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4 Money-Saving Tips

August 6th, 2008    Subscribe To Our Feed

Amid the challenges of mounting credit card debt, finding ways to cut-back or save are things you always want to have your eyes open for. Here are four tips that may be of value to you.

1. ALTERNATIVES – Look for alternative solutions before you spend. Often there are generic brands of the products you want (yes it may mean giving up the designer brand, but at least it will be paid for!) Search the net for home remedies rather than purchasing individual products for each household challenge you face. Ask your local pharmacists for alternatives to expensive medications and treatments, or once again search the net for some. Many places offer discounts for package deals, like fitness centers and things like family haircuts. Visit your local library instead of buying a book and/or buying or renting a movie. Books from there will read just as well.

2. COUPONS – I know many of your reading this are turning green right now – but coupons can save you lots of money. These are not just for food! Check online, in print media and in your postal and email boxes for money saving coupons to use with your next computer, software, bookstore, office supply store or any store purchase. Enjoy a social life, too. Head to the fitness center, take your spouse out to eat and get your pet groomed – all with coupons. Plan ahead and keep them in a drawer or specially marked container. Purge them monthly or quarterly as many have expiration dates. Trade them with friends, neighbors, co-workers, etc. You may be the one starting it, but others will enjoy the benefits as well.

3. INCENTIVES – Many credit cards, restaurants, movie theaters, stores and other places offer incentive programs. Find one or more that fit into your purchasing plans and earn things like free air travel miles, movies, gasoline, meals. Some even offer a percentage back in the form of a check or gift certificates in exchange for your participating in their program. Keep up with the times, too. If your child is grown, no need to use your Toys-R-Use Visa and get back certificates for toys any longer. Call the bank and see which other programs they have, ask your friends which ones they use, surf the Internet for new offers - and switch.

4. ATTITUDE – Don’t focus on what you “don’t have.” Instead, focus on what you “do have.” Make lemonade out of those lemons; recycle what you can, reuse what you can, donate what you can. No need to have “new” things all the time, or even part of the time. Be happy with what you have now and make it work for you! Head to the library for free help in thousands in books that can show you step by step how to get exactly what you want.

So the next time you’re heading out the door to do some shopping, take a minute to determine what you absolutely need to buy and can’t find an alternative for, what you could buy cheaper if you used a coupon and what you could simply borrow rather than buy. By not spending you’re giving yourself a raise!

Credit Card Debt and Debt Collectors

June 8th, 2008    Subscribe To Our Feed

As more and more people are finding themselves in a truckload of debt that they cannot cover, more and more are going through the unpleasant experience of dealing with debt collectors.

You may already be screening your calls and feel your blood pressure rising as you realize it’s them – again, not to mention how embarrassing it can be when they try and find you at your place of employment.

Who Are the Debt Collectors

Debt collectors can be employed by the companies themselves, people on contract to the companies or people employed by an actual collection agency. For many, they are paid on a commission basis, based on the amounts they collect. So while not every debt collector is unsympathetic and berating, many come off as aggressive as they are determined to collect their fees. So, it’s quite understandable while those who are already in a desperate state to fear encounters with such individuals.

Allowable Collector Actions

Debt collectors are allowed to contact you by in person, by mail, by telegram, by fax and by phone; at home or at work - unless they know your employer would disapprove. They may also not contact you before 8 a.m. or after 9 p.m. unless you have agreed to the contact at that time.

If you have an attorney they must contact him or her. They may then contact other people to find out your telephone number, work place or address, but in most cases they are only allowed to contact them once and they are not allowed to inform them that you owe money.

Stop Contact Request

Whether or not you actually owe a debt you can write a letter to the collector telling them to stop contact. From then, they may contact you only once to inform you that they will make no further contact or to tell you what action may be taken against you.

Stopping contact will not clear the debt. If you do not believe you owe the debt make that clear in your letter.

Your Rights

The FTC (Federal Trade Commission) has a Fair Debt Collection policy to protect consumers. As in anything knowing your rights is essential. Most collectors function on the assumption that you don’t know the law, so making it evident that you do will put off even the most determined collectors.

What Collectors Can’t Do

Debt collectors are NOT allowed to harass, abuse or oppress you or other individuals on your behalf. This includes the use of obscene language, threats of violence or repeated calling in an effort to annoy.

They cannot imply legal action, including seizing property or garnishing wages unless they are legally allowed and intend to do so.

They are not allowed to misrepresent themselves as government agents, attorneys or representing a credit bureau if they are not. They cannot imply they are sending legal documents if they aren’t or that you’ve committed a crime, if you haven’t.

You can find out more about your rights from the FTC. If you want to report an agent you can do so by contacting the FTC or your Attorney General.

Be Proactive

If you find yourself in the position of being late on payments, contact the credit card companies before your account hits the collection department to start working out a plan. If you however are already being contacted by debt collectors, educate yourself so that you can hold your own when in discussions.

Credit Card Debt Statistics

May 21st, 2008    Subscribe To Our Feed

Years ago my grandfather was relaying how he was having trouble sleeping. Trying to empathize with him, I said that there were nights that I had trouble sleeping as well. He then made a simple statement that I’ve recalled a number of times. He said, ‘Just knowing that you can’t sleep doesn’t do anything to help me sleep better.’ What does that have to do with credit card debt statistics? If you’re currently bogged down by credit card debt, finding statistics that prove that others are in the same boat isn’t going to change your situation. On the other hand, looking for success stories of how other’s turned their financial standings around could be more productive. However, if you are just plain interested in finding stats on credit card debt, there are a few ways to gather them.

Places to Find Stats

Depending on the specific type of stats that you’re looking for you may dictate where you need to look for the information. Both credit management services and money management service companies provide statistics showing the level of debt people are at, and offer ways to combat it.

Credit Card Companies

You can also contact the credit card companies directly to request the numbers you’re looking for. Some of them have stats out on their sites and some even have information on managing debt.

Sites on the Internet

On the net check out ‘money’ related sites as many have statistical information beyond credit card debt that may be interesting and useful as well. If you’re from the US or a country with similar consumer spending habits, sites like the Federal Reserve (federalreserve.gov), MSN Money (moneycentral.msn.com), myfico.com, carddata.com, cardtrak.com, creditcards.com… and so on.

You’re Input

If you have a favorite site for gathering credit card debt statistics, please post a comment for the benefit of others looking for such sites.

Want To Eliminate Credit Card Debt?

April 12th, 2008    Subscribe To Our Feed

The rate at which people are using credit cards these days, in no way seems to be on a decline, which only lends itself to people becoming debt-ridden. Only too quickly people are thousands of dollars in debt. With many stretched to make even the minimum monthly payments, it can take years to pay the debt off, with the sad reality that in interest charges alone people can spend up to 300% of what they originally owed. As bleak as this may be, there are ways to eliminate credit card debt.

Getting Honest

The first step to eliminating credit card debt is to honestly assess how the debt has occurred in the first place. Is it the result of a situation or circumstances in life that have taken their toll or is it careless spending? The challenge many face with using plastic is the failure to limit spending to an affordable amount, as you’re forced to when using cash or debit cards. A great part of that lies in the fact that they’ve never taken the time to sit down and calculate what it is that they can afford.

The Next Step

That brings us to the next step. Once you have faced the truth of where the debt has come from, you need to accurately assess your income and your expenses in order to know how much money remains for your spending pleasure. It’s near impossible to eliminate credit card debt without establishing some measure of a budget.

Essentials Vs Non-essentials

Obviously you must identify the essentials such as food, insurances, mortgage payments, utility bills, etc. as they take priority. Record estimated amounts for things such as clothing and hair care, which though may not happen every month, still need to be budgeted. Then record the non-essentials — but nice to have expenses such as cable television and restaurant/entertainment expenses. These are ones that you could live without if the situation demands it.

Planning For The Future

You will also want to budget ahead of time if you’re planning a vacation or you’re planning on purchasing big-ticket items. The more detailed you can make your assessment, the clearer the picture will be to understand how your current income can be put towards preventing further and eliminating current credit card debt.

Consumer Credit Card Debt Relief

March 14th, 2008    Subscribe To Our Feed

How To Find Consumer Credit Card Debt Relief

Have you recently come to recognize that you have put yourself in the position of great consumer credit card debt? Does the whole situation seem a bit overwhelming? If so, it’s time to find some debt relief. Depending on your level of consumer credit card debt, it may be that you’re not only unable to get approved for credit anywhere, but also that you’re being bombarded by phone calls from creditors and have a mailbox full to notices regarding your less-than-ideal situation. No doubt this is causing you a great deal of stress and sadly will cost you money in the long run.

To find consumer credit card debt relief, there are a few approaches you can take. First and foremost is you have to stop incurring any more debt on the cards. While you might have to actually cut the cards up to ensure you don’t use them, it may be better to simply be disciplined enough not to use them. (Do some research on credit scores to know which is the best for you.)

What is Your Credit Report Saying?

In order to devise a plan of action, you must first have an accurate assessment of where you are. Therefore, get a copy of your credit report to see exactly how much you owe. There are actually 3 credit bureaus that you will need to get copies of your report from: Experian, Trans Union and Equifax. These reports will give you an accurate view of exactly who you owe and how much. Most of the time, if an account is overdue the account will be sold to a collection agency. This means you will no longer deal directly with the credit card company. If this is the case, get the names, account numbers and phone numbers for each of the agencies and contact them up directly.

Do Your Part

Once you identify whom you need to speak with, call either the collection agency, or to the credit card company and explain to them that you are working toward consumer credit card debt relief and thus, the reason for the call. Talk with them about the possibility of a straight settlement, where they may offer you a smaller amount to take care of the debt immediately. If you can’t afford to settle the debt, see if you can agree on a repayment plan that is affordable for you. If nothing less results than lowering your interest rate, you will still have benefited from making the call. Either approach will allow the delinquency to come off of your credit report, thus helping your credit score.

Work The Plan

As you consistently stick to your repayment plan and stay clear of adding to your consumer debt, you will soon find the credit card debt relief that you are so in need of. Great peace of mind lies in advancing toward debt freedom. The days of your phone not ringing or your mailbox not overflowing with creditor contacts can be just around the corner if you get started today. Getting your credit fixed will go a long way to bringing you a brighter future.

Credit Card Debt Calculators

March 12th, 2008    Subscribe To Our Feed

Are You Familiar With Credit Card Debt Calculators?

Credit card debt calculators can prove to be a very useful tool to help you understand the possibilities for paying off your credit card debt, making very plain what the debt is going to cost you. Credit card debt calculators are wonderful for helping you analyze your options and devising approaches or strategies to pay off your debt. They are useful in helping you determine if you can get out of debt yourself, if consolidation may be an answer and/or if you need to seek profession advice or service.

A Simple Tool

Many sites have credit card debt calculators that you can simply plug various figures in to, and they instantly provide you with information that will allow you to start devising your strategy to pay your card off. Different calculators provide different information, so search the web to find the one that meets your needs. There are very simple ones that you plug in your payment amounts, balance and interest rate and they calculate the total amount you will pay in the end and provide you with information as to how long it will take. Others are fancier allowing you to input multiple debts and then allow different analyses to compare and contrast pay off scenarios.

Should You Consolidate?

The credit card debt calculator is a great tool to help you analyze the benefits and cost of consolidating debt. You provide the input as to what your current debt load is. Based on this information, the credit card debt calculator computes the number of months needed for you to payoff the loan completely using the current rate of payments. You can then consider, if you were able to consolidate, if you would be financially helped or hindered, given that if you choose to consolidate through an agency there are going to be service fees.

Consider Your Options

Credit card debt calculators are also great to do the ‘what if’ scenarios. If your goal was to absolutely get out of debt by a given date, the calculator could determine for you the amount you would have to pay each month to hit that target goal.

Debt-Free When?

All in all, credit card debt calculators will help you analyze different scenarios to devise the best repayment plan given your current monthly income. You will the be able to settle in your mind the exact amount it will take to pay off the entire debt as well as know your debt-free date.

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Credits: Make Money Online | Matteo Turchetto | Andreas Viklund