Saturday, March 31, 2007
Credit Reports: Find out why you have been refused Credit.
You may already have 2 or more credit cards in your purse or wallet and you have just applied for a third and been declined. This can be very frustrating considering you pay off your other credit cards regularly and you are continually having your credit limit raised.
This is a common problem and the only way to find out more is by getting a copy of your Credit Report. Equifax and Experian are the two main credit reference companies in the UK and hold credit details of over 40 million people. Your file includes information about all your credit cards, loans, mortgages, bank account details, as well as any adverse bill payments or County Court Judgements against you.
When a Credit Provider asses your credit risk they will look at your Credit Report and make a decision based on your scoring. Your score is based on several factors. You may get more points for living in your address for more than 3 years or for having a home telephone, be married or for having children. Your age and profession can also help your score. The more points you have on your file the more chance you have of being approved for credit. The credit provider will use all this information coupled with your credit history to come to a decision. A Credit Providers scoring system is sensitive information so its not easy to understand why you were refused credit.
By having access to your Credit Report you will be able to get a sense of why you possibly have not been granted Credit. Another important point is to check and see that everything on your report is correct. You are allowed to make corrections to your file. As most people dont get their Credit Report they never know whats on it or why they are being refused credit. If you fell behind in some of your bill payments you are also allowed to add a note explaining why you did. This may also improve your score.
With all the 0% credit cards on offer its worth mentioning that if you are continuously applying for these cards you could be damaging your credit score. The number of times you apply within a 6 to 12 month period can have an adverse effect on your score. If you have been refused credit, dont just move on to the next lender, find out as much as possible as to why it was declined before applying somewhere else.
You can find out more about your Credit Report at Experian and Equifax. It costs £2 for a basic report.
Friday, March 30, 2007
The Burden of Debt
Over recent old age personal debt in the United Kingdom have exploded. Since 1997 the sum debt including mortgages was in the part of £940 million. Approximately 18% of that figure is unsecured credit, accounting for about £8000 per household.
This is a staggering amount of money. With interest rates being raised respective modern times last year, the strain of maintaining our debt is taking its toll. Sources uncover that the UKs debt has increased every single calendar month without neglect since April 1993.
As it have been relatively cheap to borrow money over that last few old age it have been very easy to get access to money. Interest rates are widely predicted to lift additional adding even more than to the current £5 billion we are paying every calendar month in interest.
According to the FSA (Financial Services Authority) one lb in every 10 we pass is borrowed money. Its very easy to shop around for good rates when borrowing money. Most of us still purchase our financial merchandises on the high street and the large Financial Institutions alkali the terms of their merchandises on what they believe is the upper limit borrowers are prepared to pay.
With the internet people are able to shop around for much better rates and this is driving the average terms of borrowing money down. This makes present a catch 22 state of affairs as the cheaper the cost of borrowing goes the more than than people will experience they can borrow more. This makes breed a state of people that are living beyond their means. Debt can be very dangerous as you are effectively borrowing from your hereafter to pay for today.
The wage rate is not growing in line with rising debts so somewhere along the line something have got to give. This may be in the word form of the slightest interest rate rise which may be the straw on the proverbial camels back. One could associate it with a brick that is attached to an rubber set band. You can gently draw and draw and nil will happen, sooner or later the brick will finally budge and most of usage will be walking around with a achromatic eye.
If you make happen yourself in debt then dont despair its not the end of the world. As long as you confront up to the fact that your financial place needs a makeover then you are on the right path. The first thing to is garner all you credit statements and get an exact figure of what you owe in entire and what those monthly payments add up to. You need to be clear in your head what you earn and what you owe. This sounds simple but you cant service your credit if your repayments are more than than what you earn. If you happen yourself in this place you need to consolidate all your loans into the lowest rate you can find. This volition convey down you monthly payments and hopefully be more than manageable.
If you need aid on doing this then reach the National Debtline on (Freephone) 0808 808 4000 or the Consumer Credit Guidance Service on (Freephone) 0800 138 1111. These numbers are for United Kingdom occupants only.
Thursday, March 29, 2007
What Are Interest Free Credit Cards
Credit cards that charge no interest on your purchases or on your balance transfer for a certain clip period of time are said to be interest free credit cards. This interest free clip period is for a certain time and limit. This gives you the opportunity for more than shopping around and disbursement without any latent hostility of being levied any extra amount. Thus you can salvage a batch on these cards.
At modern times it is so that the interest you pay would depend entirely on how good or bad you just in credit ranking. Your annual income and nature of past payments also matter a lot. If you have got got got had a bad credit history then you might have to pay a higher interest as compared to those who have good credit ranking. Thus, by paying off your balance on clip or even before the owed day of the month you can easily guarantee the interest free credit card for your good credit ranking. Today all the major credit card companies supply clients with interest free credit cards whether they are Virgin credit card or Egg credit card or even Natwest credit card accompanied with further offers.
Any interest free credit card can turn out very advantageous for you by many means. This option gives you the opportunity of balance transfer and assists you to pay off your existent outstanding balance of your borrowings without added load of interest. This card turns out to be the convenient tool when you are looking forward to a large purchase and desire to refund in the easy installments. This card turns out to be a blessing for you if it is used wisely. Unfortunately the credit card issuers generally conceal the existent APR and which come ups into image once the interest free time period is over. This turns out hard because now you have got to pay more than than what you may wish to.
Interest free credit cards are a great option for those running play into high debts. Since, you can get an chance to pay back your debts without mounting any more than of them. But make not allow the conception of interest free credit bounder heap up your debt any further. Within that interest free time time period you have got to refund your outstanding amount within the stipulated period. The best manner to happen the interest free credit card is to travel for a item market research, seeking all the avenues available for the information and then travel for any credit card.
Tuesday, March 20, 2007
Credit Cards or Store Cards - Which Is Better?
In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers. The purpose of this article is to provide a general overview of major credit cards and store cards to aid consumers in making decisions regarding which lines of credit lines would be the best for them in a given set of circumstances. In most situations, due to the higher rates of interest charged by most store-specific cards, it is best for the budget-conscious consumer to consider forgoing those accounts in favor of a major credit card.
With that said, we are not endorsing any particular credit card brand in this article. Rather, the materials presented are for informational and educational purposes only.
Major credit cards are accepted in a wide variety of places and venues. Indeed, the major credit card companies make it a point of promoting how wide spread card acceptance is in this day and age.
On the other hand, store-specific credit cards are good only at the issuing store.
Where to Apply
It is simple to apply for major credit cards. Nearly any bank or financial institution can provide a customer with an application for one or another of the major credit cards. Additionally, the Internet has become a handy resource for those men and women interested in applying for and obtaining a major credit card.
Store-specific credit cards only can be applied for directly at the store or shop. Additionally, if the store has an Internet presence -- and many major stores and even smaller shops do so in this day and age -- applications for store-specific credit cards can be made online.
Annual Fee and Related Charges
Many major credit cards do charge an annual fee. Some major credit cards charge an additional or supplemental membership depending on where the card was obtained.
Store-specific credit cards normally are free of annual fees and similar charges to their customers. However, store-specific credit cards carry with them notably higher rates of interest than can be found with major credit card accounts.
Common Clauses and Provisions
In the United Kingdom, and in most European Union countries, there are clauses and provisions that must be included in each and every monthly credit card billing statement -- both from major credit card companies and on store credit card accounts as
well. These clauses and provisions are:
A detailed listing of all credit card transactions
A detailed listing of the amount owed from the previous month plus the extra amount or interest to be paid on that amount owed
The total amount owed for the current month
The minimum amount that must be paid during the month. In the United Kingdom, this amount is about 3% of the balance or £5 whichever is greater.
An estimate of the interest payable if you do not pay your account in full.
The date by which the account must be paid if interest charges are to be avoided
A detailed listing of the monthly interest rate for purchases, the APR (annual percentage rate) and the
interest rate if you have used your card for cash
In the final analysis, one should only have as much credit as is absolutely necessary. Generally, it is not a wise decision to rake in a bunch of different credit cards. Rather, the best policy usually is to maintain one or two major credit
cards. Also consider that store cards generally do not offer the same benefits as credit cards such as balance transfers, although it is common to get brand exclusive reward schemes with store cards. Finally, one must be cautious about obtaining store-specific credit cards due to the higher rates of interest that come with these accounts.
Sunday, March 18, 2007
Choose the Right Credit Card
If you do, you could earn great rewards, save money or even earn money. Some people think every credit card is the same plus or minus a couple tenths of an interest point. I use to. This couldn't be more wrong.
Do you do a lot of traveling? Do you have a large balance on a high interest credit card? Would you like to receive cash back on purchases?
Some credit cards offer points when you fly, purchase gas or dine out which can be redeemed for great rewards. So, if you do a significant amount of traveling look for a credit card that offers rewards for these types of purchases. The points you earn could be used on future flights and hotel stays.
If you have a huge balance on a high interest credit card, this is costing you extra money which could be avoided with a lower interest credit card. Look for a credit card that offers a low introductory rate on balance transfers and offers the standard APR thereafter.
Some credit cards offer you cash back on the purchases you make at certain retailers. So, If you use your credit card a lot, look for a credit card that offers cash back at the stores you frequent most.
Friday, March 16, 2007
10 Dirty Tricks Credit Card Companies Play
The credit card companies make billions each year in legitimate interest charges and fees, but are under constant pressure from the shareholders to increase their earnings. To make this extra money the credit card companies sometime adopt some dirty tricks to make this money. As the credit card industry becomes more competative, less money is being earned from each client from interest charges and the number of these dirty tricks increase. To protect yourself against these unscrupulous procedures that steal your money we will list 10 dirty tricks credit card companies play to their clients so youll know what to expect and look out for. Of course that there are not only 10 dirty tricks credit card companies play to their clients but knowing at least these 10 tricks will help you to not be a victim.
The first one out of the 10 dirty tricks credit card companies play is also the worst of them: not posting your payment the day it was received. This is the oldest known trick: the company receives your payment in time but it doesnt process it immediately; this delay will bring to the company a late payment fee. This is often due to legitimate reasons, but the policies of many credit card companies support a processing time that is not beneficial to you. A second trick is to make you pay late by changing the due date for your credit card payment. For being late the company will charge again a late payment fee and if the situation repeats for few months in a row they can legally increase your interest rate. The third trick played by the credit card companies is a ridiculous one: you can be charged a penalty fee for not using your credit card a certain period of time. As unbelievable as it might seem, this is a new tactic of the credit card companies to take your money. Another two tricks used are in connection with the clients peace of mind. Both of them are connected with credit card protection and the fees that must be paid. One of them is protecting you in case your credit card is stolen, lost or used fraudulently. Almost all credit card companies do not charge a fee for this service, but there are others that do. The best thing you can do would be to avoid the latter ones. The second credit card protection fee is for protecting you in case you loose your job or die. For this protection, usually, the fees are too high for the benefit received, but many customers purchase it out of fear.
We are getting now to the last 5 of the dirty tricks credit card companies play to their clients. The sixth trick is designed to work on the psychological plan: the company is increasing your credit limit. You didnt ask for a limit increase of your credit but the company gave you the possibility to spend more money. This is a psychological trick to make you spend more money on your credit card trick. Another bad surprise is to come back from your vacation and find out that you have been charged more for the amounts spent during your foreign trip. The commission charged for the amount spent outside the country is much higher than usual.
One of the new scams that have appeared in the last years is the card cancellation fee. This fee was adopted because a large number of the clients of a certain bank discovered the extra charges and they rushed all to cancel their accounts. The bank responded immediately by adopting a policy of charging a fee for closing an account. This practice was also adopted by other companies. There are also other scams like penalization for having a big balance or charging credit insurance fees. It is important to know these procedures so you don't get taken advantage of and you can help put an end to these tricks by giving your business to companies who do not employ them.
Wednesday, March 14, 2007
Read This Article if You Want to Be a Millionaire
Everyone wants to be a millionaire, yet many people are millionaires on paper or they control a million dollars worth of property. Some look like they are millionaires, but indeed if they paid off all their loans for the money they borrowed well they would have a negative balance in net worth. Meaning they would be poorer than a street bum. Indeed this is rather funny for someone living in a nice home, driving nice cars and eating in fancy restaurants isnt it?
Do you want to be a millionaire, a real millionaire? Do you want it so bad that you buy lottery tickets too? Do you find this kind of funny? You know you will not win, but you pay to play, because you like to imagine yourself winning? So, chances are you are one of the many millions who want to be a millionaire, admit it. You know you can be a millionaire quite easily if you are careful with your money and would not be such a spend thrift? Whats the matter you do not want to read any further? What did I get to you?
You know if you charge up a storm and pay interest the wrong way you will never get there. Why do you do these self-defeating things, which are keeping you from being the millionaire you want to be? Why are you so self-destructive and why do you go on this way? Working hard is not enough you have to be smart about your money and not waste your earning, inheritance or winnings on trivial crap and paying interest the wrong way to your addiction to plastic. That is the first thing you need to do, change your mindset. Think on this.
Monday, March 12, 2007
It Is In Your Best Interest To Do The Math On Your Credit Card Interest
If you get foaming at the oral cavity once a calendar month when you have your credit card statement, fall in the billions of Americans that are foaming along with you. There is a growth outrage at the seemingly eternal journeying towards eliminating the balance on your credit card and that is owed primarily to the extravagant interest rates charged by credit card companies.
Your bank is probably touting the ace rates it offers on Certificates of Deposit or CDs. Just sedimentation $5,000 for 6 calendar months and well give you a whopping tax return of 2.83%. Yet, in contradiction to the low rates banks are willing to pay you for the usage of their money, the interest on credit card rates can be 10 modern times the amount offered on a CD. Why?
The interest rates on nest egg accounts and CDs are based on competition, the cost to the bank of borrowing money and the expected tax return on investing to the bank for the usage of your money. Because a nest egg account is liquid, the bank makes not cognize from twenty-four hours to twenty-four hours how much of your money will be available for its use. A CD, on the other hand, necessitates that you put your money in the bank for a specific amount of time. The longer the clip period, the higher the return. That is because the bank have got got greater flexibleness with your money and cognizes exactly how long they have to work with it.
Credit card companies have been highly successful at convincing authorities regulators that they need higher interest rates to protect themselves. As opposing to a mortgage loan or home equity loan, credit card companies claim that they make not have got any collateral to secure the loan they supply to consumers that usage their credit cards. If a client defaults or data files for bankruptcy, a credit card company had small resort to retrieve the balance owed on a credit card account. But a recently passed law now do it much harder for people to eliminate all of their credit card debt by filing personal bankruptcy. Many think this is an partial advantage for the highly profitable credit card companies.
These companies can be their ain worst enemy. Every twenty-four hours consumers throughout the country have an avalanche of credit card offers that do promises of low interest and high disbursement limits. Many of the receivers are already strung out with other debts but the credit companies still offer and then supply these high-risk individuals with the desired credit. Talk about using gasoline to seek and snuff out a fire.
The pattern of paying with plastic can be seductive and habit-forming and the credit card companies are well aware of it. It is obvious that these companies are doing quite well. They utilize loopholes to gradually increase interest rates and capitalize on the delusory minimum monthly payment strategy to thread consumers along. If you have got an troy ounce of wisdom, you will pay close attention to the credit card offers you have and the advancement of your interest rates as you travel month-to-month. It is a quite simple matter to allow things get out of control and happen yourself at the clemency of Visa and MasterCard.
Friday, March 09, 2007
Read The Fine Print When Choosing 0% Interest Credit Cards
Credit cards-are they the curse of our being or the moving ridge of the future? No matter how you see them, credit cards are here to stay. With the seemingly eternal assortment of cards available from any number of financial institutions, the market for your credit card business is extremely competitive. Many credit card companies seek to lure the average consumer with 0% interest credit cards. The offer looks great on the surface, but it is critical that you read the mulct black and white when considering one or respective of these offers.
In improver to the 0% interest rate, credit card companies offer many other perks, as well. The offer 0% on balance transfers, which can include other credit card debt, and even other types of debt, such as as contraption loans or something similar. Many companies offer some sort of points programme that awardings you points for every dollar you pass and you can utilize them toward travel costs such as as airline flights and hotel accommodations. Still others offer cash back percentage on all your spending, with higher rates for disbursement at grocery store stores, drug supplies and gas stations. Some even offer money towards a specific purchase, such as as the gram card, which you can earn money towards a new gram vehicle purchase. Nearly every card offers zero fraud liability if your card is lost or stolen, and many offer other inducements like low annual percentage rates (APR) and no annual fees. Visa, MasterCard, American Express, and all the remainder are jumping on this bandwagon to get their piece of your business.
However, it is of import to look before you leap. Most of these 0% interest rate inducements only last for six to twelve months. It is imperative that you look at what your regular APR will be after the publicity time period is over. The rate can be a variable rate that changes or a fixed rate, which can also change at the caprice of the credit card company as long as they advise you in authorship thirty years in advance. Also, if you make a late payment, it can negate the whole inducement and revert immediately to the regular APR. All that mulct black and white in the small booklet that gets with your offer should be read thoroughly before sign language the credit agreement.
So, while a 0% interest credit card may look good at first glance, it is of import to do your homework on any credit card offer you are considering. It is also a good thought to retrieve that it is easy to get into some serious debt very quickly with credit cards. Credit cards do disbursement money easy, but if you are not disciplined about your credit card use, you can get in over your head. Also, if you cant afford to pay more than than the minimum payment, it can take you decennaries to pay it off, and the whole clip the credit card company is making a luck off of you. It is always a good thought to be in charge of your money, not allow your money (and debt!) be in charge of your life.
Wednesday, March 07, 2007
Watch Out! Clever Trick with Credit Card Disputes
Here is an interesting trick that I've just come across regarding credit cards that can be played on you! Apparently, by law, you have only 60 days in order to make a claim dispute on a particular credit card charge that may appear on your statement. After that the credit card company can no longer accept complaints on a charge, and you have to either hope that the original company will "make good" on your refund, or take it to the BBB, which I must say really has never been of much help for any problems that I've ever encountered.
Whether or not you were aware of this rule, most of the time you would have filed your complaint well within the 60 days alotted. But here is an interesting case which can easily leave you hanging, and hoping that the company you dealt with will do what they promised. This particular example is based on services rendered, where a fee is billed to your credit-card, and then the charge is promised to be refunded if you cancel the service, say within 30 days.
Now, given that the company gave their word that they'll reimburse you, you forget about the transaction for a while. A month or so later you realize that they apparently forgot to reimburse your credit card! Try now to call the credit card company about the original charge and you'll be greeted by the kind representatives - usually in India somewhere - telling you there's nothing they can do for you and asking why you didn't contest the charge within the 60 days? Of course, your answer is that you expected the company to refund you as promised and didn't think you needed to do anything else. WRONG! There's nothing further the credit card company can do for you.
At this point, you better hope you kept good records (who you spoke to, cancelation confirmation number, date of cancellation, etc), and make sure to keep after the company's billing department to find out why you weren't properly credited. The problem is that billing departments that use such "tactics" tend to be exceptionally difficult to get in touch with. Try emailing instead, and you will be hardpressed to receive answers there either. You may also wonder why companies bill for their demos this way instead of just billing you the next month if you keep the service. The answer is simple. They hope you will not notice, or forget to check that the refund was actually processed.
As a final precaution, if you are ever in such a situation as this, you may want to take a few extra minutes, assume the worst case, and call to notify your credit card company that you are contesting the charge (even if there is no actual cause yet) and expecting a refund. That way if you do have any problem in the future in getting the company to reimburse you, you can at least have some level of recourse by way of the credit card company as well.
Note that such situations could also involve products shipped as well. If you have to return a product, make sure you are credited within 60 days of the original date you were billed, or else quickly file a complaint with your credit card company. Otherwise, risk dealing with it on your own.
You may also want to check out http://www.BadBusinessBureau.com, which I've found is also a good alternative to the BBB and may even have additional info on your vendor that could help you make a better informed decision.
Monday, March 05, 2007
Negotiate Your Way Out Of Debt
Eliminating your debt is a intimidating task. What can you make to get out of debt fast? Believe it or not, dialogue along with proper financial duty is your beachhead out of the rat race. Learning how to eliminate your debt might be one of the most of import life accomplishments that you learn because it can convey you felicity and fulfillment. In order to successfully eliminate your debt, you must utilize a combination of self-control, proper negotiating skills, and some hereafter planning.
Here Are Some Tips
1. Chop em up or freeze em. Start by taking all your credit cards out of your wallet/purse and cut them up into pieces. If youre 1 of those people who do the claim that you might need those credit cards in lawsuit of emergency, then a alone strategy is to freeze your cards--literally. Put the credit card into a paper cup and fill up the cup with H2O and then freeze it. You wont have got contiguous access to the credit card and it will still work for you in lawsuit of emergencies. Whatever manner you take to get quit of your credit cards, do it a symbolical rite of your committedness to get out of debt.
2. Start life within your means. Youll be amazed at how much money can steal through your fingers on small day-to-day purchases. Start life within your agency by paying cash for the things that you need to purchase. Start looking for the cheaper items. Remember, trade name name calling make not always compare to being a better product. Big businesses count on the fact that you are going to flip them your money without question, so dont make it so easy for them. Use vouchers wherever you go. Buy in majority to reduce costs. Learn how to cook. The ways to salvage money are endless. Just retrieve that life within your agency makes not intend you have got got to dwell poorit just intends you have to dwell smarter.
3. Consolidate all your high-rate credit cards. First check out the upper bounds credit limit and APR on all your credit cards and take the 1 with the lowest APR and consolidate your other credit card balances onto that 1 account. Brand certain that there are no concealed fees associated with the balance transfer. Another manner is to negociate a loan that offers a lower APR than what you are currently paying for and pay off your high interest cards with that loan. Just be very careful about the small black and white because many credit card and loan companies will offer a low introductory APR, but once that is over, they jack up it up through the ceiling.
4. Invest in your debt. Many people who are stuck in debt still pay quite a spot into their common finances or stock portfolio thought that they will get a higher rate of return. In most cases, this volition never happen. Annual APRs for credit cards are a humongous 24% Oregon more. I have got yet to see a constantly performing stock or common monetary fund that bends out even 15% on a regular basis. Dainty your debt like a high-interest investmentone where you are guaranteed to earn a huge rate of return. Always set in your debt before you put money into investments.
5. Use a trusted household member. One of the best ways to get out of debt is with the aid of a financially stable household member because they will usually give you the cheapest deal on a loan. Get an IOU understanding in authorship and pay them a predetermined amount every month. Some people take not to travel this path because of pride, but it could be the fastest and cheapest manner out of debt. Just do certain you possess the unity and award to refund your debt to them otherwise you will have got more than problems than just financial ones.
6. Dont get suckered into taking more than debt. A soiled dialogue maneuver that loan companies like to utilize is to offer you more than than of a loan than you need to pay off your debt, thus adding more debt onto your existent debt. This maneuver plant the same manner as when a kid conveys a isolated puppy home and asks, Can we maintain him? The credit companies cognize that there is a great deal of emotional attachment to that extra credit and they are betting that you are going to take that stray puppy home with you. Defy the enticement to take that extra credit home with you because it will cause more than problems than it is worth.
7. Kill the smaller varmint first. If you have got respective debt accounts in assorted denominations, then attack the smallest debt first with full military unit and kill it as quick and as painlessly as possible. Once that debt is gone, then utilize the newly freed nest egg from the last debt and apply it towards killing the adjacent largest one, and so forth. This is a simpler and much more than effectual manner of eliminating debt than paying small amounts off of each loan. It also have the psychological benefit of boosting your motive with each progressive success.
8. Stay busy. Its A known fact that if you have got too much free clip on your hands, you are more than likely to pass money than if you were busy. Take up some recreational activity to maintain you occupied so that you dont have got that free clip to travel pass your money.
9. Set up an auto-pay system. There is a pathetic amount of money to be made on late charges and finance charges. Credit card accounts spiral out of control because people see that they make not have got any monthly minimums dues and allow it revolve over to the adjacent month. The credit card companies love this because you have got just given them extra money in the word form of finance charges to your account. Always wage more than your minimum to get out of debt. Avoid handing free money over to companies who charge you for late fees by setting up an eft or automatic measure wage system so that you wont have got to deal with authorship the checks, finding stamps, and mailing the measures every month. Having an automated system do this for you will make certain those measures get paid on time.
Saturday, March 03, 2007
It is extremely difficult to setup a budget, especially
when you are behind on some of your bills. Even if you
can make your regular bills and expenses fit neatly into
your budget, what can you do if you don't have the money
to catch up?
I have listed several methods and circumstances below
that may help manage setting up your budget and begin to
pay those overdue bills. Since there are as many
different budgets as there are people that try to set
them up, this list may not be all inclusive. It may,
however, give you some ideas that will fit your
Unless you don't have any income at all, there are a
couple of things that should never be late. Your rent
or house payment and utilities should be paid first,
even at the expense of other bills. This is simply a
matter of survival.
The first thing you need to do when setting up a budget
is to determine how much actual take home income you
have. Then determine the amount of your normal bills
and expenses. The Complete Budget and Bill Organizer
this in greater detail and provides forms to put it on
The below methods assume that you have enough money to
cover your normal bills and expenses but have some
bills that have an amount that is overdue:
When you are setting up your budget and have overdue
bills you need to cut your expenses to the bare bones.
This doesn't mean going without food. However, there
are many ways to cut back on expenses. You can find
hundreds of them by visiting my Budget Stretcher
Partner sites listed at http://www.homemoneyhelp.com.
You should always make the initial contact to the
company any time you aren't able to pay a bill on
time. Once you have your budget setup, see if there
is any money left over to start paying the amount that
is behind. If you do have some money left over, when
you contact the company, find out if they will accept
paying a little extra each month, without penalty,
until the overdue amount is paid in full.
Contact a your local Consumer Credit Counseling Service.
You can find them in your phone book. They can assist
you by contacting your creditors and establishing a
payment schedule that will fit your budget.
If your overdue bills are credit cards, consider
transferring your balances to either a credit card you
already have or can obtain. This will do a couple of
things. It will normally lower your monthly payment
and it will eliminate your overdue status. Be extremely
careful doing this. The credit card companies you paid
off will be using every means they have to get you to
use their credit cards again. Cut them up and notify
the company to close the account.
Look for ways to get extra money just for the purpose
of paying your overdue bills. This can be either a
temporary part time job or selling something that you
can do without.
If you own your home and have equity in your property,
you may want to consider a bill consolidation loan.
While this seems like an easy out, many people start
obtaining more debt after they receive the loan since
they have some disposable income. There are pros and
cons to bill consolidation loans and you would be wise
to investigate it thoroughly.
If you have exhausted all of the above options, you may
have to consider one of the below options. You must
remember that filing bankruptcy can stay on your credit
history for up to 10 years and can have a devastating
effect on your future financial plans.
In extreme circumstances, and always as a last resort,
consider filing Chapter 13 bankruptcy protection. This
allows an individual to setup a repayment plan of
between 3 to 5 years to pay off all or part of their
debts. You must have sufficient income to permit a
portion of it to be used toward your repayment schedule.
Another option is Chapter 7 bankruptcy which is the most
commonly filed chapter since it can completely eliminate
all of your debt except the ones you choose to continue
paying. There are exceptions to debts that can be
discharged and to what property is exempt from being
taken by your creditors. You should discuss any bankruptcy
actions with a competent bankruptcy attorney. Only
individual's may file for chapter 7 or chapter 13 bankruptcy.
Just because you are behind on your bills doesn't mean
that your bill collectors can do what ever they want to
collect their debt. You have rights under the Fair Debt
Collection Practices Act. It would be a good idea to
visit The Federal Trade Commission's web site
find out what your legal rights are.
Thursday, March 01, 2007
Credit Cards are Not Good for Your Financial Health
Credit cards travel on to multiply and it sometimes looks like a twenty-four hours doesnt go by without another astonishing offer dropping through the missive box! They can look very attractive at modern times because they are so convenient to use. Theres no need to carry any money with you ever again if you believe the hype. They enable you to travel shopping without having to carry money with you and you can pay the exact amount just by handing it over. If you havent been paid yet, then you dont need to worry, because the money will still be there.
When you store on the Internet or over the phone, its the lone good manner to make it because on the whole its very secure and what else are you going to do, station a check or direct a money or postal order and then wait for it to be received and in the lawsuit of a check cleared by your bankers?
However, like anything convenient credit cards make have got got a impudent side in fact, they have lots.
Can You Keep Track?
When you walk into that store and manus over the card, the money is taken from the card, and the card travels back into your wallet. You still have got all the things you started with theres no less money in your bag or wallet to remind you of what youve spent other than the reception tucked into your wallet or more than usually popped into the bag with your purchases.
Its A common truth that everyone have a inclination to underestimation what they spend. Its also very true that smaller amounts can add up quickly on a credit card without you even noticing. If you believe about it in terms of the manner phone measures work and then apply it to everything you purchase on your credit cards well it doesnt bear thought about makes it!
You are paying money for nothing.
Using credit cards have to be one of the best ways of losing a percentage of your income to a credit card company in exchange for nothing. The minute you begin to construct up any balance on your credit card you are paying the Credit Card Company interest. Not only that, but generally speaking we all attempt to pay our credit card measures as soon as we have our wage or wages, so you dont even get the opportunity to earn any interest on the monies going into the bank. When you believe about it, youre losing out twice over!
Designed to maintain you in debt.
Your credit cards are trying to maintain you using them and paying interest. You will happen it very hard to pay off all your credit cards once you have got them. The company will make everything they can to halt you paying before youve paid them tons of interest. The more than than debt you demo you can wage back, the more theyll attempt to offer you, until they get you to the point where you cant pay and then they begin getting awful and adding fees for this and that. There are so many Credit Card Companies today who look to take small duty for the fact that they have got encouraged people to get additional and additional into debt. They reason that it was the Credit Card holder who spent the money not them that kept increasing the available Credit limit.
The Lie in the Name.
Credit cards are called credit cards to avoid saying what they really are and that is debt! Its quite a adroit fast one isnt it because Credit sounds good and as if we have got money in the bank! To be in Credit is always portrayed as a good thing however when thought about Credit Cards you will make much better if you always retrieve this simple saying: credit cards are debt cards. Use the word debt as often as you can whenever you speak about credit cards to remind yourself that every clip you utilize one you are creating a debt for yourself!
But Sometimes You Cant Avoid Them.
When you need money in an emergency and you just dont have got any, theres no questioning that credit cards can be useful. They are also a very utile manner of proving to credit evaluation agencies that you can manage debt, and this volition be taken into consideration when you apply for car loans or a mortgage.
Just retrieve that whenever you manage credit cards, youre playing with fire. Bash everything you can to maintain your usage of them to a minimum, and youll have got a much better financial life.