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Archive for March, 2009

How To Create A Credit Card Repayment Plan

Written by Toi Williams on Mar 31st, 2009 | Filed under: credit cards, debt relief

The number of people that are facing massive amounts of credit card debt increases each month and the amount of people that find themselves in this situation will only continue to grow as the economy continues to slow.  Many people depended on credit cards and loans to maintain their lifestyle and now owe a large amount of money to numerous creditors.

In the past, a person may have been able to obtain a home equity loan to pay down their credit card debt but with home values plummeting, this is no longer an option for many people.  People are finding that they must live on the amount that they are paid in each paycheck and become debt free, which typically results in a large reduction in the disposable income that they have each month.

The only way that these people will be able to keep themselves from getting deeper into credit card debt and creating some real debt relief solutions is to create a credit card repayment plan to ensure that they are able to begin paying off their credit card debts and to make sure that they are not spending more than they can afford each month.  While this may be a difficult adjustment to make, the reality is that people are going to have to stop living beyond their means when they are carrying a great deal of credit card debt.

The Steps In The Process

The first step in reducing credit card debt is determining how much the person actually spends each month.  For a period of at least two months the person should keep track of all expenses and all receipts.  This will show the person what their financial needs are and shows them all the things that they spend money on each month.  Keeping the receipts will provide the person with a record of what items they are wasting money on each month.

Once the spending patterns have been determined, it is time to create the credit card repayment plan.  The goal is to spend less money each month than you are receiving from your paycheck and any other sources.  The bigger the gap between intake and spending, the better it will be for the person’s financial future.  By detailing each expense that you must pay each month and the amount of money it will take to satisfy that expense, you can create a complete credit card repayment plan that accounts for all of your necessary monthly spending and shows you how much money you will have available for paying down your credit card debt.

The most important part of creating a credit card repayment plan is sticking to the plan and applying any money that is saved by using the plan to paying down credit card debt to eventually eliminate all of your credit card debt.  Completing the credit card debt elimination process will be hard, especially for people that have weak financial management or organizational skills, but it is possible to create a credit card repayment plan that is effective and stick with it until all credit card debts have been repaid.


Looking For A Quick Way To Reduce Personal Debt?

Written by Toi Williams on Mar 28th, 2009 | Filed under: debt relief, mindset

Millions of people across the country are carrying large personal debt levels and the interest rates applied to these debts are making the situation even worse.  Many people believe that there is no way that they will ever be able to reduce their personal debt, but by following some simple tips, a person can reduce their personal debt quickly and maintain their financial stability for many years to come.

Stop Making Purchases
It is impossible to reduce personal debt if the person continues to place purchases on the credit card every month.  The person should remove the credit cards from their wallet until they have been successful at eliminating their personal debt so they will not be tempted to use the credit card for unnecessary purchases.  The credit accounts that the person has held the longest should still remain open because closing these accounts could have a negative impact when the person’s credit score is calculated.

Pay More To The Creditors
The more the person can pay towards their personal debt each month, the faster their personal debt will be reduced.  The person should review their expenses to see what they can do without, allowing the person to put that money towards paying off their personal debt.  Common cost cutting methods include not eating out, eliminating cable television, or refraining from purchasing morning coffee each day at a coffee shop.  With a careful review of what the person is spending their money on, they may be able to reduce hundreds of dollars in excessive purchases each month.

Pay Off Highest Rates First
People that have multiple credit cards will often have different interest rates for each credit card.  The person should begin paying off the credit card with the highest balance and the highest interest rate first because reducing the balance on that credit card will save the person the most money in interest payments, which can then be applied to paying off their other credit cards.  The person should be careful not to miss any payments on their credit cards because many credit card companies will apply a significant fee to the account for every missed payment, even if the payment is only a day late.  To make sure that fees are not erasing the work that the person has done to pay down their credit card, they should be sure to make every credit card payment on time.


Common Mistakes That Can Sink Your Credit Score

Written by Toi Williams on Mar 25th, 2009 | Filed under: credit cards

There are many mistakes that people can make that can sink their credit score by a significant amount very quickly.  Many of these common mistakes are things that people do not imagine will sink their credit score as much as it actually does.  People that can manage to avoid these common financial mistakes may be able to keep their credit score in the higher range.

Not Securing Financial Information
One common mistake many people make that can dramatically sink their credit score is failing to keep their financial information secure.  There are thousands of tricks that can be used to obtain a person’s financial account and pin numbers so that the thief can make purchases either in person or on the internet, having the items delivered to a different location to avoid detection.  In many cases, the person will not even know that their financial information has been used until they receive their financial statement and find charges that they have not made or accounts that they have not opened.  Although many protections have been added to protect consumers from unauthorized financial charges, if the charges are not discovered quickly, the person may be responsible for paying those charges.

Carrying Large Account Balances
Another common mistake that leads to a sunken credit score is carrying a balance on several credit cards from month to month.  Paying off the balance of the cards each month reduces total debt by saving the person a great deal of money in interest payments and finance charges.   This also shows the financial company that the person knows how to use their credit wisely, increasing the chance that they will be approved for credit line sinks and other types of loans at lower interest rates in the future.  If the person carries a large balance on their credit cards from month to month, then their total credit limit is reduces and potential creditors may feel that the person is living outside their means.

Missing Payments
Many people believe that a single missed payment on their financial account will not have an affect on their credit, but the truth is that a single missed payment can sink their credit score dramatically.  A missed payment will show up on a person’s credit report and can lower their credit score significantly, which will increase the cost of future credit products.  Missing a payment on a financial account can also cause the interest rate for all of the person’s accounts to rise dramatically under the universal default clause that is present in many financial agreements. Making mistakes when using financial products can end up costing a lot of money so it is important to avoid making these common mistakes that can dramatically sink your credit score.


Why Do I Only Qualify For Low Limit Credit Cards?

Written by Toi Williams on Mar 22nd, 2009 | Filed under: credit cards

Many people are wondering why it seems like they only qualify for low limit credit cards from credit card companies.  Low limit credit cards are very prevalent in this day and age, but following some simple tips increases your chances of being able to increase your credit limit over time.  There are several reasons why you may be receiving a low credit limit when applying for credit cards and each reason will require a different solution.  By reviewing some important credit card information, you may be saving yourself a great deal of headache in the long run.

Low Credit Score
One reason why you may only qualify for low limit credit cards is because your credit score is low.  A low credit score can affect many things, including the credit limit offered to you for new financial products.  If every credit card offered to you seems to have a low credit limit, you may want to obtain a copy of your credit report and check it for errors and negative reporting.

Bad Credit Report
In many cases, the reason that you are limited to a lower credit limit is because the information in your credit report indicates that you are a credit risk, such as high numbers of late or missed payments.  Negative reporting on your credit report may be the result of mistakes that you have made, may be the result of errors in reporting, or may be because an identity thief has opened credit in your name.  Whatever the reason, one of the best financial tips to follow is to check your credit report on a regular basis to be sure that nothing negative is being reported.

Creditor Limits
Another reason that you may only receive offers for credit cards with a low credit limit could be because of the lender or creditor that you are using.  Some creditors consistently have higher limits than their competitors, and if you are not shopping around for the best deal you would never find out that you qualify for a higher credit limit.  Some credit limits for certain financial products can vary by a significant amount depending on what creditor you use and what deals are available at the time.

Remember to compare credit cards to find the best rewards.


Is Obtaining A Gold Credit Card A Good Idea?

Written by Toi Williams on Mar 20th, 2009 | Filed under: credit cards

Many people are refraining from obtaining a gold credit card this year because they are unsure of what the credit card market is going to do.  Many experts have different opinions about obtaining a credit card this year, but only by knowing the correct information about obtaining a credit card in the current market will people be able to make an informed decision on whether or not they should be obtaining a credit card.

Review The Interest Rate

One of the most important aspects of obtaining a credit card is the current interest rate that is being charged for credit cards.  Currently, interest rates are higher than reasonable for most people in most markets and they are beginning to rise.  People that are obtaining a gold credit card in the current market may find it impossible to lock in a low interest rate that will last the life of the credit card.  People that can obtain low interest rates for their credit card can save hundreds of dollars each year.  Locking in a lower interest rate when obtaining a gold credit card will also make the monthly credit card payments lower than what some other people are paying. 

An important reason that obtaining a credit card may not be a good decision is that default rates on credit cards in the nation are at an all time high, which means that interest rates for many credit cards may be dramatically increasing in the near future.  Currently, there are a large number of people that are unable to pay their credit card bills and the credit card company may have to respond by raising rates on the rest of their customers.  This is one of the ways that credit card companies use to recoup their losses.

Because of the large number of credit cards on the market today, people who are looking to obtain a credit card have a high number of choices available.  There are credit cards available from a very large number of lenders a wide variety of price ranges.  If the person interested in obtaining a gold credit card does some careful research, they may be able to find a credit card that they like for a reasonable interest rate.  There are many reasons why obtaining a gold credit card in the current market could be a good thing or a bad thing for a person and any person thinking about obtaining a gold credit card should think very carefully about their decision.

With interest rates rising, you may want to have your credit card prepaid instead of paying interest on your purchases later. Prepaid credit cards are good for eliminating debt because you can only spend the money you add to the card. These are good for people who have high interest rates or spending habits. You can find a prepaid MasterCard or visa card online easily. Make sure to compare different cards to find one that fits your needs.


Tips For Finding The Best Sources For Consumer Loans

Written by Toi Williams on Mar 19th, 2009 | Filed under: loans

Obtaining a consumer loan can be very important today, and many people are wondering how to get approved for a consumer loan.  Approval for a consumer loan is not hard to obtain, regardless of how bad your credit score may be.  There are routes that average people can take to receive consumer loan approval quickly. 

Knowing where to look for these consumer loans and how to take advantage of what is offered is one thing that every person should know.  Learning how to get approved for a consumer loan does not have to be difficult.  There are many sources of consumer loans that you can receive approval for and where you turn depends on what required you to search for the consumer loan. 

Traditional Lenders

Some of the most important sources of approval for a consumer loan are traditional lenders that offer consumer loans.  After you fill out the application, the loan officer will submit your information to determine whether you are eligible to receive a consumer loan through the company.  Obtaining approval for a consumer loan in this way works well for people that need a significant amount of money to handle whatever financial issue they are experiencing. 

Other Loan Sources

Another option for a person to get approved for a consumer loan is to respond to one of the many consumer loan commercials that frequently show up during television programs.  These commercials will often have a website or phone number listed within the information that allows consumers to get in touch with the companies offering the loans at favorable terms.  People are required to give their information to the customer service representative or type their information into an online form and approval can typically be granted or denied within a few hours of submitting the application information. 

There are several drawbacks to taking this approach to obtain a consumer loan.  One drawback is that even though you are approved quickly, it will still take a few days to receive the consumer loan and obtain access to the money.  The other drawback is that the interest rates for these loans are higher than the interest rates of consumer loans obtained in a more traditional fashion. 

The last negative aspect of obtaining the consumer loan in this manner is that many predatory lenders have opened up shop around the nation in the last few years and many of them use commercials to quickly draw in customers to exploit.  It is best to be very careful when dealing with a lender that you are not talking to in person.


What Is The Best Way To Get A Lower Mortgage Interest Rate?

Written by Toi Williams on Mar 17th, 2009 | Filed under: loans

There are many people across the nation wondering how they can get a lower interest rate for the mortgage that they apply for.  A lower interest rate on a mortgage has the ability to save the mortgage applicant hundreds of dollars every year in interest payments, depending on the amount of the mortgage.  Some people have found that negotiating with the mortgage company directly is the best way to get a lower interest rate on their mortgage.

How Are Interest Rates Decided?

Mortgage companies have the ability to assign an interest rate to a mortgage based on the person’s credit score and industry standards, which vary for different types of mortgage products.  These standards do not provide a particular interest rate that the mortgage company must charge for a mortgage, only a range in which the interest rate should fall.  This is why a person can receive mortgage quotes with different interest rates from different mortgage companies even though all of the information that the mortgage companies have looked at are the same.

In many cases, the mortgage company will give the person the interest rate that is at the higher end of the range if they do not have an existing relationship with the company and reserve the lower interest rates for the people that have had some sort of business relationship with the company for an extended period of time, either because the company also holds a credit card or car loan account with the person or because the lender is also a deposit holding bank and the person has personal accounts with the company.  In some cases, people that have had a mortgage for a few years may be able to refinance their mortgage at a better rate by calling the mortgage company and asking for a lower interest rate.  The mortgage company will review the account and make the determination of whether refinancing is an option for your mortgage loan.

This works best if the person already has a mortgage loan through the mortgage company and has not had any issues with making the payment for the mortgage on time for the last few years of the mortgage loan.  The mortgage company will review the person’s account history before deciding whether the person is eligible for a lower interest rate for their mortgage.  If the account history looks good, it makes it easier for the company to decide that the person qualifies for a lower interest rate.  If the person has a history of problems with the mortgage, the mortgage company will be much less willing to reward the person with a lower interest rate.


How To Pick A Great Loan Consolidation Company

Written by Toi Williams on Mar 15th, 2009 | Filed under: consolidation

If a person is interested in getting their loans consolidated, the person will need a loan consolidation company to help the person find the right loan consolidation program for them. Choosing a loan consolidation company can be difficult because there are a large number of companies that have opened up shop all over the nation.  By keeping some simple tips in mind when looking for a loan consolidation company, the person will increase their chances of being satisfied with the loan consolidation program.

Methods Of Choosing

Many people choose a loan consolidation company by talking to family members and friends about which companies they recommend.  If someone that the person knows has had a good experience with a company, there is a good chance that the person looking for the loan consolidation program will have a good experience with the company as well.  This is one of the easiest ways to choose a loan consolidation company because the person will know what to expect beforehand.

Another thing to think about when choosing a loan consolidation company is the reputation of the company.  This can typically be accomplished by looking for the name of the company in the search engines of the internet to read consumer reviews about the company.  These websites allow thousands of people to voice their opinions on many different subjects, including loan consolidation companies and experiences with different loan consolidation programs.  If most of the information found is negative, then the person should avoid that company before the person has a bad experience as well.

It is important that the loan consolidation company is an honest and reputable company that has the best interests of the person at heart.  It is very important that the person read all of the terms and conditions of the loan consolidation program very carefully to make sure that they understand all of the information that is included.  Many people believe that it is best to contact loan consolidation companies that have been in business for years rather than companies that are new to the business because there is the perception that a more established company would not risk their standing in the financial world by taking advantage of their customers.  When it comes to choosing a loan consolidation relief company, finding the right company can help the person find the best loan consolidation for their needs.


Things You Need To Know About A Bank Credit Card

Written by Toi Williams on Mar 12th, 2009 | Filed under: credit cards

Being able to obtain a credit card is very important part of today’s financial environment and many people are seeking a bank credit card that meets their needs.  There are many differences between bank credit cards that can cost or save a person a great deal of money and knowing which type of card is the best will take time and research to determine.  To find a bank credit card, there are several things that the person should keep in mind. 

The Terms Of The Bank Credit Card

The best type of card for one person may not be the best type of card for another person.  An ideal bank credit card for an individual will have the highest credit limit with the lowest interest rate for the longest amount of time.  It is very important that any person that is looking for the best credit card is reading all of the terms and conditions associated with the credit card make sure that they understand the terms for the credit card and how the interest rate will be calculated.

The terms that you will get for a bank credit card will depend on your personal financial situation and previous credit history.  The majority of bank credit cards are based on the person’s credit score, which is used to determine a person’s credit worthiness and their record of repaying money that they have borrowed from creditors.  A person with a fair credit history for the last few years will be much more attractive to credit card companies than a person that has a great deal of recent blemishes on their credit report.

The Credit Limit For The Bank Credit Card

The credit limit for a bank credit card can vary from person to person.  Some people may have their credit limit capped at $2,500 while other people may qualify for a credit limit of $25,000 or more based on their income and credit history.  A bank credit card will have a reasonable credit limit based on the person’s income level without charging the person a great deal of hidden fees to obtain the credit card or keep the credit account open. 

Some of the credit cards that are marketed to people with less than perfect credit will charge the person a number of fees that are added to the credit card before the credit card is issued to be released to the person.  These hidden fees are typically disclosed in the terms and conditions of the credit card and can quickly add up to hundreds of dollars.  These fees are fees that the creditor deems necessary for reducing the risk of lending to borrowers with a shaky credit history.


How To Choose A Consumer Credit Counseling Company

Written by admin on Mar 10th, 2009 | Filed under: debt relief

If a person is interested in getting consumer credit counseling, the person will need a consumer credit counseling company to help the person find the right consumer credit counseling program for them. Choosing a consumer credit counseling company can be difficult because there are a large number of companies that have opened up shop all over the nation.  By keeping some simple tips in mind when looking for a consumer credit counseling company, the person will increase their chances of being satisfied with the consumer credit counseling.

Reputation
One thing to think about when choosing a consumer credit counseling company is the reputation of the company.  This can typically be accomplished by searching the name of the company in the search engines of the internet to read consumer reviews about the company.  These websites allow thousands of people to voice their opinions on many different subjects, including consumer credit counseling companies and experiences with different consumer credit counseling.  If most of the information found is negative, then the person should avoid that company before the person has a bad experience as well.

Referrals
Many people choose a consumer credit counseling company by talking to family members and friends about which companies they recommend.  If someone that the person knows has had a good experience with a company, there is a good chance that the person looking for the consumer credit counseling will have a good experience with the company as well.  This is one of the easiest ways to choose a consumer credit counseling company because the person will know what to expect beforehand.

Experience
It is important that the consumer credit counseling company is an honest and reputable company that has the best interests of the person at heart.  It is very important that the person read all of the terms and conditions of the consumer credit counseling very carefully to make sure that they understand all of the information that is included.  Many people believe that it is best to contact consumer credit counseling companies that have been in business for years rather than companies that are new to the business because there is the perception that a more established company will not risk their standing in the financial world by taking advantage of their customers.  When it comes to obtaining consumer credit counseling, finding the right company can help the person find the best consumer credit counseling for their needs.