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Identity theft is a crime that victimizes a person twice; once when the crime is discovered and again when the victim tries to repair the damage that was done in their name.  If the person is lucky, the identity theft is discovered as soon as the person attempts to use their identity illegally.  The unlucky victims do not discover that someone has stolen their identity until they are turned down when they attempt to get credit or they view their credit history and find accounts that they had not opened.

Many identity thieves are good at hiding their tracks and you would never know that your identity had been stolen.  The accounts that are opened using your name and social security number are often diverted to dummy addresses so the individual would not even know that the accounts had gone into default.  If the phone number used for the account is a fictional number as well, the victim will not receive any of the collection calls for the account either.

As if this was not devastating enough, the victim will often have a hard time convincing the creditor that the account was not actually theirs.  If the identity theft is discovered quickly enough, a person can limit the damage fairly quickly by calling the creditor, canceling the account, and explaining the situation to the customer service representative.  In some cases, the individual will have to fill out a statement verifying that they were the victim of identity theft and allow the prosecution of whoever is found to be using their name and credit without their permission.

If the identity theft is not discovered quickly, then the victim will face a whole host of new problems.  Many creditors will only allow a person to dispute a charge within a certain period of time so if the theft is not discovered within that time limit, the victim may be on the hook for the charges.  Some other creditors require that the person prove that it was not them who opened the account and, if the company has already sold the debt to a collection agency, the victim may be receiving collection calls for a long time afterward.

Being proactive about limiting your risk for identity theft is the best way to ensure that you will not be a victim.  Check your credit report regularly to be sure that no accounts have been opened in your name that you are unaware of and keep your social security number secure so that identity thieves will not have it to open any credit accounts.  If there have been any unauthorized or suspicious activities on your credit report, report them immediately to limit the damage done to your credit and your life.

We know that purchases are based on emotion, so it makes sense that sometimes people will buy vehicles based on their feelings about a certain type of car or a new car versus an older car, rather than by logic and what one could and one could not afford. Sometimes people lose their jobs, and can no longer make the car payment. They once could afford, but now they cannot. This situation can happen for a number of different reasons, but when you have a vehicle you cannot afford, you have to get out of it, and here’s how to do it.

How do I know if I can afford the vehicle that I have now?

Some people are in denial with their vehicles. They buy new cars because they think they need something reliable, but in reality they’re making ridiculous car payments upwards of $500 when their income just cannot support that. Dave Ramsey offers a great rule of thumb that everyone should follow. If your vehicles are worth more than half of your annual income, your cars are too expensive.

If you’re 1% or 2% over, it’s no big deal, but there are people that have $30,000 worth of cars and make that same amount each year, and that’s ridiculous! Cars are a liability, they go down in value. New cars are the worst offenders; they can easily decrease in price by 20% each year for the first few years. This depends on the make and model, but vehicles generally take the largest beating in value when they are new. This is why I recommend that one should never buy a vehicle that’s newer than two-years old.

What do I need to do to get rid of my vehicle and out from under this debt?

If you have discovered that you are in a vehicle that you simply cannot afford, you need to sell it. It’s as simple as that. Head on over to Kelly Blue Book, and look up what your vehicle is worth. Look up the private-party value, and that’s how much your vehicle is worth. Don’t sell your car to a dealer, because they will give you a wholesale price, and usually you can get 20% or 30% more by selling it yourself.

Once you know what your vehicle is worth, You’ll want to list your car in the classified section of the newspaper. You can also create signs and put them on cork boards around town. Don’t overpay and get your vehicle listed in some listing of used cars. The classified ads usually are more than efficient, and they’re really not that expensive.

Once you find a buyer, you’ll need to get payment from them. Make sure that the check clears before giving them the keys and the title, but once you have the money free and clear, give them the vehicle, as well as the title, and you’re golden. You’ll take the proceeds from sale, and give them to your lender to pay off your debt. Usually you are required to pay off the debt when you sell the vehicle according to the contract you signed with the bank or finance company.

What do I do if I owe more on my car than what it’s worth?

A lot of people that buy new vehicles are finding that they owe more on their cars, trucks, vans, or whatever than what they are worth. This means that even if they had found a buyer, they would not have enough money to pay their loan off, so they can’t sell it. The reason this happens is because the rate at which new vehicles depreciate is often greater than the rate at which people pay off the vehicles, giving them negative amounts of equity.

In this situation, you’ll need to head down to your local bank, or credit union, and get a small personal loan for the difference between what the vehicle will go for and how much you owe on it. Put that money with the money you earn from the sale, and use that to repay your debt. Some banks may say no to you, and you have to accept that it will happen. Chances are that there is a bank or credit union out there that will loan you the money, and you just have to be determined, and you should be able to find a loan. If you can’t find one at all, you might consider checking out Prosper.com.

When you get your small loan to pay off your vehicle, you’ll still be in debt, but the debt that you will have after selling the vehicle is a lot less than what you had if you kept the vehicle. It makes sense that it’s better to be in $3000 of debt with no car, than $20,000 in debt in a $17,000 car that’s going down in value dramatically.

If I sell my vehicle, what am I going to drive?

When you sell your vehicle, you’ll still need something to drive. You will have to pick-up an inexpensive vehicle to drive around until you can become more financially stable again and afford to pay for a decent newer vehicle. Look for a $1000 or $2000 car that’s older, but mechanically sound. Look for a vehicle that has a low number of miles. The appearance of the vehicle does not matter, just get something that will move you from point A to point B.

Should I really sell my car?

If you are driving a vehicle that you can’t afford, you’re going to get behind on the payments sooner or later. The bank will come reposes the vehicle from you, sell it an auction for less than wholesale prices, and come after you for the difference. It’s much better to get rid of your over-priced car yourself than let the bank do it for you, because then you get to determine how much your vehicle sells for, and will be able to get a retail amount for it rather than sub-wholesale prices.

Over the summer a previous I had picked up a summer internship with the state doing technology work in a town about an hour away called Sioux Falls, which has a population of about 150,000. He was able to rent a bedroom from a couple he knew for only $200 a month, what a steal. One of the most interesting things that I saw on my way to work were the businesses on the way. There were three payday loan companies, one rent to own business, and a title loan company. Of course these companies were in the poorer part of town, wealthy people don’t make use of these services. Let’s face it, pay day lenders are everywhere, here’s how they work and why you should do anything you can to stay out of them.

Here’s how it works. Let’s say we both have a friend named John who is a bit down in his luck, he’s had an expensive car accident and had to pay $2000 to fix his car which wiped out his savings and paycheck, and now he needs some money to eat. John doesn’t want to starve, so he decides to borrow money, and sees all these commercials on television about a payday lender and how they will solve all of their cash problems. So John goes to the pay day lender, writes them a post-dated check for $450, and they give john $400 in cash and the payday loan company says they will cash his check 2 weeks later on his payday. John now has money to eat, and the payday loan company has made a nice profit. So What’s the problem?

So let’s say our friend John takes the money, buys food, gas and pays his utility bill, and then on his payday they take out the $450. What is John supposed to use to eat with until he gets paid again? Payday lenders merely delay the inevitable. John will have to turn to a payday lender again so he can get by until payday again. He will get stuck in an endless cycle of having to use payday lenders. Instead if John is living paycheck to paycheck, he should take a visit to the food pantry, ask for help from his friends or family, or just do anything to stay out of the payday lender.

Payday lenders are sub-prime lenders and have caused a great amount of controversy. Many have even compared them to loan sharks who target the young and the poor. If you do the math they usually charge anywhere from 400%-800% interest, which is actually illegal in some states. These payday lenders bill themselves as the answer to all of your financial problems and are charging exorbitant interest rates to those who can least afford them.

In the last several years Payday Lenders propped themselves up right outside military bases, and many servicemen fell into the trap, and had too high debt levels that they were deemed a security risk because they might take a bribe, and could not be sent overseas to fight for our country. Congress reacted and made it so companies could not charge servicemen more than 36% interest

Payday loan companies (and other sub-prime lenders) should be avoided at all cost. They are charging your huge sums of interest when you can least afford it, and are terrible financial products. Do whatever you can to avoid them

There are many little daily expenses that can add up quite quickly and destroy a person’s attempt to save money.  These daily expenses are generally unnecessary and are merely a convenience for the person that is spending money on them.  If you would like to cut your daily costs and save a great deal of money over the course of a year, then eliminating these items from your daily routine can help you meet your savings goals.

1.  Workday Lunches
The average workday lunch eaten at a restaurant or taken back to the office will cost you nearly $8 per day, for a cost of $40 per week or $2000 each year.  Taking your lunch instead saves these costs and allows you to spend that money on other things.

2. Items From Vending Machines
The average item from a vending machine costs twice as much as the item would cost if purchased from a grocery store.  If you like to have a snack in the afternoon, bring one from home in your purse or briefcase and pocket the difference.

3.  Alcohol Purchases
The average price of a drink from a restaurant or bar is close to 300% more than the actual value of the alcoholic drink if it was mixed yourself in your home.  This is how the restaurant industry makes money on their alcohol sales, and avoiding alcoholic drinks at a dinner for two can save $28 or more off of the final bill.

4.  Cigarette Purchases
It has been reported that the average price of a pack of cigarettes in the United States is more than $4.50 per pack, with the price ranging as high as $7 in some areas, such as New York City.  If you are a casual smoker who only buys one pack a week, you are spending between $234 and $364 for cigarettes.  For individuals that smoke a pack of cigarettes a day, quitting smoking will save between $1638 and $2548 per year.

5.  Specialty Coffee
The average price of a daily specialty coffee on the way to work is around $2.50, costing $12.50 per week and $650 over the course of the year.  Consider brewing a cup of coffee at home and drinking it from a travel mug during your daily commute or once you arrive at work.

By eliminating these trivial items from your daily routine, you can save enough money to pay off a debt, take a vacation, or save up for a wanted item.  The money will begin to add up quickly and, in no time, you will not even miss the items that were given up.  

Every time a company tries to raise their prices by a significant amount, a portion of the population notices and raises an uproar about the increases.  To prevent this turn of events, many companies have adopted a sneaky way to increase their prices; they have began using hidden fees to increase the amount that people pay for their items.  There are hidden fees everywhere, but you can avoid having to pay them if you are a savvy consumer.

Convenience Fees

One of the most notorious hidden fees that consistently picks peoples pockets is the convenience fee.  Convenience fees can appear anywhere, from purchasing entertainment tickets online to paying your bills over the phone.  Most convenience fees are only a small portion of the entire ticket price so many individuals do not complain about them.

The easiest way to avoid a convenience fee is to determine what actions the fee will be charged for an avoid taking that action.  For example, many ticket sellers will charge a convenience fee if the entertainment tickets are purchased online but will not charge the fee if the tickets are purchased at the ticket window of the venue.  If a convenience fee is added to bill payments made over the phone, take the extra time to ensure that you pay these bills early enough so you can mail the payments and avoid the charge.

Service Charges

Another trend that is sweeping many companies is charging a fee for a person, and not a machine, to help you.  Many banks have instituted a cap on the number of teller transactions that a single account can have in a specific time period and will charge a fee to the account if a teller is used more often.  The same is true for some government departments that will charge an additional fee if the service you need is conducted in person instead of by mail or over the phone.

It is difficult to know what services will trigger the service fee to come into effect as each company may have a different preferred method of operation and will charge a service fee if other methods are used.  Some companies charge for transactions conducted over the phone while other companies charge for transactions conducted online.  It is important to read the fine print for any account or service agreement to see what actions will result in a service fee added to the account and which actions are exempt from the charge.

In a perfect world, college would be affordable and everyone would be able to go without issue. Reality is a lot less ideal than that; the only way that many people can afford to attend college is by picking up massive amounts of debt. One woman decided that she wanted to get away from her family for college and ended up going to Belmont, to find her self with a BA in Theater and $100,000 in student loan debt. This is not the way to go! There is a way to attend college without getting up massive pile of student loans, and it’s really not that hard. There was a man I knew that not only graduated without any debt to speak of, but he was given money by the university every semester instead of writing out huge tuition checks because he had so much financial aid, and it wasn’t that difficult either!

Here’s how to do it.

In high school, hit the books. Most high school student’s just don’t put the effort into trying in high school and end up hurting themselves because of it. Your performance in high school is how your college the basis for your college admission, so you need to start off well from day one of high school. Getting a free ride requires four years of good grades and extra curricular activities.

Do Well on Standardized Tests. Standardized tests also play a big role in the decision make processes of university enrollment organizations. Most scholarships are based on SAT & ACT scores, so you need to do as well as possible. In order to do better, take one of those SAT prep courses, and wait until later in your high school career because you should know more after more education.

Search out scholarship programs early and often. There is no good reason for you to not apply to at least 50 scholarships before the second semester of your senior year. Getting scholarships is critical; they’ll take care of pretty much everything in college from tuition, to books, to dorm fees. Apply, apply and apply! Put a great amount of effort into your scholarship essays as well, it’s not hard, just do it! They won’t all say yes, but some will.

Fill out your Free Application for Federal Student Aid (FAFSA). This form will determine your eligibility for government grants, and low interest federal loans. It also determines your qualification for work study programs, which are the easiest jobs you will ever have. These grants can be combined with scholarships which will pay for your education, if you put in the effort!

Pick the right school. The right school is not the most expensive. In fact, usually it’s one of the least expensive. The increased educational value of an Ivy League school is not worth paying $20,000 a year more to be a part of. Choose a nice state school with very low tuition. Usually they can be had for $5000 a year, excluding dorms and a meal plan. Pick the one that will leave you with paying the least amount of money, you can easily up the difference with outside scholarships.

If you do all of these things, paying for college will be very easy, if you have good grades and apply for a lot of scholarships, chances are you’ll get money back.

I was listening to the Dave Ramsey Show on a local radio station the other day and a woman had called and told the host that she had her credit card bill paid and was current with all of her debt payments, but she had not eaten in two days! What has happen to the world? Are people really more concerned about keeping Visa and MasterCard happy rather than keeping food in their stomach? As Ramsey often says, “Americans are worshiping at the altar of the credit-score.”

For the few people who are unaware as to what a credit-score is, there are three companies in the United States, Equifax, TransUnion and Experian that receive information from your banks and creditors about your financial information. From this information, the companies have an intricate formula which they use to calculate what is known as your credit score. Whenever you apply for a loan, apartment, or even a job, there is a good chance that they will look up your credit report to determine whether or not you are “worthy.”

There is a fundamental flaw with the credit-score system. Although these companies do not reveal the formula they use to calculate credit scores, it is generally agreed that they are based on your history of repayment, the balance of your existing debt, and your ability to borrow more money. Interestingly, your income and the amount of money you have in the bank are not part of the calculation what-so-ever. So a multi-millionaire who has not needed to borrow money in several years could pay cash for an apartment building, but could not qualify to rent an apartment there!

What has happened that has caused people to become so obsessed and fixated in their credit scores these days? People have fallen victim to the myth that you need a good credit score to get through life financially. Here’s the reality: you can get through life without a credit score. There are some times when having a credit score would be easier than if you did not have one, but you can live without one. Yes, you can save up and pay for things with cash, you do not need to finance anything at all.

There are even minor percentage people who save up and pay cash for houses. Most of us don’t fall into that category though, and will probably need to borrow money for a house, and yes, you can get a home-loan without a credit-score. You will merely need to find a company that does mortgage loans the old way, with what is called “manual underwriting.” In this they actually look at the person and see whether or not they have the financial ability to repay the loan, rather than just looking at one’s FICO score.

When a potential employer or a rental complex looks at your credit score to determine whether or not your quality material, there’s really not much you can do. Fortunately, there are plenty of employers and rental complexes with common sense that realize there is more to life than a credit score. It would probably be a good idea to tell them that if they chose to look at your credit score, they won’t find one and the reason why.

You can live without a credit score. There are instances where one might come in handy, but you can get by either way. Not having a great credit score is not the end of the world, and keeping your credit score high should not be number one on your list of priorities.

We all need a little help when it comes to sorting out our money problems. Get a cheap credit card, short term loan or a flexible loan and put your mind at ease.

Many people are interested in getting out of debt permanently, but do not know where they should begin. By following these five tips for getting out of debt and staying that way, individuals can begin to reduce their debt to more acceptable levels and eventually eliminate their debt entirely. There is no immediate solution for the reduction of debt if the person is already in over their heads, but keeping these tips in mind will halt the accumulation of debt and will allow the person to begin whittling away at the total owed to creditors until their crushing debt has disappeared.

Change Your Mindset

The first thing that should be done to begin getting out of debt is to stop believing that getting out of debt is an impossible dream. There are thousands of individuals that have reduced or eliminated their debt using simple, common sense solutions for debt relief. No agents or expensive companies were needed; these individuals got out of debt on their own and so can you.

Stop Creating More Debt

One of the hardest things for people to do to begin getting out of debt is changing their spending habits so that they are not creating more debt. You will never pay off a credit card if you are using that card to charge additional purchases later on in the month. In order to get out of debt, a person must be able to restrict themselves to spending less each month on items that are not necessary.

Resist Using Credit Cards

Many individuals do not keep track of the money that they spend when using credit cards because of a “buy now/pay later” attitude that is very easy to fall into with credit cards. A better option would be to pay cash for the purchases or use a debit card that is linked to a checking account to ensure that you do not spend more than you can afford.

Stop Paying Fees

It is amazing how little fees can begin to add up when they are made frequently during everyday activities. Reduce the amount of fees that you pay in your everyday life by paying all of your bills on time, only using ATM’s that will not charge fees to your account, and purchasing items in person at the store.

Start Saving For A Rainy Day

One of the best ways to remain debt free is to have some financial backing to use in the event of an emergency. If cash in a bank account is readily available to handle the financial needs of the emergency, then you will be less inclined to use a credit card and end up paying interest to the credit card company.

Fed up with scraping the pennies together at the end of the month? It’s time to get impartial debt advice from professionals in debt management to help you get out of debt through an IVA, a consolidation loan or bankruptcy, or other debt solution available to you. Get in control of your debt now!

People are always looking for ways to save money, but often overlook some of the most obvious ways to save money during their everyday routine.  There are many different ways for an individual to save money on their everyday purchases and the money saved can be used for reduce debt or saved for a rainy day.

At The Grocery Store

Saving money on items at the grocery store is considered a sport by some people because of the many different ways available to save money on the purchases.  Many companies insert money saving coupons for their products into the local newspaper or mail them to the person’s home.  Most grocery stores have weekly sales on certain items so individuals that purchase their items based on what items are on sale have the potential to save a great deal of money on their groceries over the course of a year.

At A Clothing Store

Everyone wants to look good, but it should not be at the expense of your bank account.  Most clothing retailers have regular sales and markdown items that have been on their selves for more than a few weeks.  As long as you do not have to have the latest fashion items as soon as they are released, you can save a great deal of money on clothes by only purchasing items that are on sale.

At A Restaurant

It is also possible to save money when you go out to eat at a restaurant or order food for carryout.  Many restaurants include coupons for saving money a meal in their advertisements in order to entice people who have never eaten at the restaurant to try the items on their menu.  Some restaurants will also have money saving specials on their menus, offering certain items or groups of items for a lower price for a certain amount of time.

At A Bar or Lounge

Many bars and lounges have a happy hour special during certain times of the day, typically from mid afternoon to early evening.  Certain food and drink items may be at a special price, or even half price, for the duration of happy hour, allowing the person to enjoy themselves for much less.

For Entertainment

Many people are not aware of the multitude of ways to save money on entertainment while still having a great time.  If the individual likes watching DVDs in their homes, they may want to consider purchasing used DVDs for their collection, which are generally half the price of brand new DVDs and are often of comparable quality.  Individuals that like live music may want to consider going to see lesser known artists at smaller venues, which could reduce the price of the average ticket from $50 to $11.

There’s going to be a time in your life where there’s not a lot of money around for whatever reason and it’s going to add stress to your life and put strain on your family. It could be anything: a job loss, a medical issues, a loss in the family, a lawsuit, an unexpected bill, a natural disaster, a fire, or something of the store. Money is going to be tight and your stress levels are going to increase, that’s reality.

You can handle the added stress from the weight of your financial problems in two ways. The first is that you can let them get to you, you’ll become moody, angry, depressed and unpleasant to be around. These actions are perfectly natural, but you have to resist them for the sake of your family. The other way you can handle this adversity is to treat it like a challenge, something to take head on and overcome.

When I first got engaged, I found out that my fiancé had five figures of student loan debt. I’m one of those crazy people who hate being in debt and abhor the idea of borrowing money. I didn’t get depressed, I saw it as a challenge. With a lot of hard work, we’ll be able to pay it off three months after our wedding day. Starting out a marriage with no debt and a decent income is a great way to set your self up. The point is that even though your discouraged and beat up, you have to see it as a challenge to overcome, not something that you can’t get a hold of and that’s causing you sorrow.

Another very important thing to do is get your priority’s straight. Your relationship with God, your marriage, and your relationship with your children are all more important than money. If you can get those three most important things under control, your money problems won’t seem as significant. Your relationship with God and your relationship with your family is what matters the most, never forget that.

You should also prioritize the money that you do have coming in. Make sure there is food on the table first, and then pay your utilities and house payment next. Keep gas in the car, and you have your basic necessities taken care of. Everything else goes after that, no matter how much the credit card company is yelling, kicking, and screaming at you. This will allow you to keep living your life and fight another day. Don’t let any debt collector try to persuade you that they are more important than food or your home, because they are not.

Spend quality time with your family. Go on a date with your wife or husband, take kids to the park, do all of those things that make you really close to your family. They will relax you and take some of the stress away, and remind you that there’s more to life than money.

If creditors are calling you non-stop, unplug the phone for a while. You shouldn’t have to deal with all of them every day. You can send a partial cease and desist letter legally forcing them to only contact you by mail so that the phone-calls stop. If they don’t, you can sue them and win a nice sum of money which will surely help pay off those debts!

Remember what’s important, and that’s your family. Take care of your relationship with god, your relationship with your family, and your household, and the money problems won’t seem nearly as stressful or traumatic.