Archive for March, 2009

Do you ever get tired of the constant creditors calling? Are you sick of their negativity? Their job pure and simple is to get you to pay your bills. What can you do in this situation? Give some of these techniques for negotiating your debt a try.

Debt Consolidation

While debt consolidation loans may not be the answer for everyone they may be right for you. Check into this avenue and make sure you speak with a true credit counselor, not an online consolidation place that will make money off of your predicament. Most of the time, these counselors can negotiate a lower interest rate on your behalf.

Having an ally in this debt fight can be empowering but what if somebody told you that you can negotiate your debt yourself? Would you try it? It really is easier than it sounds.

Negotiating Your Debt by Yourself

Where to start?

First of all in order to negotiate your interest rates with your creditors you will need to financially be able to settle your debt now. If you owe $300 but only have $250 they might be willing to listen. The last thing a creditor wants is for the debt to go to collections or even worse bankruptcy. They might just settle for a lesser amount to avoid a long lengthy process.

Next, call the creditor and let them know you are ready to settle the debt. Ask for a reasonable adjustment on the interest rate. Tell them what you are willing to pay and sit back and listen to their retort. They can either adjust the rate or they won’t. Either way, you are empowering yourself to take charge of your own financial future.

If you have more than 3 debts that you wish to clear up it may be wiser to only negotiate a few of these accounts at a time. Not only will it help you stay focused and organized but may also hurt your credit score.

Are you concerned about your credit score? Do you need to improve your credit score? If so, does it need to be done in a quick manner? Do you see a big purchase in the future that may require a loan? If so, follow these instructions and you will be well on your way to building a great credit score.

• Open a savings account and deposit money on a regular basis.
• Open a checking account. DO NOT have any overdrafts.
• Pay ALL of your bills on time.
• When paying your bills, pay more than the minimum amount due.
• If your credit score is too low now to get a regular credit card try to get a secured credit card. When applying you will send in around $500 for them to apply to your card. As you make purchases they will deduct the amount from your card and also report to the credit agencies that you are making timely payments.
• Use your credit cards every month. Maybe buy your groceries with your credit card, then turn around and pay it off. This shows the credit agencies that you make payments on time.
• Apply for a small loan through your bank.
• Get a cell phone with a service agreement. By making your payments regularly, you can build your credit this way. Other utilities in your name can work in your favor as well.
• Open up an in-store credit card. These are generally easy to obtain although they usually carry higher interest rates.

Establishing a good credit score is important. Whether you have no credit and are seeking to build it up, or have bad credit and need to improve upon it, there are some very active steps that you can take in establishing credit fast.

Have you ever discovered errors on your credit report? Did you know that there is a way to fix these errors? Did you know that if you don’t fix them they can haunt your credit history for years?

Consider these tips for fixing mistakes on your credit report.

1. Accidents happen. Inaccurate information is bound to show up from time to time on your credit report. Sometimes it is a human’s error, sometimes it is a computer error but it happens more frequently than you know. Comb over your credit report yearly to make sure these silly accidents don’t happen to you.

2. Review your Credit Report Annually. Order your free credit report every year from the three major credit bureaus (Equifax, Experian and TransUnion) by visiting AnnualCreditReport.com or calling 1-877-322-8228. (Note: This is the only place where you can get free credit reports once a year without any strings attached. The “free” credit reports advertised by other sources aren’t really free!)

3. Mistakes? Contact the credit bureau first. If you find mistakes in your report, take the matter up with the credit-reporting agency immediately. Send a letter that includes your complete name and address, a description of each item you dispute, an explanation of why you dispute it and a request for deletion or correction of the information.

4. Keep good records. Along with your letter, enclose copies (NOT originals) of documents that support your position, as well as a photocopy of your credit report with the items in question circled. Send the letter and enclosures by certified mail, return receipt requested, so you can document what the credit bureau received. Keep copies of all correspondence, and jot down and save notes about each phone conversation you have.

5. Be Patient. Recognize that it can take months to clear up mistakes on credit reports – especially if more than one inaccuracy is involved. Once an error has been resolved order your free credit report as soon as possible to make sure the error was indeed deleted.

Do you feel like you are drowning in debt? Are your minimum payments on your credit cards more than you can handle? If so, your debt is out of control and your lifestyle is too costly.

Unfortunately, most people don’t get their debt under control until it is too late. Harassing phone calls from creditors, letters demanding payment immediately, and skyrocketing fees are enough to put anyone on edge.

There are a number of things you can do to avoid debt. The first and most important is to stop using your credit cards or loans until you fully understand their power. Having credit cards with higher credit lines lull you into a sense of security. That isn’t the feeling you want to be having if you aren’t mature enough to handle the consequences.

Credit card companies are plain and simple…BUSINESSES. And like any other business they want to make money. Their most profitable customers are the ones who buy on impulse without thinking or planning ahead, or the ones who fail to pay off their balance every month, and the ones who get behind on payments and get charged fee on top of fee. Stop giving them what they want and start become more responsible with your hard earned cash.

On the other hand, credit cards can be useful when building your credit. When you do feel like you are able to use credit cards wisely consider paying them off monthly so no fees will be charged. Better yet, save up the cash for your purchase, use your credit card to buy the item, and then pay off the credit card (immediately) with your saved cash.

As a review here are a few things you can do now to keep your debt under control. By using these methods you can become a happier, stress-free consumer!

• If you have a balance, pay more than the minimum payment so the credit card can be paid off quicker.
• Only purchase things on credit when you have the cash to pay off the balance each month.
• If you feel like your balances are out of control, turn to a non-profit debt counselor or someone who you trust to help you get back on the right track.

When you look at your bills each month, you may feel overwhelmed by the amount of money that you’re spending on debt. Sometimes debt might seem like a trap that you only want to fight your way out of, but not all debt is bad. When a lender looks at your credit report to see what kinds of accounts you have, they will look at some debts more favorably than others. If you’re focusing on getting out of debt, you first need to understand which debts are considered bad and which are considered good.

Good Debt

Some of your debt might be considered an investment. You’re probably thinking, “How can anything as bad as debt be considered an investment!” If you took on the debt to purchase something that will increase in value and can contribute to your overall financial health, then it’s very possible that debt is a good one.

For example, a home purchase can be considered to be a good debt. Since homes usually appreciate in value, the mortgage loan you take out to pay for the home is an investment. Another example of a good debt is a student loan taken out to finance a college education. Earning a college degree usually means that you’ll make more money over your lifetime.

Good debt is obtained through making wise decisions about your future, not for the sole purpose of having good debt. For example, you might make the decision to obtain your Master’s degree to increase your earning potential. Taking out a student loan, if you have no other way of financing your education, is a valid reason for taking on additional debt.

Bad Debt

When you use debt to finance things that can be consumed, you are accumulating bad debt. This is the kind of debt that creates an unhealthy financial situation. Credit card debt is often considered bad debt because of the nature of items that credit cards are used to purchase. You should never accumulate debt to purchase everyday items like clothes or food. If you use a credit card for these types of purchases, you should pay the balance in full each month.

In summary, all debt is not bad. Good debt is extremely useful for building a strong personal credit rating, for financing of large ‘investment’ style purchases such as homes and education and, if used appropriately, retirement and for the passing on of wealth through the generations for the benefit of family members.

Many people make sincere attempts to set up a household budget and get themselves together financially, but too often these attempts fail. Take a look at some of the budget busters that may be throwing us off track.

1. Not saving enough money – We all know that emergencies happen. The motor goes out in your vehicle, medical issues arise, unexpected travel, etc. Stuff happens…and we need to be planning for it. Set aside a certain amount each month to sit in your savings account. You will be happy it is there when you need it.

2. Spending too much money – Many of us are still spending too much money. When we get raises our spending goes up…when we get a bonus we go spend it. Try setting a few rules for yourself like only buying something if it is on sale, or stop the impulse buying, or only buy things on your “need” list for 2 weeks. After a while it will become more of a habit to stop spending so much money.

3. Buying with credit cards - Isn’t it easy to swipe your credit card for your purchase? You think in the back of your mind that you will pay it off next month since it is only $50. When the bill comes in it is much more because all of those little $50 purchases added up. Keep track of your purchases when using credit, just as you would when using your checking account or cash. Some people even deduct those purchases from their checking account then pay off their credit card with that money.

4. Gift buying – Most of us feel a need to give the perfect give to those loved ones on our list regardless of price. We want the gift receiver to know we love them and think of them. You can still show that love with pre-planning and thinking ahead. Don’t wait until the day of the birthday to buy something…you will be stressed out and spend too much money.

If gift giving is stretching your budget or keeping you in debt, make an effort to scale back this year. Try buying things throughout the year and keeping them in a “gift closet”. Some even go as far as labeling the gifts so they don’t forget who the gift is for. Constantly be on the lookout for marked down or clearance products that you can use. Also consider making homemade items or giving “coupons” for your loved ones. They will mean just as much because remember…it is the thought that counts!

5. Not Creating a Budget in the First Place – Most people think having a budget is too restricting. It can be if you let it. Honestly, living without a budget is worse! It holds you back and can cause stress in all areas of your life. Don’t let another day go by without gaining control of your finances… it’s just money, you CAN handle it.

There are a number of ways to economize without reducing your comfort or convenience. Below you’ll find “do-it-yourself” tips to help you manage energy use and save on your monthly electric energy bill:

1. Check if you can get a better electric contract. Often times other companies can offer you better rates.
2. Buy energy efficient devices and don’t buy devices that are bigger than necessary.
3. Switch the devices off that you don’t use. Don’t forget that power adaptors also consume energy. Unplug them when you don’t use them.
4. Replace regular light bulbs with compact fluorescent bulbs. It is economical to replace a light bulb if it burns for more than half an hour a day. Use high quality compact fluorescent bulbs.
5. Use a toaster or the microwave if possible instead of the oven.
6. Make sure your dishwasher is as full as possible before you run it.
7. Avoid the air conditioner. You need 3 times more energy per degree to cool a room than to heat a room.
8. Ventilate during the night or early in the morning in order to store the coolness for the day. Keep the coolness in the house during the day. Close the shutters and keep your windows and doors closed.
9. Avoid the clothes drier. Dry your wet clothes on a laundry line. If you can’t follow this step try to fill the dryer as full as possible and use the mode “iron-dry”.
10. Optimize the energy consumption of your PC.
11. Use a ceiling fan to cool off your rooms
12. Cover your hot water heater with a jacket. They are about $10 at Home Depot.
13. Change your air filter monthly
14. Repair dripping faucets
15. Turn down your hot water heater to about 140 degrees

As valuable and convenient as electricity is to your lifestyle, you certainly don’t want to pay each month for energy you didn’t really need to use. Since electricity is so easy, quiet and convenient to use it’s easy to waste if you don’t manage energy consumption wisely.

To balance a budget spending has to be closely monitored. A balanced budget is important because it allows you the opportunity to free yourself from the stress of finances. Simply put, when you have a balanced budget you are in control of your finances.

Balancing a budget is the kind of thing that most people hate, but we all know it’s necessary. Here are a few tips to help you get your budget balanced:

1. Save your receipts.

That’s right… all of them. This might sound unnecessary, but it’s really important. If your bank statement comes and you find something on it that isn’t right, you’ll need those receipts to prove your point and get your money back. After your statement comes, you probably won’t need the receipts anymore so you can get rid of them then. Look into purchasing a small accordion check folder to hold your receipts.

2. Write everything down in your checkbook.

Every time you make a purchase with a check or your debit card, write it down! That means you’ll have to keep your checkbook with you almost all the time, which can be annoying, but it’s worth it.

3. Go over your bank and credit statements.

As soon as you get your statements open your checkbook and compare each transaction. If there are any discrepancies, look over your receipts. Resolve these issues with your bank.

4. Balance.

Make sure the final amount on your statement is the same as the amount you’ve calculated that you have in your account. If there’s a difference of more than a few dollars, it may mean that either your math is wrong or there is a problem that needs looking into more. Make sure every transaction is recorded correctly and recalculate all of your figures.

Do all that and you will have a balanced monthly budget, an understanding of where all that money is going and a place to start when attempting to cut some corners. Good luck!

Whether you are single and dating or married and still dating your spouse, dating is an important part of getting to know each other. It can also become a strain to our budgets. Here are some ways to save some serious cash when going out on dates.

• Go to the cheap movie theatre and share popcorn.
• Go on a hike and pack a picnic
• Play soccer, volleyball, or baseball together.
• Visit museums and art galleries in your area
• Go miniature golfing
• Go to the park and enjoy a sunset together
• Take a scenic drive together
• Rent a boat and go fishing
• Have a movie marathon-make sure you have candy, food, sodas, etc.
• Order a pizza and play board games
• Go out to a nice restaurant for dessert
• Go star-gazing or see a show at your local planetarium
• Create a food theme night and cook each other dinner

Whether married or single, dating is meant to be fun. Use your imagination and come up with a cool way to celebrate your love for each other and strengthen your relationship at the same time. Remember that dating doesn’t have to be expensive to be fun. The fact that you are together is the best reward!