GETTING A RUN FOR YOUR MONEY: HOW DO YOU CONSOLIDATE CREDIT CARD DEBT

Spending is such a hard habit to break, especially when people use their credit cards. Once they get addicted, they continuously endure the agony of spending in spite of imminent problems that tag behind. And when things eventually get out of hand, most people will soon realize that they are already stuck with a mountain load of credit card debts. And mornings after mornings, they will wake up each day with worries in their head about how they can repay all of those instant splurges. There?s one way to get out of credit card debts?consolidation. Here?s a list of ways how to do it:

1. Make a balance transfer. One way of consolidating a credit card debt is through a balance transfer. In this way, the person who has a huge outstanding balance on his or her credit cards will get another credit card with a lower interest rate. Once approved, they should immediately get a cash advance and use it to pay off their standing balance on the other credit card. In that way, they consolidate all of their payables into one credit card. Plus, they get to have only one rate to worry.

2. Home equity loans can do the job. This is a very workable strategy provided that it will be used properly. Getting a home equity loan is probably one of the easiest things to do. Best of all, home equity loans can offer tax deductions for the interest rate of the loan. However, there is a drawback. The debtor?s house will serve as the collateral. But nevertheless, it still one good way of consolidating credit card debts. The debtor should only keep in mind that the money from the loan should only be used in paying credit card debts. If used on other things, it will only worsen the problem.

3. Make use of retirement funds. There are instances wherein debtors can make use of their retirement funds in order to consolidate credit card debts. But this should only be made if there are no other options available. This is because this type of consolidating credit card debts can be very tricky. Loans on retirement funds are not actually tax deductibles. However, the problem sets in when the fails to pay back the loan within five years or when he or she will resign from work. Indeed, there are no nippy fixes when consolidating credit card debts. The bottom line is that, it is better if the person will stay out of debt so as not to worry on consolidation matters.

CPP_author Howard Martell is the Owner of http://HomeProfitCoach.com/topnotch . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Credit card debt management

Credit cards that are used in moderation could be helpful in managing your finances. This means that splurging through the use of credit cards is almost financial suicide. Here are few tips to manage the way you use your credit card to prevent you from acquiring debts that could lead to your financial death (excuse the pun).

1) Planning. Before purchasing any product using your credit card, make sure to provide yourself with a plan on how you will be able to pay for your credit card bills. Prioritize your needs before your wants. Purchasing grand items that you don’t really need might give you that temporary high that impulsive buyers are addicted to. But that temporary high would eventually turn to long-term down feeling due to your piled up debts.

2) Limit. For you to be able to manage your debts and payments, never go overboard when it comes to your credit limit. If it’s possible, it will help a lot if you just use about two-thirds of your limit.

3) Statement of account. Keep a record of all your credit card transactions for future reference. In order to prevent inaccuracies of bills and fraud, always remember to check the list of your purchase for the month. If your list and the statement of account do not match, report this to your bank.

4) Piled up debt remedies. There are a number of steps you have to do in order to escape these financial problems. * Determine the amount you need to pay and provide yourself with a plan that would fix your finances without pressure. * Consider paying the minimum amount to be paid. Then, ask for debt consolidation options that would make it a lot easier for you to pay your debts. If you don?t know how to solve your financial problems, there are financial advisers that could help you with your credit card management. They might offer you financial assistance through bank loans that would allow you more time to pay aside from the debt consolidation method.

But of course, remember to research on the agency before getting involved with them. Don’t just go saying amen to whatever they offer since there is a possibility that they could cause the situation to aggravate. Self-control is the best way to prevent getting debts that you won’t be able to pay immediately. But if you’re already in the pits, considering the abovementioned suggestions won’t hurt.

Howard Martell is the Owner of http://HomeProfitCoach.com/topnotch . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Controls Interest Rate-Banking Structure Very Complex

The banking structure in this country is actually very complex and it will take most people a little time to digest everything. Having said that, though, I can provide you with some very basic information about who sets and controls interest rates. The Federal Reserve, or the Fed, is an independent organization that doesn’t need the approval of the president or Congress to enact it’s policies. I suspect most people didn’t know that… I sure didn’t. The Fed’s mandate is to create a stable economy with high employment, minimal inflation and low interest rates. Basically to ensure that the economy keeps rolling along with as few bumps in the road as possible. They have several tools to help them accomplish that goal. One of the most important of these tools is the ability that it controls interest rates.

Setting the interest rate is a very important in keeping the economy on a smooth course. The interest rates will directly influence how much money is put into circulation. The general rule of thumb is that if you have too much currency in circulation it can lead to inflation but too little currency in circulation can lead to a sluggish economy. The Fed has the responsibility to try to maintain the perfect balance at all times so the economy can grow but inflation doesn’t get out of control. The Fed uses their economic analysis as the basis for determining what actions they need to take. This comes directly form their Washington D.C. headquarters as well as being compiled from district banks around the country. These banks are located in large cities from coast to coast.

Each of these banks will collect regional economic information and create a profile. That regional information will be compiled into a comprehensive report that helps the Fed get a complete economic picture of the entire country. Based on the report the Federal Open Market Committee, a twelve member board which is an arm of the Fed, will meet to determine what changes in policy need to be enacted. They generally meet every 6 weeks. When the FOMC decides that either more or less currency needs to be in circulation, they will either issue a buy or sell order for U.S. treasuries. When the FOMC issues a buy order it will result in an increase in the amount of currency in circulation.

More currency in circulation means easier borrowing and lower interest rates. If they issue a sell order, there will be less currency in circulation, and that will translate into higher interest rates – less borrowing and can help reduce inflation. As I stated above, this is a complex issue and it may take you a little more time and information to fully digest it all. It is important for you to have as deep of an understanding as possible of the way our economy works. I know, we are all busy and this information can be confusing, but knowing how it works will allow you the best chance at making smart financial decisions for you and your family. And now, at least, you have some basics on the inner workings of our economy and insight into who controls interest rates.

Howard Martell is the Owner of http://HomeProfitCoach.com/superstar . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Complete Idiots Guide To Getting Out Of Debt

If you are up to your eyeballs in debt, you are probably looking for some straight-forward useful information on how to fix it. We have put together a short list of tips that are basically the complete idiot?s guide to getting out of debt. Educate Yourself This may seem obvious, but a lot of people who find themselves in debt don?t actively seek out information on the issue. Or they look on the internet for a minute and decide that is sufficient. If you are having debt problems, go you?re the library or bookstore and find books on the subject. Look up budgets, debt, credit scores, and anything that relates to your situation. Arming yourself with a bunch of information is your best bet for getting out of debt and staying debt free. Organize Your Bills You need to know exactly how much debt you have gotten yourself into before you can make a plan on how you are going to fix it. Clearly lay out what your minimum payments are every month and who they are owed to.

Figure out what your collective payments are each month along with how much debt you have total. Make a Budget and Stick to It Once you have all of this figured out you can make a budget.

Getting out of debt requires that you make a budget that covers all areas of your life. This way you don?t overspend anywhere and cut yourself short on paying your bills. Make sure you stick to this budget to keep from getting into further financial trouble. Get Rid of High Interest If you discover that you have extra money at the end of the month, which you should, use some of that money to pay extra on your debt. Pay off the credit with the highest interest rates first so that you aren?t wasting money on interest.

This can save you a lot of money in the long run. Cut Back on Spending This won?t be fun, but any complete idiot?s guide to getting out of debt will tell you that cutting most of your spending is going to be required. You got yourself into a bad situation, and now you need to redirect your money to get yourself out of it. Diversify Your Income If you can start bringing some extra income into the house it will be easier to pay extra on your debt each month. Now this may not mean going and getting another ?job.?

This could be something small and easy such as babysitting on the weekends instead of going out with friends or diving into a hobby in your spare time, then selling what you make. It may not seem like much, but even a couple hundred dollars extra a month can take debt out quickly. If you look online and in the newspaper you can probably find a lot of people who just need odd jobs done for a little cash. By laying out some plans for getting out of debt and sticking to them you will start seeing progress quickly. It won?t be fun, but every time you pay off a credit line, you will be able to breathe easier.

Howard Martell is the Owner of http://HomeProfitCoach.com/superstar . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Choosing High Interest Saving Account

You know the saying, " Today is the first day of the rest of your life" well it’s true. No matter what shape your finances are in you can always take steps to improve them starting today. One of those steps will probably involve opening a high interest saving account. You have more choices than ever when it comes to opening a savings account. You don’t just have to stick with your local bank. You can open one online at many large national banks. There is some evidence to suggest that an online account will make you more interest since the bank doesn’t have as much overhead. This isn’t written in stone though so make sure you check. You will usually need a higher deposit to open a high interest rate account and will often have a higher minimum balance to maintain. Before you rush off to open an online savings account here are a few points you should keep in mind:

1) Interest rates are always changing so before you make your decision visit a website like bankrate.com. But remember, interest rates should be only one consideration when choosing a bank.

2) Make sure whatever bank you choose, whether online or off, has a very competent and easily accessible customer service department. You need to be able to talk to someone if you ever have a question or problem.

3) Make sure you fully understand any fee’s associated with your account. Some savings accounts only allow you a certain number of withdrawals a month after which time you will be charged fee’s. You need to know this and determine if it will fit in with your habits. You may also be charged significant fee’s if your balance falls below the required minimum balance. Make sure you know beforehand. Even a bank that offers a high interest rate may not be worth it if they are going to ‘nickel and dime’ you to death with a bunch of fee’s.

4) How much money will you need to deposit in order to open the account? Usually the larger the deposit the higher the interest rate, but not everyone has a lot of money to open an account.

5) Do you have to maintain a minimum balance? If so, how much and what fee’s will be accessed if you fall below that level? Again, think about your situation and decide whether or not that arrangement will work for you. 6) Most banks are FDIC insured, online or off, but don’t take that for granted. Always make sure the bank you choose is FDIC insured. (If it’s a credit union it will be NCUA insured). It doesn’t matter if you open your account at your local bank or choose an online bank.

The important thing is that you find a way to put money aside so that if something unexpected happens you won’t have to rely on using credit. Opening a high interest saving account is a great way to take control of your finances, start today.

Howard Martell is the Owner of http://HomeProfitCoach.com/topnotch . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Certificate Of Deposit Accounts

Certificate of Deposit accounts are a very safe environment for you to put your money in. Learning more about CDs is a great idea if you want to make your money work for you while keeping it safe. There are two things that you need to know about CDs right up front. One is that they require you to leave your money in the bank for a certain amount of time. The other is that they generally have a higher interest rate than other savings accounts. If your bank has a good interest rate on their CDs, this is great! You can keep all of your money in the same bank. If you aren?t sure whether your bank has a good rate, don?t be afraid to do some shopping around. When you open a CD you will be given an option of how long you want to leave your money in the account. Anywhere from three months to six years are normal options. Generally, the longer period of time that you choose, the higher rate you will be given. The reason banks do this is because if you give them you money to hold and you promise to not take it out before the end of the term, they can take that money and invest it.

This makes them a lot of money. So, they are willing to offer you a high interest so that you will choose to leave your money with them for a long time. Another requirement that banks generally have for opening certificate of deposit accounts is a minimum deposit. While this varies from bank to bank, an amount such as $500 is not unusual. While you have your CD, you can add more money to it. These requirements will be gone over before you actually open the CD, so you will know exactly what to expect. Something else that you need to find out when talking to the bank is how often interest is paid out on the money in their certificate of deposit accounts. Many banks pay interest monthly, but others might pay quarterly. Find out if the interest compounds as well.

Compound interest is great because you get money for interest that has already accrued in your CD. A lot of banks will give you the option of having the interest deposited into another account, such as your checking, but if you are trying to make and save money this isn?t recommended. Letting the interest add up and compound can make quite a bit of money over time. Also, if you choose to take the interest out, the bank might not give you the best interest possible. After the agreed-upon time period is up, certificate of deposit accounts reach ?maturity? and your money is available to you again.

You will usually have 10 or 15 days to decide what to do with your money before the account ?defaults.? See what the default is when you open the account. For most banks it is to roll the money over into an identical CD. Look into certificate of deposit accounts and see if they seem like an investment method that is right for you.

Howard Martell is the Owner of http://HomeProfitCoach.com/topnotch . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Borrowing Money From Your 401K-Only In Emergency’s

Sometimes you really just find yourself needing some money. Unexpected events such as a car breakdown can put a damper in your budget no matter how well you plan. In situations where you need money and need it quick, you can look into Borrowing money from your 401 K. Typically, when someone makes a 401k plan they do not expect to take any money out of it until it has grown and matured. But life does not always go the way we hope and sometimes we need to delve into whatever source of money we can find, and sometimes that means taking money from our 401k.

This has been thought of and that is why most 401k plans will actually have that type of loan available. While taking a loan from your 401k can often make the difference between paying off a bill and falling further into debt, there are risks involved. If you do not handle the loan carefully you can not only run the risk of having to pay much more down the road, but you also run the risk of ruining your 401k. Not all 401k plans are the same and so there is no universal method for getting money out of them. You need to check into the specific plan you have and find out what restrictions apply when Borrowing money from your 401 K. For most plans they will require that you borrow a minimum amount of money, usually anywhere from five hundred to a thousand dollars.

They often will also have a maximum amount that you can borrow, usually around fifty thousand dollars. However, again, every plan is different so you will need to look and see whether this applies to you or not. While taking money from your 401k plan may be a life saver, you may not be able to. While most plans are different, there are usually similarities in the form of requirements.

Most plans will not let you borrow money from them unless you can meet the requirements they put in place. If you do not meet these requirements they will not lend you the money. So this is another reason for why you should look over your plan carefully and read the fine print so that you are properly educated. Like most loans, a loan from your 401k will have a set repayment plan that you will have to adhere to. This can be anywhere from 5 to 15 years depending on what type of loan you took out and what type of plan you are on.

The nice thing about Borrowing money from your 401 K is that, while you of course have to pay it back, the interest rates are fairly low and are actually put back into your 401k. While taking a loan from your 401k is a good option, there are some additional fees that you may have to pay. Such as yearly fees or fees if you miss a payment. If your company has someone who manages 401k plans you should talk to them in case you have any questions.

Howard Martell is the Owner of http://HomeProfitCoach.com/firstclass . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Borrowing Money From Family-Think Twice

Borrowing Money From Family can be a tricky business to say the least. When you borrow money from say, a bank, and you are unable to make your payments they will simply come after you for collateral. But what happens if you lend money to a family member and they are unable to pay you back? Are you going to go and take their car? Of course not. This is what makes lending money to family members so difficult. If you are planning to lend money to any family members, you need to be prepared to say goodbye to that money forever. In most situations the odds of you being paid back are quite small, so you need to be aware of that. Since lending money to family members can be difficult, there are some tips to help make it easier.

1: Never lend out money that you need or want. If you yourself are on a tight budget you can not afford to go giving money to friends and family. It may sound harsh but you have to come first, if you go broke who is going to help you? As I stated above, any money you give you need to be prepared to never get back. So if you have no money to spare, then you can not give any away.

2: Assess the risk involved. When someone is Borrowing Money From Family they will of course tell you they will pay you back. But you need to assess the situation they are in to see if they can pay you back. Every circumstance is different, but if that family member has a history of not paying back loans or are reckless with their money, why would you lend it? Make sure they are able to pay you back, or at least make sure you know what you are getting into.

3: Never co-sign on loans. In certain situations family members may require a co-signer for a loan. The bank may not like their situation enough to give them a lone unless they get someone to co-sign for them, and so they may turn to you. However, it is advised you do not co-sign on loans. It puts you at risk for having to pay back the money should the other person default on their payments, money you may not have.

4: Give money freely as gifts. Seems a bit counter productive since so far I have been saying to be careful when people are Borrowing Money From Family. But that is something we forget as we age. When we are teenagers we often get money as gifts, but we really do not need it. When we grow up and actually need the money, nobody will give it to us. Give your adult children and family members money for birthdays or holidays, if you can afford to. Not only can it help them out, but it also gives you some leverage should you ever be forced to deny them a loan. So it ultimately helps both you and your family members.

Howard Martell is the Owner of http://HomeProfitCoach.com/firstclass . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

Best Strategies for Online Approval of Credit Card Application

(how to get a credit card online approval) Credit cards had been a popular form of purchasing items on a "chargeable" or borrowed term. The advantages of having a credit card are: 1. Security, since one does not have to carry a large amount of cash to purchase certain items. 2. Convenience. In case one has to purchase an item that is immediately needed (and is out of cash), these can be purchased using a credit card 3. Cash advances. Purchases that require cash payments may still be accommodated by the credit card through the cash advance feature. This works like a regular ATM transaction (with of course a corresponding interest rate) Disadvantages

1. Interest rate. Unlike purchasing with cash, credit card charges come with a corresponding interest (unless paid before the due date). The consumer should be aware of the various interest rates offered by the different credit card companies. One has to choose the mode of payment (plus the interest rate) that would best suit his or her capacity to pay.

2. Overuse. A consumer tends to purchase items that are not really needed or included in their budget if they have a credit card that is ready to use.

3. Annual fees. Whether one chooses to use his or her card, after activation, annual fees will be charged.

4. Other charges. A delay in the payment during one billing period would incur you additional charges. Credit card online approval usually is far easier than manual applications that require various forms to be completed before it can be processed. The company likewise is more likely to receive your application on a shorter period of time as compared to snail-mailing your forms. For a faster credit card online approval, take into consideration the following:

1. Do not leave any unanswered line, especially those marked with a red asterisk.

2. After completion of the online application, immediately send either through email or facsimile the additional requirements needed.

3. Take into consideration that credit card companies prioritize applications of the following group of people: – married couples – persons with a mortgaged house or car – persons with several dependents

4. Choose credit card companies that have a promotional offer in the application process, chances are, promos are offered due to low application rate, thus prioritization your entry is a sure shot. The logic here is that the more obligations an applicant has, the more they are likely to use the credit card, which equivalents to higher earnings (through interest charges) on their part.

CPP_author Howard Martell is the Owner of http://HomeProfitCoach.com/tb12 . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.

A Credit-free Card: What is a prepaid credit card?

In this high-tech era of computers and machines, the purchasing power of people is mostly based on credit. Nowadays, credit cards are almost indispensable in almost any business transaction. For one, nobody can purchase anything online without a credit card. People who have a poor credit history though, will have a hard time getting or renewing their credit cards. This is where prepaid credit becomes useful. There are lenders that offer prepaid MasterCards and/or prepaid Visa Cards. Both these cards can be used like a regular credit card. It is even hard to distinguish which card is prepaid or not, by simply looking at it or even using it. This is basically how prepaid credit cards work. When an account is opened, the card should be ?pre-loaded? with cash up-front. This is like paying for a pre-paid calling card. Prepaid MasterCards or Visas can be used anywhere as long as these cards are accepted. The prepaid credit card advantage:

1. Prepaid credit card can be easily obtained. It can be purchased online or in local retail stores. It does not require any credit check or proof of income. The only thing to do is to fill out an application, pay a small fee for setting-up the account and load the card with cash. The amount of cash loaded will be the ?credit limit?

2. No interest charges. When a prepaid MasterCard or prepaid Visa is used, there is no interest charge unlike the regular credit card. The reason for this is that the money used is the owner?s actual money therefore no interest is needed.

3. Prepaid credit cards are free from financial or credit problems.

4. Prepaid cards can be used almost anywhere. Prepaid MasterCards and Visa cards are almost accepted anywhere in the world. Disadvantages of Prepaid Credit Cards:

1. Usually a set-up fee of 5 to 50 dollars is needed when an account is opened. Then another fee of $5 or more is paid every time more money is loaded onto the card. Regular credit cards usually do not charge a set-up fee or annual fees.

2. Cash up front is needed before any purchase could be made with the prepaid card. This could be an advantage since compulsive spending can be avoided.

3. There are some prepaid credit cards that cannot be used to pay regular payments such as monthly electric consumption or online services. The Conclusion: The prepaid credit card is a definite help for people who have past credit problems. It is just a matter of choosing the right prepaid credit card that suits ones? needs.

CPP_author Howard Martell is the Owner of http://HomeProfitCoach.com/tb12 . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.