Attain Great Money Management Skills

It's not hard to get yourself in a hole that requires bankruptcy to bail you
out these days. All of the expenses in our lives, plus the debts from loans
big and small, credit card bills, and other miscellaneous debts add up and
create a helpless stress. You feel like the only way out is bankruptcy.

Though it is an option, it should be a last option, behind managing credit
card debt, and practicing good money management habits.

There is also debt settlement plans to help you out of your situation as
well. This actually is a rather quick solution, helping you get out of your
problem in a relatively short period of time. Finding a debt consultant to
help you, you'll begin to feel a strong sense of relief when your balances
are cut down significantly through the process. However, this does not mean
you're in the clear, it's simply a way to help give you wiggle room.

The way this works essentially is that you'll contact a debt settlement
consultant with a lot of experience, and they will help you with all of the
forms and paperwork involved. He or she will also go over the details of how
such a program works.
Basically, besides settling with lenders on cutting your payments down, they
will also consolidate your debt and help you recover your original financial
standing, again within a pretty short period.

You will be evaluated to see if you're qualified for the program or not.
Your expected monthly budget will then be calculated to see what needs to be
placed aside for meeting the settlement payments.

This can obviously bring a huge amount of relief to your life.

If you can't see in front of your face because of all of the bills that lay
ahead, including your car payment, your medical bills, school loans, credit
card bills then this is the program that you should enroll in as soon as
possible. These loans that you're having problems with are unsecured, and if
they're not managed well, you've got a ton of problems ahead of you, as well
as your personal assets being at risk.

Money management is a skill that we should be taught very early on, however
this country seems to look the other way on this aspect of life, and just
throw us out to the lions. You can think of this as a life lesson, however
you only want to have to learn it once. It's easy to learn however when you
make use of your debt management consultant, and very soon your social and
financial status can be pieced back in place.

These plans can help you get out of trouble in as short as five years. How
long it takes actually depends on you, and your willingness to work hard at
getting yourself out of trouble.
It's so easy to resort back to our destructive ways that get us in so much
trouble.

Choose your plan wisely and be responsible with your second, and perhaps
last chance of having a financial life.

About The Author: Concentrating on the area of money management, Jack
Blacksmith works essentially for http://www.debtania.com . From his reports
(e.g.
http://www.debtania.com/managingcreditcard.html on managing credit card debt
) he demonstrated his expertise on the topic.

Managing Your Money During The Holidays

Managing anything well is simple once you know the pro's and con's involved.
The financial stress that comes from poor credit management skills can
create a multitude of problems in your life. This is why it is good to use
common sense in handling your own personal finances.

Credit card use, if used wisely, can be one of the greatest tools in
building good solid credit. It can also be one of the quickest indicators to
a potential lender that a person is not a responsible money manager.

Good money management skills also mean taking the time to search for the
best interest rates available on a credit card. Finding a low interest
credit card can allow you to use a cash advance to pay off the debt on other
credit cards that you have. Having paid down the debt of the other credit
cards puts you in a better position to keep tabs over your credit finances
across the board and handle any financial emergencies such as illness,
accident or a sudden mechanical problem on your car.

Make A List And Check It Twice!

Reevaluating how you shop during the holiday seasons is also a part of
sensible money management. The urge to splurge and incur debt in buying
gifts will create a financial hangover that can be repeated year after year.
Many people pay for their holiday shopping for the following 12 months.
Institute a personal rule to not use your credit cards for anything you can
afford to pay cash for. It's not really a bargain if you buy it using a
credit card that charges 18% interest.

After the holidays when all your friends and relatives are fresh in your
mind, make a list of everyone you want to purchase a gift for and keep the
list in an easy to reach place like a purse or wallet, as you find good
deals and sales throughout the year, pick up that person's gift and put it
up until the holiday season. In December, you'll have the majority of your
shopping done and you won't feel the sting of holiday shopping as most
people do.

Set Spending Limits

Setting spending limits where your credit is concerned is always the best
bet. Take the time to really get in touch with your own spending needs and
habits - make a budget and stick to it. Cut corners wherever you can and
eliminate unnecessary expenses. Eat as many meals at or from home as you
can. Curbing eating out expenses will save most people between $20 to $50
dollars a week on the average.

Shop During The Slow Seasons

Deciding where to shop is a highly overlooked skill as well. Retailers are
seasonal and will often run sales during a slow season. These are ideal
times to stock up on the things you need at a fair price and avoid using
credit cards for these purchases. A little time and effort will allow you to
find the best bargains year round.

Lastly, check your personal credit report once a year.
Mistakes can happen and you can be denied a credit card, personal loan or
even a job due to an error in reporting.
Once caught, most credit report errors are easily fixed; but the
responsibility of catching and correcting those errors is solely up to you.
Make these habits a part of your credit and money management skills and you
will save yourself a lot of money and interest in the long run.

----------------------------------------------------
Liz Roberts is a loan consultant with NewHorizon Finance and has been
providing consumers and business owners with financing since 1989. Bad
Credit? Join our mailing list for tips on building and repairing your credit
yourself without hiring a credit repair. Vist our site for a list of bad
credit credit cards http://www.newhorizon.org/Info/unsecured.htm

Home Equity Loan For People With Bad Credit

Bad Credit Home Equity Loans are a Good Thing

If you are in the unfortunate situation of looking as loans for people with
bad credit, take heart. You are not alone. More and more people need to take
out loans for some financial need, and one possible source is a bad credit
home equity loan.

People end up with a bad credit rating for a myriad of reasons.
Late payments and bankruptcy are obvious factors. Not so obvious is the debt
to income ratio factor. If you happen to have college loans that are around
$20,000 and marry someone with the same amount of college loan debt, you
both may now have bad credit. Even if you own a home and have a pristine
credit history a large loan taken out for an emergency will greatly affect
your credit score. If your credit score is lower than you like, the good
news is that it doesn't have to stay that way forever! There are many loans
for people with bad credit and a bad credit home equity loan is one place to
start.

A home's equity is the current fair market value of the home, minus any
mortgage payments left to be paid. What this boils down to for a lender is
what they can get for the home if they have to seize it from the owner for
failure to pay. Even with a low credit score bad credit home equity loans
are available for up to 90% of the equity in the home. Most lenders are
comfortable giving equity loans for people with bad credit.
Since there is collateral involved finding such a loan shouldn't be a
problem. The tricky part will be finding a bad credit equity loan with an
interest rate that you're comfortable with.

Reasons behind taking a bad credit home equity loan vary greatly. Currently,
homeowners are opting to take their home's equity and then reinvest it in
their home through updating and remodeling. Or, maybe someone is able to pay
off a sizeable amount of credit card or school loan debt with a home equity
loan. Not only will it be a relief to pay off all your other creditors, your
interest rate will go no where but up!

If you're looking at loans for people with bad credit and own a home, a bad
credit home equity loan is a good option. Interest rates will be lower than
for any other loan you could get and it's relatively easy for a homeowner
with any credit rating to get one of these loans. Regardless of your
reasoning behind getting a bad credit home equity loan, be careful as to
whom you choose as your lender. Read the fine print and plan a strategy to
increase your credit score with the equity loan.
Your financial security will increase and your credit score will thank you.

Copyright
http://finance.brand-blog.com/
http://loanroad.co.uk/

About The Author: Finance Blog is a bad credit personal loan blog, who help
loan seeker find the best personal loan rates via his website
http://finance.brand-blog.com/

How To Choose The Gas Credit Card

The use of credit cards is but just an evolution of the ancient merchants'
form of transacting for their various businesses.

It was Edward Bellamy who introduced the concept of the card usage to make
purchases. The words "Credit Card" had been mentioned in his novel "Looking
Backward" eleven times, and in the book's sequel named "Equality" three
times.

During the 1950's, Ralph Schneider and Frank Mcnamara invented the notion of
making payments to merchants using a card. This gave rise to the foundation
and opening of the Diner Club, which is still in existence and operation
today.

This had been followed by the opening of Carte Blanche, American Express,
and Bank of America's introduction of the Visa Card.

It continuously evolved until it reached its recent form of using the
plastic card that is most commonly known as the Credit Card.

The use of credit cards has its own pros and cons.

Below are some of the advantages:

1. Minimizes risk of loosing cash.

The consumers need only to bring and present the plastic card to make
transactions or purchases.

2. Convenience

Purchases that immediately needs to be made may be possible with the use of
credit cards even if the individual is low in cash since all that would be
looked at is the credit limit available.

Some of the disadvantages are:

1. This could result to accumulation of debt if the main and interest
charges are not settled until its due dates.

2. It could be very tempting to make purchases that are really not quite
necessary.

It had always been noted that the rampant use of the credit card system had
resulted to the Great Depression of the 1920's.

With the sudden rise of automobiles available for purchase by the consumers
during the said period, there had been an equal increase in the demand for
fuel.

So as not to loose consumers, most fuel companies extended credit to their
consumers to attract more buyers to increase sales.

This gave birth to the introduction and use of Gas Credit Cards.

Gas Credit Cards are somewhat similar with credit cards, but is limited to
the use of purchasing of gasoline.

Cardholders of said cards are usually given rebates in the form of cash back
check or by giving them a credit for their existing balance.

The following are some of the best offers by some gas credit
cards:

1. Awarding of 5% Cashback Bonus upon purchase of gas or 1% for any other
purchase

2. 3-9% rebate on all gas purchases that are made on any gas station during
the first 90 days.

3. Free gas offers when a certain amount had been charged on the card.

4. Gas credit cards that have annual fees usually offer a lower interest
rate for purchases that are charged to it.

A consumer may want to choose these types of cards if they have limited
means to immediately pay the card balance so as to minimize interest
accumulation.

5. Some gas stations offer discounts to consumers using their particular
card

6. As compared to regular credit cards, gas credit cards offer a much lower
interest rate for gas purchases, thus making it a wise decision to have one
of this if the consumer is usually traveling using his or her own vehicle.

Still, it all depends on the consumer to use his or her card wisely for his
or her own benefit.

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.

Truths Exposed - Things You Need To Know About Card Debt Consolidation

A majority of us have yet to hear of as well as be aware of the concept and
practice of card debt consolidation. In fact I hadn't thought of it on my
own and wasn't aware of it until one of my friends and I were discussing
money and she expressed an interest in this action called credit card debt
consolidation.
After I showed surprise and intrigue, she explained that one merges all
balances on all credit cards into one credit card company or institution's
plan. This move means many things:

Firstly, card debt consolidation in short means one can let go of having to
"juggle" the bills, or of having to - as my mother would say - rob Peter to
pay Paul: instead of having, say, six credit card bills (with six different
interest rates, additional fees, etc.), you have just one (with one annual
fee, one interest rate, and one finance and processing charge).

Next, card debt consolidation also means saving time. As with the above
case, which more of us than not know all too well, the filing and figuring
time are reduced significantly. And if one pays online, that time it would
take to write checks, hit the mail box, etc. would shrink to a matter of
about two minutes.

Next, card debt consolidation usually means a major decrease of interest and
other rates generally. In fact I know this one person who has credit cards
with up to 29% interest charges on each card. Then another person who did
the wise card debt consolidation move and now has not only ONE single
interest rate to be concerned with but has that rate down to something like
1%!

And lastly, the card debt consolidation effort does not mean haggling and
hassling and humiliation. To a certain extent, depending on the government
and/or financial institution you choose to go with, the application process
takes approximately five minutes (or less, online, but one needs to be
careful to find a SECURED site and therefore to take a little time to find
out that the offer is legit in the first place).

So, in order to cut your payments down by 50 or 60 percent; cut your time to
almost nothing and shear years off your stress factor and therefore your
aging process.you come out happier, healthier (at least mentally), and
definitely better off financially. Now that I think on the offers for doing
card debt consolidation that I get in the mail, I understand, too, that one
could build up a better line of credit with one financial institution,
having all amounts owed on one card, and having, basically, a higher credit
limit overall.higher than one might have on each individual credit card. Of
course not that the purpose here is to amass more debt, mind you!

About The Author: Thomas B. Stevenson provides readers with up-to-date
commentaries, articles, and reviews for
http://www.financial-information-directory.com,
http://www.first-finance-magazine.com as well as other related information.

Debt And The Risk Of Bankruptcy

If your debt situation has not yet reached a point of no return, credit
counseling and debt management may be the best option for you. There may be
other alternatives to going bankrupt which can also help people in serious
debt to make a fresh start.

How can you avoid bankruptcy. Knowing some important aspects of bankruptcy
can help make your debt burden much easier to manage and can help you avoid
hassles in the near future. You will have to avoid missing records and bad
checks to keep from adding to the bill. If it has even been in the back of
your mind, you should take the steps to avoid bankruptcy.

Hopefully, the new law will come into effect by mid-March.
Although it was a little bit frightening at first, the new bankruptcy law
was not that much of a hassle. The new law requires clients wishing to file
for bankruptcy to undergo a six-month credit counseling. Texas bankruptcy
law for example protects you, as a consumer, from falling into financial
turmoil and is put in a situation where you can be abused by creditors.

Creditors

The moment your petition is filed an automatic stay is in place that means
your creditors listed in the petition must stop their collection procedures
during your bankruptcy proceeding. The United States Bankruptcy Code
provides the debtor an opportunity to pay back their creditors over a period
of time of up to five years. The creditors are required by law to follow
strictly the terms of the repayment plan.

However, as long as you have the funds, you will still be required to pay
all your creditors based on a schedule determined by the bankruptcy court.

Loans

An auto loan after bankruptcy does not mean you have to have a co-signer or
collateral. One option is to get an auto loan through a dealership. If you
need a new automobile, obtaining a new car loan is perfect for rebuilding
credit. Because the loan is secured by the vehicle, most lenders are willing
to give loans to people with a bankruptcy. You can apply for Loan with High
Risk Lenders. In fact, several lenders specialize in offering loan programs
to individuals who have recently filed bankruptcy.

Interest

Financially the person is haunted with higher interest rates, higher down
payments, and outright rejections for many years to come. Compare fees and
interest rates, as well as, repayment options and customer service. Then,
when the high interest rates are added in, people find themselves in a
situation where repayment is often impossible.

They rightly point out that bankruptcy costs the credit card companies
billions of dollars each year and that those costs are passed on to
consumers in the form of higher interest rates.

Lawyers

Be honest with your lawyer and do not withhold any information that is
relevant to your case. Do not be afraid to interview a lawyer and leave
without retaining one if you are not satisfied. When all hope is lost, a new
beginning can be created with the help of a good lawyer specializing in
bankruptcy, by making use of the provision of the Bankruptcy Code. Look for
a certified specialist or a lawyer with significant experience in
bankruptcy. Ask your lawyer questions if you do not understand something.

Trustee

Trustee within 180 days of the date of the filing of a bankruptcy case. Most
people will pass through a bankruptcy case and keep everything they have,
says John Hargrave, a bankruptcy trustee in New Jersey. In a
court-supervised procedure, a court appoints a trustee who liquidates the
non-exempt assets of the debtor's estate and makes distributions to
creditors.
In an orderly, court-supervised procedure, a court appointed trustee
liquidates the non-exempt assets of the debtor's estate and makes
distributions to creditors. Although the debtor files a schedule C form for
property claimed as exempt, the property is not exempt until the trustee
files the property exemption report which actually divides the property as
exempt or non-exempt.

About The Author: Keith George always writes about valuable news & reviews.
A related resource is http://the-bankruptcy-loans.info/ Further information
can be found at http://the-equipment.info/

0% Apr Offers Are Not As Good As They Seem

Credit card companies are getting out of their ways to be ahead of the
competition. A lot of incentives which are truly enticing are being offered.
With this stiff competition going on, better deals are available for
consumers. However, you should still give it careful thought and
consideration before committing to one credit card.

The annual percent rate or APR is the most widely used in credit card
marketing strategies. Essentially, APR determines how much interest a credit
card user needs to pay given a certain principal amount. The lower the APR,
the better the deal is. Some companies may even offer 0% APR which means
that borrowers only need to pay for the amount they actually borrowed.

This is definitely too good to be true. Banks are not charitable
institutions but are for-profit organizations. They would definitely
compensate for loss profits brought about by 0% APR in some other ways.

Usually these ways are hidden behind the fine print. Without reading and
fully understanding every terms and conditions associated with signing up
for a 0% APR credit card, a customer might get into financial trouble. The
law only specifies that all fees and other terms and conditions be posted
for customer's information. It does not require banks to print these in
larger letters.

These 0% APR offers are actually just plain marketing strategies, They don't
last very long - usually only for 90days to about a year. And when that
introductory period is over, high APR charges would start to apply on your
purchases. These would definitely lose you the money you had saved during
the 0% APR period.

Also, when you try to read the fine print, you'll find out that most of
these 0% APR offers may not apply to balance transfers.
That means, in order for you to take advantage of this limited offer, you
would have to make new purchases using your new card. This condition might
be okay for those who are new credit card holders and don't have existing
credit card balances from other banks. However, for most of us who are
looking for ways to minimize the interest rates charged on our credit card
balances, this condition does not sound good especially if we find out all
about it after we have signed up for the card.

Another trick that banks use to make up for the 0% APR is by charging
exorbitant application and annual fees. They might even add transfer rate
charges, and if balances are not paid on time, the 0% APR offer is voided.
Sometimes a penalty APR might apply for these late payments.

A lot of other things can be written on the small print too.
Some application forms may state that the bank may send you another card if
you don't qualify for or if the card you initially applied for is not
available. Usually, these new credit cards won't have the 0% APR offer that
you are interested in.

There are also instances when 0% APR offers are exclusively applicable to
balance transfers. When you have paid enough to pay for the transferred
balance, high APR is charged to new card purchases.

The 0% APR credit card is not as good as it seems. Reading the fine prints
would enable you to avoid the marketing tricks applied. If you know how to
weed out these unfavorable conditions, you would be able to take full
advantage of these 0% APR credit cards.

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.

Step Out Of Credit Card Mess - Consolidate Your Debts Today

Credit Card Consolidation: An effective method Of Debt Reduction. You can
adopt various methods to reduce your debts.
Methods such as bankruptcy, debt consolidation, debt settlement, debt
management, debt forgiveness, and debt payoff are all methods which can
bring some debt relief to you. Out of all these methods, debt consolidation
is by far the most popular debt consolidation mechanism for people heaving
under heavy debt. Credit cards bring in the worst form of debt in your life.

Not only do they charge the highest rate of interest, but unlike other
debts, they also fool you into an illusion of financial security. With the
various charges such as late payment fees and other penalties that they
impose on the outstanding amount, your credit card debt can shuttle out of
proportion. In credit card debt consolidation process, your outstanding loan
amount gets pulled together under a single loan. This loan usually comes at
a lower interest rate as compared to the other floating interest rates. To
go in for a credit card debt consolidation loan, you can take a cash advance
from a credit card company that offers a low rate of interest and then
transfer the repayment amount of the credit cards that charge a higher
interest rate on to this card. This way you can redirect your cash flow to
bring down the remaining credit card debt.

Another way to consolidate a credit card debt is by taking up a secured loan
and using this loan to pay back the existing credit card debts. You should
pay off the credit on which you are paying the highest rate of interest,
first. This way you save some valuable money that can help as your buffer
for future needs. Alternatively, you can also use this amount to pay off for
the other existing loans. This is how debt consolidation works. As a
consumer, you must remain careful as a high debt can kill your credit worth
in the financial market. Debt consolidation is a worthy and easy method by
which anybody who is suffering under a massive credit card debt can
streamline his finances and gain a financial foothold back again. Experts
suggest that you by going in for debt consolidation, you streamline your
finances by which you not only eliminate the chaos surrounding intermittent
bills but also gives you a much required breathing space.

Debt consolidation process not only stabilizes your finances but also helps
you by paying off overdue bills and eliminating mental stress
simultaneously. This process converts all your scattered payments into a
single, low-interest bill by condensing all of your high-interest payments
to multiple companies. Debt consolidation is a great choice for people who
are overburdened by heavy credit card bills. This process not only helps you
salvage your credit ratings but also helps build your lost morale by
stabilizing your finances.

About The Author: Jeffrey Walteron publishes largely for
http://www.creditenio.com , a website on the topic of debt consolidate and
bill consolidation. Recording his experience in works (e.g.
http://www.creditenio.com/baddebt.html on bad credit debt consolidation ) he
improved his knowledge in the field.

Holiday Spending Tips - Ten Ways To Keep From Having A Holiday Spending Hangover

Ah the holidays. a time for parties, over eating, and over spending.
Americans routinely overspend during the holidays, often resulting in
increasing credit card debt to go along with that increasing waistline from
too much pumpkin pie.

The holidays are stressful enough. Don't add to that stress by overspending
your holiday budget. Here are ten tips to help you save time, money and
stress this shopping season:

1. Make a list. Decide how much you can afford to spend this year and write
it down. Decide who you want to buy for, and how much you want to spend on
each person. Take this list with you when you go shopping to ensure that you
don't buy on impulse or exceed your spending limit. Also, don't forget to
include wrapping paper, decorations and shipping costs. These can add up
fast!

2. Pay cash for your holiday gifts. It's much harder to spend cash than
credit, so this tip alone could save you hundreds of dollars this holiday
season. Also, avoid credit card offers or store charge card offers that
offer you a discount if you sign up. These cards usually have high interest
rates, and could end up costing much more in the long run than the discount
you receive when you sign up for the card.

3. Do your shopping online this year. Buying online could result in
discounts not available in stores. Just remember to include the shipping
cost when buying online. Even if you don't actually buy online, the time you
can save by doing comparison shopping before you go to the malls could be
invaluable.

4. Have a Secret Santa gift exchange, where you put names in a hat and each
person draws one name to purchase for. If you have a large family, this
could mean tremendous savings! You should set a dollar limit so each person
knows how much to spend. That way no one overspends and relatives with
smaller budgets won't feel bad about not spending a fortune on a gift.

5. Another alternative for those with large families is to do a group gift.
Have several relatives go in on one big gift instead of each person buying a
separate gift. You will probably all save money and you can buy the
recipient one big, cool gift that they really want.

6. Start early! Shopping early allows you to comparison shop and to catch
pre-holiday sales, which could mean huge savings.
This also curbs impulse shopping, which can be very expensive.
Another benefit to shopping early is lower shipping costs if you need to
mail a gift. Waiting til the last minute can be expensive because you're
more likely to pay full price for the gift, and you may have to pay extra to
ship it if you want to guarantee it arrives in time.

7. Make your holiday gifts. If you have creative talents, such as cooking,
crafts, etc., making your own gifts can be very special. If you're not very
creative, consider giving your time. Offers to baby-sit or to do something
special for someone can be very personal and appreciated gifts. How many
parents do you know who wouldn't love to have free babysitting?

8. Purchase wrapping paper, holiday cards and other decorations right after
the holidays. Seasonal items are usually offered at deep discounts after the
holiday, and they never go out of style. Stock up on clearance-priced items
for next year, this year!

9. If you'll be traveling this holiday season, book your travel plans early.
Airline flights, train tickets and bus tickets usually go up significantly
during the holidays, so booking your travel plans early can save you money
and stress.

10. Start a Christmas fund in January for next year's shopping.
Many credit unions and banks offer special accounts just for this purpose. A
CD is another great way to save for next year's holiday expenses. It never
hurts to sock away a little money every month between now and the next
holiday season. You'll earn a little interest and you'll have cash to spend
on your holiday gifts and other expenses when the holidays roll around.

About The Author: Kristine A McKinley, CPA, and Certified Financial
PlannerR, offers fee-only financial planning. Learn how improving your
credit score can save you money with our free ecourse Boost Your Credit
Score in Five Easy Steps.
http://beacon-advisor.com/e-course.asp

Understanding The Basic Concepts Of Debt

Remember: Running away from your creditors is not the answer.
It is not a solution, and may in fact lead you to bigger problems. If you
are having trouble paying off your debts, address this immediately with your
creditors.

By accelerating the payment structure on your loan, the life of the loan is
reduced:

In a normal 30 year fixed rate loan situation, your monthly payment is
applied towards principle and interest. It is amortized over the course of
30 years.

In national accounting debts are added according to those who are indebted.
Household debt is the debt held by households.
"National" or Public debt is the debt held by the various governmental
institutions (federal government, states, cities ...). Business debt is the
debt held by businesses.

For many Americans debt is an overwhelming problem, a stressor that can
quickly take hold of one's life. When there are bills attached to house,
boat, automobiles, college tuition, and daycare, it's not hard to imagine
that many folks can quickly be swept under the current of spending which can
unexpectedly whirl into deep debt.

Understanding the basic concepts of debt

Reduce debts today for a better life! Budgeting is an important aspect of
living and a person who knows how to budget will go a long way in this
commercialized society. Budgeting has a lot to do with keeping the expenses
less than the total income of the household. Those who are very good at
budgeting can even come up with savings even if they have meager incomes.
The problem sets in when a person fails to make an efficient financial plan
and his expenses exceeds his earnings. When this happens, a person has no
choice but to borrow money to make up for his financial deficiencies.
Borrowing once or twice because of a mismanaged financial plan is normal but
when borrowing becomes a regular thing then that can put a person in serious
debt problems.

A person who borrows money from another is said to be in debt.
The debts of a person can be minimal or it can reach up to millions
depending on the credit limits of such person.
Sometimes, a person who has assets but isn't liquid can use these assets to
get cash. Under this term, the person can be indebted for an amount mess or
more than his assets.

There are laws which provide that a person can never be forced to render
services as payment for his debts. This is already called undue servitude
which is prohibited by the laws of some countries. However, there are
situations when the person who is in debt opts to settle his obligation by
rendering his services.
This can happen if a person is so talented in his craft like painting and he
opts to pay for his debts by creating a painting of the creditor or the
assignee of the creditor.
Sometimes, a person can pay his debts gradually or on an installment basis.

When a person dies, the law has provided for a hierarchy of preferences in
the payment of such debts. Of course, payment of taxes to the government
will always come first. The second priority for debt payments includes
funeral expenses of the deceased and the payment for the wages of people.

Most creditors want the money and will extend your time to repay the debt,
since they do not want to go through the hassle that comes along with
reporting you. Most creditors want their clients to return and believe that
if they give you a chance you will repay your debt and open a new account.
All of the debt that an individuals owes appears on a credit report.
Credit repots are used by financial institutions when a loan has been
requested.

The UK attitude toward debt has received a major shift over the past few
years. Where once the UK was seen as a nation that held up thrift as being
virtue and considered debt a vice, it has now changed to owing £1.3 trillion
on mortgages, credit cards and other loans. Find out how long it will take
to become debt free and how much you'll pay in interest by making the
minimum monthly payments.

There are a number of different types of debt consolidation
loans: home equity loan, line of credit, or second mortgage.
Debt is really just a simple concept which provides that a person who
borrowed something from another is duty bound to pay that debt. However, the
concept of debt becomes more complicated with the introduction of other
concepts like mortgage, interest rates and other charges. Interest makes
most debts double or even triple in amount. More often, the interest rates
due for a certain debt is even higher than the principal amount borrowed.

A person who wants to get credit can do so in the form of a loan. A loan can
either be secured to unsecured. A secured loan means the debtor borrowed
some money and supported by collateral or a security for the loan. The
security or collateral can come in the form of a house and lot, a car or any
asset of the debtor. An unsecured loan means otherwise.

Most creditors require a security before granting a loan because it gives
them something to hold on to or to forfeit in case the debtor defaults in
payment. When the debtor fails to pay the debt within the agreed timeframe
then the creditor can foreclose the security or the collateral. However,
having an unsecured loan doesn't mean that the debtor can renege on his
debts. When the debtor fails to pay his loans, the creditor can still run
after him by filing a case in court. When this happens, the debtor who has
no cash can sell some of his assets to pay for his outstanding loan.

Being in debt is common even for the rich and the famous, the only
difference between them and the common people is that their debts can be in
the millions since they have more assets to support their loan. Unsecured
loans most often have higher interest rates to make up for the lack of
security. Even third world countries are indebted to more developed
countries.
However, the debts of a country can go on forever because they keep on
paying their loan but they also get new credits as their credit ratings go
up.

It may be more convenient to make one payment rather than several. Or you
can improve your cash flow in the short term by reducing monthly outgoings.
But this may cost you more over time because you are paying the debt off
over a longer period of time.

Interest rates for credit card debt consolidation loans through traditional
lenders may be based on your credit score. If high, you are likely to get a
credit card debt consolidation loan at a lower interest rate.

The prospects of managing financial obligations have just gotten worse, as
Congress has passed legislation that will make bankruptcy filings more
difficult than ever.

Debt Elimination tips shows how Millions of Americans are living on the edge
of financial disaster surviving only on the hope of next week's paycheck.
The average American is dying under a load of debt, with little or nothing
building in the bank or in investments.

About The Author: Learn ways to reduce your debts today at
http://www.reduce-debt.info

Credit Card Consolidation Does It Work?

Having too much too much on your plate, too much to do or too many
commitments always keeps you involved and it is obvious that it may lead you
to a situation that is unmanageable, tiring and out of control. Further
leading to loose your focus and making you inefficient in everything you are
doing.

If you are carrying so many credit cards then it is a sure sign of danger
you will face in the future. Market research tells that a standard person is
having approx seven credit cards and he makes use all of the cards
frequently and blindly. Therefore this can be unmanageable for you.

Take an example; if you make use of all the credit card too frequently, it
will become very difficult for you to keep record of all the expenditure
done by you by using each one of those cards. You should know how frequently
you use each card their rate of interest and the annual fee, if any, that is
being paid by you.

There is a famous phrase in English, "it's never too late" but you may soon
realize that now it is actually too late. Reason, some people are careless
and don't think of keeping a record of all their credit cards, their
expenditure and variable interest rate if any one is used. And all of a
sudden they come to know that they are into a significant debt. After some
time such people are being surprised with serious debt issues, without
warning.

It's a truth that we all know and agree that credit cards are the most
precious and valuable devices that helps us in urgent situations. Though,
you should be a little careful while using your credit card and should know
the chances of getting into trouble (debt problem).

When you go under a significant debt in credit cards, this issue can be
resolved by paying it all off. Credit card consolidation is one of the
solutions to your problem.
Consolidation means accumulating all the debts into one single credit card
with a low rate of interest.

You can get more benefits when you consolidate all the cards and pay off all
of your credit card liabilities. From the time when you start paying off
your credit card debt with a single card, you can without any trouble make a
record of your payment bills. This way of payment will definitely diminish
your confusion that comes along with multiple bills.

Before initiating consolidation of credit cards debts you should check the
rate of interest and compare. If the interest rates are exactly the same
then there is no need to consolidate credit cards debts. If you are able to
find a credit card with lower rate of interest then accumulate your all
other credit card debts into this.

About The Author: When your in debt troble you need to turn to the
professionals for the right advise.That's why we've setup a credit card blog
so you can read more about credit card consolidation and credit card debts.
Visit http://www.OnlineCreditCardApprovalSites.com for more card
information.

Credit Repair: Repair Bad Credit Card Debt Yourself

Credit repair and eliminating your credit card debt does not mean that you
have to hire an expensive credit repair service.
In fact, if you want to fix your credit you can do it yourself for free. I
cannot promise that it will be easy but despite the glib promises made by
professional services those are not easy either.

Do not sign a contract committing yourself to an expensive credit repair
service. Do not buy any books or software to help you fix your credit.
Instead focus on three simple and free steps to rid yourself of bad credit.

First, go the root of the matter. Run your credit reports, every consumer
gets a free credit report from the three major reporting agencies every
year. Plus if you have had a credit application denied recently you can ask
for a report at that time. You do not need to pay for your credit report or
join a program to get access to it. This will give you a good picture of
your credit situation but you should also collect the recent statements from
each of your creditors. Not only will these give you valuable contact
information for the next two steps but it usually offers the most up-to-date
information regarding your payments, balance, and interest rates.

Once you have summarized your situation it is time to move on to step two
which is simple -- empty your wallet of credit cards. Cut them up and throw
them out, but then you need to take another important step. Close those
accounts and do not sign up for any more cards until your credit is once
more good.
If you continue to add to your debt then you will not solve your problems.

The final step to repair your bad credit and eliminate your credit card debt
will take the longest and involve the most hard work and stress. Now you
will need to make a plan of action. The first step is to stop making any
payments on your credit cards. Now, set aside the money you would use to
make those payments for a few months. When the credit card companies start
calling about your delinquent payments be polite but be clear that you
cannot pay the bill at this time although you are working on a plan to clear
your debts. Tell them not to call again until next month. Minimum payments
will never clear your debt and it is best to consolidate the money until it
matches a sum that will be able to do you the most good. Once you have
enough money to pay about one-third of one of your bills (assuming a few
months have passed) then call the company and offer your one-third payment.
Some companies might jump at that settlement and others may negotiate for a
while. It is very likely that through standing firm, consolidating your
payments, and waiting them out that most of your creditors will settle for
half or less (on average).

You can do your own credit repair and eliminate your credit card debt
without outside help with these three simple steps.
Simply summarize your situation, empty your wallet, and work the phones. You
can do it.

About The Author: Deanna Mascle shares more advice in her blog Credit Repair
at http://answersaboutcredit.com where you can also download the free ebook
What To Do When Your Credit Goes Bad at
http://answersaboutcredit.com/?page_id=51

Investment Property Is Good Debt

There is a lot of buzz on the web about Good Debt vs Bad Debt.
The fact is, most of the baby boomers learned money matters from parents who
grew up during the Great Depression. Since that time, many things have
changed such as the Federal Reserve Board, insurance for deposits, checks
and balances on banking procedures and since the 80s, checks and balances on
Savings and Loans businesses.

If you talk to a banker, you will hear one side, if you talk to a real
estate investor, you will hear another side. The point is to gather all the
facts so that you can then make a wise decision concerning going into
greater debt in order to have greater returns.

The old adage is true, 'You must spend money to make money', or consider
this one, 'Spend a dime to make a dollar.' No one ever made money by
stuffing the mattress with dollars.

Most families spend anywhere between 20% and 36% of their gross household
income on mortgage and credit cards. The average U.S.
Household has at least one credit card with an average balance of $9,200,
according to CardWeb.com. This is when it is necessary to put that pencil to
paper and budget your income.
It is crucial not to spend more than you can afford to spend.
Unless.

Bad Debt: is incurred on things you can't afford and that you don't need
such as that high interest rate on your credit card that is maxed out. If
you buy something that has no potential to increase in value, or goes down
in value-furniture or appliances-that is bad debt.

Good Debt: can be described as that debt which occurs when you purchase
something you must have but do not have the cash to acquire it. Your home is
an excellent example of this. College is another example. The problem arises
when your loan payments exceed your income, or more than you can comfortably
afford to pay back.

Now consider this for a moment.

Good debt can also be when it is tax-deductible. If you could take out a
mortgage that was more than you could afford to pay back, it would seem to
be financial suicide. Except. if you take out this mortgage and the property
gives you a positive return on your dollar. It means that it pays you more
than what you are spending on the mortgage and other maintenance expenses.
That means your money is working for you, and describes positive cash flow:
an example of very good debt.

Investment properties have GREAT TAX BENEFITS. So, the decision to incur
more debt for investment properties should be discussed with your tax
advisor and real estate professionals.

About The Author: Investment Property Specialist - Alex Anderson Connects
Real Estate Investors With High-Quality Investment Properties. Get A Free
Copy Of, "The Investor's Rental Guide" at:
http://www.GreatInvestmentProperty.com

Short Term Cash Advance Payday Loans

Sometimes it seems there's just no way out. Maybe your car breaks down, you
have an unexpected medical expense, or you just find your self coming up
short when you're shopping to put a smile on your kid's face for the
holidays. All of us have felt strapped financially at times, and the choices
we have are accruing more credit card debt, borrowing from friends or
family, or trying to get an advance from your boss.

In the past decade our communities have seen little money mart stores
popping up all over the place, fulfilling a need that many of us have when
we're strapped for cash. If you have a job and are just a little short of
cash, you might want to consider taking out a Payday Loan. Now you can get a
cash advance payday loan on the Internet approved with no credit check in as
little as 30 seconds, and they will deposit up to $1,500 electronically into
your bank account within 24 hours.

Payday loans, sometimes called cash advance or paycheck loans, fulfill a
real need for people that are forced to live paycheck to paycheck, have
little or no credit, or just need some extra cash for the holidays. Just be
sure you can pay the loan back and as quickly as possible - payday loans are
not cheap!

A short term cash advance payday loan online will charge you anywhere from
$15 to $30 for every $100 borrowed. When looked at as an annual percentage
rate this is huge, but the idea here is to pay the loan off, or at least
down very quickly. Therefore it is probably best to look at the charge as a
fee, or service charge.

Payday loans are not without controversy. Critics of the industry say that
the brick and mortar lenders tend to set up shops around poorer
neighborhoods and close to military bases, where people are often strapped
for cash and don't really understand the relationship between time, money,
and recurring payments. Some compare the lenders to loan sharks because of
exorberant interest rates that can reach in excess of 250% when annualized.
Most states have usury laws that put a cap on what an institution can charge
for a loan, but lenders can easily bypass that by funding the loan through a
bank that is chartered in a state that has no such law.

On the other hand, payday loans are not the only ones whose fees seem
excessive when annualized. A bounced check or a late credit card payment can
easily cost just as much or more. Think if you bounced a $100 check every
month for a year. With an NSF fee of $48, that would come out to a whopping
1,250 annual percentage rate.

The bottom line is that a payday loan can be a good thing if you're in a
bind, and are sure you will have the capability to pay it off quickly. If
you think you would have to pay it off slowly, you would be better off using
a credit card and making the minimum payment, if that is an option.

About The Author: Michael Talbert is an author that writes on a variety of
topics. Visit The Loan Station at http://www.Loan-Station.net for more
information.

How To Make Your Credit Card Work For You

Everybody seems to be just itching to get hold of a low interest credit
card. Who would not be? These low interest credit cards definitely offer a
lot of major advantages over normal credit cards. Aside from the low
interest, other fees like annual fees might also be waived.

Low interest credit card means you won't be paying more for a credit card
purchase. Since there are several low interest credit cards available in the
market, it'd be better to first understand how these interest rates work.

Some credit card companies might entice you to sign up for their credit card
by offering a low introductory interest rate.
This could even be as low as 0%. This rate could go on to up to a year. When
this introductory period is over though, you would have to pay the normal
interest rate, which in most cases is referred to the purchase APR.

Customers might find these low interest credit cards very much appealing.
True enough, these low interest offers could definitely help lower your
credit card debts. With these offers, consumers can just transfer balances
to whoever has the lowest interest rates. Fortunately for consumers, banks
are in stiff competitions with each other. Low or even 0% interest offers
can last to up to a year, in a bank's effort to keep the customer's
financial portfolio.

Not everyone might be able to avail of these low interest credit cards
though. Banks usually require that you have an excellent, or at least good
credit score. If you do, it is likely that banks would offer you lower
interest rates. Banks find it less risky to offer better deals to those who
are known to be able to payoff their debts.

Those who have a great credit have good chances to obtain interest rates
which are lower than a normal credit card. This could range from 9% to 15%.
So if you have a good credit card, you might want to shop around some more
first in looking for a better deal.

Having qualified for low interest credit cards, you'll surely get better
introductory offers. Usually, this could be delayed APR for up to a year. If
you have this card, you'd be able to payoff credit card balances at no
additional interests. This makes it highly profitable.

Low interest credit cards rarely come with annual or enrollment fees. Those
who have perfect credit are surely able to take advantage of all these
benefits. High interest credit cards with annual fees are usually intended
for high risk cardholders, specifically those with bad credit.

However, it should not be forgotten that banks are for-profit organizations.
Some low interest credit cards may come with a catch. Some companies might
require customers to spend a minimum amount on their credit cards or else,
additional fees might be imposed. Also, the moment your low interest rate
period is over, which you might not notice pass, the normal and exorbitant
interest rates would apply. These are just some of the ways banks earn to
compensate for their low interest rates.

Low interest credit cards could really work for you but before committing to
any card, be sure you have understood and read the fine prints. Usually, it
may stipulate additional fees or conditions. It is best to be familiar with
everything about the card first to be able to effectively weigh it against
other low interest credit cards offered in the market.

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.

Wise Debt Management Tips To Consolidate Debt

Debt relief characterizes those people who systematically take
responsibility for their actions to reduce debt. Schooling oneself in the
art of bookkeeping is the beginning of managing your debt into more payable
repayments leading to debt consolidation.

When you systematically take care of your debt you build a steady cash flow,
maintain a healthy credit score as well as remaining on top of any future
financial commitments when they are due.

How do you use effective debt management techniques to consolidate debt?

By making a checklist and knowing which debt needs servicing first before
worrying about the next until every debt has been paid and then you start
the process all over again. When looking for an effective debt management
plan to consolidate your debt be sure to take tiny steps at first conquering
your major battles before moving on to minor scuffles. Formulating a list
allows you to visualize the task at hand and gives you a better
understanding of where you sit.

Follow this process with listing accounts with the highest interest rate
variable to the lowest. The higher the interest connected to your debt the
quicker they can spiral out of control and consume you.

Be sure to explore the many options you have at your disposal when looking
to service your debt as there are many ways of tackling your debt such as
using the equity in your home, applying for a personal loan or investigate
lowering the interest on your credit cards with balance transfers.

Be sure to investigate all options available to you as you could be
surprised with what is on offer. Another method well worth looking at when
formulating a debt management plan is to use what some call the 'snowball'
method. The snowball technique refers to the doubling of payments towards
your lowest balance.

Let's explore this other alternative which goes against the grain! Servicing
the lowest balanced accounts releases you cash you otherwise had committed
to direct elsewhere.

Keeping the momentum going by then doubling or tripling the payments on your
2nd lowest balance and service that debt.

This technique has a huge effect psychologically building discipline and
energy behind the principle of servicing any outstanding debt no matter what
the balance is or the interest rate attached to it and thus releasing
capital which can in turn be directed elsewhere.

The snowball method has its advantages as it shows your creditors that you
are able and willing to service your debts with larger payments and this is
the time to contact them and request a meeting in order to negotiate a more
favorable repayment structure and interest rate or even a personal loan to
consolidate your debt.

You have nothing to lose to investigate the possibility of refinancing your
present accounts into one low interest loan.

Once you pay all your debts off be sure you continue to practice sound debt
management strategies and remain on top of things!

Keep credit cards at a manageable level always paying the full month's debt
and not the minimum balance as they are the highest form credit available
and the easiest to lose control of.

About The Author: http://www.accounttt.info/: A site related to loans, debt,
credit cards and other related topics of interest ... The above article may
be used provided any live links remain active and the article remains as is.

Missing Credit Payments And Your Financial Health

Sometimes things just come up. You have an unexpected expense, or just flat
out forget. Many people think this is no big deal, forgetting to make a
credit card payment won't hurt you in the long run, as long as you make your
payment the next month right? Well actually, missing a credit card payment
can actually ruin your financial health. There are three main things that
can happen when you miss a credit card payment.
Each card is different and some are more or less strict, but this is just an
overview of what could happen.

Bye Bye Promo

So you get a new credit card with a great promotional rate like 2% for the
first year on all your purchases. So things are going along well, you rack
up some charges and then one month something comes up. You can't afford to
pay all of your bills, so you figure you will just skip your credit card
this time.
Well, in most cases, if you do this, you can say good bye to your
promotional rate. This rate is a reward for staying a responsible customer,
and if you don't stay responsible you can forget about keeping it.

Default Rate

Even worse, if you don't make a credit card payment, the company will often
change your rate back to the default interest rate which is normally quite
high. So if you think that you are having trouble affording your minimum
balance when your rate is at a promotional rate of 2%, try affording it when
it is at a rate of 20%.

Credit Score

Most credit companies will report you to the credit bureau for just one late
payment. This can lower your credit score by several points and can cause
you to be turned down for credit in the future. It seems like a lot for just
one late payment and it is, but it is not worth it to risk it all for one
payment. It is best to pay the minimum, even if you have to move money
around a little and may not be able to do something extra like go to a movie
or out to eat. But in the long run it will be worth it.

About The Author: Visit http://www.creditreportsense.com for information on
how to obtain an
http://www.creditreportsense.com/Obtaining_a_Free_Credit_Report.shtml

Fixing Your Finances Through A Bad Credit Home Mortgage

If you've been abusing your credit cards like many Americans there's a
decent chance that you've already accumulated enough credit card debt to
last you until retirement age. On the other hand, it may be time to bit the
bullet and to say enough is enough and do something about it before you find
yourself having to go through a bankruptcy.

The good first step is to take charge of your financial situation by keeping
track of every cent that goes in and out of your pockets.

Unfortunately, through the power of credit cards or "cashless shopping",
many have been duped into over spending because of the readily available
credit that multiple credit cards offer and by the low monthly payments.
Individuals think only of today and before they realize it they've spent
themselves into financial oblivion by purchasing things they don't really
need, they can't afford and sooner or later the debt begins to snowball out
of control.

There are options once you see the light and decide to make the necessary
changes in your spending habits. Both financial institutions and many non
profit organizations offer debt counseling to get you started in the right
direction.

Another popular debt consolidation option is the all inclusive bad credit
home mortgage debt consolidation loan. You can take all your credit card
debts and pay them off in one fell swoop.
Of course, you need equity in your house but if you do it's a viable option
because you'll lower your interest rate and be able pay off more principal
each month. Another nice feature is that the interest you do pay will become
tax deductible.
Consolidation will also allow you to take multiple payments monthly payments
and turn them into a single payment.

When it comes to working towards a debt free life, it's important that you
pay all your debts and loans each month but you should also set aside a
percentage of your income in some type of savings plan. This is essential if
you truly want to get your financial house in order.

By organizing expenses, curbing your spending and developing sound savings
habits you'll begin to create a financial buffer for when the unexpected
events of life occur like losing a job or health issues. Of course, there's
really no easy way to escape debt payments. It's simply a matter of finding
the best debt reduction plan that suits your financial capacity and setting
up a realistic time frame to get your financial house in order.

Tip - For options in finding the best lender for you, check out the links
below.

About The Author: Visit http://www.eyeonsubprime.com |
http://www.eyeonsubprime.com/sitemap1.html or
http://www.eyeonsubprime.com/links.html for more information on loan and
mortgage options.

Closer Look At Bankruptcy

Do you have a hard time paying your credit card bills? Starting to get
notices from waiting creditors to pay? Worried that you might lose your
properties like your house because of credit debt? Chin up: Dealing with
credit card debt is not as hard as you may think.

More and more consumers today find themselves in the uncomfortable situation
of only being able to afford the minimum payments on their credit cards. Or,
even worse, not being able to afford even the minimum payments. In today's
world, it is often easy to get in over your head and find yourself spending
more than you make. It seems that everything is going up but wages, and it
is all too easy to fall behind.
Learn more ways to reduce debts today.

There are numerous types of debt, including basic loans, syndicated loans,
bonds, and promissory notes. Debt, especially large sums of debt, can also
be secured through a mortgage or other security interest over some of the
debtor's property, in which case the creditor will have some rights over
that property in the event that the debtor becomes unable to repay the debt
and defaults on the loan.

Debt consolidation allows a consumer to present their financial case to a
lender who may be willing to take on the burden of paying off debts in
exchange for one monthly payment made to the lender.

A Closer Look at Bankruptcy

Bankruptcy is a process of the federal court that is aimed at helping both
businesses and individuals in clearing up their debts and repaying under the
protection given by the bankruptcy court. There are basically two types:
liquidation and reorganization. Liquidation bankruptcy, under Chapter 7 of
the bankruptcy code, occurs when you plead the court to have your debts
discharged. Some of your properties will then be liquidated or sold by the
bankruptcy court, returns of which shall be divided among your creditors.
This type of bankruptcy proceeding lasts for four to six months which is
quite fast and only one appearance at the courthouse is necessary. It is
very convenient and doesn't require payments stretched over time.

Chapter 7 bankruptcy isn't available to everyone, though. You may won't
benefit from it if in the past six to eight years, you have benefited from a
bankruptcy discharge. Likewise, if after examination of your income,
expenses, and overall debt, it was found out that the other type of
bankruptcy proceeding is more appropriate, then you can't insist on pursuing
this kind. Veterans who are now disabled and who incurred their debt at the
time of their active duty are almost automatically allowed to file. In
addition, those people whose debts are caused by running a business are
qualified as well. For those people not belonging to any of these
categories, certain criteria must be met.

The criteria has been affected by the new rules imposed on bankruptcy. One
of the considerations is your current monthly income which in turn will be
compared against the median income for a family of similar size in your
state. This isn't your income at the time of your filing. Instead, it is
your average income for the past six months before filing. Social Security
benefits like retirement and disability benefits aren't included in the
computation. If your income appears to be enough to support the other type
of bankruptcy proceeding in spite of permitted expenses and payments for
child support, tax debts, and others, liquidation bankruptcy is
unfortunately not allowed.

A home equity loan literally allows an individual to borrow from a lender
based on the amount of value they have earned on their home. If you use
credit cards, owe money on a personal loan, or are paying on a home
mortgage, you are a "debtor." If you fall behind in repaying your creditors,
or an error is made on your accounts, you may be contacted by a "debt
collector."

Having trouble paying your bills? Getting dunning notices from creditors?
Are your accounts being turned over to debt collectors? Are you worried
about losing your home or your car?

The Consumer Credit Counseling Service (CCCS) reports that calls from people
worried about debt have been increased by 50% compared with last year. After
you have contacted each creditor, you can start setting up a budget plan
that will help guide you through the process of eliminating your debts.
Start with a weekly budget plan and then work your way toward a monthly
plan. You should know that in either situation, the Fair Debt Collection
Practices Act requires that debt collectors treat you fairly and prohibits
certain methods of debt collection. Of course, the law does not erase any
legitimate debt you owe.

Many people, if given a choice, would prefer this type since repayment of a
portion of the debt is unnecessary. You may lose some of your properties but
some courts permit some sort of a leeway that doesn't take all to give you
something to start with afterwards. On the other hand, reorganization
bankruptcy, usually under Chapter 13, happens when you file to a bankruptcy
court a plan on how you intend to settle your debts. You indicate how much
each of your creditors will get, depending on your finances. There will be a
three- or five-year repayment plan, only after which can you be discharged
of your debts, if any still remains. At times, however, due to obvious
financial difficulties, the court itself decides to give a discharge earlier
than planned and this is what usually happens.

An additional requirement for both types of bankruptcy is completion of
credit counseling conducted by an agency recognized and approved by the
United States Trustee's office.
This helps you look closely at the situation at hand and identify if
bankruptcy is really essential. This allows you to see several possibilities
of informal repayment which you may have overlooked in the past. Even if
such is obviously impossible, counseling remains a major requirement.
Furthermore, completion of post-counseling is required after the
proceedings. This aims to teach you financial management to avoid
encountering the same situation in the future. The bankruptcy discharge will
not be released unless this is fulfilled. Bankruptcy may be beneficial for
both the debtor and creditor. This is a way of recognizing one's
responsibilities and mistakes that led to the financial difficulty. The
entire process takes into consideration both parties' interests and leads to
the development of an action plan that fulfills them.
As such, this law shouldn't be abused by any debtor thinking that a court is
there to intervene.

Bankruptcy, although generally advantageous, must be considered as a last
resort. You should, in all circumstances, work hard to be in full control of
your finances to avoid being estranged in difficulties. Discipline is indeed
a very crucial trait that must be maintained at all times. Having said that,
many borrowers can benefit from consolidating their debts on better interest
rate terms. Some credit cards cost up to 17.9 % (e.g.
MBNA) and store cards can cost more. Consolidating your debt could cut
interest payments by up to two thirds. If you've got a number of credit
cards and insurmountable credit card debt, then perhaps it's time to
consider a debt consolidation loan. A consolidation loan is a loan that you
can use to pay off all your debts, meaning that you can pay them off for
less money without having to worry about lots of different bills.

Secured loans make your creditors feel more secure about loaning you money.
When someone takes out a secured loan, that simply means there is collateral
to back up the money they borrowed.

Debt is a hard thing to live with, but we all have it and deal with it
everyday. Sometimes it is manageable, sometimes you feel like you can barely
keep your head above water and unfortunately many times you feel like you
are drowning in it!

About The Author: Learn ways to reduce your debts today at
http://www.reduce-debt.info

Get Smart About Business Credit Cards: Tips From A Pro

The first thrill about starting a new enterprise is seeing the name of your
creation on a business card. You want to hand them out to everyone you see —
friends, family, the kid who bags your groceries. Soon after you've
registered your trade name, the credit card offers start cluttering your
mailbox. It's flattering at first. You imagine going out to dinner, grabbing
the check, and saying, "it's okay, it's on the company." So you fill out one
or two "pre-approved" applications and, like your business card, can't wait
to use this little symbol of acknowledgement. A corporate card tells people
you've arrived.
You're a legitimate business.

But it can also spell trouble.

The purpose of a business credit card is to have the convenience of charging
legitimate business expenses. You avoid using a personal credit card and
submitting receipts for reimbursement. You have the ability of making online
and telephone purchases to expedite shipment. The revolving account helps
you plan your cash flow. The statements provide a detailed accounting
record.

Used wisely, a business credit card provides these important benefits and is
essential to building your corporate credit profile. Demonstrating
reasonable usage and maintaining a good payment history not only allows you
to gain more credit, but also helps you negotiate better interest rates on
loans, lines of credit, and other revolving accounts. In fact, using a
credit card properly is better than paying cash because lenders want to see
a credit profile with positive activity. One small business owner had been
vigilant about paying cash for all his purchases to avoid having monthly
bills. He had had some personal credit issues in the past and was determined
to avoid a recurrence. He felt great about keeping his costs under control.
When the owner applied for a business loan at the local bank, he was advised
that the black marks on his profile were minor. The biggest problem was that
he had no recent credit history. So, he got a credit card, budgeted a
monthly allowance for the payment, and made small purchases to establish
reports on his credit profile.

A business credit account is clearly valuable for a lot of functions. What
it isn't is a license to spend without regard to the consequences. Just
because you're not writing a check doesn't mean you haven't spent corporate
cash. By following some basic guidelines, you can manage your corporate
credit card account so you reap the rewards instead of paying the price.

* Get credit from your own bank. Once you establish a business banking
relationship with a local financial institution, continue to grow that
relationship by applying for your business credit card at the same place.
The more business you do with this bank, the more they get to know you. The
comfort level increases the likelihood that they will consider your request
for funding when the time arises. Show loyalty to them and it will be repaid
in kind.

* Read the fine print. Many credit card companies shout out low introductory
rates. The key word here is "introductory." After the honeymoon period is
over, the rate can shoot up above the interest you're paying on your current
card. There might be hidden fees that can rack up the bottom line on your
monthly statement. Look for an annual fee, the first sign that this card is
going to cost you money. If you have to pay for the privilege of having the
card, chances are you don't need it.
There are various other features that you do want: overdraft protection,
24-hour customer service, and detailed account reports for your business. In
the long run, these services are far more important business benefits than
frequent flyer miles or discounts on rental cars that are often accompanied
by numerous restrictions of their own.

* Find a card and stick with it. With all the offers of lower interest rates
and appealing incentives, you might be tempted to switch your account from
one issuer to another. Unless you are dissatisfied with your credit card
company, stay put. Card hopping shows up on your credit profile and will
likely be unimpressive to a prospective lender. Use your valuable time to
manage your business instead of pitting one credit card company against
another.

* Do not mix business with pleasure. A business credit card is intended for
business purchases only. In the event of an IRS audit —†and they do occur
via random selection — questionable expenses will raise suspicion.

* You don't need a deck of cards. You shouldn't require more than one or two
major credit cards for your business. The more credit cards you accumulate,
the higher your debt potential.
You charge a hundred dollars at the office supply store, then charge
computer equipment with another account, and maybe pay for gas, meals, and a
nice little antique table for your conference room on your corporate bank
card. There's still room on each card, so you're okay. But when the monthly
bills come, the totals come as a surprise. You can only make a minimum
payment so the finance charges will start to kick in. By keeping track of
the expenses as you make them you won't heap up a debt that puts a
stranglehold on your accounts payables.
Whenever you take that card out of your wallet, ask yourself if the purchase
is necessary and valid for the company.

* A credit card is not a loan. The account should not be viewed as a source
of funding when cash flow is tight. The interest rates and transaction fees
are too high! Avoid taking advantage of the cash advance option. If you are
resorting to borrowing from your credit card, chances are you're not going
to be able to pay the bill when it comes due.

* Limit the number of users. A company credit card is as much a
demonstration of trust as it is a convenience for the user. The bookkeeping
for multiple cards can be a nightmare, however.
Before applying for a card, make sure you can get itemized reports for each
card so your frustrated bookkeeper doesn't have to chase down people to
identify charges. To avoid excesses, specify to the employee how much and
what type of charges will be acceptable. Review the monthly statements to
verify that the cards are being use appropriately.

A business credit card is an essential tool to manage your finances and get
the items you need on a timely basis. In order to take full advantage of the
benefits, choose your credit card company wisely, making sure you understand
the services and the limitations. Be clear about how the card will be used.
Credit cards follow a basic law of physics: for every action (a
purchase) there is an equal and opposite reaction (a bill). By getting
proactive about the company credit card, you can keep your finances in
balance, boost your credit profile, and enjoy a terrific convenience.

About The Author: C.G. Parker is a former IRS Agent and now dedicates her
time to teaching and helping Small Businesses Succeed by understanding
Business Credit, Business Credit Cards and financial stability
(http://www.small-business-credit.org)

"Using Personal Loans For Credit Card Debt..."

Credit card debt is widespread amongst the average American household and
seeking ways of consolidating debt usually means utilizing the equity in
ones home or seeking a personal loan to service the credit card payments.
Using the equity in your home to apply for an equity home loan and directing
the funds towards debt management is an excellent method for getting your
house in order in regards to your finances.

A personal loan without collateral may sound inviting but rest assured any
financial institution or broker is going to want a higher return for the
added risk. Using the equity in ones home has become a popular form of
liquidity to finance and consolidate existing credit card debt, however not
without its risks. Be sure you read the fine print & beware of the risks of
defaulting on any repayments when using the equity in your home for a equity
home loan as you could end up losing your family home to your creditors
should you fail to meet the repayments!!!

Consolidating debt for some means digging into their 401K for immediate
relief to the detriment of their future well being.
Immediate relief from credit card debt and the high fees and interest
associated with such debts is a huge incentive for some to look for the 401K
alternative. The compromise to such action is that you are forgoing future
savings and security for immediate relief, but if the timing is right and
you are confident of repaying the loan it certainly is a viable proposition.
It is a very appealing short term debt solution which has its benefits as
well as draw backs.

It is always wise to stack the advantages against the disadvantages in
anything dealing with your finances and when formulating a wise debt
management strategy. Any unforeseen event which can disrupt your repayment
schedule could mean penalties due in the form of tax installments or the
fulfillment of the principal on the borrowed loan.

Tax perks when saving with a 401K account are reduced when borrowing off
your retirement, as you are reimbursing the account with after-tax dollars.

Be sure to negotiate a better interest rate on any repayments with any loan
whether it be a personal or a home equity loan.
The higher the interest rates, the higher the repayments, the less
disposable income that is left for savings or other pleasures of life so
ensure you manage your credit card debts first as they carry the highest
interest rates of any form of credit.

The rate you are able to negotiate your interest will be fixed for the
duration of your personal loan and you will be required to make monthly
installments to service the loan which will be at a rate much lower than any
credit card debt you are carrying. Undisciplined habits of making late and
overdue credit card payments tends to incur extremely high fees and even
higher interest rates which can become a major problem to most budgets.

A savings account allows you the luxury of redirecting resources to areas of
debt which have the potential to erode ones worth very quickly if left
unchecked!!! When you compare the interest rate you earn on a savings
account and the cost of credit card debt it makes little sense not
redirecting funds from you savings account towards servicing debts
elsewhere???
Be smart and service your credit card debt before setting up any high yield
savings account, you will be thankful you did in the long run.

About The Author: http://www.accounttt.info: A site about using personal &
home equity loans to service credit card debt as well as other related
information of interest ... The above article may be used on the condition
that any live links be left active ... Enjoy!!!

Credit Card Debt

Remember when everyone paid for things in cash? Probably not.

Credit cards are no longer considered a luxury, but rather, a necessity. So
as you can imagine, a lot of people are going into debt with credit cards.
Many people posses more than one credit card. The credit card industry is
growing by leaps and bounds. However, both the credit card industry and
credit card holders are posed with the problem of credit card debt. In order
to understand what credit card debt means, you need to understand the
workflow associated with the use of credit cards.

Credit cards, as the name suggests, are cards with which you get credit (the
ability to borrow money). Your credit card is represents the credit account
that you hold with the credit card supplier. Purchases you make using your
credit card are actually amounts of money you are borrowing. This
contributes towards your credit card debt. Your total credit card debt is
the total amount you owe your credit-card supplier.

You are required to settle your credit card debt on a monthly basis. You
receive a monthly statement or bill which shows your total debt. You must
pay off your credit card debt by the payment due date. failing to do this
will incur late fee and interest charges. However, you also have the option
of making a partial (minimum) payment, in which case you don't incur a late
fee -- just the interest charges on your debt.

If you don't pay off your credit card debt in full each month, the interest
charges get added to amount. Your credit card debt keeps increasing (more so
than on other types of loans because the interest rates charged by credit
cards are generally higher). Further, the interest charges plus your credit
card debt from the prior month form the balance for the next month.

If you continue making partial payments (or no payments), your interest
charges are calculated afresh on the next credit card bill. You end up
paying interest on the last month's interest, too. Thus your credit card
debt rapidly accumulates, and you find that what was once a relatively small
credit card debt has ballooned into an amount you find almost impossible to
pay.
Moreover, if you don't control your spending habits, your debt will rise
even faster.

This is how the vicious circle of credit card debt works. Don't put yourself
in this position. Don't make any purchases on your credit card that you can
not afford to pay in full when the bill comes.

About The Author: William Jones contributes to several online magazines,
including http://litoc.com and http://go-recreation.com

The Three C's College Students Love Best - College Credit Card

Moving out. This is the term often connotated when you turn 18 and go off to
college. College equals independence. Mom and dad aren't around so you could
do things you've always wanted to.
You don't have to worry about them looking over your shoulder because
chances are, you'll be miles away from them. Your only concern is cash.
Since your parents aren't there on your beck-and-call, you have to earn your
own moolah and fast.

Just as how one is entitled to be on his own in college, this is also the
perfect time for one to start off his credit history. Credit cards are often
offered to individuals who are heading off to an independent stage of their
young lives.

Tips on handling a college credit card well:

1. Don't be overwhelmed on the bonuses you get when choosing a credit card
that is appropriate for you. Some issuers include discounts on novelty
stores that are of interest to their targeted clients. The catch is their
consumer is too excited to what he can get less to notice that he is
actually paying more because there is a higher interest rate.

2. There are offers that are only good at the beginning. Later on, there is
actually a credit limit and it is not as much as the other competing credit
cards.

3. The minute you have a credit card in your wallet, you have to use it
wisely. Regard your credit card limit as the amount of cash you have in your
wallet. You can only spend this much.
There's no mom or dad telling you to stop spending. The conscience is all
yours. Remember that if you do go overboard your credit card limit, you
wouldn't be able to use it for some time - not unless you pay the
withstanding balance. Dilemma is what if you are in dire need of cash the
time your card got temporarily cut off.

4. Statistics show a majority case of credit cards getting cut up are from
college students. The repercussion of this matter is that because of their
bad credit card history, they will have a hard time applying for loans such
as home insurance, car insurance and the like when they are already working.
It is as if their reputation on the credit department is already tainted and
unlikely to be erasable.

5. If you are going to sign up for a credit-card, make sure that you have
ways paying for it. Most student credit-card holders have part-time jobs.
Some make the mistake of having a credit card but then run to mommy and
daddy when they can't pay for it.

It's because if you don't have money coming in and you have money going out,
then there is no balance. We suggest that you have a part-time job for the
reason of your credit card history. Learn to budget your money and also the
time when you pay your bill. It looks good on your statement if you pay your
bill on time and in full.

6. Read and understand the contract before you sign. If you are not that
knowledgeable on business matters, you could ask a trusted friend or family
member to explain terms such as interest, credit limit, balance, interest
fee, annual fee, grace period and due date to you.

7. Just like shopping for things you like, look around and browse through a
number of credit card issuers before deciding on one that you will be
getting. Signing up for a credit card is a commitment you make because not
only does it involve money, it involves your credibility as a consumer.

8. Be aware of your credit score. On average, a college student has at least
one credit card. Go online and check your statements whether it's accurate
or not. By using your credit card like an adult and not like a shopaholic,
there's a possibility that you get big rates in the long run. This is
because financial institutions that loan money check on your credit history
and the moment they see that you pay on time and in full, they will have no
qualm lending money or insurance to you.

It's always best to start early in life. Why not do so in college? Those who
are successful in their 30s have good credit card history. It's like their
reputation of being responsible is reflected on their bank statements and
look how far it has gotten 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.

Secured Credit Cards - A Safe Way To Establish Credit

Secured credit cards are designed to assist people who have never had credit
or those who have bad credit, in order to enable them to establish a good
credit rating.

Typically, secured credit cards are issued when the holder is able to offer
a type of "security" deposit to the lender by depositing a pre-arranged
amount of money into a savings account, money market or certificate of
deposit. This is how it works: Usually, for a small fee, the lender will
allow the cardholder to utilize the credit card within the specified
parameters. Unlike using the cash for any purchases, the secured card
creates a credit history for the holder, thus contributing to their overall
credit rating.

With a secured credit card, it is imperative that you make full payments
each and every month; otherwise interest is charged on the outstanding
balance. If you default, the lender will use the amount in the security
account to pay off the debt and this can result in more damage to your
credit rating.

As with any other financial undertaking, it is important that you read the
fine print so you are totally aware of exactly what you are paying for.
There are some pretty unscrupulous predators out there whose primary goal is
separating you, the consumer, from your money. For this reason, you should
pay particular attention to the fee schedule prior to accepting any offers
for credit cards. Of course, no-fee credit cards are best, but most often
the lender will require a small one-time activation fee, which can typically
range from $25 to $30.

The onus is on the user to be vigilant when obtaining credit, so it is your
responsibility to make sure there are no hidden fees. Special care must be
taken when the contract contains clauses outlining registration charges
and/or set-up fees. In some cases, the cost of the card can quickly exceed
your credit limit, thus only adding to your credit woes.

With a secured credit card, you will of course pay a higher than average
interest rate, however, this does not mean that the interest charge is
outlandish. Many secured cards offer competitive rates under 19% and again,
this is where diligent research on the part of the user becomes paramount.
You should be cognizant of all grace periods, the penalty for late payments
and the fees charged should full payment not be made within the proscribed
time frame.

Once you show due diligence over the specified time frame (most lenders like
to see a history of six months to one year of responsible credit card use),
the creditor may offer to double the amount of credit available to you, with
a portion of this fixed amount being unsecured. Should you choose to close
out the account, however, the unsecured funds must be returned to the
lender.

The cardholder should ensure that the creditor regularly informs
credit-reporting agencies of their payment history.
Once it can be established that you are using credit reliably and sensibly,
your credit score will increase and you will then be eligible to apply for
an unsecured credit card.

----------------------------------------------------
Liz Roberts is a loan consultant with NHBS Inc. offering helpful advice on
repairing bad credit. Visit our site
http://www.newhorizon.org/Info/securedcc.htm

to apply online for a secured
credit card

Selecting A Good Credit Counseling Agency

Setting up non-profit credit counseling agencies is quite popular these days
because the non-profit status helps these agencies in availing numerous
benefits. One of the biggest benefits is the federal and state level tax
exemptions granted to these non-profit credit counseling agencies. The two
tax exemptions combined together can add up to thousands of dollars every
year. In addition to tax exemptions, the non-profits status also makes these
agencies eligible for several public and private grants. To initiate Fair
Share contributions, it is mandatory to have non-profit status. Therefore,
the non-profit status helps these credit counseling agencies obtain greater
respect of the creditors. That is not all. In few states the non-profit
agencies are also unreachable by consumer protection laws.

Due to all these benefits bestowed upon them, it is not surprising to see
almost all major credit counseling agencies advertising their non-profit
status. However, you must keep in mind that most of these so called non
profit agencies are set up only to make profits. The non profit status is
only used by them as an easy method to tempt customers. Debtors in need of
professional help and advice get carried away by these profit-making non
profit credit counseling agencies. Only after they start dealing with these
agencies they realize the actual truth related to interests and worth of
these agencies.
Although there are many non-profit credit counseling agencies set up just
for making profits, all of them are not like that.
Agencies providing genuine and authentic counseling also exist.
National Foundation for Credit Counseling or the Association of Independent
Consumer Credit Counseling Agencies provides credit to most of these
agencies.

You can enquire about authenticity of a profit credit counseling agency from
the local Better Business Bureau. As a debtor, you can get information
related to any complaints lodged against the agency at the bureau. You can
also get information related to a profit credit counseling agency from
online credit forums. Good credit counseling agencies are a boon for all
debtors. They help in developing a personalized debt management and budget
plans for debtors. To help debtors in reducing their debt, these agencies go
a step forward and speak to creditors and make them lower down or remove
interest, finance charges and late payment penalties from debt amount.
Some of these agencies can even get the debt collectors off the back of poor
debtors. Keeping these advantages of good non profit credit counseling
agencies, debtors must always be careful in selecting an agency to help them
in managing their debts. Remember that if you get involved with an agency
established just to make profit, you may end up worse than you are at this
moment.

About The Author: Focusing on latest news in consumer counceling, Linden
Walhard published first and foremost for http://www.creditenio.com . Writing
for publications like http://www.creditenio.com/ccsettlement.html ,the
columnist improved his knowledge on issues related to credit card debt
settlement.