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As if choosing a college and moving away from home for the first time wasn’t stressful enough, many college students are also faced with the choice of getting their first credit cards and beginning to build their credit histories.  Many lenders offer credit cards designed with students in mind and relentlessly push new applications on the new students on campus.  While a student credit card can be a wonderful way for a college student to build a credit profile, there are some pitfalls for the unwary that can cost the student a lot of money over the long haul.  Here is one of the most important things to look for in a student credit card.

Before signing up for any credit card, it is important to know what the interest rate for the credit card would be.  A high interest rate means that you will spend more money for the purchases placed on the credit card, especially if you are not able to pay off the entire balance every month.  A credit card with a low interest rate will generally have a rate of less than 10% while a credit card with a high interest rate could be as high as 30%.  You should look for the student credit card with the lowest interest rate and the highest credit limit you qualify for.

Some student credit cards offer students an introductory interest rate of 5% or less in order to entice them into signing up for the credit card and using it for general purchases.  Unfortunately, after a set period of time, the interest rate increases dramatically and is applied to all future purchases that are made on the credit card.  Be sure to read the terms and conditions of the credit card application carefully so that you will know what the interest rate will be during the introductory period and after.

Many individuals are looking for a debt reduction technique to decrease the amount of debt that they are carrying, especially when the individual is battling a poor credit score as well.  When looking for debt reduction techniques, there are several things that the individual must keep in mind in order to get the results that they desire.

The technique used will be based mainly on an individual’s credit history, payment history, and the amount of debt that the individual is carrying.  After using these factors to determine whether the individual should be using a debt reduction technique, the person can choose a company that offers the technique for a reasonable price.  It is important to remember that a poor credit score can result in the individual receiving a much higher price for debt reduction assistance or being rejected by the company outright.

Examine All Of Your Options Carefully

When looking a debt reduction technique, there are several things to keep in mind.  The first thing that should be taken into consideration is that the first techniques that the individual may come across may not be the best one for the individual’s situation.  In many cases, an individual that has a poor credit score is so desperate for a solution that they will use the first technique that they see, regardless of the terms, and choose whatever technique they think may work.  It is best to review several different techniques to find out which ones will offer the best results.

Check The Validity Of The Information

It is always great to find debt reduction techniques that can be obtained cheaply and little effort involved, but the individual must be careful to make sure that the information displayed is not just a hook to get the individual to accept the technique and send money to the company.  In some cases, the price will change after a brief introductory period, after which the price will rise dramatically higher for the services to continue.  The increased price will put the individual deeper into debt and may even make the technique unaffordable for someone that has a poor credit score or is in a bad financial situation.  When dealing with companies that offer debt reduction techniques, it is best to be sure that you are dealing with a company that is reputable by checking out their reviews on the internet.

Now that the holidays are over, there are probably two numbers in your life you currently aren’t happy with. One is the balance of your available funds, and the other is the set of digits displayed to you when you step on your bathroom scale. The beginning of the new year means it’s time to get this figures back to where they belong. But what seem like daunting tasks are a much simpler mission to accomplish considering that by getting into shape and eating less, you’re likely to save quite a bit of money.

Consider for example the following six ways getting into shape will save you green this year:

Cheaper insurance: When it comes to health insurance and life insurance, most companies calculate BMI into their determination of your available policies and the premiums that are attached. The healthier you are, the more likely you are to see cheap insurance quotes. You could shave off $50 or even $100 from your monthly insurance payments thanks to diet and exercise.

Less spent on groceries: By adhering to a strict diet, you’re guaranteed to spend less on food even if the specialty health items themselves are a little pricier. You’ll skip the vending machine at school or work, as well as that muffin with your morning coffee. Over time, this amounts to serious savings.

Less spent on wardrobe replacement: Gaining weight means gaining more clothes in your wardrobe as you stop fitting into your old stuff. Not only that, but larger apparel these days tend to cost a few dollars more than regularly priced items to account for the extra fabric and work to make them. Cut out this strain on your budget by staying in shape.

Less spent on fuel costs: 30-50 lbs of extra weight hauled in your car everyday adds up to extra fuel being used to move your vehicle. Losing that means less spent on gas in the long run. But not only that, committing to walking and cycling more as you attempt a healthier lifestyle is also sure to lower the amount of money you spend on fuel by cutting down how much you’re driving your car.

Less on cooling costs: It’s obvious science – the more fat you have on your body, the hotter you’ll get as the temperature increases and the harder it will be to cool you off when the AC is turned on. Help yourself stay cool in the summer without relying on the air conditioner by cutting out the fat that keeps you hotter than you ought to be.

Free time is free: Instead of watching pay-per-view, fetching rentals, or buying the latest video games, go outside and play around in your backyard. Assuming you already have a pigskin and a radio, throwing the ball around while the big game is playing in the background is an active way to enjoy a few hours of your weekend that doesn’t cost a dime.

Take the first few months of the new year to get yourself in shape, both physically and financially. Taking on both at the same time is much easier than you think. Losing weight and eating right is a sure way to see more money in your wallet, which is a welcome sight in the wake of the onslaught of holiday spending.

We have all heard the horror stories of debt collectors harassing debtors to the point that they cannot take it anymore, but many people do not know that there are rules governing debt collection that all debt collection agencies must adhere to or face severe penalties.  If a debt collection agency that is contacting you is breaking any of these rules, you can report them to the Federal Trade Commission for a violation of the Fair Debt Collection Practices Act.  You may be entitled to financial compensation and damages due to the actions of the debt collection agency.

No Misrepresentations

A debt collection company is not allowed to misrepresent who they are when they contact you.  They cannot claim that they are from a credit monitoring bureau, an attorney’s office, or government agency if the information is not completely true and honest.  They are not allowed to claim that any document sent by them is a legal document if it is not.  If they are asked, they must state their name, the company that they work for, and the reason for calling the individual.

No Verbal Abuse

The representatives of collection agencies cannot use abusive or profane language when they are contacting a debtor about a debt that they are attempting to collect.  Obscene language, threats of violence or bodily harm, and even threats of arrest are prohibited by the Fair Debt Collection Practices Act and can result in the company being fined a significant amount of money for each occurrence investigated by the Federal Trade Commission.  If a debt collection representative becomes verbally abusive on the telephone, hang up and report the incident as soon as you can.

Verification Requests Must Be Honored

If you do not believe that the debt is valid, you can request that the debt collection agency send you verification in writing that you owe the money that they are attempting to collect.  This information must be sent within five days of the request and should include a description of the debt, the total amount owed, and the steps that can be taken to dispute the debt if the person believes that they do not owe any money or if the information provided is inaccurate.

If you are unprepared when an emergency occurs, you may find yourself having to resort to expensive debt to handle the problem.  This can quickly lead to financial devastation and great difficulty repairing your finances for years to come.  It is better to prepare yourself financially ahead of time so that you can handle any emergency that occurs without having to resort to borrowing money from anyone.  Here are some steps that you can take to prepare yourself.

Start A Savings Account

The best thing that you can do to be prepared for financial emergencies is to start a savings account and begin diverting money into it from your paycheck.  This will provide you with a financial cushion that can be used when unexpected expenses arise that are more than your regular paycheck can handle.  Having the savings available will ensure that you do not have to use a credit card to handle the issue, where interest charges and financing fees can cost you tons of money before the balance is paid off.

Keep Financial Records

Keeping accurate financial records will help you keep track of how much money you are spending and whether spending can be cut anywhere to provide more money for saving.  All financial transactions into and out of your bank accounts should be noted with the date, the amount, and a label for the transaction.  Tracking your transactions shows you where money is being wasted so that you can formulate a plan to turn those wasted dollars into saved money.

Create A Budget

Creating a budget will help you get a handle on your finances quicker than any other method of financial management.  The budget should include all of your expenses for the month and the amount that you are paying for each expense.  This will decrease the risk of you overspending in any category and may even identify areas of saving that you did not identify before.

Overdraft charges are one of the most expensive bank charges that can be levied against a checking account and cost consumers billions of dollars every year.  It has been estimated that nearly 25% of checking accounts experience an overdraft at some point over the course of a year and the fees average around $35 per occurrence.  Avoiding overdraft charges is not impossible and by following a few simple tips, you can ensure that no overdraft charges will be charged to your account.

Keep An Accurate Checking Ledger

Keeping track of the amount of money available in your account is the best way to avoid being charged an overdraft fee because you will always know how much money is in the account.  All deposits and withdrawals should be noted in the checking ledger, including any purchases made using a debit card, and the ledger should be balanced regularly.  Many people choose to balance their checking ledger at the end of every day because it only takes a few minutes of time and it is always up to date.

Add Some Additional Padding To Your Account

Another good way to avoid overdrafts on your checking account is to add two or three hundred dollars to the account that is not reflected in the checking ledger to pad the account.  Adding this additional money will come in handy if a paycheck is delayed and automatic payments are withdrawn from the account or if a transaction is missed in your checking ledger.  Act as if this additional money does not exist and do not plan to spend it for purchases.

Sign Up For Low Balance Alerts

Many banks have added low balance alerts to the services available on their websites.  This service sends you a text or email when the balance of your checking account falls below a certain threshold, alerting you that you need to make a deposit and restrict your spending until there is more money in your account.  The amount of the threshold is chosen by the account holder when they sign up for the alerts and can be set for amounts ranging from $50 to $500.

There are many ways to waste money every day, but using some common sense to manage finances can go a long way towards securing your financial future.  Taking a small amount of time to think about what you are doing and plan the best course of action will prevent you from making simple money mistakes that will cost you dearly over time.  Here are some common sense tips to follow in your everyday life.

Don’t Be Lazy

Laziness will cost you much more than you think over the course of a year because you are paying for the convenience of immediate gratification or the convenience of having someone else do your tasks for you.  Taking your clothes to a cleaning company will cost you 5 to 10 times more than doing your own laundry at home or at the Laundromat.  Eating out raises the cost of a meal to triple or quadruple what you would have paid to buy the ingredients and cook the same meal at home.  Take the time to do tasks for yourself and keep the money you would have paid to others in your bank account for your own needs.

Think Before You Act

Simple mistakes like parking in the wrong spot or not putting enough money in the parking meter can be very expensive when you receive a ticket for the action.  All fines received for mindless actions should be classified as wasted money and avoided as much as possible.  These unnecessary expenses can be easily evaded by being careful and taking the time to think about your actions before performing them.

Take Advantage Of Discounts

Using the discounts found on many everyday items can save you thousands of dollars every year.  From using buy one, get one free coupons on everything from shoes to groceries to purchasing new clothing from the clearance racks, there are hundreds of different ways to use discounts to save money.  People that take the time to review the discounts found in their areas may be able to buy everything they need for at least 25% less than the person who does not take advantage of discounted items.

Most of us have things that we spend way too much money on, often without even realizing it.  These money drains pack a huge wallop on our wallets and cost us thousands of dollars each year that would be better saved or spent on household necessities.  Here are some of the biggest money drains and how you can repair the leaks.

Eating Out

Eating out can be much more expensive than you realize.  The cost of an average meal in a causal restaurant is generally 5 times as much as you would have paid to purchase the ingredients at a grocery store and cook the meal yourself.  On top of that, you pay a premium for drinks and have to tip the wait staff for bringing you your food.  If you are trying to save money, limit the number of times that you eat out to the minimum possible and cook at home as much as you can.

Gasoline

The cost of gasoline has increased dramatically over the last decade and commands an increasing share of household budgets as the price continues to rise.  Saving gasoline is saving money, so planning your traveling to save as much gasoline as possible will save you a lot of money over the course of a year.  Consolidate trips so that all of your errands can be done in a single session and purchase items as close to home as possible to avoid unnecessary traveling.

Entertainment

It is very easy to overspend on entertainment items with so many options available.  It is important to keep the amount of money spent on entertainment in perspective and limit your spending so that you do not go over budget.  There are many ways to save money on entertainment including renting a movie to watch at home instead of going to the movie theater, canceling a premium cable package and choosing a basic package instead, or going to see local bands instead of buying tickets for national concert tours.  By shifting your entertainment habits, you can save money while having the same amount of fun.

Keeping credit under control can be difficult for anyone, regardless of how much money they make.  Credit can be used to your benefit or abused to your detriment depending on the actions performed with the credit card.  Here are some simple tips for keeping your credit under control and your finances secure.

Use Debit Cards Instead Of Credit Cards

Many people use their credit cards for their everyday purchases and even bigger purchases, such as when there are bulldozers for sale. because they do not like carrying cash with them.  This is great if you are only charging what is absolutely necessary and you are paying off your bill in full each month, but unfortunately this is often not the case.  If you would prefer to use a card instead of cash, use a debit card linked to your checking account so that you do not overspend and do not increase your debt.

Pay Your Bill On Time

A missed payment on a credit account can have several consequences that are all bad for your finances.  First, you will incur a late payment fee of $25 or more for missing the payment date, even if you are only late by a few hours.  The second consequence is usually a significant increase in the interest rate on the credit card with the missed payment, often rising by 10% or more.  The missed payment may also be included on your credit report, which could lower your credit score with each occurrence and increase the amount you will have to pay for credit in the future.

Put Credit Card Charges In Your Checking Ledger

Paying the entire credit card balance in full each month is very important for keeping your credit under control.  To ensure that you have enough money at the end of the month to pay off the entire credit card bill, deduct your credit card purchases from the balance of your checking ledger as if you had already pulled the money out of the account to pay for your purchases.  This will help you keep track of your spending on your credit card and reduce the chances that you will not have enough money to pay the entire balance when the bill for the credit card is due.

Home loans are very expensive financial instruments and it is very important for the potential homeowner to find the best mortgage for their financial situation.  To find the best home loan, there are several things that you should keep in mind.  Not all mortgages are created equal and the differences can either cost you a great deal of money or save you a great deal of money.  Knowing which loan is the best will take research to determine, but once you know which one is the best one for your financial situation, you can rest easy knowing that you will be saving a great deal of money on your home loan.

The best mortgage available to you will usually depend on your personal situation and previous credit history.  What may be the best loan for one person may not be the best loan for another person that has a higher credit score or less negative information on their credit report.  It is important to understand that mortgage interest rates are based on the individual’s credit score, which can vary greatly from person to person.  The credit score and credit history is used to determine an individual’s credit worthiness and their ability to repay the money that they have borrowed.

The best mortgage will have appealing features and a loan amount high enough to get the home you desire.  The best loan will have the lowest interest rate for the longest amount of time with the highest loan amount.  The features offered are different for each situation, based on different credit histories and varied debt amounts.  The amount of money that can be secured with the mortgage also vary based on income and the value of the home being considered.

It is very important to read all of the terms and conditions associated with the loan to make sure that the interest rate is reasonable and the fees attached to the loan are fully disclosed.  The best mortgage will have low fees and a low interest rate, and preferably will not have any prepayment penalties built in so that you can pay off your mortgage as quickly as you can.  You do not want to have to pay a great deal of fees for originating the loan or be surprised by high closing costs costing thousands of dollars.