Posts Tagged ‘Credit Cards’
Pratical Advice on Making Ends Meet
Posted by admin | Filed under Budget, Credit Cards, Found Money, Reduce Debt
Half of all Americans live on less than $48,000 a year. That total, which is the median income level, is derived form U.S. Census figures from 2006. There is a lot of advice out there on cutting back on spending. But if you fall into this category, which simple math tells me 1 of 2 who read this will, chances are that cutting back on “going out to dinner” advice will not do. Unless of course they mean McDonald’s or Subway.
If your situation is that have more money going out on a montly basis than coming in, what do you do?
There two things you could! Three if you count doing nothing.
Make More Money or Spend Less.
Make More Money
First figure out what your shortfall is each month. Let’s say you need an extra $500 a month to loosen the collar. Some obvious ideas are are overtime at work, a side job, a simple side business, sell what you no longer need on Ebay, etc.
Spend Less Money
It’s very hard cutting back on certain luxuries we have grown accustomed, but sometime it’s necessary if only temporarily. Look closely at what goes out a make hard decisions. Do you need a $40 monthly gym membership or maybe you can exercise outside for free. Now this may be sacrilegious to some but if you’re in deep, what about your cable bill? Do you really need it? How much are you paying in credit card interest rates, moving debt to lower interest cards will lower your monthly payments, if onyl temporarily.
These are just a few ideas to kick start your brainstorming session. Why don’t you shut off the computer and take a yellow pad, with your favorite writing pen ( Very important, this makes a differnce in coming up with ideas), go to a quite place that’s comfotable and think of different wayss ot make some extra money or spend less money. Write everytihng you can down. Don’t worry about how stupid it may seem or that this will take along time to implement. You just want to write at this stage.
Here are some questions to hep you start your personal brainstorming session.
- What are you passionate about?
- What skills do you possess? Think hard, everyone has skills that are needed by someone, just think!
- What needs are out there, where you live, that aren’t being filled?
- Who do you know that you can barter a service? ( Bartering services can be sold)
- Who do you know that can help you locate a part or full time job, or business? (A client of mine started his business by being available to helping out a customer he was caddying. Now he provides a unique service for clients driving there.)
You can probably save or make a few hundred extra each month without too much pain, you just have to think about it objectively, which isn’t always the easiest thing to do.
Personal Debt Relief Will Be Harder to Get Soon
Posted by admin | Filed under Budget, Credit Cards, Reduce Debt
Unless you have been hiding under a rock, you’ve heard about the Banking Crisis, “The Banking Bailout” or the “700 Billion Gambit”. What most people do not seem to realize, is that because banks are tightening up on their money, and their lending guidelines, whether it be home loans, auto loans, home equity loans, or yes, unsecured loans such as credit cards.
This is a huge problem to every American, whether or not you think you are directly affected or not. We can all probably put off selling or buying a house, selling or buying a car, but what if we already have credit card debt. The average American with at least 1 credit card owes more than $8000 in credit card debt.
Here are two scenarios that could get people in trouble.
- If you are credit card surfer, those that shift debt to low or no interest: those offers may dry up, causing minimum payments to go up.
- If you carry high debt to credit limit: debt limits lowered, means high debt ratio > lower FICO > higher interest rate.
In scenario number 1, you want to make sure you have a back-up plan. Do you have other banks offering you low interest rates now! Now might be a good time to shift, because they may not be available. What is your debt to credit limit per card? Ideally you want to have no more than 80% of your credit limit per card and the lower the better overall.
In scenario 2, it may pay (no pun intended) to get more credit now, so that if it your limits get cut back, then you are still below the magical 80% ratio of debt to credit limit.
With the Credit Crisis, you won’t find Credit Card companies with 0% interest and zero fees any more but here is one that is worth checking out.
Discover More offers 0% interest for 12 months, with a maximum Balance Transfer fee of $75.
Banks Balking at Consumer Credit Protection Changes
Posted by admin | Filed under Credit Cards, Reduce Debt
Read a great article in The LA Times about the proposed new bill, HR 5244. The banks even though they’re thrilled to being bailed out of the mess there in to the tune of 700 BILLION dollars, are against the very same taxpayers getting any relief in the form fairer laws. Currently credit card bills must be received with at least fourteen days left before the due date. The proposed legislation would extend that to 25 days.
The Universal Default Limit, where if you’re late on one bill other credit card companies can raise their fees is also being challenged. Banks would now also be required to give you a 45 day notice before raising interest rates. Of course the banks are against that as well.
The Bill has passed in the House of Representatives handily but it appears it may have trouble in the Senate. The Bush administration is opposed to the legislation.