Credit Card Debt

Credit Card Debt

How to Get Out of Credit Card Debt – Let Me Count the Ways

When your credit card bill (s) come in, do you wonder how you will be able to make even the minimum payment? Does it seem like the balances on those cards never goes down? You’re not alone.

As long as you continue to pay just the minimum payment called for, you’ll be paying on those cards for 20 years or more. We’ll show you how to get out of credit card debt and stay out.

Credit cards used wisely and paid in full each month, can be a big help. But for many, the temptation to buy things you can’t afford, is too great, and soon the card is maxed out, and so is the ability to repay.

If you’re serious about eliminating credit card debt, then read on. It will take serious planning, a lot of discipline, and sacrifices to do this. The first thing that you must do is to know exactly what you have to deal with. View full post…

Read More... Please comment

10 New Business Mistakes That Can Spell Trouble

10 New Business Mistakes That Can Spell Trouble

10 New Business Mistakes that Can Get You Into Trouble

Thinking of starting your own business? Are you self-motivated in such a way that you’ll put in the long hours necessary to succeed? If so, you may have what it takes to prevent new business mistakes from becoming a bad habit.

Unfortunately, some individuals have the misconception that becoming financially independent can be accomplished in a short period of time. Well, I suppose its possible, but for most, they quickly learn the business facts of life.

Operating your own business can be very rewarding such as being your own boss, but there are a number of things that you have to comply with if you want to stay in business. The primary one is paying the various taxes that are required.

This is one area where a new business owner needs to consult an experienced, qualified accountant before setting up a business entity. A lot depends on the type of business and how to structure it so that overall taxes can be minimized.

In my state, a few years ago, the LLC designation was added to the state level types of organizations. Practically every new View full post…

Read More... 20 Comments

How to Get Rid of Credit Card Debt

How to Get Rid of Credit Card Debt

5 Ways on How to Get Rid of Credit Card Debt

Each month, when all of those dreaded statements come in for your charges to those plastic cards in your wallet, your card issuer usually lets you know that you don’t need to payoff the balance. “Just pay this minimum payment”, they tell you, and before you know it, you have a high outstanding balance. Now you begin to wonder how to get rid of credit card debt.

Unfortunately, now it’s not so easy. For some individuals, there may have been a good reason why they only paid the minimum payment each month. Problems such as unforeseen medical cost, or the family car passed away, or even loss of a job.

But for many others, it was just poor cash management. They didn’t have a budget and didn’t have a clue where all of the money was going. Impulse spending with a credit card doesn’t take long to accumulate a very high balance. The average household credit card debt in the USA is around $16,000, and with the higher interest rates, a lot of cash is going down the drain.

How to get rid of credit card debt should be your primary focus. There’s only one way to begin, and that is to STOP using those credit cards. Don’t carry them with you, because for many, the temptation to buy something may be too great.

Start by listing each credit card with the outstanding balance, interest rate, the monthly payment, and the utilization rate. (More on this rate later) There are many opinions on this, but we and many financial planners, like to use the five strategies that will show you how to get rid of credit card debt.

1. If you’re like most, you have several credit cards with hefty balances. Pick the one with the lowest balance and this is the one that you will payoff first. You’ll continue to pay the minimum balance on the other cards, but all available cash will be applied to the card with the lowest balance.

Totally paying off one credit card will give most individuals a psychological boost and this is what we’re going for. If your goal is paying less interest, then you would pay off the card with the highest interest rate first. If your primary concern is boosting your credit score, then you should concentrate on paying off the card with the highest utilization rate.

Whenever you use more than 20% of the card’s approved limit, your credit score gets dinged. The utilization rate is calculated by dividing the amount owed on the card by the approved limit.

2. Contact each card issuer and request a lower interest rate. If your credit score is good (above 730), and you’ve made payments on time for a while, they will often lower the rate a couple of percentage points. It might not seem like much, but it could amount to several hundred dollars a year in savings.

Sometimes, another credit card issuer may make you an offer for a card with a lower rate. You can let your other card issuers know and they will usually match the offer.

3. A third strategy is a high interest rate balance transfer, and you must be extremely careful in doing this. You can often times find a credit card where they will offer you a lower rate if you transfer a balance to them. This can potentially be a smart move and could save you hundreds of dollars a year.

Be very careful of these offers, though, as the low rate might only be good for 12 or 18 months. If the entire balance isn’t repaid in full in that time, your interest rate can increase substantially. It’s also possible that the new card issuer may charge a fee for doing the transfer, so be sure to calculate this into the transaction.

4. Another possibility to consider is using a peer-to-peer lender. There are sites online that will make loans with a fixed rate of interest that are much lower that credit card issuers. If you’re employed, and have a good credit score, you may qualify for an online loan. That loan would of course, repay all of your credit card balances in full.

5. Another excellent strategy is to make extra payments on the credit cards every month. What this means is to send the money to the credit card company two or even three times each month. Don’t hold the extra money in your account and mail it in once a month. Your interest is calculated on a daily basis, so it’s to your benefit to reduce the balance as quickly as you can.

Here’s an illustration as to how this works, and it will blow your mind. If you had a credit card with a balance of $2,000 with an interest rate of 17%, and you paid the minimum payment once each month, it will take almost 21 years to payoff the balance.

If you paid that same minimum payment when your statement came in and then paid the same minimum payment again two weeks later, the card balance will be paid in full in about 3 years. This is why credit card issuers love people that keep paying the minimum payment every month. They make a lot of money!

There are different strategies available that will tell you how to get rid of credit card debt. If you’re in this situation, then please stop using your credit cards. Create a budget and find out where your money is going. Use all available cash to eliminate debt and one day you may find yourself enjoying debt free living.

Creditors have a limited time in which to file suit over unpaid credit card debt. This guide lists the statute of limitations that is in effect for each state. Check it out here.

Read More... 6 Comments

Living On a Budget Without Overspending

Living On a Budget Without Overspending

Overspending. Who Me? Try Living On a Budget.

Most of us have asked ourselves that question on numerous occasions, sometimes in disbelief. We never dreamed that it would be possible, until we look at our credit card balances that have been slowly increasing. Would living on a budget prevent that?

Usually, overspending is not a conscious effort. It could start with something as simple as meeting friends on the way to work for a latte. Your cash is spent so you just charge the drink, no big deal.

A couple of times during the week, the same friends suggest that you have dinner with them. You are shocked when the credit card bill arrives and you add up those unplanned charges that total $320.00.

You didn’t realize how easy it was to overspend without being aware of it.  Now how do you tell your friends that you can’t View full post…

Read More... 8 Comments

Money Management Software

3 Reasons Why You Should Be Using Money Management Software

Money management software is a big help in budgetingWe’ve found that many individuals have financial problems due to a lack of understanding in the best way to manage their money. Quite often, they make mistakes that prove to be quite costly, especially when it involves an increase in debt. Money management software can be a big help in many cases.

There are several reasons that these individuals get into financial distress.

    • Some don’t know how to control their spending due to credit card mis-use. They see items they want and charge it to a credit card. Before too long, the credit cards are maxed out and just paying the minimum balance is very difficult.

View full post…

Read More... Please comment

Do I Need a Credit Card

Is a Credit Card Something I Need to Have?

Do I really need a credit card?Have you ever wondered if you really need a credit card? I can hear some saying, this guy must be nuts, who can live without at least one credit card?  There are some though, who are highly disciplined and won’t have a credit card in their wallet.

This can be a mistake, however, because with proper use of a credit card, you can build a strong credit score. We’ll give you some tips about credit cards and credit score, and for the very few of you, some advice to consider.

Do I really need to have a credit card?

We all have different wants and needs as well as personal lifestyles, so on to the answer to the above question. There are some who have managed their finances very well for many years and have not used a credit card. They don’t expect their situation to change, and have even saved a tidy sum for possible View full post…

Read More... Please comment

How To Make A Budget

How to Make a Budget – 5 Easy Steps

How to make a budgetI overheard an acquaintance saying that she had no clue as to how to make a budget, and if she did, it wouldn’t work anyway. Knowing that she was incorrect, I was ready to put my two cents in, until I thought back to the first time I tried to create a budget .

I can still recall the first one that I tackled. I was really into it and bought a calculator and various office supplies to get it on down on paper, I was determined to create a budget that would work, and set it up with over 35 different income and expense categories. All that week, I saved my receipts for every little thing that I bought and at night I entered them in the appropriate categories.

View full post…

Read More... 3 Comments

Learn How to Manage Your Money

How to Manage Your Money and Take Control of Your Spending

Learn how to manage your moneyThere are a few simple steps for you to learn how to manage your money. To begin with, you need to understand that you’re in charge and not your bills. Take the time to find out exactly how your money is spent.

Most individuals can only guess where their money goes after they pay their fixed expenses such as the mortgage or rent, utilities, auto payment, and perhaps a student loan. If you want to take control of your spending and also get your debt under control, you must identify your spending patterns. Then learn how to manage your money by re-allocating funds that are spent on items that are unnecessary.

View full post…

Read More... 12 Comments

Personal Finance Tips

Personal Finance Tips

Americans Get Wiser With Personal Finance – Post Recession – Tips to Overcome Odds

Needless to say, the global recession has left a lasting impact on everyone’s life. While some have lost their jobs, others have gone through salary cuts. Overall production throughout the country; investment expenditures; income; corporate profits; all have dropped to excessive low levels. Therefore it will take considerable time for this country to recover in the post-recession period.

Even if another recession should occur, there are some steps that you can take to minimize the impact. If you want to ensure that you won’t be facing undue hardship in the next recession, you may want to seriously consider the following five tips. They are personal finance tips and we encourage you to follow them carefully. View full post…

Read More... 11 Comments