Mar
14
The Guinness Book of World Records gave Walter Cavanagh the title “Mr. Plastic Fantastic” for having 1,497 credit cards to his name. At one point, he also owned the world’s longest wallet. At least one in every ten consumers has more than ten credit cards in their wallets but on the average, each consumer owns four credit cards. Having more than one credit card may be useful for some people but the problem is managing the payments when they become due.
There is also the issue of not being able to pay your bills in full because you didn’t keep track of your spending or that you simply don’t have the funds to settle your accounts.
Here are some ways to help settle you credit card bills:
Pay up. As simple as it is, you just need to pay off your debts. The trouble is when your resources do not allow you to do so. In that case, this solution is advisable when you have a smaller debt. Talk to your credit card companies, ask for your accounts to be closed, and then negotiate for a longer payment period. This does not relieve you of paying the whole amount but at least the payment will be manageable.
Negotiate with your creditors. There are times when your credit card charges get out of hand and you find yourself in a position where it is difficult (if not impossible) to pay them back on time. Pushing the payment later will mean additional interest rates that you cannot afford. If your credit card debt is more than $10,000, it might be best to contact your creditors and enter into a debt negotiation or debt settlement.
This means that you will be paying an amount lower than what you originally owed and the remaining debt is pardoned. However, this is not as easy as it sounds because not everyone is eligible for a debt settlement. The credit card companies will decide if you are qualified so make sure you provide them with all the information they require to make a decision.
Consolidate your debts. Having several credit cards means, you also have several bills. Unless you have a very efficient assistant to take care of everything for you, you need to take care of them yourself.
For individuals with this problem, the solution you can look into is getting personal debt consolidation loans. This means you will need to borrow money (usually with your house as a collateral) in order to pay off all your existing debts so that in effect, you end up with only one liability.
Consolidating your credit cards debts also helps lower the interest rate and allows you to have reduced monthly payments because there is usually an extension of the credit term. To help compute how your loan payment will change if you choose to consolidate your debts, search online for debt consolidation loan calculator. There will be many to choose from so you will find one that is easy to understand and use.
Another option that some people take is to declare bankruptcy but it was not included here since it should be your last resort. It is not even something you should count as a solution because declaring yourself bankrupt might get rid of your debts at present but it will also make obtaining credit for the next decade or so very difficult.
For more tips and information about personal debt consolidation loans, please visit debt consolidation loan calculator.
Article Source: 3 Effective Ways to Settle Credit Card Debts
Mar
14
We’ve all heard the same advice about paying down credit card debt: Pay the minimum on cards with the lowest interest rate and funnel all excess money to the one with the highest balance, once that’s paid off repeat the process. That’s sound advice. So why are so many people still struggling?
Well, it might be sound advice, but as always, it’s easier to give advice than it is to follow it. If you are struggling to credit card debit where are you supposed to get this extra money? I’ve heard borrow from your 401(k ), Get a home equity loan, (although I don’t know how smart it is to get a secured debt to pay off an unsecured debt , but I’m not expert), borrow against your life insurance, cash out your savings account etc… Chances are that if you have these options you are not drowning in credit card debt.
So, what can you do? The simple answer is that I don’t know. Unfortunately you may have to file for bankruptcy. Should you do this? Again, I don’t know. I believe in repaying your debts but if bankruptcy is your only option, it’s your only option. There are 2 options, chapter 7 & 13 which I will not explain but i’m sure you can find information about it here:)
So if I have any sage advice it would be: “Learn to live within your means”. If there are things you want, fine. It’s okay to spend money, but not to spend money you don’t have. Currently I drive a beat up 1993 Mercury Grand Marque. Would I like a newer car? Yes. But not so much I’m going to get in over my head.
If you don’t have debt, the smartest thing you can do is keep it that way.
So what are some realistic ways to save money?
1) Stay as healthy as possible. Becoming ill is probably one of the most expensive things that could happen to you. There is no sense in smoking, over-drinking, both of which cost money, eating garbage and not exercising.
2) Cook bulk meals on the weekends. (see my other posts under the healthy meals categories)
3) Use coupons for necessities. Dry cleaning, car repair, home services and if you go out to eat, restaurants of course.
4) Learn minor home repair. You can save substantial amounts by learning how to hang a light fixture, replace dry wall or build a cabinet yourself. With a little pratice you will update the look of your home for less, at least to a degree. (As I do these projects around my home, I will produce videos which will be available on my blog. –Ps. I learn as I go! 
That’s about all I have for now. Stay tuned for future articles and videos. Thanks for reading and have a great day!
John Sarano runs a blog about living frugally and within ones means. He has a bachelors degree in social work and lives in South Florida.
Blog: http://www.jaysugarmanblog.com
Website: http://www.jaysugarmancoupons.com
Article Source: Are you just managing debt or managing to live debt free?
Mar
14
How to Use Credit Cards Wisely
Posted In: Personal Finance
Swipe and go—that’s what credit cards tell us to do. Credit cards have in fact become the primary means of spending for most people in this country. It may be due to the convenience of using plastic money instead of real cash or the sense of power that it gives to it users. However, it is important to remember that credit cards are among the leading causes of debts in the United States.
Due to people’s unhealthy spending habits that include improper credit card use, many are suffering from debt problems.
Fortunately, this could be avoided if you know how to use your credit cards wisely. Below you will find a quick guide on the smart use of plastic money that you would love to know about.
• Don’t use credit card for everyday purchases. Daily expenses like food, gas, clothing, and bills should not be purchased with a credit card. Use cash or debit card instead. The principle behind this is that people tend to find it more difficult to pay for items that already have been used or consumed. Aside from that, if you get into the habit of not paying for things today, you are more likely not pay for them tomorrow.
• Don’t make it a habit to pay only the minimum requirement each month. Doing this only increases the amount of time it would take for you to settle the debt and the amount of interest you are paying for.
• Don’t use your credit card for purchases you cannot afford. Living a life that is higher than what you can afford is one of the fastest way to bury yourself under debts.
• Don’t have over a dozen of credit cards. One or two credit cards are actually more than enough. Close those others accounts even those that you don’t use because they also charge you with inactivity fees.
• Don’t succumb to your impulses. Sometimes, it’s all just a matter of distinguishing your needs from wants. Let go of things that you don’t really need in your life. Also, if you are prone to impulse buying, the smart thing to do would be to leave your credit card at home where it could do no damage to your financial health.
• Don’t spend more than what you earn. If your credit limit is $2,000 but you only earn $1,500 each month, it would not be a good idea to reach or go over your credit limit. Moreover, keep your balances to a minimum. For your $1,500, allot only 10 or 20 percent of it on credit card emergency purchases and stick to this budget plan.
• Don’t rely on credit cards for emergencies. Savings are intended to be used for urgent situations so be sure to stash some emergency cash you can use when the need arises.
People deep in debt rely on credit card debt consolidation service for their problems. Most of them under go consumer credit counseling services so they can make the proper financial choices. But even better than going for a credit card debt consolidation is to make sure that you don’t get to experience debt problems with your credit cards by knowing how to use them responsibly.
For more tips and information about credit card debt consolidation program, please visit consumer credit counseling services.
Article Source: How to Use Credit Cards Wisely
Mar
14
Money does not grow on trees. Many people learn this old cliché the hard way. When you become buried under a pile of debts because of unhealthy spending habits, you can blame it on the credit cards, on media’s glorification of branded and expensive products, or on your friends whom you want to keep up with.
However the truth is, there is really no one else to blame but you. As an adult, you are responsible for spending your money and for spending it the right way so that you don’t end up deep in a financial problem the next day you wake up.
Below you will find some practical information on how to improve your spending habits.
Recognition of the Problem
The first step in improving your spending habits is to recognize the problem. Not only do you have to admit to yourself that you need to correct your financial tactics, you also have to study and analyze your spending patterns in order for you to determine the areas you need improvement. Other than that, you should also ask yourself the following questions:
• Do you usually find yourself wanting to spend just for the sake of being able to buy something?
• Do you buy things that you don’t really need or want?
• Do you have that urge to keep up with the latest fashion or buy the latest gadgets?
• Do you believe that spending money is the best way to enjoy and have a great time?
Impulse Spending
Answering these questions would lead us to the next topic, which tackles impulse spending. Letting yourself buy things on impulse is never a healthy spending habit. If you are prone to this, the best way to resolve it is to look for factors that trigger your desire to spend. In short, eliminate sources of temptation.
For example, if you find yourself spending more than you usually do whenever you have your credit card with you, then it is best that you leave this at home at all times. Now, if you are the type who cannot resist a new pair of designer shoes then the smart thing to do would be to avoid going to shoe stores when money is tight.
Credit Card Use
People should be aware that the using plastic money comes at a cost. Sometimes, this can even take a toll on a person’s financial health. To be money-smart, avoid using credit cards as much as possible. Use them only when you have no other choice and only for expenses that are very important. Don’t make purchases with your credit card for everyday items like food, grocery, clothes, bills, utilities, and so on. Don’t be contented on paying just the minimum. Doing this would only extend the debt and incur more interest charges. Save money for emergencies instead of relying on your credit card.
Financial Perspective and Attitude
Improving your spending habits also have to do with changing your perspective and attitude regarding money and in life general. Most of the people who become deep in debt are those who rely on material things for happiness. False values, wrong priorities, discontentment, and the desire to keep up with the Joneses are the other things that cause people to spend more than what they can afford. Living within your means may not mean living the dream but if you are money-smart and you save money for your future, you can experience this someday. On the other hand, if you force yourself to live a big life today even if you cannot afford it, you may wake up one day with nothing left.
Of course, when the inevitable happens and you find yourself trapped in debts even if you think you have done everything to improve your spending habits, there are effective financial strategies that would help you cope with the situation more easily. One of these is debt consolidation loans, which allow you to combine multiple loans into one that has a lower interest rate and monthly payment. But be sure to use debt consolidation calculators and get professional advice so you can determine if this is the right option for you.
For more tips and information about credit card debt consolidation service, please visit consumer credit counseling services.
Article Source: How to Improve your Spending Habits
Mar
14
Budget, budget, budget! You hear about this all the time. Why? Because it is so important that it bears being repeated over and over again. If you have a family, formulating a family budget is in order. For one, a budget gives you an accurate preview of the money coming in and the allocation for necessary expenses like housing, food, utilities, health care, insurance and so many more.
Aside from that, a budget is also good because it helps you avoid debts. If you have money for everything that you need, you would not have an excuse to use your credit card or take out that loan. Here are some family budgeting tips that would help you avoid debts and end up with savings you need for future use.
1. Get everyone to participate
It is not to be called a family budget if only one person is entitled to abide by it. Aside from you and your spouse, your older children should also be a part of this. At the start of each month, inform them about the money coming in and where you decide to allocate this income. This would make them realize how important value for money is and chances are, they would be more cooperative the next time you say that the computer game they want is out of your budget range.
2. Do less expensive activities
Instead of going to the movies, rent DVDs. Instead of eating out weekly, have a barbecue party on your backyard or a picnic at the public beach. Instead of traveling out of the country, go on an exciting road trip or camping vacation. Doing family activities do not need to be expensive. They just have to be fun, worthwhile, and creative so that even the children would enjoy.
3. Shop for groceries wisely
Not only should you eat first before going into the grocery (shopping on an empty stomach is not good for your health, your financial health that is!), you should also make it a habit to make a menu for the week and a grocery shopping list so that you don’t end up buying things that you don’t really need. Also, choose generic products that are less in price unless the quality of the branded product is truly something you cannot do without. Avoid buying those things at the counter. You don’t need most of this anyway.
4. Avoid unnecessary fees like penalties and fines
Pay your credit cards on time, return videos early, avoid breaking the law, and so on. The cost of paying for these fees may seem minimal at the moment, but if you add them up in the long run, you would be surprised to find out how big these penalties are actually costing you.
5. Clip and use coupons
If you add all those 5 or 10 percent discounts that you get to save every time you buy something, you would be very happy to see how much you have saved over the year.
6. Drink water
Water is not only good for your health, it is also a lot less expensive than canned soft drinks or the coffee latte you always loved to get when passing by that expensive coffee shop.
7. Be smart in your credit card use
Credit cards are among the leading causes of debts in this country today. Not only should you not keep a dozen of cards in your household midst, you should also be knowledgeable of all the pitfalls that issuers are waiting for you to fall into. Be smart in your credit card use or better yet, use cash or debit card instead. Yes, credit card debt consolidation services are available from debt consolidation service companies to mend your credit card problems, but it is best to prevent the onset of these problems.
Formulating a budget for the family expenses is actually not that difficult. In fact, it is the easier part of this process. What is more challenging is the part where you actually have to stick to the budget that you created so be sure to keep all of these tips in mind.
For more tips and information about credit card debt consolidation services, please visit debt consolidation service.
Article Source: Family Budgeting Tips that would Help you Avoid Debts
Mar
14
What is a 401k Plan?
Posted In: Personal Finance
A 401k account is an investment vehicle for your retirement. It’s almost always done with your employer, which has it’s own list of benefits, and the accounts also have a small list of tax benefits. They’re a unique type of account that has a lot of options to pick from to build a plan that will work for you.
These types of savings plans are set up through your employer. A portion of your paycheck is taken out (you select the percentage of your check you would like to use) and is invested in your account automatically, requiring nothing from you.
Most employers will match your contributions up to a certain percentage point. So, for instance, if you invest two percent of your paycheck into this retirement account then your employer will also contribute that same amount. This is a unique form of income you won’t be getting anywhere else so if you don’t take advantage of that match, you’re missing out.
Your employer will usually have a number of different plans for you to choose from that lay out how your money will be invested, in a variety of stocks, bonds, mutual funds, money market accounts, etc. These usually vary from higher risk investments (with higher return rates) to safer bet plans that will offer lower returns. This is a personal preference, and one you can choose to change over the years.
Even if you’re not planning on staying with the same company until you reach retirement age (59 years and 6 months old) that’s fine, you’ll be able to transfer your 401k account to one with your new employer as you move from company to company over the years. Withdrawing money from the account before you reach retirement, however, is not advised. You’ll want to read more about this later, but basically there are penalties and you’ll lose out on a lot of your savings if you withdraw early-this is
really for the best, however, because by leaving the money in this protected account you’ll be prepared for retirement.
There is obviously more you’ll want to know about these types of retirement plans over the years but now you have a basic understanding of what a 401k account is that will get you started saving for your retirement today.
Retirement accounts don’t have to be so confusing. At my site I try to simplify how to do everything you need to, like IRA and 401k maximum contribution limits, cashing out, and other 401k to IRA options people need information about.
Article Source: What is a 401k Plan?
Mar
13
Must I Have a Payment Protection Insurance?
It is a known fact the ones who gain sure profit from Payment Protection Insurance or PPI are insurance companies and financial institutions. But for a common consumer like you, what good can PPI and PPI claims do for you and when do you avail of it? These are the questions you need to find an answer for before you agree on a particular insurance policy or even on actually getting one. Little would you know that you are overcharged and only end up failing to pay a loan.
A PPI policy is a form of a guarantee in repaying a certain financial obligation should circumstances prohibit you from affording your monthly payments. This insurance manages your debt payment until such time that you can already make the payments on your own. There are many grounds for protection but the most common reasons accepted are protection from redundancy, severe illnesses or grim accidents.
If any of these mentioned grounds happened to you, you should file for PPI claims with your insurance company who will then analyze your case. If the company approves, your debt repayment shall instantly begin. Thus, you are protected from repossession or from damaging your credit score and history.
Unfortunate events happen when you least expect it so it is better to stay secure by availing PPI. But before agreeing to any agreement, be sure to know all possible angles of the subject at hand. Without sustainable awareness about the PPI policy, you may end up getting a Missold PPI. A Missold PPI is one that you availed out of pressure because you were told that it is obligatory but the truth is it is voluntary.
What’s important is you consider the loan affordability, the credit line and whatever needs to be insured. If you think that your monthly payments will be at risk, then it would smarter to simply lower the balance rather than insuring.
But if the finances in consideration are major ones like a home loan, you better insure your property and so this is the time when you’ll be wise to get a PPI.
Article Source: Payment Protection Insurance Needed?
Mar
13
Corporate Bond ISAs
Posted In: Personal Finance
Each financial year the ISA allowance rolls over, meaning that if you haven”t invested the full amount by the start of April, you lose the possibility to do so. At present the allowance is ?7,200 for the under-50s of which half can be made up in cash and the rest in stocks and shares options.
Each year, most people make as greater use of their cash ISA as possible. The more that is saved away, the more money you have earning tax-free interest. Yet many people completely ignore the stocks and shares element of their ISA.
One of the main reasons for this is a mistrust of the risks involved with the stock market. However, the term ‘’stocks and shares ISA” is incredibly broad and can cover a wide range of different options, many of which carry little to no risk at all.
One of these options is corporate bonds. A corporate bond is essentially a loan between a company and an individual. Through selling thousands of bonds the company can make large sums of money very quickly. In return the company promises to pay a certain amount of interest each quarter or each year, as well as repaying the full cost of the bond at the end of a pre-agreed period.
Like any other loan, however, companies can default on corporate bonds, so there is a level of risk. If they do not have the capital to meet their regular interest payments, the bond issue may fail leaving bond-owners with nothing.
To make things a little more complex, once you”ve bought a bond you can sell it on. The price may go up or down depending on the state of the wider market and how reliable the original issuing company is.
The reason why corporate bonds can be a good idea is that they are also issued by the government, in which case they are known as government bonds or gilts. Whilst companies can go bankrupt and default on their payments, governments do not, and therefore government bonds make a very sound investment (as proved by their price rocketing during the recession as investors bought government bonds for the security they offer).
With most corporate or government bond ISAs you can choose how much risk you want to take on. The higher the risk, the higher the return but even a low-risk ISA will offer a return of around 5%, far better than any return that you”ll get on a cash ISA.
Renato Loehrer is very knowledgeable on savings and accounts and loves to write about corporate bonds.
Article Source: Corporate Bond ISAs
Mar
13
There are several advantages to paying for your funeral in advance. It tends to be a bit cheaper, as you are basically pre empting the effects of inflation on funeral costs, and it reduces the financial and organisational burden on your loved ones at what will be an upsetting time for them.
Funeral plans can be purchased from insurance companies such as Legal and General, dedicated funeral plan companies, or from funeral directors. Before you purchase a funeral plan there are several things that you need to establish to ensure that you are making the right choice.
You should always check to see what safeguards the funeral plan provider have in place to protect your investment in the event of their going out of business, and you should also find out whether the money will be paid to you or your estate. As a general rule, it is a lot safer to go with a well known, established company.
It is important to know how the company you are dealing with will invest the money you give them. Usually, it will be invested in an insurance policy or a trust fund. If it is in a trust, you should ensure that the trust deed clearly states that the money is intended for funeral costs, and that the trustees are not affiliated with the company in any way.
Find out if the firm is a member of any professional associations, such as the National Association of Funeral Directors or the Funeral Planning Authority, as this will mean that they have to abide by the associations code of practice, and that there will be an established complaints procedure in place.
If you have any preferences about your funeral, such as a funeral director you would particularly like to use, or a certain type of ceremony, you should check to see if you can do this under the terms of your funeral plan, as there may be restrictions.
Most plans include paying for the body to be transported a certain distance. However, you should find out how much extra it will cost to transport your body over a longer distance, in case you should die while you are away from home.
One thing you should bear in mind if you go with a local firm is that you might not be living in the same area, or even the same country, when you die. It is a good idea to check if there are any extra charges for changing the arrangements of your funeral before you buy.
Renato Loehrer got Legal
Article Source: Paying for your funeral in advance
Mar
13
Yes. The nature of your assets and how you hold title to those assets is a critical factor in the estate planning process. Before you take title (or change title) to an asset, you should understand the tax and other consequences of any proposed change. Your estate planning lawyer will be able to advise you.
Community property and separate property. If you are married or a registered domestic partner, assets earned by either you or your spouse or domestic partner while married or in the partnership and while a resident of California are community property. (Note: Earned income in domestic partnerships, however, may not be treated as community property for federal income tax purposes.)
As a married individual or registered domestic partner, you may continue to own certain separate property as well—property which you owned prior to the marriage or domestic partnership. A gift or inheritance received during the marriage or partnership would be considered separate property as well.
Separate property can be converted to community property (and vice versa) by a written agreement (it must conform with California law)) signed by both spouses.
However, taking such a step can have significant tax and other consequences. Make sure that you understand such consequences before making any such change.
Tenants-in-common. If you own property as tenants in common and one co-tenant (co-owner) dies, that co-tenant’s interest in the property would pass to the beneficiary named in his or her will. This would apply to co-tenants who are married or in a domestic partnership as well as to those who are single.
Joint tenancy with right of survivorship. Co-owners (married or not) of a property can also hold title as joint tenants with right of survivorship. If one tenant were to die in such a situation, the property would simply pass to the surviving joint tenant without being affected by the deceased person’s will.
Community property with right of survivorship. If you are married or in a registered domestic partnership, you and your spouse or partner could also hold title to property as community property with right of survivorship.
Then, if your spouse or domestic partner were to die, the property would pass to you without being affected by the deceased person’s will.
Married couples and registered domestic partners also have the option of jointly holding title to property as community property. In such a situation, if one spouse or partner were to die, his or her interest would be distributed according to the instructions in his or her will.
Shatford Law has proven themselves capable of working with the largest and most complex cases for clients of all sizes, and maintaining day-to-day consultation on more routine matters.
Article Source: Does the way in which I hold title make a difference
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