is owed. If a debtor is not
very careful in selecting a pay back period, they might find that there were
no savings at all with this option. People who use this method should also
bear in mind that loans are secured on tangible assets, such as property.
Therefore, agreeing to a loan will mean that a default will put your assets
at risk of liquidation.

The statistics when it comes to American debt are astounding.
Studies have proved that the average American household holds at least 13
credit cards between family members, with $5800 or more owing on these cards
and on other debts. With the constraints imposed by the need to pay off this
debt, it is hard for the average family to enjoy their lives.

In order to combat their debt and get back to the point where they can save
money and enjoy life again, many Americans are looking into debt
consolidation programs. These programs can be free or paid, through a
financial institution such as a bank or online. Once the debtor makes a
decision on the company he or she is going to use, he is enrolled in a a
program with a counselor or financial analyst to help set up a framework to
help alleviate financial woes. This program will involve working with
creditors to lower interest rates and monthly payments, and setting the
payment schedule and amount that the debtor will be paying towards the debt.

About The Author: Charles Parson is publishing predominantly for
http://www.creditenio.com , a web page covering information on credit
consolidation and debt loans. You might discover his articles over at
http://www.creditenio.com/debtconsolidation.html and different sources for
consumer debt consolidation knowledge.

A Fixed Rate Home Equity Line Of Credit

If you are looking to get a home equity line of credit, a fixed rate is
probably a good idea. This is because when you have a fixed rate, it is not
subject to the whims of rising interest rates. Additionally, a home equity
line of credit can be a good idea anyway, since you have the ability to get
money as you need it, rather than worrying about whether or not you have
borrowed an appropriate amount with a lump sum regular home equity loan.

What is a home equity line of credit?

A home equity line of credit is one that works a lot like a credit card. The
account is a revolving account, meaning that as you pay it down, you can
borrow more. Just like a credit card, you have a specific limit. However,
the limit on a home equity line of credit is based upon the amount of equity
that you have in your home. You can borrow up to a certain amount, and as
you pay it back, as long as the line of credit is still open, you can borrow
more.

The advantages of a fixed rate loan

One of the biggest advantages of a fixed rate loan is the fact that the
interest rate is fixed. This means that the rate does not change, no matter
how interest rates are rising or falling.
While it is possible the interest rates will fall during the time of your
loan, if you get a low fixed rate, they are not likely to get much below,
and far more likely to rise quite a bit above your original rate. If you
have a variable rate, this can mean paying thousands of dollars more over
the life of your loan.

Advantages of a fixed rate home equity line of credit

When it comes to getting a home equity line of credit, it is advantageous to
get a fixed rate if you can. This is because you can combine the advantages
of having ready access to your home's equity with an interest rate that will
stay steady. You will have the ability to borrow what you need, when you
need it, without worrying about having to reapply for a new loan each time,
and without having to worry about varying interest rates.

About The Author: Visit http://www.homeequitywise.com for more information
on the pros and cons of a Fixed Rate HELOC.

Personal Debt - A Quick Guide

The growing level of personal debt is fast becoming a serious social
problem, or so the experts are saying. The causes of such debt are manifold
and can be caused by various difficult life circumstances. For most people,
being in debt of some sort is just a way of life. But it is possible to
become clear of debt; and a good way to start is by learning how to manage
on whatever income you have.

If you do happen to be in debt, the two best types of debt to have are home
equity loans and mortgages. The usual options for those who have large
amounts of debt are either debt consolidation or to think about going
bankrupt. Bankruptcy is very often the result of medical problems, losing a
job, or sometimes a marriage breakdown, which results in the accumulation of
debt. About 20% of folk in debt are being treated for depression and similar
ailments from their doctor, which shows what a stressful experience it can
be.

Be on your guard, there are many companies out there who promise a quick fix
to all your financial problems. But be very careful, some of them may charge
high fees and fail to deliver on their promises. With a lot of personal debt
problems, the hardest part can be admitting to the fact that you actually
have a problem. To avoid running into problems in the first place, try to
educate yourself as much as possible about debt and the damage it can wreak
on your financial health.

A recent report has stated that American credit card debt is estimated to
stand at around $785 billion, which averages out at about $7500 for each
household. Another recent survey of 1500 consumers carried out by another
company, said 71% of people asked said debt is causing them some level of
distress.

To summarize: My advice would be to try and start making some improvements
right away, although you must realize that setting yourself free from debt
might not turn out to be a quick or necessarily easy process.

About The Author: James Hunaban is the owner of http://debt.jims-info.com/
and http://www.debt-advice-online.net/ sites dedicated to Debt advice.

Money Makeover

You come home after a long day at work only to find numerous unwanted bills
in your mailbox. As you sift though them, you start to get that sinking
feeling. You know there is no way you can afford to pay all of them on time.
It's at this time that you remember that you have a vacation coming up and
you want to make the most of it. What you really need now is a money
makeover and this is how you do it.

No makeover is ever complete without a before picture. Take a financial
snapshot, sometimes called a net worth statement.
Imagine you are going to sell everything you own and you are taking that
money to pay off all your debts and normal monthly expenses like rent, cable
and telephone bills. Then count what is left, if you didn't know what net
worth meant before, you sure will now.

The next step to take is to make a plan. You need to write down all the
steps you need to take to achieve a goal. You're finances should be
reasonable, specific, and realistic. There should be a time frame for all
your goals so that you know that you can handle all those payments that need
to be made.

This step is going to be the most difficult. You really have to stop
spending! That means most if not all those luxuries must end, the manicure
or pedicure, the monthly hair cut, the shopping every payday, that all has
to stop. You are never going to get financially caught up if you just keep
spending!

If and when you do spend, which should only be for necessities at this point
like groceries, keep track of what you spend.
Write down everything, this will give you a good visual like a monetary
blueprint. You might even be able to find ways to cut corners and save.

And that is ultimately what everyone needs to do. We all need to save, it
never occurs to people that an emergency can come up and you will need extra
money to cover them. Let's say you need to go to the doctor and it turns out
you need surgery. You need to be able to cover the costs that your insurance
coverage does not and you need to be able to survive for those days you are
recovering and not working. What happens when you get into a car accident
even though it's not your fault? You should have money on reserve so that
you are not digging yourself a hole you may not be able to get out of. Using
credit cards that you cannot afford to pay off in full at the end of the
month is only delaying the problems.

One way to save is to downsize. If you are struggling with your mortgage
move into a smaller home or an apartment. You could try renting out a room.
Sell what you don't use, unless it's a family heirloom. I know you probably
have a desk, table, or even computer around the house that doesn't get used
at all.
You might have baby clothes that don't fit anymore. You can use websites
like http://ebay.com or http://i-soldit.com or you can go the more
traditional route and have a yard/garage sale. It will be successful and you
will have extra cash in your pocket.
Along the lines of selling, if you have two cars, get rid of the one you use
the least. When you do you will have what seems like a fortune because you
don't have to spend your hard earned money on the car payments, insurance,
registration, and gas.

About The Author: "Your" Money Matters By Carl Hampton From the Author of
"From Credit Despair To Credit Millionaire"
http://www.CarlHampton.com http://www.fcdtcm.com

What Are The Benefits Of A Cash Advance Loan?

Cash advance or payday loans are one of the quickest ways to get hold of
money when you are short of funds. They are predominantly used to cover your
expenses until your next payday, when you pay back the loan in full. If you
find yourself short at the end of the month and need cash fast, then you
should look at getting a cash advance loan. Here are some tips about the
benefits of a cash advance loan.

What is a cash advance loan?

A cash advance loan is a short-term loan that is meant for people who need
cash quickly due to a temporary shortage of funds. Usually, you can get hold
of a cash advance or pay day loan within a few hours of applying. You are
simply required to be in regular employment and fill out a few bank details.
You can borrow anything up to about £500 depending on your needs and job
circumstances.

No credit checks

One of the major advantages of cash advance loans is that no credit checks
are required for you to get hold of the loan. All you have to do is provide
details of your employer and you can get hold of the loan. This makes the
application process extremely fast and helps you to get the money when you
need it most.

Great for emergencies

If you have trouble getting hold of other loans or credit cards and have an
emergency situation that requires money, there might not be time to find the
funds elsewhere. A cash advance loan gives you the opportunity to get hold
of the money you need quickly and at a relatively low cost.

Costs of cash advance loans

Although cash advance loans are relatively cheap if you pay back the loan
quickly, you are still paying for the convenience of being able to get money
quickly with very little checks. This means that you will pay a percentage
of the amount you borrow as a fee, usually around 10%. If you pay back the
loan when you next get paid at the end of the month, then this will be all
you have to pay. However, if you can’t pay this back, then you will be
charged again and again until you do. This could mean that in just 6 weeks
you will have been charged £90 on a loan of just £300. This can lead you to
get into a vicious circle where each month you have to get a cash advance
loan just to stay afloat.

What are the alternatives?

The alternatives to cash advance loans are limited, especially if you don’t
have a credit card or a family member who can lend you the money. Although
they can be expensive, if you use cash advance loans wisely for emergency
situations and special circumstances, you will find them a great way to get
hold of much needed cash at short notice without the usual credit checks and
long approval processes.

About The Author: Peter Kenny is a writer for The Thrifty Scot, please visit
us at http://www.loanwize.co.uk and http://www.thriftyscot.co.uk/Loans/

Payments Are Lowered When You Choose To Consolidate Debt

There are lots of ways to reduce the way in which an individual pays their
debt. Some of these methods include debt management, declaring bankruptcy,
bill consolidation, debt forgiveness, debt payoff, and debt settlement.
Individuals who are trying to reduce their debt burden will need to consider
their options in light of their situation; for many, bad credit debt
consolidation will be the best choice.

Most people in debt find themselves there due to poor planning in terms of
spending on credit cards. Credit card companies make their money through the
interest rates they charge on purchases; these rates are often quite high
and when the consumer finds himself unable to make a payment the interest
charges, late payment fees and pother penalties which are injured add up so
quickly that soon an individual will find themselves in a credit quagmire.
This scenario is an ideal time to make the decision to debt consolidate.

The basic premise behind credit card debt consolidation is simple. An
individual takes all of the balances owing on the various credit cards held
and transfers them to one lender, with the idea that the interest rates paid
will be lower than the amount charged by all the previous bills combined.
One way to accomplish this is to take an advance on the introductory rates
offered by another credit card which generally include a much lower interest
rate and paying the money back using that formula. Beware, though; once the
introductory rate has expired, your interest rates may again soar.

Another way to consolidate credit bills is to take out a secured loan. These
loans are procured by putting up a secure asset such as a house or property
against the amount of the loan. Once the loan is gained, the borrower can
pay off the higher debt owed to the credit card companies and begin saving
money by paying the lower interest rate of the loan. The money saved can be
used to make bigger payments, which will also serve to reduce the money that
is paid.

Remember that bad credit reflects very poorly on an individuals ability to
get ahead in life, and sometimes even to maintain a standard of living. It
is important to repair any black marks on your credit record as quickly as
possible.

In addition to debt consolidation, people who find themselves in need of
credit repair may want to consider the services offered by companies who
offer consolidation loans. These services will help to gain some more peace
of mind for the individual as the collection agencies cease calling about
outstanding amounts and there is a little more money left over after the
debt payment has been made. Gaining the consolidation will also put an
individual in contact with a financial expert who can assist in finding ways
to overcome bad spending habits.
Remember that although debt and bill consolidation is an easy and usually
safe way to regain peace of mind, it is up to the individual to make sure
that they do not repeat the mistakes that necessitated the proceedings in
the first place.

About The Author: Barry Brokhard is writing at large for
http://www.creditenio.com , an online site on debt consolidate and bill
consolidation. His articles on bad credit debt consolidation can be
encountered on http://www.creditenio.com/baddebt.html as well as other web
sites.

How Do The Reward Travel Credit Cards Work For Your Benefit?

You must have heard at least once about reward travel points and benefits
either on a television commercial or, if you are a frequent traveler
yourself, from your travel agent or airline personal.

How Do Reward Travel Programs Work?

Reward travel is like an incentive or, better said, a reward given to you by
the airline because you gave them your business and choose their airline to
fly to your destination of choice.
Most airlines will issue a frequent flyer a card, which looks similar to a
credit card and through which you can add points every time you fly with
that particular airline or the one they are partners with.

Travel points are usually calculated by the amount of miles you covered in
one flight and are added to your account accordingly.
Another way to gather reward travel points is through your credit card, as
sometimes the same incentives are applied by your bank or Credit Card
Company as well.

What Can You Get From Your Accumulated Reward Travel Points

Once you have accumulated a considerable number of points, you can use them
to either purchase duty free items, hotel reservations, car rentals and so
on; the list is endless, especially if the reward travel points are
accredited to you by your bank and not the airline, as they usually have
many more partners affiliated in this program at any one time.

With the accumulated points on an airline frequent flyer card you can
usually get flight upgrades, which are a blessing if you have a long flight
and are looking forward to relaxing and maybe get a little sleep as well;
also, you may be allowed heavier bags than normal without having to pay for
the extra weight.

Sometimes, airlines offer free flight for their frequent flyers with an
upgraded membership with them; it does not happen often but it does happen
and when it does it could very well be you if you start collecting your
reward travel points from today.

Conclusion

You can accumulate reward travel points if you travel for business or
pleasure and, thus, have the opportunity to shop, stay in a hotel or even
fly for free from time to time, depending on the amount of points you
gathered and/or the available programs from the airline.

You can start today as the membership and card are free. The only thing you
have to remember is to always travel with the airlines that are included in
the reward travel program and thus keep accumulating reward points.

About The Author: Darlene Berkel, of
http://www.every1loves2travel.com, writes on a variety of travel related
subjects.

Use Your Credit Card Sensibly

A credit card is a wise option if you wish to make frequent purchases and
keep a track of your expenses. The facilities could even be used to postpone
payments on certain articles, thereby earning more interest on your money.
It enables you to shop without carrying large amounts of money, thus
eliminating the risk of theft. However, the credit limit on the card should
be used sensibly, to avoid a bad credit rating.

Ways to use your credit card wisely:

Listed below are some tips on how to manage your credit card
sensibly:

Select the right credit card: It is essential to choose a credit card that
meets your specific requirement and adds significant value to your monetary
assets. You need to shop around and compare cards, before selecting one that
offers the best rewards at low interest rates.

Don't buy if you can't afford: Credit cards make provision for you to 'buy
now and pay later'. However, you should buy only those articles with the
credit card that you are sure to afford paying back, within the time limit
allotted. You should be aware that most credit cards charge an additional
fee and a relatively higher rate of interest on late payments. You need to
carefully analyze the pros and cons of the offers, to increase your credit
card limit.

Avoid paying extra fees: Banks charge an annual fee on credit cards and so
the use of fewer cards would mean less annual charges and minimized interest
rates. Before opting for a credit card, you need to compare the benefits
offered with the fees charged by the credit card company.

Pay on time: It is important to make a regular monthly payment, without
crossing the credit limit. You ought to try and pay more than the minimum
amount. The faster you pay, the quicker you minimize your debt on the credit
card account. This helps to avoid the extra fees charged and the high
interest rates applicable.

Manage debt wisely: It is important to manage your debts in a responsible
manner. It would be beneficial to discuss your financial issues, if any,
with the company and bank. You could adopt a payment schedule to help manage
and curb your credit card debt.

Don't use a credit card for long-term borrowing: Funding long-term borrowing
through a credit card is not advisable.
This would only increase the rate of interest on your credit card account.

Utilize the interest- free period: Most credit cards offer an interest-free
period. The period could be anything between forty-four to fifty-five days.
You are promised additional interest-free days if you make purchases at the
beginning of the month. A comparatively lesser number of interest-free days
are offered on purchases made at the end of the month. You are expected to
pay the entire credit card closing balance within the time limit specified,
if you wish to avoid paying interest on your expenses during the
interest-free days.

Credit cards are a great help to those who wish to avoid paying by cash.
However, you need to make use of the facilities offered judiciously.

About The Author: Joseph Kenny writes for the UK personal finance sites
http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk

Loans And Credit Cards. Bankruptcy On The Up

New figures have been released showing that in 2005, 67,800 people were
declared bankrupt. In the second quarter of 2006 alone, around 26,000 people
became insolvent in England and Wales, a rise of 66% on last year. The way
it’s going, it looks like the number of personal insolvencies in 2006 will
top the 100,000 mark.

So why has bankruptcy become such big business? The main reason is because
so many people live beyond their means. Dubbed the ‘spend it like Beckham
culture’ – getting credit is far easier than it used to be, and many people
take out a mortgage, loans and credit cards – using them to fund a lifestyle
they can’t realistically afford. When they get behind with the repayments,
many people bury their head in the sand rather than face up to their
problems, and finish up by having their home repossessed and by being made
bankrupt.

Some financial experts also think that the rise is partly due to insolvency
becoming an easy option. ‘Bankruptcy’ is no longer a dirty word, and recent
changes in legislation mean that many bankrupts could find themselves
discharged within a year, whereas it used to be two or three years. Also, it
is no longer a requirement for bankrupts to have to sell their homes,
possibly helped by the upturn in the housing market, which has enabled some
bankrupts to be in positive equity despite their inability to pay back their
debts.

The Government’s Insolvency Service stresses that bankruptcy is not an easy
ride, and they would be putting pressure on bankrupts to discharge their
debts. In particular, bankrupts deemed to have ‘recklessly’ gotten into debt
would be pursued for the losses, with the help of Bankruptcy Restriction
Orders (BROs). BROs ensure that bankrupts under the restriction order would
not be able to get credit without disclosing their status, start trading
under a new name, or hold a company directorship, up to a maximum time
period of 15 years. The Insolvency Service estimated that around 10% of
bankrupts would also have a BRO to contend with.

The Liberal Democrats believe that the debt problems in the UK could be
helped if people knew where to look for help when they need it. For example,
there are a number of free and confidential Debt advice lines that can
provide excellent advice. They also suggest that the problem could be
attacked at source, for example, lenders should be more transparent about
the costs and implications of taking out a credit card and making only the
minimum repayments. They also suggest that money management skills should be
taught at school.

The problem is not going away for the meantime, that’s for certain. High
street banks recently announced that their bad debts are already soaring -
Lloyds TSB and Egg have both made announcements - and the total British
unsecured debt is estimated to be £191 billion. That equates to £3,250 per
person in the UK.

By educating people about debt – knowing when to stop buying, and when to
start worrying – bankruptcies could be tackled effectively. But for now,
they’re not going away – bankruptcy is a culture that for the time being, is
here to stay.

Call the National Debtline on 0808 808 4000 or visit their website at
www.nationaldebtline.co.uk for free and impartial advice on managing your
money.

About The Author: Michael has worked in financial srrvices for over 15 years
at Director level. He also writes articles for a number of UK based
financial web sites. Loan locomotive - great uk based loans articles
http://www.loan-locomotive.co.uk

Tips On Using Loan Repayment Holidays

If you find yourself struggling to pay off your loan in the short-term
because of unforeseen financial difficulties, then perhaps you should
consider taking a repayment holiday. Also, if you are looking to get a loan
and want to know that you can take a short break from repayments if things
are tight, then repayment holidays are probably for you. Here are some tips
about how to use repayment holidays effectively and the consequences of
doing so.

What is a repayment holiday?

Just as it sounds, a repayment holiday is when your lender will allow you to
take a break or holiday from your monthly repayments, thereby helping you to
sort out any financial difficulties that you have. A repayment holiday is
often taken at the beginning of a loan, although many companies also offer
the option to take a holiday at any point during the loan term.

Criteria for repayment holidays

Although not all lenders offer loan repayment holidays, it is becoming a
more common practice. If you want to take a repayment holiday at the
beginning of the loan, then you can usually get a few months break before
you need to start paying the amount back. However, if you want to take a
break later in the loan, this usually cannot be done within the first or
last six months of the loan period. Also, you need to have made a number of
consecutive payments before being allowed to take a repayment holiday. The
length of the break you can have varies, but usually ranges from 1 to 3
months, with not more than 3 months out of any year being taken as a
holiday.

Repayment holiday advantages

The main advantage of taking a repayment holiday is that it allows you to
deal with unexpected financial problems without worrying about paying off
your debts straight away. This can be useful if you are between jobs or have
had an unexpectedly large expenditure for one month. Instead of getting into
more expensive debt on a credit card, you can take a repayment holiday and
just extend the loan period.

The costs of repayment holidays

Although repayment holidays can be very useful, they do come at a price.
When you take a repayment holiday, interest on the loan amount still
accrues. When you start paying again, you will either have to pay the normal
monthly payment for longer and pay the interest at the end, or pay a
slightly higher monthly payment to deal with the extra interest you have
accrued. This means you should only use repayment holidays in a real
emergency. If you are struggling for more than just a month or two, you need
to sort out the problem with your lender rather than take a repayment
holiday. As long as you use repayment holidays sparingly and understand the
costs involved, they can be a great way to keep yourself financial stable
during unexpectedly tough months.

About The Author: Peter Kenny is a writer for The Thrifty Scot, please visit
us at http://www.loanwize.co.uk and http://www.thriftyscot.co.uk/Loans/

Don't Get Caught In The Debt Trap

More often than not, in pursuit of our dreams to accumulate wealth, we get
caught in debt traps. This is more so in an environment where it is easy to
get loans and credit. All credit is provided to us on the basis of our
capacity to work and earn in the process. Little do we realize that
accomplishment of any dream requires hard work and nothing but hard work.
There is no substitute to it. The irony is that many of us tend to forget
this adage and ultimately get in to a tangle from which it is hard to get
out.

The saddest part is that even those who work hard and earn a decent living,
get carried away in the mad pursuit of their dreams and get caught in a debt
trap. Credit cards tempt you and charging anything to them seems easy by
promising to pay later, not realizing that the interest charged on late
payments borders on usury. The difficult part starts when, once late in a
payment, the credit starts snowballing every month due to the exorbitant
rates of interest.

In such an unfortunate situation debt management advice is the only way to
keep bankruptcy at bay. Debt management advice has become more and more
common these days as many Americans are fast succumbing to the temptations
of easy loans and offers from credit card companies.

It is prudent if you do some research before seeking advice from the
numerous companies offering debt management advice.
There are companies that offer debt management advice for a fee and some of
them operate on no-profit no-loss basis. Some of them have developed special
relationships with creditors and can help in reducing your debt faster.

Once you are caught in a debt trap, the bill collectors start annoying you,
day in and day out, with phone calls. Such repeated phone calls are so
demoralizing that they may result in frustration and depression. The first
thing the companies offering debt management advice will do is to provide
temporary relief by arranging to stop these annoying phone calls.

A good company will help, not only in decimating your debt but also provide
debt management advice and guidance about how to manage your finances in
future, lest you get caught in debt all over again. Such guidance for the
future can prove to be of great help in shape of knowledge on how to reduce
your credit card interest rates. Apart from that a good debt management
professional will also give tips on how to manage to get lower interest
loans.

You need not be one of those in debt simply because the number of Americans
struggling with debt is on the rise.

About The Author: Discover how you can find homes for sale in NJ at below
market value by visiting
http://www.a1-finance.com/homes-for-sale/homes-for-sale-in-nj.php
and enjoy the financial benefits of getting a better home for your money.

Options To Consolidate Credit Card Debt

Consolidate Credit Card Debt

When managing your existing credit cards seems overwhelming, one effective
way to ease both the financial and emotional burden of the cards is to
consider the option to consolidate credit card debt. There are several ways
to consolidate credit card debt, and there are many benefits that arise from
the choice to consolidate credit card debt.

First, what does it mean to consolidate credit card debt? One way to
consolidate credit card debt is to take out a new personal loan and use the
proceeds to pay down your existing credit cards. Another way to consolidate
credit card debt is to perform a balance transfer; this involves applying
for a new credit card which will allow you to transfer all the balances from
your existing cards onto this one new card.

Both of these methods to consolidate credit card debt involve opening an
additional unsecured credit account. Another alternative to consolidate
credit card debt is to look into borrowing against your home equity. One way
to do this is to take out a Home Equity Line of Credit (HELOC), which is
credit line against the equity in your home. You would then use the proceeds
of this to pay down all of your credit cards. Another way to take advantage
of the equity appreciation in your home to consolidate credit card debt is
to refinance your existing mortgage. As part of this refinance, you would
use some of the proceeds to pay off your existing credit cards. This type of
refinance is often called a debt consolidation refinance - you are
consolidating both your old mortgage and your existing credit cards into one
new mortgage.

Now that you understand how to consolidate credit card debt, it is important
to understand the benefits of this strategy.

.Lower Interest Rate: Perhaps the most significant benefit that results when
you consolidate credit card debt is that the new account that you are
opening will carry a lower interest rate than the rates on the credit cards
that you are paying off.
This means that it will cost you less over time to pay off your debt. If
your credit is strong enough, you may even qualify for a 0% balance
transfer, which means that you will not have to pay interest charges on your
debt for a set period of time.
Moreover, a secured loan (e.g. mortgage refinance, HELOC, etc.) will
generally have a lower interest rate than your existing credit cards.

.Faster Repayment Period: Along with saving money over the long term by
lowering your interest rate, you will also more than likely be offered a
lower monthly payment. This may be very attractive given your current
financial situation. However, if you are able to maintain your present
monthly payment amount after you consolidate credit card debt, you will be
able to pay off the new balance much more quickly than you would have with
the old credit cards.

.Ease of One Bill: Another very important benefit that comes with choosing
to consolidate credit card debt is the simplicity of having one monthly bill
that comes with the new account that you have opened. With multiple credit
cards you are receiving multiple bills, more than likely with different
payment due dates throughout the month. Not only is this difficult to keep
track of, it also increases the likelihood that you will miss a payment and
end up paying late fees and incurring higher interest rates. It is easy to
see how one monthly bill can lower your stress level considerably!

These are just some of the many attractive reasons to consolidate credit
card debt. Be sure to examine all of the financing options available to you
before deciding on the right one. You may be eligible for a loan or credit
card with very low interest rate relative to what you are paying.

About The Author: Brad Stroh is currently co-CEO of Freedom Financial
Network and http://www.Bills.com. If you would like more of Brad's
http://www.Bills.com/sitemap/, please visit the Bills.com information on
http://www.Bills.com/creditsolutions/

Need Help To Manage Debt Better? Bill Consolidation Loans Tips And Advice

Debt is something that no one wants to deal with and most people try to
avoid. However, many people fall into debt because of situations that they
can't control and others fall into debt because of bad decisions. Once you
are in debt, trying to get out can be an endless circle of paying just
enough to cover the interest and never getting ahead.

Some fall into the avoidance trap, hoping that if they ignore their debtors
long enough they'll go away, but that doesn't happen in the real world. The
best thing to do is to deal with it head on. Bill consolidation loans may be
the answer to your debt problems.

When you have multiple debts it can be very easy to find yourself paying
more than you can afford and hardly covering the interest charges. The
higher your debt, the higher the amount of interest that you are paying. If
you are paying several credit card bills, the interest you are paying may be
more than you can even handle in a monthly payment. Bill consolidation loans
can lower your payments and ensure that the bulk of your payment is going
towards what you actually owe as opposed to interest. The hundreds of
dollars you are paying every month can be reduced significantly and allow
you to start breathing easier.

Bill consolidation loans come with their own interest rates but if you do
some research you can find one with a low interest rate that will benefit
you the most. You can start by making inquiries at your local banks. A bank
that you've done business with for many years may be able to work out a good
deal for you.

But don't stop there. Go online and you'll find many loan and banking
organizations that specialize in bill consolidation loans. You can arrange
everything online with a professional who will take all of you income and
assets into account and work out a plan for you that will help you get out
of debt.
Bill consolidation loans can be arranged safely and securely online if you
do your research and make sure you are dealing with a reputable company.

Bill consolidation loans are more common today than ever and loan agencies
have to be competitive to get your business. You have many options to choose
from and you should take some time to look over all of them carefully.
You'll want to find a company that is able to give you the best deal,
allowing you to have more expendable income and helping you to pay off your
debt in a quick and less painful manner.

About The Author: Thomas B. Stevenson provides readers with up-to-date
commentaries, articles, and reviews for finance, investment as well as other
information.

Credit After Bankruptcy - Tips To Boost Credit Score

Establishing credit after a recent bankruptcy is very important. For the
most part, many consumers acquire excessive debt because of using credit
irresponsibly. Hence, after a bankruptcy is discharged, many people are
hesitant to obtain new credit accounts.

However, opening new credit accounts is the first step to rebuilding credit.
Low credit scores are common following a bankruptcy. This makes it difficult
to obtain a mortgage, auto loan, etc. Here are a few tips to help you
increase your credit score and re-establish a good credit history.

Understanding the Usefulness of Credit Scores

If you are hoping to make a purchase using credit, credit scores are
essential. Prior to obtaining any sort of credit, lenders must assess a copy
of your credit report. In some cases, lenders simply review your three digit
score. This is practical when approving an applicant for instant credit.
Those with a low credit score are at a disadvantage.

Following a bankruptcy, you can expect your credit score to nosedive. Thus,
it is important to take the necessary steps to improve your credit standing.
Bankruptcy does not last forever.
However, you must put forth the effort to boost your credit and prove your
creditworthiness.

Avoid Repeating Past Mistakes

If bad credit or bankruptcy occurred because of using credit unwisely, learn
from your mistakes and move forward. Many young adults acquire an excessive
amount of debt. In some instances, they do not fully understand how credit
works.

If you are drowning in debt, bankruptcy may be the only alternative. If so,
avoid making the same mistake twice. Sadly, there are individuals who file
bankruptcy repeatedly. However, rebuilding credit takes time. Once you are
on the path to increasing your credit standing, avoid bad credit decisions.

Establish New Credit Accounts

The only approach for establishing new credit is opening new credit
accounts. At first, this may sound scary. However, this maneuver is
necessary to quickly increase credit scores. New credit accounts may consist
of a major credit card, store credit card, automobile loan, etc.

Secured credit cards are very effective and easy to qualify for. These sorts
of credit cards require applicants to have a down payment. However, it's
well worth the fee. Once you have obtained a new credit card, attempt to do
three things: make timely payment, maintain low balances, payoff the balance
each month. By doing so, each month your score will increase. Soon, you will
qualify for an unsecured credit card. Within 24 months, you may also qualify
for a mortgage or auto loan with a comparably low rate..

About The Author: View our recommended sources for
http://www.abcloanguide.com/freecreditreport.shtml. Also check out our
recommended http://www.abcloanguide.com/badcreditcreditcards.shtml online.

How To Deal With Credit Card Mail Offers

If you are annoyed by the constant credit card junk mail that you receive,
then you are not alone. People all over the country are receiving literally
dozens of credit cards offers every year, most of which are misleading or
not applicable to them. If you want to know how to deal with these credit
card mail offers, then here are some tips.

Why get so many?

Whether or not you have a lot of credit cards, you get sent so many offers
because of your specific credit rating. Whether you have a good or bad
credit rating depends upon the types of offers you get, but whatever your
rating you are a target for credit card companies to be sent offers. Some
people will receive nearly 10 of these offers every month, many of them
duplicates.

Bait and switch

Although some of the credit card offers you get might seem tempting, they
usually not what they seem. Most of these offers employ the technique known
as 'bait and switch'. This is where you will be offered a great deal in the
mail such as ' you are pre-approved for a credit card with up to £25,000
limit', but when you fill in the paperwork and send it back you only get
£1,000 at an incredibly high interest rate. This is not illegal because they
only said 'up to' a limit and so even if they had refused you it would not
be against the law. This technique may not be illegal but it is clearly
immoral. This is one reason why you should avoid such offers.

Opting out

Although it isn't the easiest thing to do, you can attempt to opt out of
receiving these mail offers. There are companies that you can apply to that
will help you to be removed from these mailing lists, although you are still
bound to receive some offers. You can always try calling the credit
companies themselves and asking them to stop sending you mail, although this
usually falls on deaf ears.

Keeping your identity safe

Even if you don't want to look at any of the offers you get through the
post, it is important that you properly dispose of the offers you get. If
you simply throw the offers in the bin, then someone could take them and
apply to the cards you have decided not to look at. Before you know it you
could get a bill in the post for thousands of pounds for a card you didn't
even apply for. Make sure you shred or tear up all credit card mail offers
to protect yourself from identity theft.

Don't dismiss them all

Although most of these offers will not be worth looking at, you shouldn't
simply throw them all in the bin. There really are some genuinely good deals
to be had from credit card mail offers. This is especially true if they are
from a company which you have a card with, as they might offer you
preferential terms. If you are careful with credit card mail offers and can
separate the good from the bad then they will be a benefit to you rather
than a constant annoyance.

About The Author: Peter Kenny is a writer for creditcards-gb Please visit us
at http://www.creditcards-gb.co.uk and
http://www.thriftyscot.co.uk/Credit-Cards/

Low Interest Credit Cards - Scam Or Benefit?

Low, as low as zero, interest on a credit card sounds attractive. Who
wouldn't want to borrow money and pay it back at leisure with no 'penalty'?
But what sounds like honey can often be laced with bee droppings.

For those with excellent credit it is indeed possible to obtain a card with
a comparatively low interest rate. Rates as low as 5% are still possible,
though likely not for long. (9%-15% is more common, which is still good for
credit card debt.)

For those with less than stellar credit, a low interest rate offer is more
likely going to be one with hidden clauses.

Look for caps on amounts charged or transferred. Some offers allow the low
rate only on transferred amounts. Other contracts specify limited periods.
(6-12 months is common, 15 months is
possible.) After that time, the low interest rate automatically switches to
the normal APR on any remaining balance.

What is an APR? And what constitutes 'excellent' credit?

APR is an acronym for Annual Percentage Rate. Suppose you charge $100 and
the APR is 12%. Does that mean you pay $12 in interest for the year?
Probably not. The APR is divided up into a monthly rate, 1% per month, and
applied EACH month to ANY outstanding balance.

How good your credit is depends heavily on your FICO score.
(FICO is a number calculated by a secret algorithm that takes into account
total outstanding debt, number and length of late payments, and other
factors.) That number, along with an analysis of your credit report,
containing age, length of credit history, kinds of debt, etc, determines how
the card issuers view your credit worthiness.

For those who pass the 'good credit' filter, there are multiple criteria to
consider.

Do you pay off your entire balance due when the bill arrives?
If so, the APR is irrelevant since companies almost always forego applying
any interest at all. (Note: They're not required to. Technically, interest
charges begin from the date of purchase, not when the statement is created.)

Do you use the card to make large amount purchases, or accumulate large
balances in one month? If not, the difference between a low interest rate
and the normal APR is usually insignificant.

Most low interest cards have 'fine print' limitations. These include limited
time periods, after which the APR increases, caps on credit amount, etc. One
low interest card type, the 'balance transfer', often limits the rate to the
amount transferred. Interest on any new charges are calculated at the normal
rate.

Also, keep in mind that cards actually have more than one APR.
One rate applies to normal purchases, another to cash advances, etc. Read
the contract carefully.

For those tempted to accept the low or zero interest offer, intending later
to switch to another when the offer expires, a word of caution. Switching
cards frequently can harm your FICO.

Every time you apply, a credit report is created and analyzed.
Your FICO is partly dependent on the number of those credit checks
performed. Also, your score is influenced by the length you have held a
particular card. Many cards acquired in a short period is a red flag.

For those with genuinely good credit (680 or higher, in conjunction with
other factors) a low interest card is a deserved reward for responsible
behavior. Most are free of annual charges. And, if you maintain a monthly
balance on a substantial amount, these cards can save you a significant sum.

About The Author: Did you like this article about low interest credit cards?
Mark Williams offers other great tips and advice about credit cards at his
website http://www.abc-of-credit-cards.com

To Co-sign or Not To Co-sign...That's A Question That Can Ruin Your Credit

Many times in life we are faced with a hard decision.
Whether to co-sign or not to co-sign will be one of those hard decisions.
You have worked hard to keep your credit score high, and you have no problem
whatsoever in getting approved for a any loan or credit card that you apply
for.
Not everyone is so lucky.

What co - signing means to you, is that you are jointly responsible for the
loan or credit card that you are co-signing for. If the person you co-sign
for falls behind on the payments the creditor expects YOU to make the
payment. If the payment is not made, not only will this be a black mark on
your credit, but if the creditor decides to take legal action, they can file
against you too.

If a creditor does this to you, they can sue you for the money owed, sell
your assets, or even garnish your wages to get their money, and ruin your
credit rating in the process.

If you are considering co signing for someone, you need to think very
seriously about what the risks are. You should also ask yourself the
following 5 questions before signing on the dotted line.

1. Are you wiling to lose your assets and good credit rating by co signing?
This is a tough question because you wouldn't be considering helping someone
out if they weren't important to you, and you didn't think they were
responsible enough to make payments.

2. Why does the person need you to cosign? Think about why the person needs
you, is it because they have a really bad history for not paying their
debts? If they are young and wanting to go for their first loan, ask
yourself if they are mature enough and have the financial means to pay the
payments on time for the life of the loan. If you have any doubts about the
person, you shouldn't volunteer as a cosigner

3. Have you read the fine print of the contract carefully?
Make sure you are informed and know exactly where you stand, and what the
lender can and can't do to you. Don't think a lending institution has your
best interests at heart. Make sure that you understand the agreement
thoroughly, and don't let them push you around.

4. Ask about negotiating the terms with the lender, which may include
limiting the liability that you are responsible for to the actual amount
owed, not including penalty fees, or late charges etc. Also, make sure that
the lender will notify you if there are any late payments, that way you can
fix the problem up quickly before it ends up on your credit report, or even
worse the loan is called in by the creditor.

5. Are you able to pay the loan in full if the person you co signed for
defaults? What will happen to you if you have to find the money yourself? If
you can't afford it, don't do it, as much as you want to be helpful, some
things just aren't worth the risk.

If you have the means to cosign and are confident that everything will be
fine, before committing to the loan make sure that you have taken the time
with the borrower to explain the ramifications that will take place if they
default on the loan, and discuss how they will pay you back if this happens.
Don't forget to get everything in writing!

----------------------------------------------------
Liz Roberts is a loan consultant with NHBSInc. They specialize in providing
sub prime financing. For a list of credit cards for people with bad credit
or seeking to rebuild their credit please visit our site
http://www.newhorizon.org/Info/creditbuilders.htm

About Secured Credit Cards

Every time you apply for a credit card or loan, each single inquiry from
that lender will be recorded on your credit report making too many inquiries
is a signal to a potential lender that you are a risky customer just
shopping for credit and not for real funds.

True or not, a secured credit card may be the right type of credit card for
you because it is secured by a deposit account owned by the cardholder. This
deposit consists of 100% to 200% of the total amount of credit desired, that
is held in a special savings account.

However, cardholders of secured credit cards still may expect to make
regular payments as they would with any other regular credit card, with the
only difference being the card issuer has the option of recovering the full
cost of the purchases paid to the merchants out of the deposit if the
cardholders does not pay their credit balance in a timely manner.

Most entities issuers of secured credit cards consider that if the
cardholder does not make the required payment, the account must be paid
anyway and before the security is released instead of taking the money from
the security to pay the balance due.
This is a risk for the cardholders because their card is not cancelled and
the balance does not set off the deposit.

It is sad how easy it is to find that such advantage at first glance is
nothing more than just a financial move to let interest to continue,
accumulating on the unpaid balance for considerable periods of time which
total charges often exceed the original deposit and leading the cardholders
not only to lose their deposit but after that with additional debt that may
become a nightmare to pay.

This is not a threat but a condition usually described in the secured credit
card agreement of some credit institutions that most of the time is ignored
by the cardholders, or something that they do not read, or do not understand
clearly, when the account is opened.

Understanding all the terms of the agreement and not fearing to ask when in
doubt is important because secured credit cards are the most viable option
to allow individuals with poor credit, bad credit history or no credit
history.

In fact, secured credit cards are the best option for rebuilding or cleaning
up your credit history report, particularly if Visa or MasterCard endorses
them, but always bearing in mind fees charged for secured credit cards more
often may exceed those standard fees charged for ordinary non-secured credit
cards.

About The Author: Copyright 2006, Fruzsina csery.
http://www.securedcardsmall.com

Credit Card Offers For People Having Bad Credit Ratings

Once you are in debt, naturally you have to settle any due amount.
Otherwise, you will be known by other people as an irresponsible borrower.
Establishing a good credit history is very important especially if you want
to make a credit card or loan application, or any application which involves
money.

In today's fast changing times, where most people want fast and easy access
in almost anything, a credit card can be very useful. But how are you going
to secure a credit card application if your credit rating is poor?

Different application forms have pre-established criteria. A typical example
is a homeowner versus renters. Credit applications give more weight to
homeowner applicants.

Other reasons why most people have poor credit rating include paying bills
late, default payments, and those who have obtained judgments from the
county court. Credit files are usually kept by certain organizations, and
judgments or bankruptcies are filed for a maximum period of six years. If
you have this kind of problem, securing any credit application would be a
great problem.

Companies which issue credit cards looks into the files kept by reference
credit agencies before approving or disapproving any application made by
individuals. Once a person applies for a credit card, the company will
instantly check with different credit agencies for their credit rating. If
you've made a lot of credit applications and transactions, your credit
report can become large, so it would be wise to ask for a copy of your
credit report and check if all the items listed there are correct. If some
information is incorrect, you can get supporting papers and have it changed.

If you have a bad credit rating, your credit card application will be most
likely turned down, or if it is granted, you will have a low credit limit.
Most of time, these people will not benefit from incentives and low interest
rates enjoyed by applicants with a good credit rating. People with good
ratings can enjoy an interest rate for as low as 5%, while those having a
bad credit rating will be charged a rate of about 25%. You can actually see
the big difference between the two cardholders.

A bad credit rating is not only given importance to a card application, but
to securing loans as well. Almost any application which concerns credit will
refer to your credit rating. So if you are just starting to build a credit
rating, make sure that you start on the right track, and stay on that track
to be able to create a good credit rating. Establishing a good credit
history at an early age is an advantage, and not only that, you will learn
how to be responsible in handling your expenses.

If you are badly in need of a credit card, you can check out companies which
offer credit cards to people just like yourself. Although it may not be the
best, you can probably find it useful in other ways. Shop around and you may
be able to find one.

If you're one of those who already have a bad rating, perhaps it is now time
to make a change. It's never too late, start paying your bills on time.
Although the change happens little by little, over time it will prove to be
rewarding.

About The Author: Mario Churchill is a freelance author and has written over
200 articles on various subjects. For more information checkout
http://www.applyforeasycredit.com.

Controlling and getting rid of student debt

Most of the students nowadays fear debt (Education Guardian, 2006). However,
debt is not necessarily a bad thing, if you can control it. Learning how to
control it early on pays dividends for the rest of your life, as the
likelihood is, you will owe some money to someone until retirement, be it a
mortgage, loans or even leveraging a business. Simple corporate finance rule
of thumb states that individuals and businesses can benefit from a correct
ratio of debt in their portfolio (Brealey et al., 2003, p.
532).

The first rule of controlling your debt is not to spend too much. Students
have a lot of different discounts available to them, so you need to get a
student card as soon as you join the academic institution to be eligible for
the discounts. In turn this means that your purchasing power increases as
you buy the same basket of goods for less. For example, your Debt Reduction
Team offers a wide range of discounts that are available not only to you but
also to your friends and family (SDRT, 2002).

New students usually borrow from the Student Loan Company
(SLC) to fund their fees. This company will allow you to borrow up to £3,000
per year and the debt will need to be paid back once your income is £15,000
or more per annum (City University, 2006). The SLC's interest on the loan
only increases in line with inflation (retail price index), therefore you
will only pay what you have borrowed, plus inflation. The repayments will be
linked to your income at 9% (DFES, 2006, p. 8). SLC loans are primarily used
to pay tuition fees, but of course, you will also need some spending money.
The majority of students will open a credit-card account. However, what you
need to be aware of is that a credit card's interest is a lot higher then
those charged for a loan. Therefore, there are other sources of finance that
you can try first, such as Student Accounts that are provided by most of the
high-street banks. Student accounts will allow you to borrow at 0% interest
(up to a certain amount) during your university years and 1-3 years
afterwards. Most of the high-street banks compete to get students as their
customers, so make sure you check all of the available offers before
settling for an account.

However, if alternative resources have run out then opening a credit card
might be the only option left. In this case you should be looking for a
credit card with 0% on purchases. Most of the credit cards will have a
shorter time-frame on 0% purchases than on balance transfers, so you need to
find a credit card that will give the maximum time on free purchases. Zero
per cent on purchases means that the cardholder pays no interest on anything
that they purchase with the credit card for a certain period of time and
after that timeframe expires, a standard rate of interest is incurred on the
balance (RBS, 2006). The best deals on credit cards can be found on the
internet. There are two things that you can do once you reach the end of the
0% period:

a) transfer the debt to a new credit card provider; or
b) pay off the debt.

Otherwise the debt will start rising out of control. In the first scenario
there are a few things to watch out for.
First of all, when you transfer the balance the amount of 0% purchases will
go down. For example, if a new credit card offers a £2,500 limit and £2,000
is transferred from the original credit card, then only £500 is left for
purchases. Secondly, there will be a fee for transferral, which ranges from
2% to 6%, which needs to be taken into consideration when choosing the best
deal. Thirdly, if the credit card offers a £2,500 limit and £2,500 is
transferred, there will be no money left to spend, which will force you to
open another credit card. Furthermore, most of the credit cards will have a
certain cash withdrawal limit, which is much lower then the credit limit
offered. You should be aware of that limit, and bear in mind that you will
incur credit card charges every time money is withdrawn. So, the best thing
to do is to have a plan of how to pay some of the spending off whilst 0% on
transfers and purchases is still available.

Considering that you have some money coming in and 0% on purchases is
available to you, you can put this income into a savings account (cash ISAs
is one of the best ways of saving, while still allowing you to withdraw at
any time).
Therefore, your income is earning you money, but the credit card is not
charging interest. Once the credit card has to be paid off, the required
amount is withdrawn from the savings account and the credit-card bill is
nullified.

However, what can you do when there is no income coming in?
Unfortunately, you will need to rely on debt. As has been explained
previously, you will need to make sure that you transfer credit balances
before interest payments are incurred. However, there will come a time when
you will run out of money available to you and this will require you to have
some income coming in. As stated before, there are a lot of different ways
of earning income whilst at university. Furthermore, bear in mind that most
future employers will look favourably on previous job experience, even if it
is not related to the job that you are applying for.

Getting rid of debt on completion of university is also not as difficult as
it's made out to be, if you can apply the correct discipline. The first
thing that needs to be done is to understand exactly how much money is owed
(this can include credit cards, loans and store cards). Secondly, debts need
to be put in order of priority. For example, if the credit cards are
incurring 14% interest, whilst 4% is charged on your loan, then paying off
the credit cards should take priority. If you do not have the income to pay
off all of the credit cards straight away there are a number of things that
can be done:

a) transferring the balance to a 0% credit card; b) speaking to your bank
and asking them for terms to consolidate your credit cards (more then one
quote should be obtained) c) calling other debt consolidation companies and
seeing what they can offer (Clear Start, 2006).

Similar stages can be applied to other debts, in order of priority. If
steady income is available (which is higher than the amount spent per month)
then debt is not necessarily a bad thing. If spending is controlled, then
you can pay off outstanding debt, and benefit from alternative debt
available. For example, if you spend against your credit card at 0% per
year, then your outgoings can be put against the credit card, but income can
be put into a savings account allowing those savings to be used to pay the
card off at the end of the free period, so retaining the interest.

Some students think that they can default on a student loan. Defaulting on a
student loan is very difficult. The loan will be automatically written off
by the government after 25 years, if not paid (DFES, 2006).

Although the above work outlines different ways of maintaining and
controlling debts, it should be noted that bad debts and an inability to pay
may be registered with credit reference agencies, which in turn will
decrease your ability to obtain a mortgage in the future (Dwelley, 2006).
Therefore, it is important to control your finances at all
stages: during university and afterwards.

References

Brealey R, Myers S. 2003 "Principles of corporate finance"
International Edition, published by McGraw-Hill Higher Education, p. 532

City University, 2006, "Student Loans – new students 2006/2007" Available
from:
http://www.city.ac.uk/studentfunds/undergraduate/new/loans.h
tml (Accessed on 31/10/06)

Clear Start 2006 "Unable to keep up monthly payments on credit cards and
loans" Available from:
http://www.clearstart.org/credit-card-debts-uk.php?gclid=CPm
QwpvJo4gCFRnpXgoduHknSQ (Accessed on 31/10/06)

DFES, 2006 "Student loans and the question of debt"
Available from:
http://www.dfes.gov.uk/hegateway/uploads/Debt%20-%20FINAL.pd
f (Accessed on 31/10/06)

Dwelley S. 2006 "Student debt and how to deal with it"
Available from:
http://graduate.monster.co.uk/8663_en-GB_p1.asp (Accessed on 31/10/06)

Education Guardian. 2006 "Market logic turns a degree into a share
certificate" Available from:
http://education.guardian.co.uk/students/tuitionfees/story/0
,,1840824,00.html (Accessed on 31/10/06)

NatWest 2006 "Avoiding the student debt trap" Available
from: http://www.he.courses-careers.com/debt.htm (Accessed on 31/10/06)

RBS, 2006 "Credit Cards" Personal Finances Available from:
http://www.rbs.co.uk/Personal_Finances/Credit_Cards/Card_Fea
tures_and_Benefits/default.htm (Accessed on 31/10/06)

SDRT 2006 "Student Debt Reduction Team" Available from:
http://www.wessexscene.co.uk/article.php?sid=273 (Accessed on 31/10/06)

Copyright © 2006 Verena Veneeva

----------------------------------------------------
This article was written by Verena Veneeva professional writer working for
http://www.coursework4you.co.uk You are free to reprint this article;
however should you do so you must place a hyperlink to
http://www.coursework4you.co.uk

Building Your Own Credit History

Modern times require modern actions and credit cards are the modern tools
that anyone may need but not everyone may have.
Establish a good credit history seems to be harder for those individuals who
do not have a credit past, however it can be build up individually for the
first time starting small.

Your credit history determines many economy-related activities in your life
including getting a job, obtaining reasonable rates on insurance, purchasing
an automobile or renting an apartment. So starting small building your
credit history means that you can do some research for department stores and
financial institutions where you can apply for small amounts of credit.

Do not forget to get a written copy of the conditions, terms and fees
applying to the type of credit chosen. Penalties for late payments and
interest rates may be slightly higher that other regular credits if the
applicant does not have established credit.

Most experts recommend you to request a copy of your credit report from the
three national credit bureaus. Yes, you may not have a credit history yet
but the request will make the bureaus create the reports making it easier
they put files on your credit report as soon as you start getting small
credits.

Although there is, a possibility of getting those reports with information
already included because any credit purchases made in your past is reflected
on your credit history. If the file exists, make sure the information is
accurate or immediately report any incorrect information so that they can
take action to correct your file.

Another good option in building your credit history is to open a bank
account, either a savings or checking account. Analyze the bank's financial
products because there is no need to be a big investor to find some type of
products offering savings accounts, checking accounts and debit card as a
whole.

always Keep in mind that your bank accounts are to build a good credit
history so do not miss your goal using them to purchase until you are in
debt or you bounce checks. Getting a loan may round your credit plan if you
pay consistently and pay all bills in a timely manner, so the granter may
report this positive information to the credit bureau.

There are other useful strategies to build a credit history or improve your
credit score if the history already exists. Apply for a secured credit car
or prepaid card, open utility accounts such as gas, electric and phone
service are just a few of them.

The most important thing to remember, use your cards or credits regularly to
ensure that your report is updated regularly and pay your bills on time,
because lenders look at the most recent information on your credit history
report.

About The Author: Fruzsina Csery is a freelence copy writer.
She occasionally writes for
http://www.credit-card-for-students.com Student Credit Cards

Effective Ways Of Getting Rid Of Credit Card Debt

It is a fact that owning a credit card can give you lots of advantages. But,
sometimes owning a credit card also has its disadvantages. Many people go
into credit card debt that resulted from compulsive purchasing. It is always
recommended that when you get a credit card, you should only purchase good
or services within your financial capabilities.

It can be very frustrating if you get into a credit card debt.
It is therefore wise to consider a few things in order to avoid or get rid
of it. You don't want to end up paying off interest rates for years before
you can pay off the actual debt. Here are some things you should consider in
order to avoid or at least get rid of your credit card debt and avoid
financial woes.

Having a lot of credit cards can be very hard to manage and you may end up
getting into debt. So, if you have a lot of credit cards, and it is
difficult for you to manage, try and cut off some of the credit cards to
avoid getting into a considerable amount of debt. People are usually tempted
to use their credit cards. Therefore, it is wise to get rid of other credit
cards so you can concentrate on your remaining credit cards. The best way to
do this is to close the credit account as soon as possible after you paid
off the debt.

Consider using your credit cards for emergency purposes only and by making
online purchases. Having at least one or two credit cards is enough to avoid
getting into debt.

Impulse buying is another problem that many people face with credit cards.
If you keep at least one or two credit cards for emergency purposes, you
will still end up having that urge to buy that new pair of shoes or treat
your spouse to dinner. One solution to avoid this is by freezing your credit
cards, literally.

What this means is that you simply have to put your credit cards in a Ziploc
bag, fill it with water and put it in the freezer. This will make it less
convenient for you to buy the things you want. When the time comes that you
need your credit card for emergencies, you can always thaw the credit card
and use it.

Another way to avoid getting into a high amount of credit card debt is by
paying off more than the minimum monthly payment. By doing this, you can
save a lot of money in the next due date.
Minimum payments may sound very attractive but this is one of the strategies
of credit card companies to get more money through interest rates. Start
paying off your credit card with the highest interest rates. For example, if
you are required to pay a minimum of 100 dollars a month, start by adding at
least 20 dollars. You will see that you will save a significant amount of
money by just adding 20 dollars a month on the minimum payment.

If you plan on closing a credit card account, make sure that you pay all of
it off before you close it. Some credit card companies will charge you a
higher monthly interest rate for the reason of closing an account that still
has an outstanding balance.

These are the things you should consider in order to avoid or get rid of
your credit card debt. However, the most important thing you should remember
to avoid getting into credit card debt is by simply budgeting wisely. Make a
payment plan in order to avoid accumulating credit card debts together with
high interest rates.

About The Author: Mario Churchill is a freelance author and has written over
200 articles on various subjects. For more information checkout
http://www.firstglobalcreditcard.com and http://edblogonline.info.

Gas Rebate Credit Card On The Loose

Everyday, many people use their vehicles to go to work, to grocery stores,
malls, or any particular place they would like to go. Vehicles need
gasoline, and to some people, buying gasoline frequently is a bit heavy on
the pocket.

But did you know that you could actually save a lot of money in going to a
gas station almost every day? Yes, and that can happen if you have a gas
rebate credit card.

Don't expect for the price of gas to come down. Almost every commodity in
the market has their prices soaring higher and higher. In purchasing fuel
for your vehicle, you can get a discount if you only have a gas rebate card.

Gas rebate credit cards works like that of cash back cards, but instead of
receiving it once every year; you will be able to receive a certain amount
in credit form each month.

Gas rebate cards are widely available, and all you have to do is to select
the best one. The card member earns interest; and this interest greatly
varies depending on the offer.
Introductory offers for gas rebate cards have a maximum rate of 6% in order
to attract customers, but after some time, it is also reduced.

There are gas rebate cards offered by many gas companies which are called
'brand specific' cards and is used only in a specific location. This is an
advantage for people who purchase their gasoline or fuel in one particular
station. But if shopping around is your habit, or if you frequently have
out-of-town travels, this would be a disadvantage to you.

Because of certain advantages and disadvantages, most of today's companies
which cater to general purpose cards are offering gas rewards. The amount is
accumulated every time you make a purchase from any gas company.

The rebates given every month also varies, so before making any application,
you should make sure that it is fitting to your needs. There are different
rebate types given to customers, therefore you should ask for the type
before proceeding with the application. Usually, rebates are given every
month in credit form to a specified account of a card member or holder.

You should also consider these things: (1) gas rebate credit cards have
certain restrictions, and (2) other companies set limits on the amount of
annual rebates.

Annual fees should not be a cause of worry because most of gas rebate cards
don't charge any. However, you must be aware that the interest varies month
after month. And if you can't pay all your dues at the end of the month, and
have a remaining balance, this is of utmost concern for you.

Everything has limitations, and gas rebate cards are no exemption. Before
selecting one particular card, you must compare all their advantages and
disadvantages while considering your current needs.

With gas/fuel prices pumping high in the market, many customers will look
for the best gas rebate card available. And if you're one of those people,
you can start by looking around your local area or you can visit several
sites on the internet which features gas rebate credit cards.

You have to know a great deal about gas rebate cards; and how it actually
works. A little knowledge would do, at least you will not be ignorant about
it. These cards will truly help you in your gas/fuel dilemma; especially
those who owns a car or two and regularly uses them.

About The Author: Mario Churchill is a freelance author and has written over
200 articles on various subjects. For more information checkout
http://www.supercreditcardoffers.com and
http://credit-card-offersonline.info.