The Quicker You Can Pay Off Your Debts The Less Interest You Will Have To Pay

Category: Finance, Credit.

Working your way towards reducing or removing all your personal debts can be a very slow but rewarding process. It can come as something of a surprise discover that you may owe tens of thousands of dollars, and be paying out several hundred dollars a month in small payments to credit card companies and other loans.

Many Americans are surprised when they calculate how much money they actually owe when they add up all their small debts. Once you have decided that you need to deal with these debts, by either significantly reducing them or removing them totally. Here are a few pointers that may assist you in your efforts to get control of these strangling debts. It can be a difficult task to know exactly the best ways start to reduce your overall debt problem. Firstly, make sure that you have gathered all your paperwork together and you know exactly what bills need to be paid each and every month. That way can see who you own the most money to, and you can avoid missing any payments by overlooking them. It is a good idea to make a simple list or a chart to show how much you owe to each company and when the bills are due.

It is also a good idea to start with your highest debt and attempt to clear that one first. It is very important that if you have multiple payments, that you are never late or even worse actually miss a payment. You should concentrate all your efforts on this first debt and paying off as much as you possibly can each and every month, until you have cleared that debt. Missing payments can cause serious credit history problems down the line that may affect your ability to get other loans such as mortgages. Try not to add to your debts, as there is little point in making a concerted effort to pay off one debt. In addition, many late payments will incur late payment fees, which is another expense that could have been used to help clear your debts. If you are increasing another by, using your credit, for example card.

Keep only one credit card with you for a genuine emergency use, and never use it just because you are short of a few dollars. You should avoid using any credit for as long as you possibly can. If you feel comfortable, it is also a good idea to tell your friends and relatives that you are making a concerted effort to clear your debts. Although you have a very different problem, the fact of telling other people helps you to commit you to the process. This is the sort of advice given to other people with problems, such as alcoholics. If you have a good buddy or relatives that can help you to clear your debts with a small loan then you should definitely consider taking it. Assuming that your buddy will only expect to get his money back in a reasonable time without interest.

A small loan that may pay off one of your credit cards and save you a fortune in interest. Consider taking on overtime or additional part- time work to help fund your credit relief efforts. This chicken and egg situation means that the less interest you have to pay, the quicker you will pay off your debts. The quicker you can pay off your debts the less interest you will have to pay. Another idea is to not attempt to make a long- term commitment to pay off your debts. This loan will pay off all your existing debts and dramatically lower the amount of interest you have to pay, and also your regular monthly payment.

Instead, take out a debt consolidation loan to kill off all your debts in one go. This is an option that more people are turning to as a practical solution for clearing all of their debts in a very short period. And then taking a much longer time to clear one loan with a much easier payment schedule.

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You Could Be Saving Up To 10% On Purchases Made At Participating BP Gas Stations - Finance and Credit:

If you buy gas from BP gas stations, you should be using the Chase BP Visa Rewards Credit Card. You could also be saving money almost everywhere else that you shop.

After All, The Whole Point Of Having These Cards Is That You Can Earn Money Towards A Free Airline Ticket

Category: Finance, Credit.

Many people believe that the key to finding the best airline credit cards is to look at the terms of the card that relate to adding up airline mileage points.

Good airline credit cards let you earn miles quickly on multiple airlines so that you can take advantage of the opportunity to get free flights. That s true, to an extent. However, that s not the only thing that you should look at when trying to find the best airline credit card for you. Looking at Travel Perks. There are additional benefits that are available on most cards which should be considered in addition to the travel points that can be earned. It is true that you should first consider the travel details of any airline credit cards that you are considering using.

The best airline credit card in this sense is the one that is going to let you get that free ticket as early as possible. After all, the whole point of having these cards is that you can earn money towards a free airline ticket. The key here is to look for those cards which let you cash in on rewards without requiring a high minimum point balance on the card. There are many cards available today which work with multiple carriers but offer higher points on a specific airline. Another thing to look at when trying to find the best airline credit card is the airlines that the card will work with. This is great because it lets you get the most for your money when traveling on your preferred airline but doesn t punish you for taking advantage of deals offered on other airlines.

Getting the best airline credit card requires going above and beyond just looking at the travel benefits of the card, though. Considering the Additional Perks. This is where almost everyone goes wrong. For example, some of the best airline credit cards give you savings on business purchases or purchases made at the airport. They figure that getting the best flight deal from the card is the entire point of having the card and neglect to consider the other benefits that a card might offer. This means that you save on things that have nothing specific to do with the flight while still earning points towards air travel. Remembering the Terms.

Additional perks to look for include cash back offers, miles earned on non- flight purchases, and low- interest offers for balance transfers. In addition to looking for the best in benefits, anyone who is applying for airline credit cards should be thinking about the terms associated with the card. If so, is the cost worth what you re saving on future flights? Consider whether there is going to be an annual fee. Also consider things like the interest rate on the card and the penalties that are incurred for late payments. The best airline credit cards are those which don t just offer you great rewards but which also minimize the negative aspects of having a credit card by offering fair and reasonable terms.

No Matter In Which Way You Enter The Knotty World Of Unmanageable Debt, The Way Out Of It Is Always The Same: A Suitable Debt Solution Plan

Category: Finance, Credit.

No matter in which way you enter the knotty world of unmanageable debt, the way out of it is always the same: a suitable debt solution plan. It may be merely the urge of mimicking a flashy life that many of your peers are leading.

There are end numbers of ways in which one may fall into debt. In other cases, it may be a dire necessity that made you take a loan or borrow some money on interest. So, it has made an addition to the already long list of debts you have. Eventually, your plan did not work and you failed to pay off the loan. There may be other diverse reasons that the unmanageable debts many people have. Rather, it is very important to seek out a proper debt solution programme and use it to resolve the problem.

In any case, it is never recommendable to sit idly and wait for opportune moment to sort out debt problem. If the problem of unmanageable debt is very common then there is also no dearth of programmes that offer proper solution to it. Though it cannot be claimed that all of them have realistic and cheap debt solution programmes, plans offered by most of them are effective and easily applicable. A number of debt help agencies are there in every country to help people bail out of the debt crutch they are in. One mistake many debt ridden people make is accepting any debt solution programme without much homework. So, instead of getting their debt problem resolved, they may just get deeper into it. Eventually what they discover is that the plan they have accepted is far away from being the one they need.

This can be avoided by being a little careful and proactive before accepting any debt solution plan.

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Best Student Credit Cards - Finance and Credit Articles:

Student credit card applications are available in the web and you can receive instant approval online or through an email.

You Can Put In An Application For A Credit Card In Many Ways - Finance and Credit:

On a preliminary note, one of the most pertinent things you ought to explore when attempting to make up your mind which credit card company to register with is the interest rate on the credit card.

Many Credit Cards For Poor Credit Have Annual Fees

Category: Finance, Credit.

Poor credit is something that can happen to just about anyone, and it s not always due to circumstances we could have controlled.

Once you have things back under control, it s time to start rebuilding your credit. Sometimes life events just go beyond what even the most budget conscious could have paid for. Even if you hope to never have debt in your life again, building a good credit history can help you. It can even impact the rates you pay on insurance. Your credit history can impact your ability to get a job, a home, a car. Places you wouldn t necessarily think of may run a credit check on you. You want it to be something that will help you rather than make things worse.

This makes selecting a credit card to help you build up that score very important. Many credit cards for poor credit have annual fees. Some companies have a fee to join and a monthly fee on top of that, to where the fees are costing you more than you may have planned on spending on the card. These may not sound too bad, and in many cases really aren t that bad, until you add them on top of all the other fees that may be charged. Right off the top, make sure you understand the fee schedule before you even apply for the card. Take a little time and you can find much more reasonably priced credit cards.

There s no point in paying for a card you re going to loathe. And don t pay a fee until you actually get the card. You may be having a hard time building up your credit, but that s no reason to skip your due diligence. This is one of the best ways to avoid being scammed. It s for your own protection. You might need to at some point, so do take this into consideration.

The interest rate offered to you matters, even if you aren t particularly planning on carrying a balance. A big consideration is whether you want to go with a secured or unsecured credit card. Which you prefer is pretty much up to you. You can find these available to you, pretty much no matter what your credit looks like. However, if you prefer a secured credit card, make sure that it is a true secured card and reported to the credit bureaus. The two can sound very similar, so be sure to ask the company when in doubt.

You do not want to be wasting your efforts with a prepaid debit card when you re trying to rebuild your credit score. The grace period can be another major sticking point. You may be capable of taking that bill the day you get it and sending your payment straight in, but what if you don t? You want to have enough time that you actually have a chance of getting your payments in on time. You need a sufficient grace period to allow yourself to comfortably make that payment. If you re going to carry a balance, a rewards card honestly is probably not the best choice, since the interest will probably eat up your benefits.

Beyond all these factors, you want to look at what you really want from the card. Going from a poor credit score to a good one takes time, but it s a necessity of modern life for most people. If you work at it you should be able to improve your credit score steadily and make the move to a regular credit card over time.

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Although Business Credit Cards Emphasize Their Many Benefits To Small Business Owners Such As Record Keeping, Rebates On Business Expenses, And Travel Related Perks, There Are Also Some Potential Pitfalls Related To Using A Business Credit Card For Small Business Owners - Charmaine Kesterson about Finance and Credit:

Although business credit cards emphasize their many benefits to small business owners such as record keeping, rebates on business expenses, and travel related perks, there are also some potential pitfalls related to using a business credit card for small business owners. However, when there is very little or no cash available to a business owner, the potential to abuse credit cards is great.

It Is More About Your Repayment History Of Credit - Finance and Credit Articles:

A good credit rating will influence your financial life.

Keep Any Credit Card Balances Low - Noemi Vitolo's Finance and Credit blog:

Ok, so you find yourself with a low credit score. Well one of the first things to do is make sure that you start paying your bills on time, as obviously the aim of this exercise is to improve your credit score and get you back in line financially.

Some Credit Card& #39

Category: Finance, Credit.

Many bankruptcy filers are wondering whether they are entitled to keep one or several credit cards for emergencies backup. The credit card issuers tend to punish their card holders for filling any kind of bankruptcy.

In general, you may not because your credit cards will be cancelled regardless, since you file the bankruptcy. In most cases, the credit cards of bankruptcy filers will be terminated once they file for a bankruptcy. There are some exceptions applicable only to chapter 7 bankruptcy filers. But there are some exemptions where terms and conditions will be applied to enable the bankruptcy filers to continue holding their credit cards. Some credit card& #39. In fact, some companies will automatically send you or your attorney a proposed reaffirmation agreement, a contract between you and your creditor that you will pay all or a portion of the money owed, despite the bankruptcy filing, in exchange for a minimal amount of new credit.

S issuers will allow you to keep your credit card but with a sized down credit limit, and in return you need to repay them for some of your debts. Beside the sized down credit limit, a chapter 7 bankruptcy filers may allow to keep their credit cards by some of their card issuers but the interest rate will be revised to a higher than the normal interest rate. T hurt you. But, if you can always pay your credit balance in full each month, you will never incur a finance charge, and the high interest rate won& #39. Other than chapter 7 bankruptcy filers, all credit cards must be given up at the filling of bankruptcy. This action can be considered illegal since in effect your preference on one creditor( your credit card issuer) over other creditors, because repayment ordination is a trustee job. However, there are credit card holders who have maintained their credit cards at zero balance for a long period of time do not report their credit cards during the filing.

If you are not eligible to file under chapter 7 or even you are filling under chapter 7 but you didn& #39. In most cases, your need to wait until the bankruptcy filing has cleared and then work with a debt management consultant to rebuilt your credit step by step. T manage to get approval from your credit card issuers to keep your credit cards, the best thing is report all your credit cards and give them up. Of course, in the months and years after the bankruptcy filling, you may not be eligible for top- tier or even middle- tier credit cards. And eventually put you back in the realm of good to high credit score. But with some efforts and fiscal strategy such pay your monthly credit balance in full and on schedule will help you to rebuilt your good credit record and you can begin to erase the stigma of the bankruptcy.

In Summary. But, there are exceptions for bankruptcy filers in chapter 7, the debtors who file their bankruptcy under chapter 7 may allow to keep their credit cards with some terms and conditions. In most cases, bankruptcy filers need to give up their credit cards.

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Credit Card Companies Are All Over The World And So Are Credit Cards - Marjorie Degraff's Finance and Credit blog:

Credit card companies are all over the world and so are credit cards. If you live in the UK, then you might need some information about credit cards that are available for you.

Your Financial Credit History - Lessie Eades's Finance and Credit blog:

Before you begin reading this article here is a number of insightful definitions.

But Still, People Enjoy Buying Something With A Credit Card More - Dominique Burlingame's Finance and Credit blog:

The number one rule when you are choosing a credit card deal is to consider your spending habits.

You Need To Keep Your Credit Card Information Safe From Prying Eyes

Category: Finance, Credit.

Credit card fraud is running rampent these days with more and more people using credit cards then ever before. You need to keep your credit card information safe from prying eyes.

Credit cards are used in gas stations, bars and the, resturants most notorious place to get your credit card information stolen is through the use of the internet. There are fraudsters all over the internet trying to gain access to your computer so that they can retrieve your information. There are many software programs on the internet designed to protecting your computer from invaders such as hackers and software downloads that get into your computer steal your information and it will either destroy your computer files or will leave your computer open to more attacks and sometimes you will not even know this is going on. Don t let this happen to you. Hackers are smart and in this age of digital comunication it pays to protect yourself from credit card fraud. Then, before you know it, you have a huge credit card bill in your mailbox and no way to pay it off. Most of the fraud will occur when someone gains access to your information and then goes on an and expensive shopping spree.

Just in the last few years, one major credit card fraud has been card" skimming. " Skimming is the process of copying one person s personal information on the magnetic strip of their card onto another card- -most likely a card that is on the other side of the globe. One way is to simply be more vigilant. This all sounds horrible, but there are ways to protect yourself from credit card fraud. Never let your credit cards go out of your sight and always check your receipts and your card statements thoroughly. You can also go as far as shredding all of your credit card receipts. These are basic ways to prevent credit card fraud from happening to you.

That little bit of information is all somebody needs to reproduce a card just like the one you have. PIN numbers are for you and you only they are used to withdraw cash from a cash machine and if someone gets a hold of your credit card and your PIN number you are in for a lot of problems. Also, never give your PIN number away. One they will probably withdraw every penny from your account and secondly cash withdraws usually have a higher interest rate then using the card for purchases which will cause you high fees. The answer is that it is so simple to fall into the trap. With the abundance of information that is available, you maybe wondering why so many people are taken by credit card fraud. Simply paying for something online is going to put you credit card and yourself in danger.

If there is call your credit card company and notify them of this and then cancel your credit cards. Make sure to check your credit card statement everytime you get it to make sure there are no strange. charges on it. They will usually issue you new ones straight away.

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If A Credit Card Ad Seems Too Good To Be True, It Probably Is - Finance and Credit:

People receive offers for different types of cards everyday through emails, television, letter mail, radio, and even the, magazines newspaper. All of these card companies know that many people in today s society are very naive and accepting of credit card advertisements that seem too good to be true, which they really are.

There Is A World Of Opportunity For Sure When It Comes To Credit Cards And The Payment Solutions - Finance and Credit:

There is a world of opportunity for sure when it comes to credit cards and the payment solutions.

Suggestions For Picking The Right No Annual Fee Credit Card - Finance and Credit Blog:

I mean after all, the credit reporting agencies are professionals who know what they re doing, so why should you have to worry about any mistakes? So what do you do now?

Is Credit Repair Legal

Category: Finance, Credit.

Credit repair is one of those topics that most people are not familiar with and many of those that think they are, do not have a correct understanding of what credit repair really is. Is Credit Repair Legal?

To help provide an introduction to the concept, provided below are answers to three common questions people have about credit repair. Absolutely! They do not have to prove that you did anything wrong and the credit bureaus are not going to contact you to get your side of the story. All a creditor has to do is report a negative item to a credit bureau for it to be added on your credit reports. By disputing the items in your credit reports, you are asking the credit bureaus to perform an investigation to determine if the negative items on your credit reports are being reported correctly. In a perfect world, credit repair would not be necessary, but because of the obvious flaws in the credit reporting system, the Fair Credit Reporting Act was enacted to protect your rights against unfair credit reporting. If they are not, then they must be revised or removed.

Because of this act, you have the right to dispute any items in your credit reports that you feel are not completely accurate. There are a number of reasons why inaccurate items could end up on your credit reports. How Do Inaccurate Items End Up On My Credit Reports? For example, a simple human error such as typing in your Social Security number instead of someone else s could result in their bad credit showing up on your credit reports. Another common reason for credit errors is mistaken identity. Also, items reported more, mistyped dollar amounts than once, and other errors, incorrect dates could results in errors on your credit reports. It is very common for your credit reports to show negative items from someone else with your same name.

It has happened many times that someone gets denied for credit only to find out that a bankruptcy or some other serious negative item has been erroneously added to their credit reports because someone else with the same name was not responsible with their finances. This could happen if you have a fairly common name or in some cases, in the case of a son who is named after their father. Finally, identity theft is a major source of credit reporting errors. Can I Save Money and Repair My Credit Myself? Someone steals your personal information and destroys your credit all in your name. Yes, you have every right to repair your credit yourself.

Of course, this is true of almost any service. As is mentioned in numerous credit repair articles, anything a credit repair company can do, you can do yourself. Just as you have the right to repair your own credit, you also have the right to change your own oil, cut your own hair, or even represent yourself in a court of law. When considering whether or not to repair your credit yourself, also consider what your time is worth. But as is also the case of these services, many people find that is is easier, and more effective, cheaper to hire a professional. Depending on the severity of your credit problems and the cooperation level of your creditors, effectively repairing your credit reports could involve learning about and analyzing your credit reports, researching the Fair Credit Reporting Act, research the Fair Credit Billing Act, researching the Fair Debt Collection Practices act, writing and sending dispute letters to the credit bureaus, writing and sending dispute letters to your individual creditors, and properly responding to all of these entities.

In fact, a sizable percentage of people who end up using a credit repair company to help them with their credit reports do so after already trying to repair their credit themselves. Many people find that it is simply easier to get help with credit repair than to do it themselves.

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Business Finances Can Be A Nightmare - Diana Spadoni about Finance and Credit:

Business owners are faced with more than just the direct challenges that are a result of operating their businesses. But they also have the responsibility of managing any staff, and keeping track of finances.

The Thing You Need To Know Most When It Comes To Credit Cards Is That You Need To Know About Credit Cards - Finance and Credit Articles:

While you are in college, it is obvious that you are most likely going to be tight with money. So where do most college students turn other than to credit card companies who stand ready and willing for them to fill out the application and get started on their credit spending?

Although Business Credit Cards Emphasize Their Many Benefits To Small Business Owners Such As Record Keeping, Rebates On Business Expenses, And Travel Related Perks, There Are Also Some Potential Pitfalls Related To Using A Business Credit Card For Small Business Owners - Finance and Credit Articles:

Although business credit cards emphasize their many benefits to small business owners such as record keeping, rebates on business expenses, and travel related perks, there are also some potential pitfalls related to using a business credit card for small business owners. However, when there is very little or no cash available to a business owner, the potential to abuse credit cards is great.

Not All Student Credit Cards Are Alike

Category: Finance, Credit.

If you are student who has just learned how to drive a car or is headed off to college, most of you may not have been given access to your parents credit cards. Believe it or not, getting a new student credit card in your name is relatively easy- even if you have minimal income, no co- signer and no credit history.

But college student credit cards may provide a solution for young people in need of credit anyway because building good credit with student credit cards may be more beneficial in the long run than borrowing your parent s credit card. To get your own student credit card, just follow these simple guidelines. If you don t already, consider part- time work around campus on in your neighborhood. Get A Job. It can be for only a few hours a week on campus. Having your own checking and savings account at a local bank or credit union is also a good idea.

If you re going to have your own student credit card, you ll need to make payments on a monthly basis. Most banks have special student accounts that require a very little deposit to open. Surf the Net. Establishing a history at the bank and accumulating some savings, will give you more opportunities for credit in the future. As a college student, you probably have been bombarded with offers for student credit cards. Or, you ve seen those annoying credit card applications that always fall out of your new textbooks.

Maybe you ve opened your mail to find a fake credit card inside with your name on it. You may have also seen credit card representatives with booths set up on your campus giving away free t- shirts and hats to those who complete an application. The Internet is one of the best places to comparison shop for credit cards. Don t take the first offer you get, shop around for the best value. Read the Fine Print. Not all student credit cards are alike.

Beware! Some may have really cool designs that you can pick, such as college logos, sports teams or graphics that act as an extension of your personality. APRs can vary from 0% to 29% ; annual fees$ 0- $50. But as the saying goes, "don t judge a book by its cover. " Although all college student credit cards provide you with cash in the form of plastic, they can vary greatly by a number of factors: credit line offered, annual percentage rates( APR) , annual fees, cash advance fees, late fees, over- limit fees and special perks. Late and over- limit fees can be as much as$ 30/ month, each. Pick the card that offers you the lowest APR and fees.

Before you sign on the dotted line, carefully read the terms and conditions of the student credit card, especially the fine print. Use It( Wisely) Or Lose It. Before getting your student credit card, be sure to understand everything about credit. Many Americans, are in debt, including college kids over the heads. Credit cards make it easy, to go on, and tempting a spending spree. High interest rates, late fees and over- the- limit fees can cause your monthly balance to get way out of control. But spend more on your college student credit cards than you make you ll quickly find yourself drowning in debt.

If you can t pay your bills, your credit history will be destroyed. Once you have a job, savings and an, a bank account understanding of what credit is all about, you are ready for your first student credit card! Bad credit can keep you from getting student loans, purchasing a home, buying a car. even getting your dream job. If you ve done your homework, then you can be confident that you will select the college student credit cards that will help you to establish your credit. Spend wisely and reap the benefits of a good credit history.

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How Can My Credit Card Make Me Money - Colette Amin's Finance and Credit blog:

You see great interest free balance transfer credit cards advertised everywhere, but if you re the disciplined type who has managed to avoid building up a hefty credit card debt, these offers won t mean much to you.

Take A Loan - Finance and Credit:

It is no longer possible to escape from the tight grip that the loan providers of the market have placed over us. If you have to make a big investment, and you try consulting a trusted friend and advisor, the advice that you will invariably get is that of getting a loan to finance your needs.

It Is More About Your Repayment History Of Credit - Etta Snapp's Finance and Credit blog:

A good credit rating will influence your financial life.

No Matter What Type Of Business You Are Engaged In, You Certainly Need Business Credit To Get Started On The Right Foot

Category: Finance, Credit.

No matter what type of business you are engaged in, you certainly need business credit to get started on the right foot. You will agree with me that no matter how bright your idea is, it can t grow without business credit.

And if you are already started, you need business credit to develop the business into the right heights it should grow to. There are lots of other business people that need business finance to make their businesses blossom even more, but they lack business credit. There are many varieties of business credits that anyone can pick from. There is however reason to smile because options now exist for business credit with which you can grow a business or even start one up from the scratch. The size, nature and characteristics of your business will be the necessary factors that will determine the sort of business credit you will need. There are many types of business credits to choose from. If you own a business, you can now smile.

The small business loans are the kinds of business credit that will be most appropriate for small business owners. Among the different business credits however, small business loans are the most sort after. The banks and the many other private sector providers are the ones who offer these types of loans. That s why you will find many banks who offer low interest rates. Therefore lots of people can now get cheap business credit than was the case. All in an attempt to appear more attractive than the other bank. Other types of business credits are the secured and unsecured business loans, the merchant account cash advance business loan, and the commercial, the accounts receivable real estate loans, among others.

The absolute best place that you should start your search for business credit is on the World Wide Web because many business credit providers are online to choose from. Lots of research is still needed on your part before making a decision on which business credit to take. What s more, plenty of very enlightening and educative sites are online that will offer you precise information you need on business credits.

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In Today S Society, Credit Cards Are Considered To Be A Luxury - Finance and Credit Articles:

In today s society, credit cards are considered to be a luxury. While some credit cards come with very strict guidelines, there are still a lot of companies that are willing to give college students and even high school students credit cards in order to help them build their credit up.

What Is A Credit Report - Marquita Troupe's Finance and Credit blog:

Applying for a credit card? Starting a business and you need a free merchant account?

Mortgage Loan Consolidation Services Might Be The Answer You Are Looking For - Finance and Credit:

Want a little more financial breathing room than you current budget allows? But with a flexible low cost mortgage loan, the interest you pay should be set at a more competitive level.

Bad Debt Is Not Always A Total Loss

Category: Finance, Credit.

A lot of companies and businesses often end up with bad debt.

To them it s just a cost of doing business. These companies regard the bad debt as a loss for all intents and purposes. From the accounting department s point of view, this debt is in the accounts receivable category and these accounts receivable will not be paid. Most companies and its ownership/ management will anticipate some bad debt from time to time. Sooner or later, these bad debts will be written off by the company and then put into the expense category, which reduces the income of the company on the accounting statements. It s unfortunate but also a part of doing business. In a competitive world, bad debt is often just part of doing business.

This debt could be from loans paid out that will not be repaid or from accounts that will not be paid for various reasons. There are many business experts who will make their reputation, as well as their fortunes, on taking some risks to make a profit. Very few business people want to end up with accounts receivables or loans that are not going to be paid off, however they will recognize it s bound happen from time to time. These risks are made based on information available at that particular time. Bad Debt is not Always a Total Loss. The clever accountants can usually find a way to make up for the debt loss that is not collected. Interestingly, not all bad debt is considered disastrous for a business.

The accountants will often uses type of debt to get some money back on taxes when it is reported as a loss. This debt must be considered legitimate debt in the eyes of the Internal Revenue Service( IRS) . This debt can be deducted on tax returns under certain conditions. This debt must also be a loss for the current tax year of the company. And in order to qualify for these deductions the bad debt must meet certain rules. The IRS has many complex rules.

It is the job of the accountant or tax lawyer to study and understand these rules so that there will be no subsequent problems presented by the government auditors and officials. Company debts will differ quite significantly from the debts of an individual. The abuse and misuse of these deductions could be worse than the initial loss from the bad debt. Each company will have experts who are ready and able to figure out ways to use debt to the benefit of their company.

I Already Had John S Book

Category: Finance, Credit.

There we were, driving down the highway in my friend John s new$ 100, black Mercedes convertible, 000 shiny. I was thinking to myself, "This is the life.

It was the first time I d ever been in such an expensive( and fast) car. I want this, too! " It was the summer of 1993 and John called me to, "do lunch. " I was so excited. He was young. ambitious. the life of the party. everyone wanted to be around him. and all the ladies wanted to date him. You see, John was the, at the time owner of RE/ MAX of Indiana and his office was based in Indianapolis. John was, a wealthy guy, and still is with a passion for learning. I looked up to him in many ways. mostly the way he managed his money and how people adored him. I admired him.

John and I had a barter relationship. He loaned me books and audio courses. I taught him how to use a computer and become tech savvy, and in return he taught me how to change my thinking so I could become successful. He recommended seminars to attend. So when he called and asked me to lunch I was thrilled to have some one- on- one time with him at some fancy lunch spot where all the big wigs hung out. He guided my path to" reprogramming" my mind. As I turned into his neighborhood I was impressed.

And considering I was living in a 900 square foot condo at the time. The average home had to be at least 15, 000 square feet. I was like a deer in headlights. But what I eventually learned was. how smart you are doesn t determine the size of your bank account. John is a very bright guy, but I always thought I was smarter than him. I know a lot of smart people who are broke.

That s the key. Wealth is not about intelligence, it s about how creative you become in problem solving. Most people limit themselves with two words. .I CAN T. I admired him for that. and I wanted to be like that, too. John didn t know the meaning of those two words. Only a few years older than me, he was financially successful while I had just filed bankruptcy. What was I missing?

John had millions of dollars in the bank and I felt lucky to have a$ 500 secured bank credit card. I was curious to learn what made successful people successful. The book became my study guide, and John became my financial role model. So I studied the book, Think and Grow Rich, by Napoleon Hill. I pulled into his very long, tree- lined driveway and parked my new, blue Ford Escort with the temporary license plate still on the back. We shook hands and chatted a bit.

I knocked on his front entrance door( I had to choose between multiple entrance doors because the house was so big and took forever to walk around) and was warmly greeted by his maid who escorted me into John s home office. Then we left in one of his cars. He was driving fast on I- 465( here in Indianapolis) to take me to lunch. He chose to drive his new Mercedes convertible that day. I was enjoying the company and conversation and was all dressed up. Let me backtrack for a moment. you see, after I filed bankruptcy I decided to wear only jogging outfits. I felt really important.

I m serious. All day. That s all I wore. Every day. In the summer I wore shorts and t- shirts. I looked like a rapper. It was easy. convenient. time- saving. and very cost- effective.

After all, I could only imagine what kinda fancy place John was going to take me to for lunch. So wearing jeans and a shirt with a collar was dressed up for me. Out of the blue he asked me if I like tuna fish. We exited off of I- 465 onto Allisonville Road and headed north. I said, "Sure, " not thinking too much of it. We turned into this little strip mall. As we got out of the car I noticed he was walking toward a little deli next to the dry cleaner.

I was thinking he needed to pick up his dry cleaning or something since we parked in front of a dry cleaner. No, it couldn t be. Could this be where we were having our power lunch? I got all dressed up for this? This little place could best be described as a hole- in- the- wall. They knew him by name.

We entered the hole- in- the- wall. It was then that I realized this was going to be my power lunch. As we ate our bagels with tuna fish I was in disbelief. almost embarrassed. John ordered for me. he ordered bagels and tuna fish. Here I am with one of the wealthiest young business execs in Indianapolis and we re at a hole- in- the- wall deli eating bagels and tuna fish. The white linen tablecloths?

Where s the maitre d ? The crumb scrapers? Those things weren t there. The sparkling water at our table with soft music playing in the background? When John paid, I glanced down at the bill printed on adding machine tape and noticed our lunch was$ 1 I was ready to spend$ 25 just on my lunch. $12? Before that power lunch with John, I was too embarrassed to be frugal. That day I gave myself permission to be frugal.

I thought it was a sign of weakness. of poverty. of being simple- minded. of being on a tight budget. I wanted to spend. to buy things. to show the world I could get whatever I wanted whenever I wanted. I wanted nothing to do with that. Of course, that type of thinking put me into bankruptcy. And being frugal was okay. What I learned that day was- John s choice of being frugal in some areas allowed him to be extravagant in ways that mattered to him. I knew he had a large house.

I knew he had a housekeeper. I knew he took many fun vacations with family and friends. I knew he had several nice cars. His large house payment gave him a much needed tax deduction. On the surface these things might not seem so" frugal. " But what John taught me was that each of those things had a purpose. His expensive cars were business write- offs allowing him to accommodate the wealthiest Realtors who wouldn t be impressed by the head of a large real estate franchise driving a car like my Ford Escort. And his expensive vacations were a way for him to blow off steam and recharge when his batteries got too low.

His chef kept him eating healthy and freed up his time to focus on what made him rich. his real estate franchise. Wow! ! I changed that day. And I wanted all of that, too. And it served me well in my recovery after bankruptcy. You can t have everything after you begin to recover from bankruptcy. The point is.

You have to pick and choose carefully based on what s most important to your recovery at that time. But it s essential for recovering after bankruptcy. Delayed gratification is difficult for most people. Remembering the tuna fish and bagels 13 years later. John moved to Rancho Santa Fe several years ago. One of the last times I saw John was when I did a Credit After Bankruptcy seminar in San Diego.

So I drove to meet him at his new home- or I guess I should say, mansion. I wanted to see him face- to- face so I could tell him, for the first time, how much he inspired me and what he meant to me during those days after bankruptcy. It was good to see him. It took everything inside me not to get misty( real men do that, you know, too) . Sometimes you forget about all the people who helped get you where you are today. I don t know why I waited so long to tell him.

I certainly did. Then he told me how proud he was of my accomplishments and me. And I wanted to correct that. He noticed how much I had grown as a person and was proud to call me a friend. I had to leave. I couldn t take anymore.

I was starting to get emotional. Several months later my friend Joe and I met up with John when he was in town for his first book- signing at an Indianapolis Barnes& Noble bookstore. We said goodbye. I already had John s book. Apparently, I inspired him to accomplish one of his goals- to write a book and touch a few people s lives. I was there to show my support.

Get Rid Of High Interest Credit Card Debt

Category: Finance, Credit.

The biggest budget killer of all time is the high interest credit card. Do you think that's bad?

It used to be it would take an average of 52 years to pay off a high interest credit card balance if you paid your minimum monthly payment! Well, it's gotten worse. Unbelievably, there are many credit card companies that charge 299% and even more on their customers' balances and, if that's not bad enough, they compound the interest daily. The average time it takes to pay off these credit card balances today by making the minimum monthly payment is: never! 299% compounded daily! With a 299% card you pay about 5% interest per month on your balance. I say the first month because if you don' t make your payment on time or if the minimum monthly payment due is less than$ 50, your total amount owed will increase the next month. So, if you owe$ 2, 000 on a card that is charging this excessive and unseemly rate, you would be paying$ 50 the first month just in interest!

Many credit card companies will set your minimum monthly payment at less, or about the same as the 5% interest you will be paying each month. However, if you would pay$ 700 a month, instead of$ 50 on this$ 2, 000 total, you will be paid in full in a little more than 4 years. If they do this, and you continue to pay the minimum, you can see how you will never pay off the total balance or even pay it down at all! Do you think these credit card companies want you to pay your balance in full? High interest credit card companies hold you hostage! You can bet they don' t! Why would a credit card company want you to pay your balance in full when they are charging an interest rate 5 times the prime rate?

It should be, but if you have a particularly strong stomach, read some of the other wonderful things these great credit card companies do. 1- If you are late, they hit you with a late charge, which is usually$ 300! Is all of this making you sick? Even if you' re total balance is$ 100! So, if you have a balance of only a few dollars, they will charge you a$ 10 fee anyway! 4- If you' re late with a payment, even though they love it because they get to rob you out of another$ 300, they' ll report you late to the credit bureaus so eventually they can ruin your credit rating altogether! In this case they would be realizing a return of 4000% on a yearly basis. 2- If you pay over the phone, they charge you$ 10 to$ 15 for about 2 minutes work. 3- Many of these scoundrels have a minimum finance charge. Nice guys!

I am 100% convinced it is impossible for anyone to get ahead financially while having high interest credit card balances. Why would a credit card company want to give me bad credit? These credit cards have destroyed the credit of millions and the companies are happier than pigs in mud that they do. So these horrible credit card companies can force you into taking their horrible deals! As long as they can keep your credit rating low, you will not qualify for good loans with reasonable terms. How do I start getting rid of high interest credit card debt?

Get rid of high interest credit card debt. If you want a shot at becoming financially successful there is one thing you must do. Cut up all your cards. Pay off all the balances on all the cards by paying a large amount toward one each month. Get a debit card and never charge anything on one of these cards again. Pay the one with the highest interest rate and when it's paid start on the one with the highest interest rate of those remaining. I know people who are paying$ 500 a month now and are not paying down their credit card debt at all because they are getting hit with late charges.

If you owe$ 10, 000, paying off$ 500 a month will have you paid off in a little more than 2 years. Refinance your mortgage to pay off high interest credit debt if you have to. If you don' t own a home or you can' t swing a refinance, go to a non- profit credit counseling service. It will be well worth it in the long run. They can get lower rates for you and set it up so you can make one payment a month to them. It's a sound financial move. Just make sure you go to a non- profit debt management organization and they will handle your debt situation without charging you more fees.

I can guarantee if you asked financial advisors, economists and/ or financially successful people, "what is the first step to becoming well off? " Every one of them will tell you, "Do whatever it takes to pay off your high interest rate debt. Period. " Exclamation point!

There Is No One Best Credit Card Out In The Market

Category: Finance, Credit.

There is no one best credit card out in the market. There are times when one particular credit card type is better used over another type of card, but it would usually depend on the situation.

Different cards have different features, and it greatly depends on how it is being used by the card holder. Credit cards give you freedom and flexibility in making unexpected shopping sprees, online purchases, recurring bills, reservations, and many more. But most people overlook the responsibility of settling their dues once the bill arrives. The benefits that credit card gives you are endless. Most people resort to credit cards having low interest rates in order to save money. All you have to do is to choose among them.

And there are a lot of card providers having low interest rates. The most sensible approach in paying back the debt incurred using a credit card is to go for cards having a low interest rate. Although you want to settle all your dues on time, there comes a time when you lack the needed money whether you like it or not. Customers can choose between a fixed low interest rate and credit cards having low introductory interest rates. But it would help to know that your credit card carries a low interest rate on your balances. Here are some benefits of credit cards having low interests: if you carry balances, having a low interest card is reasonable.

You can save a lot of money compared to individuals having cards with very high interests. It is considered as a sound alternative when it comes to financial problems, especially those who can' t afford to settle the amount in full every month. low interest offers tremendous savings. great longevity. Responsible persons with good credit ratings will not find it hard to apply for a credit card offering low interest. If you want to save a lot of money while paying off your balances, this is a good option. a good option for getting a balance transfer, it is affordable and helpful for those who are wanting to consolidate their debts. Once you make an application, the credit card provider will surely check for your credit history. You can secure an application online or you can go directly to the issuer.

Others who don' t qualify can also be granted an application but with a lesser amount of credit limit. Low interest cards are available almost everywhere, from the mailbox to your radio, and the internet, television. It is best that you use you credit card, each time you, with low interest make purchases that you will be paying off over due time. You have to pay close attention to specific details like introductory interest, introductory period duration, APR percentage, charges/ rates on balance transfers, additional fees or, bonus features charges, and security features. You can afford to carry a certain amount of balance on your account because of the low interest. If you make these kinds of purchases, it would be better to settle the amount due in full every month. You can also use your card in making purchases in convenience or grocery stores for your daily consumption.

You must discipline yourself especially with the use of a credit card. Low or high interest, it doesn' t count much, just as long as you are a disciplined and responsible card holder.