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Stop All That Credit Card Spending And Start Using Debt

admin — Mon, 12 Jul 2010 04:23:12 +0000

Stop All That Credit Card Spending And Start Using Debt Management

Reducing your credit card debt is not easy, and requires planning and discipline. We all know that it is much easier to pull out that plastic than to pay cash for something. Credit card balances therefore escalate quickly since it doesn’t even feel like we are spending. The high interest rates on credit cards just make the balances go up even faster.

The answer to reducing credit card debt is to reduce credit card spending. But this is easier said than done. If you have the credit card in your pocket, you will be tempted to use it. The best solution is simply to destroy all of your credit cards except one. You save that one for use in case of emergencies. Cut up all the credit cards except the one with the lowest interest rate.

Another solution would be to take advantage of a zero percent credit card offer to do a balance transfer of all of your credit card debt. These offers come in the mail from time to time, so watch for them. The advantage of this is that 100% of your payments are reducing your debt, not paying interest. The zero percent will only apply during the introductory period, and what the credit card company making the offer is hoping for is that you will still have a balance at the end of that period that they will earn their interest on.

But for you, the credit card holder, the best way to manage this is to dovetail one zero balance offer onto another. Have the application filled out on a new one so that as the old one finishes its introductory period, you are ready to transfer that balance onto the new one, and on and on until the entire balance is paid off. If this is not possible, try to pay as much as you can during the introductory period so you end up with a smaller balance instead of a larger one due to interest accumulation.

If you do not receive a zero percent interest rate offer, look around for the cheapest offer you can. As long as it is lower than the interest rates you are currently paying, you will save money and be able to pay off your debt faster. Your goal should be to reduce your interest rate so that part of your monthly payment is paying off balances instead of just interest. Otherwise, you will never get rid of credit card debt.

Another excellent idea is to have your bank make automatic payments to your credit card bill. Your payment will always be on time, avoiding late charges, and you will start to reduce the credit card debt.

You can also consider a debt consolidation loan. The main advantages of a debt consolidation loan is that it is at a lower interest rate than your credit card debt, and that you only have to pay one lump sum instead of several smaller payments that add up to a larger total sum. This makes keeping track of your bills easier, and it will get all those collection agencies off your back.

Financial and Shopping Tips When Traveling Overseas

admin — Mon, 28 Jun 2010 04:38:02 +0000

Currency

Local banks usually offer better rates of exchange than hotels, restaurants, or stores. Rates are often posted in windows. Above all, avoid private currency transactions. In some countries, you risk more than being swindled or stuck with counterfeit currency _ you risk arrest. Avoid the black market — learn and obey the local currency laws, wherever you go.

Shopping

Mail Small Items

When you purchase small items, it is a good idea to mail them personally to your home or to carry them in your luggage. This will help prevent misdirected packages, no receipt of merchandise, or receipt of wrong merchandise. When you mail purchases, be sure to ask about insurance.

American embassies and consulates abroad cannot serve as post offices. They cannot accept, hold, or forward mail for U.S. citizens abroad.

Items mailed home are not eligible for your $400 personal exemption. If the item that you are mailing home is less than $200, duty will be waived. Be sure to write on the outside of the package that it contains goods for personal use.

Value Added Tax (VAT)

Some European and Asian countries levy a value added tax (VAT) on the items that you buy. In some places, if you ship your purchases home, the VAT can be waived. Other places may require you to pay the VAT, but have a system to refund all of it or part of it to you by mail. You can ask the store clerk for an application to apply for the refund. The VAT refund is only for items that you can ship or carry with you. It does not apply to food, hotel bills, or other services. Because the rules for VAT refunds vary from country to country, you should check with the country’s tourist office to learn the local requirements.

Beware When Making the Following Purchases:

Wildlife Souvenirs

Be careful when you buy articles made from animals and plants or when you purchase live, wild animals to bring back as pets. Some items, such as those made from elephant ivory, sea turtles, crocodile leather, or fur from endangered cats, and many species of live animals cannot be brought legally into the United States. Your wildlife souvenirs could be confiscated by government inspectors, and you could face other penalties for attempting to bring them into the United States. Do not buy wildlife or wildlife products unless you are certain that they are legal for import into the United States.

Glazed Ceramics

Beware of purchasing glazed ceramic ware abroad. It is possible to suffer lead poisoning, if you consume food or beverages that are stored or served in improperly glazed ceramics.

Unless the ceramics are made by a firm with an international reputation, there is no immediate way to be certain that a particular item is safe. The U.S. Food and Drug Administration recommends that ceramic tableware purchased abroad be tested for lead release by a commercial laboratory on your return or be used for decorative purposes only.

Antiques

Certain countries consider antiques to be national treasures and the “inalienable property of the nation.” In some countries, customs authorities seize illegally purchased antiques without compensation, and they may also levy fines on the purchaser. Americans have been arrested and prosecuted for purchasing antiques without a permit. Americans have even been arrested for purchasing reproductions of antiques from street vendors because a local authority believed the purchase was a national treasure.

Protect yourself. In countries where antiques are important, document your purchases as reproductions, if that is the case, or, if they are authentic, secure the necessary export permit. The documentation or export permit may be available through the country’s national museum. A reputable dealer may provide the export permit or information on how to secure one. If you have questions about purchasing antiques, the country’s tourist office can guide you. If you still have doubts, consult the Consular Section of the nearest U.S. embassy or consulate. In places where Americans have had problems because of purchasing antiques, the Consular Section is usually well aware of such situations.

Consular officers can inform you about the local laws and the correct procedures to follow.

Customs

It is important that you keep all receipts for items you buy overseas. They will be helpful in making your U.S. Customs declaration when you return.

Reducing Your Credit Card Debt One Day at a Time

admin — Thu, 24 Jun 2010 22:06:52 +0000

Reducing Your Credit Card Debt One Day at a Time

Debt reduction, a lofty goal, is also extremely difficult to carry out. As long as swiping your card feels easier than paying cash, youll find yourself stuck in a downward spiral of credit card debt. Continued use combined with high interest charges means your credit card debt will just keep growing over time. A good offense is the best defense; stop the cycle now and take steps to free yourself of consumer credit card debt.

Here are some credit repair tips that can help you dig out from under a mound of debt:

The first, most important step- reduce your spending. Before you embark on a plan to pay off your debt, you have to commit to not accumulating any more. Get rid of all but one credit card; keep this card for use in emergencies only. Make sure the card you keep has a low credit limit and a low interest rate.
Transfer your existing balances onto a card that offers a limited-time 0% interest rate on balance transfers. During that period, maximize your payments; your money is going entirely to pay down the principle because there is no interest accumulating. You can transfer your balance more than once if necessary; jut watch the mail for offers from your credit card companies. If you dont have a card that offers a 0% rate, then transfer your balances onto the card with the lowest rate. Reducing your interest even slightly can have a dramatic effect on your balance; the more you owe, the more this transfer will save you money.
Set up an automatic payment with your bank. Automatic payments ensure your payment is made in full and on time every month, which will help you with your credit repair. Some credit cards will agree to lower your interest rate if you are making automatic payments so talk to your customer service associate to see if you can negotiate.
Consider a debt consolidation loan. By consolidating your debt, you can reduce your monthly payments and cut your interest payments. These loans usually charge with a much lower interest rate than do your credit cards so you will save money in the long term. Because you will only have one bill a month to pay, you are much less likely to send it in late or to forget to send it.

Got Debt – Consider A Debt Management Company

admin — Wed, 02 Jun 2010 11:56:03 +0000

You’ve been working yourself silly for years and yet… you still have no savings and the pile of unpaid bills seems to grow each and every month. You have creditors breathing down your neck – calling and sending you letters so much that you’re afraid to answer the phone or pick up your mail… it’s a difficult and stressful pill to swallow.

Sound familiar? Unfortunately, many people who are saddled with debt seem to be under the delusion that everything will eventually go away if they just ignore the situation. Therefore, they ignore the calls they receive from creditors and simply stop opening their mail. Not only is this living in denial but it’s the equivalent to financial suicide and will only extend and exacerbate the problem the longer it continues.

Fortunately, debt management companies abound and with the advent of the internet it’s easier than ever to contact them. It’s simply a matter of researching the most suitable debt management company that you feel the most comfortable with.

Securing the services of a debt management company is not something that should scare you, given the fact that you are not in control of your finances anyway. As a result, it may be time for you to embrace the opportunity to use their services to assist you in solving your financial woes.

That being said, take in all the information they can provide and use it to educate yourself about debt and work with them to develop a plan and set a realistic time frame to take pay your off your debt.

When it comes to choosing a debt management company that will effectively cater to your needs do your due diligence and ask as many questions as you need to, in order to feel comfortable. Learn what they have to offer and what it will cost you to use their services.

A debt management company should be able to come up with various plans on how to handle your current financial difficulties but you must be open-minded and realistic. It probably took you years to put yourself behind the financial eight-ball and so the process of pulling yourself out of the hole you’ve dug will also take some time and may at times, be a bit painful.

In many instances, debt management companies can offer financial plans and terms that will allow you to reduce the time it takes to pay down your debt. This is an extremely practical way for you to handle your finances and hopefully it will finally put you back on track to financial wholeness.

Simple things like getting a part-time jobs, starting a home-based business, as well as making small sacrifices, such as reducing impulse buying and only purchasing necessities until you’ve paid off your debt will save you hundreds of dollars per month that you can put towards paying off your debt.

When it comes down to it, if you are willing to make a few changes and pay attention to how you spend your money, in many instance it’s not a difficult as it may currently appear to overcome debt. But if you stray and go back to the same practices that got you into debt in the first place, you’ll find yourself sinking back into the black whole of debt. Regardless of the plan and ideas a good debt management company can show you, if you are not willing to make the necessary lifestyle changes, no plan or no amount of expertise from them will make one bit of difference.

Make Credit Card Debt Consolidation A Priority

admin — Thu, 27 May 2010 10:39:13 +0000

Most people today are in debt up to their ears. The busyness of life, the demands of staying up on the latest trends and gadgets with your neighbors, and the complete lack of understanding of budgeting have all contributed to the debt crisis in our country. Fortunately, it is never to late to begin to work towards debt free living. Sound impossible to be debt free? It doesn’t have to. One of the biggest and most significant steps that you can take toward living a debt free lifestyle is to tackle credit card debt consolidation.

Credit card debt consolidation is not as overwhelming as the name suggests. Quite simply, credit card debt consolidation is the process of lumping all of your credit card debts into one lump sum that enables you to then have just one monthly payment on the total of your credit card debts. Sound great? It is. The point of this is to decrease the number of credit cards that you have and that are bringing you further in debt.

Credit card debt consolidation is important because it is a significant first step towards wiser spending habits. It takes an extremely disciplined person to stay out of credit card debt while owning a variety of credit cards that have huge credit limits. We live in a day and age where there is simply too much that we need or want to live. We have, for the most part, lost the value of living simply. It doesn’t help when most adults receive at least one if not more credit card applications in the mail each week. Companies make it very easy for people to get allured and then trapped further into debt. Credit card debt consolidation is a good first step toward taking a different approach to living and spending.

Credit card debt consolidation is a way to go against the trends of society and to commit yourself to living more simply and less in need of all the latest and greatest. It is a way to take control in a proactive way of your finances. Either your money and your debt will have power and control over you, or you will take power and control over your spending habits and your level of debt. The choice is up to you. Credit card debt consolidation is one important step to take if you want to take the proactive, in control approach to finances and to your life.

You can get help with credit card debt consolidation by talking to a financial advisor or even by reading up on the subject in your own time. The more you learn about it, the better chances you have of making it debt free living a reality for you and your family.

How Credit Card Debt Effects You

admin — Tue, 06 Apr 2010 02:23:15 +0000

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The statistics are truly mind numbing and continue to get worse each and every year. At the current rate about 1% or one in a hundred families will be forced to declare bankruptcy at some point and over 90% of Americans’ disposable income is spent paying back debts.

Not a happy picture but as bleak as that sounds running won’t change it but knowledge may and so, let’s take a quick snapshot at a few of the current credit card debt statistics facing so many Americans today.

The American Consumer spends over 1 trillion (that’s a 1 with 12 zeros) per year on credit card purchases. Not a big deal in and of itself but the problem lies in that they end up carrying over and paying interest on about half that amount or $500 billion. This translates into a balance of between $5,000 and $8,000 per family, with about $1,000 per year going just to pay the interest.

That’s just the average – many people owe much, much more!

Excessive Debt Costs Everyone Money
Many American receive at least one new credit card offer in the mail every day. The money being spent to service the debt industry is truly immense. Billions are spent administering, calculating and marketing the various aspects of the credit card industry.

Few industries or people escape unscathed, at least in the long run by debt. The burden that bankruptcy puts on the court system or the cost to government of providing subsidized debt counseling, are just a few examples of how debt effects the nation. In addition, consumers with excessive debt have less to spend and when money isn’t flowing, it hurts the economy.

Whatever Happened to Saving?
Debt is becoming increasingly more common. Not long ago, even a little debt was considered to be absolutely unacceptable. When you wanted something, you saved up for it and bought it ONLY after you had enough money to actually pay for it. And, if you had less than perfect credit, you couldn’t even get a credit card. Look at consumer debt figures as little as 50 years ago and they were absurdly low – the way most of the non-Western world is today.

The reasons are many and everyone has an opinion but regardless of the reasons, the art of saving, at least in the “western world” seems to have been lost. Outside of a 401K or similar vehicle offered at your place of employment, virtually nobody is saving enough for retirement. Banks are starting to have to offer ever-higher interest rates to get people to put money anywhere near a savings account. In fact, few people even have a savings account anymore. Most people have a checking account and that’s it. Our society and progressed into a “now” culture and the virtues of patience that help grow this country seem to have been lost. Whatever it takes to live life in the present with little regard for the future, appears to be the prevailing sentiment.

Is Over Spending the Culprit?
Ok, I’ve been a bit harsh up until now but I don’t want to give the impression that the only reason you’re in debt is because you continuously and frivolously overspend. Other factors are involved.

Truth be told, many people get buried in debt because of the loss of a job or an illness and they use credit cards to pay for basic expenses. As a result, they fall into the downward interest trap spiral as their debt grows out of control from just a few thousand dollars initially borrowed to pay for essentials.

Most people do have a reasonable sense of what they can afford and they don’t just go out and use credit cards to buy any and everything. Getting heavily into debt is usually a combination of many factors but the problem lies in people leaving balances on their credit cards for too long and not realizing just how deadly compounding interest really is to their financial well-being.

Getting Out Of Credit Card Debt

admin — Wed, 31 Mar 2010 12:23:06 +0000

If you’ve got huge payments and high interest rates on your credit card, you may feel like you’ll never get your head above water.

You can get out of credit card debt, if you are determined enough. Though it’s difficult to get out of debt, it isn’t impossible. All you need in order to get out of credit card debt is planning and determination. Both are equally important.

Determination doesn’t come without proper motivation, so you need to ask yourself these questions: “How will getting out of credit card debt benefit me”, “What difference will it make”, and “Is it really worth it to try to get out of debt.” Use the answers to these questions to build up your determination.

The fact that all the nagging mail and phone calls from the collection agencies will end should strengthen your determination and provide you with a reason to get out of debt. Think about the stress-free life you’ll have after you get out of debt. List the reasons you want to get out from under your credit card debt and ponder the benefits. Collectively, these will help bolster your determination and prevent lapses.

The second thing that you need to get out of credit card debt is plenty of planning. The planning starts with making a list of the credit cards that you currently posses and noting the debt and the APR for each of them. The sum total of all this information is how much you owe. You also need to check whether you have been defaulting on payments on any of these credit cards (and hence incurring late fees). You will need to avoid doing that. Put it in the plan you have prepared for getting out of debt.

The next step is to check your current financial position. Make an assessment of what you expect your future financial position to be. Then you need to do research to check what balance transfer offers are available. See if one of these can prove beneficial to you. Use this information to calculate how much time you will require to get out of debt and how you will distribute the debt payment across your various credit cards. Try to pay off the debt that is largest first and make sure that you don’t make any late payments.

You can get out of debt. It is not impossible. If you have any more questions about getting out of debt, contact a consumer credit counselor.

Credit Card Debt Settlement

admin — Wed, 13 Jan 2010 23:08:19 +0000

Have you started receiving credit card debt settlement notices in the mail? Have you been receiving collection calls? If this is the case, you have probably been in debt and been dealing with financial difficulties for quite some time.

Creditors are sometimes willing to settle the account for a lesser amount if the credit card account is seriously delinquent or has been written off. This creditor will usually accept the settled amount in one payment and the payment has to be made within a short period of time.

Now you may wonder why a creditor would settle for less than what is owed. Your credit card issuer is trying to reduce their losses and they have concerns about you paying this debt. Your credit issuer feels that recovering some of their money is better than not getting any of it back. Keep in mind that accepting a settlement may affect your borrowing ability in the future with this creditor, but it is a better option than bankruptcy or doing nothing at all.

A creditor will not usually settle on an account that is current. Normally, the account has to be at least 90 days delinquent before they will talk settlement and many credit card companies will wait longer than that. Here are a few things you should be aware of before agreeing to a settlement.

1. Your settlement payment may not completely satisfy the debt. There is a possibility that the uncollected portion of the debt could be turned over to another collection agency for further collection activity, but this is not the norm.

2. The IRS considers the amount of the debt that has not been satisfied as income. Any amount that exceeds $600 will be report on a 1099, to the IRS, by your creditors. You will be required to pay taxes on this amount.

3. Know what’s on your credit report. If the debt is not on their at all, it is not recommended that you do anything with this debt. If it is showing as being “charged off,” this is negative note on your credit report. If you settle, it will be noted as “settled for a lesser amount” which as also somewhat negative, but not as bad as doing nothing about it at all.

The best thing to do is to try to deal with the original creditor. Communicate with them in writing. If they will not deal with you, contact the collection agency in writing. If at all possible, try to negotiate a repayment plan on the balance. If you decide to settle the debt, get the terms of the settlement in writing to avoid problems on down the road. Once you have paid the debt, ask for a release of debt as proof that the company has agreed that the debt has been satisfied.

The best thing that you can do for yourself is to examine the curcumstances that caused your debt to get to this point and to put a plan in place that will prevent you from ending up there again.

Credit Card Debt: Do You Need Credit Help?

admin — Sat, 07 Nov 2009 10:50:05 +0000

If you have credit card debt it is important to take its measure from time-to-time to determine whether or not you have a problem with your debt. If you are carrying a balance on more than one card (or simply a sizable balance on one card) then you could have a problem.

There are five reasons why you should seek credit help to deal with your credit card debt.

The biggest reason is that credit card debt can affect your credit score which in turn impacts your ability to borrow money for everything from your car to your home. High credit card debt can lower your credit score and raise your interest rates. A problem with late credit card payments or high amounts of debt can make you appear to be a poor risk for credit to many finance companies.

However, almost as important is the way that credit card debt makes you feel. While money cannot buy happiness, credit card debt certainly buys unhappiness. The knowledge that you have a large debt can destroy your self esteem and add a lot of stress to your life. If you dread the arrival of the credit card bill in the mail then you have a problem with debt that you need to address. Owing money can also add a lot of pressure and stress on a marriage.

Another important reason to resolve your credit card debt is that by avoiding the problem or simply paying minimum amounts you will never be free. Most minimum payments do not do much more than pay for the interest. While many people make paying their credit cards a low priority it should actually be a top priority. Yes, your mortgage payment is important because you do not want to lose your home but that is good debt as it helps your credit rating and your taxes. Credit card debt does nothing for you at all.

Owing money on your credit cards is also a self perpetuating problem. Every time you charge instead of paying with cash and every time you do not pay off the full balance when it comes due you are perpetuating your problem with debt. You need to learn better money habits or you will never solve your problem with credit card debt.

Finally, an important reason to start paying with cash, check or debit card is that by paying-as-you-go for your lifestyle you will be modeling responsible behavior for the next generation.

Take these five reasons to heart and take stock of your own financial situation to determine whether or not you have a credit card debt problem.