10 Simple Steps to Manage Your Credit

by Mical Johnson

By far the greatest invention the banks have ever come up with came out in the 20th century. Also the new field of Credit Management was born with the invention of the credit card. It is the most available out of any financial product out there. In fact more than 80% of the U.S. households have at least one credit card. If you want to consider yourself as the "Average" American then you have about 8 credit cards burning a hole in your wallet right now. To make sure that you don't get yourself in any trouble (again) try and follow these 10 Simple Steps for Credit Management.

1. Ignore the bank's/lender's rule on what is an "acceptable" level of debt. Your debt-to-income ratio, as they like to call it, is how much debt you can carry to the amount of money you bring make. Depending on how well you have managed your credit in the past it can fluctuate quite a bit. The average is about 25%. The ideal number is of course ZERO but for starters work on getting it down to 10-15%.

2. Remember what a credit card is...A Credit Card. Just because they have waved their magic wand and sent you your "Pre-Approved" Card doesn't mean go out and use it. The bank does not know your situation or your lifestyle all they look at is the number that you should be able to pay off using most of your "extra" money. They will keep you paying them for the rest of your life if you let them.
Which brings me to the next point...

3. Don't pay just the minimum balances, unless of course you like paying 400% or more in interest. A typical Credit Card debt of $4,500 would take you about 44 YEARS to pay off! And you would end up paying about $17,000 total by the time you are done. When you stop and think about it, does that sound like a good deal to you?

4. Play the Game- Remember that you are the customer and "the customer" is always right. When it come to annual fees and higher interest rates ask for a lower rate. And if you slipped up and got a late fee ask to get it waived (make sure you promise never to do it again...well at least for six month) Remember that it is a lot more cost effective for them to keep a customer happy than it is for them to go get another one. Your $29-$35 late fee does not come close to the money they will have to spend to get a new one of you.

5. While you are playing the game don't get blindsided by the fees. The banks have come up with some very creative ways to make money at your expense. They have the ones that everyone knows like over the limit fee, late fee, and extra card fee. However, they also have the less obvious fees like account transfer fee, and a fee for talking to a live person instead of a recording. Make sure you look at your statement and check out all the charges. Some of them may surprise you.

6. Know how you stack up- BILLIONS AND BILLIONS of dollars are charged annually to consumer on mark ups in interest rates. That's a lot of money when you look at your share. Your credit information is something you should look at and make sure it is accurate. About 25% of all credit reports have erroneous information contained in them. Make sure your information is accurate and keep an eye on it regularly.

7. Know you limits- When you know you will have a hard time paying even the minimum balance STOP charging. It may sound simple but for millions of Americans it is very hard to do. Of course the easy way Hind sight 20/20 don't get in the situation.

8. If you are one of those people that are disciplined enough to pay off your balance at the end of the month then make sure you are getting some bonus for being such a great user. Get the free stuff that you can use. Some extra Flying miles, free gifts, Cash back reward (my favorite). If you are going to use it might as well get something for your efforts.

9. Only have what you need- You Should have 2 cards, one for what you use regularly and pay off every month and the other for emergencies or business. When you start trying to take advantage of all the deals out there the only one who gets taken advantage of are you. Overkill on your credit cards are not necessary, but being really good at managing a couple of cards is.

10. The statistics are in and they are mind boggling. Bankruptcies are at record numbers and the consumer debt for the U.S. is over 1.7 Trillion dollars! Teach your kids now to not make the mistakes that you did. Financial Literacy is a must for the next generation as we are heading into a cashless society. It's harder to manage what you cannot see. Make sure they understand that the credit card is what pays for food on the table and gas in the car as well as the play station games they love.

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Mical Johnson is affiliated with Rock Financial, Inc., a Licensed Correspondent Mortgage Lender, Florida Department of Finance. Mr. Johnson hosts Home Buyer’s Seminars which are open to the public each month in the TampaBay area in Florida. To obtain a free copy of Mr. Johnson’s Home Buyer Handbook contact him at http://www.TampaMortgageGuy.com He is also a contributing author at http://www.Debt-Free-Personal-Finance.com

Article Source: http://EzineArticles.com/

Planning Your Future and Staying Bankruptcy Free

by Lyle Evans

What exactly is bankruptcy? Bankruptcy is when your assets are tied up and you cannot pay your debts. There are a number of different bankruptcies that are open to individuals. These different bankruptcy options were created to help individuals and their special needs.

However, bankruptcy's effects can last for years, including difficulty finding a job, getting insurance, renting an apartment, buying a home and financing a car. Bankruptcy can stay on your credit record for up to 10 years. The rest of this article will deal with ways to try and avoid bankruptcy.

As mentioned in previous articles a good budget is one of the most valuable financial tools you can have. Every individual or family needs to develop a budget and follow it. Impulse buying is not only dangerous for large expensive items, it can also be costly for smaller purchases that add up, killing your budget and pushing you further into debt.

When going to buy a large or expensive item a good rule of thumb is to go and look and leave your checkbook, credit card, or financing information at home. When looking to buy these large items go and look around at more than one place. There is usually more than one store or dealer in the area that has comparable products to look at.

The more places you visit the better idea you get of what a fair price is. Take time to evaluate the merchandise you have seen. When you do this, you will eliminate impulse buying or buying on emotion. When you have done your research and determined that you really need the item, then you are prepared to go and purchase it.

Living within your means creates a future of financial stability. There are many things that can be done to live within our means. Some of these things include driving nice, dependable vehicles, not the latest and greatest; and purchasing a home that meets your needs, not a large home which carries an astronomical mortgage. Don't get caught up in trying to impress your neighbor by buying things you can't afford or don't need. There is only one person that can keep you from bankruptcy and that's you. Have some self control.

If you find that you are really in overwhelming debt, there are steps that can be taken. Evaluate your financial circumstances. If you have large credit card debts that you can't afford, contact the credit card company and try to work out a payment plan that works for you. If you have other large bills, try and contact these companies and see if they will work with you. Sit down and figure out what your debt to income ratio is.

This can be done by adding up how much take-home pay there is against how much there is in bills. If your debt ratio is close to or higher than your income, then you need to seriously evaluate your spending habits. Unavoidable medical expenses or disasters that cause major debt have to be dealt with on an individual basis and may require the advice of a competent financial planner. Day-to-day financial monitoring will help you improve your financial future.

If you need the help of a financial advisor, it will be worth your time to do your homework and find out who will be the best at helping you. There are a number of ways to go about finding a financial advisor. A good place to start is by asking friends and acquaintances if they know or have heard of anyone that is good. You can also check in the yellow pages.

However, be aware of billboards and radio/TV ads, and check with your local BBB. Once you have found a good potential advisor, ask them about their credentials and ask for references of satisfied customers. Ask how their work will help you and how it will effect your credit. Don't be afraid to ask questions to find out if this is the right person to help you.

Remember this individual is going to give you advice that is going to effect your financial future. There are financial services that charge large service fees, and those that are non-profit that are less expensive. It will depend on what you feel comfortable with and who you think will give you the most help.

Finally, if you own a lot of expensive items, you may think about trying to sell off items to raise money to pay off debt. Consider getting a second job to help to bring in extra income. Look at borrowing against any reserves you may have. (Do this only after consulting a good professional advisor.)

Avoiding bankruptcy requires vigilance and determination. Bankruptcy and its long-term effects should be considered very carefully. Working hard to overcome financial woes will give you an improved sense of self-worth and well-being.

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Lyle Evans is a software testing specialist for Simple Joe, Inc., makers of the popular Simple Joe's Income & Expenses PC software. Income & Expenses is a quick and simple way to keep track of your cash flow and stay within your budget. The Income & Expenses software is ideal for personal, business, home and club accounting.

Applying for a Payday or Cash Advance Loan Online

by Carrie Reeder

Applying for a payday loan online is a quick and effective alternative compared to actually driving to a payday advance store. There are several reasons why applying online is in your best interest. When you apply online you save the time and the trouble of applying in person, you can find better rates than you may receive at your local payday advance center, and it’s safer to access all your private information from home. When you are applying online for a payday loan there are several things you can do to make the process even easier.

When you go to apply online you should make sure that you have the following information in front of you; Drivers license, Social Security Card, Blanks checks, and your pay stubs. Most online lending companies will require that you give them your address , phone number, Sin number, Your bank name, Check number, Bank Account number, references, and if you are paid weekly, bi-weekly, or monthly. When you are filling in the area on take home pay, you should look on your pay check under net pay and fill in that amount.

Usually, you will need to fax in your verification to the payday loan or cash advance company. But, there are payday loan companies online that have no faxing or faxless verification programs. They will usually verify information electronically or by phone.

There is no need to be concerned about giving out this kind of information to payday companies as all of them have very strict privacy rules in place and follow them closely. When you are giving out this information you should ensure that the page address you are entering them into begins with https://. The s at the end of http states that you are on a secure site that uses encryption to protect your valuable information.

When you apply for your payday loan online you will be required to give two references and your work number. These numbers will be called to ensure that they are working numbers and that you work for the company. No information regarding your payday loan will be given out during these phone calls.

There is no credit check with cash advance loans online, so it doesn't matter if you have bad credit. The payday loan company is lending based on the fact that you are employed or have a steady income.

To view our list of our most recommended online payday loan companies, visit this page: RecommendedPayday Loan Companies

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. The site has informative articles and the latest finance news.

Article Source: http://EzineArticles.com/

Bad Credit Debt Consolidation Loans

By Carrie Reeder

Are you looking to consolidate credit card or other debt? Do you have bad credit history? There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation. Here is a short overview of what kind of debt services are available online.

If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.

You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.

There are other companies that will help you manage your debt without having to use another loan. These companies usually charge you a fee and then help negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.

Some of these companies are definitely worth the small monthly fee, and can save you much more than they charge. But, some of these companies are not legitimate and can take your monthly payments and keep them for a month or more before they make your payments (collecting interest on the money all the while), causing you to accrue late fees and possibly collections. These companies can actually cost you money and make your situation worse.

Be careful when searching for debt consolidation companies to work with. Make sure they are legitimate, long standing companies before you sign on the dotted line. To see our list of recommended debt consolidation lenders click on the link below.

Consolidating your debt can provide great relief and breathing room when it comes time to pay your bills. Sometimes, when you are up to the hilt in debt, it can be so overwhelming just keeping up with your bills that it can be difficult to think about ways to start paying the debt down.

To see our list of recommended debt consolidation service companies, visit this page:
Recommended Bad Credit Debt Consolidation Services and Lenders.

Carrie Reeder is the owner of ABC Loan Guide. ABC Loan Guide is an informational loan website with informative articles related to many different types of loans. To see recommended, credible lenders and loan service companies, visit: Recommended Bad Credit Debt Consolidation Services and Lenders

Article Source: http://EzineArticles.com/