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November 30, 2006
Stop Emotional Spending
We are well under way in holiday shopping frenzy 2006. Yes, the Christmas shopping season is upon us. Most people are off to the malls spending on pure emotion.
While intentions are good and the feelings of getting something special for your loved ones causes our logical mind to turn off and the emotional mind shifts into hyper-drive.
It is estimated that 60% of shoppers this year will make their holiday purchases on credit cards. The thought being: “I have a low interest card; I can afford the minimum payment”.
What’s the problem with this?
The problem is the buy now and pay later mentality. You must be warned though that if you find yourself in a position that you can’t make your payment, even for a single month, that you will be in for a very unpleasant surprise regarding your interest rate.
Before you rack your plastic to the limit thinking that you will simply make the minimum payments in the new year, think and plan carefully to make sure you truly can.
Here is why making your payments is important, especially with low interest credit cards, should you miss a single payment your interest rate could skyrocket! Quite often rates can soar as high as 30%.
Check the fine print on your credit card statement to find the terms and conditions for your current rate or call your credit card company.
Remember the holidays are meant to be enjoyed with friends and family. The holidays are not to be a time of debt and looming bankruptcy, use caution this holiday season for a happier 2007!
November 29, 2006
Give the Gift of Proper Coverage
I have just added new information to Crediteria which provides some information on an often over-looked aspect of family finances and that is making sure you have the proper insurance coverage.
I strongly urge you to have a look at the insurance information I have added because neglect of your insurance policies could results in disaster for your family.
If you truly care about your family during this holiday shopping frenzy season, stop your shopping and give your family the gift of a properly insured bread winner.
Having the right insurance coverage is one of the best gifts you can give your family this holiday season!
Posted by Colin at 04:49 PM | Permalink | Comments (0) | TrackBacks (0)November 28, 2006
Watch Your Budget - Christmas is Coming
With the holiday shopping season well under way it is crucial for year round financial success that you keep a close eye on your budget.
Keep in mind the holidays should not be about "out gifting friends and family", the holidays are about spending time and enjoying the people that are important to you.
There is always the temptation to throw caution to the wind and spend up a storm.
It is far to easy to max out your credit cards at this time of year but remember that your free wheeling holiday shopping frenzy will result in a January credit card bill.
Did you know that January is the highest month for banks issuing debt consolidation loans?
It's true. Because of uncontrolled spending on credit cards during the holidays, consumers are faced with problems of paying minimum payments on bills in the new year and the only option to make ends meet is to take out a debt consolidation loan to allow for making minimum payments.
This can be the beginning of what may result in bankruptcy.
Here is how the scenario plays out:
1. Credit cards are maxed out during the holidays
2. January bills come in
3. You realize you can't make it
4. You call the bank to come up with a solution
5. The bank offers you a debt consolidation loan
6. You pay off your credit card debt and other bills with the consolidation loan
7. You breathe a brief sigh of relief because you feel you can now make it
The problem with this:
Now your credit card debt is rolled under a consoldiation loan which sometimes includes your mortgage.
You feel good because you have one easy to make payment.
But...
You still have that credit card in your wallet. Something comes up. Maybe a car repair.
You pay for your vehicle repair on your credit card and the story starts all over. You can't pay off the credit card balance and more stuff happens, your credit card bill rises until next year's holiday season and BANG, your financial ruined.
Moral of the story:
You don't need to buy lots of stuff during the holiday season.
Simply enjoy those around you to live a debt free life through the rest of the year.
Posted by Colin at 10:59 AM | Permalink | Comments (0) | TrackBacks (0)November 24, 2006
Fair Credit Billing Act
Recently this email came in from a visitor. It's not the credit card offer that's the issue, what bothers me is the error on a credit bureau report.
Read this and then see my comments below:
Hello I am looking for a good credit cards offer. Can you help? Credit Situation - I would consider my credit as fair/good. FICO is probably about 660. I have had credit for about 9 years, both installment and credit cards. I have never had a late until about 2 months ago when due to a wrong posting, Capital One shows me as a 1X30. I couldn't get them to contact the bureaus and take it off. Of the 6 credit cards I have 4 have a balance. 3 are about at 80%. The other at 50%. The other two have no balances. 4 of the 6 have limited of over $3000. I am looking for a card that has a 0% for the first 12 months on purchases and balance transfers. Also my wife just opened a small business and would like to get a personal or business card. All loans and credit cards have been in my name only except for one car loan. I am sure some may not like the recent late that show up even if I have no other lates. Let me know a couple good card options for both scenario's.
When a payment that was made is not credited to your account and a late payment is reported to the credit bureaus here is what you must do to correct the error:
Send in writing within 60 days to the address for billing enquiries that appears on your credit card statement making note of the error. You should send your letter via registered mail so that you have proof the bank received your letter.
From the FTC website, here is a sample letter that you should write to your creditor:
Date Your Name Your Address Your City, State, Zip Code Your Account Number
Name of Creditor
Billing Inquiries
Address
City, State, Zip Code
Dear Sir or Madam:I am writing to dispute a billing error in the amount of $______on my account. The amount is inaccurate because (describe the problem). I am requesting that the error be corrected, that any finance and other charges related to the disputed amount be credited as well, and that I receive an accurate statement.
Enclosed are copies of (use this sentence to describe any enclosed information, such as sales slips, payment records) supporting my position. Please investigate this matter and correct the billing error as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing.)
Visit the FTC website for more information on the Fair Credit Billiing Act (FCBA).
Posted by Colin at 08:15 PM | Permalink | Comments (0) | TrackBacks (0)Growing Your Business Online
For new business owners who are looking to boost their business through an affiliate channel on the internet you will need to spend considerable time to think about:
1. What your product really is. Yeah, it's a blue widget but what makes your widget so special. What spin can you put on your product
2. Who is your target audience? I suggest building a mailing list and start polling your potential customers. Heck, you might want to try phoning a few potential customers to get inside their head.
3. Take this information and produce some compelling advertising copy for your affiliate partners to work from.
4. Nail down your terms and conditions:
A. Spend time to think about what terms you allow (or disallow) your affiliates to bid on.
B. Are you going to allow your affiliate partners to bid on your competitor names?
C. Your affiliate channels have liberty to do almost anything they want on their websites. Think about what you want to prevent your partners from saying. Think about any potential to damage your business and add it to your T&C's.
5. Stay in touch with potential affiliate partners. They are busy hunting down traffic. Offer to help them. Provide them with custom content to help market your product. Your affiliates are your sales force, if they win, you win!
That should give you a decent start on growing your internet presence and if you need consultation please contact me (info@crediteria.com)
November 19, 2006
Keeping Your Business Partners Under Control
In the world of business it is crucial to establish strategic relationships with influential business owners but it is equally as important to ensure those business partners are playing under your rules of engagement.
I am home from a business conference where I learned that some of my business partners have been abusing certain aspects in cross promotions of products and services.
I was not prepared for this so I wanted to share the importance of developing terms and conditions for engaging in promotions as part of your plans for strategic alliances.
More details on how to do this coming soon. I just wanted to plant some food for thought when you pursue business partners.
Posted by Colin at 10:12 AM | Permalink | Comments (0) | TrackBacks (0)November 12, 2006
Basics of Getting Out of Debt
The basics of becoming free of credit card and credit line debt starts with you getting organized.
To get out of debt you must start by taking an inventory of your existing debt. This can be done with an excel spreadsheet or even a pen and paper.
It is a good idea to call your bank to make sure you are taking into account all amounts owing or better yet order a credit bureau report to get a view of everything you owe.
Once you have your entire debt load written down make note of the highest interest debts and the debts where you owe the least amount of money.
The first strategy to becoming debt free is to start making higher than minimum payments on the highest interest debts.
If two debts owing are roughly bearing the same interest rate, you are best to start paying off the debt with the least amount owing. By paying off the debt where you owe less you will be able to pay it off faster and this will give you a sense of accomplishment.
When you have one debt paid off, take what you where paying to eliminate that debt and begin paying that amount plus what you were paying initially, this will accelerate the pay-off of your larger debt.
When you do this, you get on an upward spiral of debt pay-off versus the downward spiral of accruing more interest charges.
I will provide you with more information on how to accelerate your debt freedom over the next few weeks and months.
One note before I sign-off for the day, with Christmas and holiday shopping upon us, keep your gift purchasing under control. Quite often it is the holiday season that causes consumers to begin the debt downward spiral. When you are out shopping keep your spending to a minimum and find creative and personal gifts to give. Maybe consider making gifts yourself. After all the holiday season is more about getting together with loved ones than spending a fortune.
November 09, 2006
Makin' A Buck Off Your Credit Card
Previously I had mentioned the idea of using your credit card to make money by funding the start up costs for a home based business.
Today I just learned a new term called stoozing
So just how does one go about stoozing?
Stoozing turns out to be a term used in Britain where 0% introductory credit card offers are very common.
To stooz, you must be good at paying bills on time because the concept is this simple:
1. You acquire a 0% introductory interest rate credit card
2. You draw money from your credit card as it is interest free
3. The money drawn from the credit card is placed into an interest baring investment
Heck, 0% is free money. It's the best kind of money.
If you are going to stooz your way to riches you better be absolutely certain your credit card minimum is paid during the interest free period because there are typically costly fees if you don't pay on time.
Now, I have never stoozed myself but I did get a kick out of the name. In fact, I chuckle a bit everytime I say stooz (ha ha).
I am sure that banks will be a stop to this but might be fun to try.
Tip for would-be stoozers:
Check the terms and conditions regarding cash withdrawls on your credit card as cash advances might incur an interest charge.
If you are going to stooz, consider purchasing your interest baring investment directly via the credit card to avoid an interest charge or bank fee on a credit card cash advance.
Posted by Colin at 10:17 PM | Permalink | Comments (0) | TrackBacks (0)Financial Freedom, What a Feeling!
I know this may sound a bit on the surreal side but I have to share this with you.
On a few occasions I have mentioned the idea of starting your own business as a way to pay off debt and really start getting ahead in life. I have to say it again, my goal is to help you stay out of massive debt and get out of debt.
Today I just closed a deal on another house.
I am pulling off what most average people would never dream of doing in their entire life.
This is the life!
I know, this posting is more or less a random brain dump, but I am very excited about what I have created and will be sharing the steps to achieve the success that I have very soon.
I am enthusiastically working away at developing training that will show you exactly what I do to enjoy the financial freedom that I enjoy.
It’s getting late, so I am signing off for now but will have more coherent information for you soon.
Until next time, start thinking of what it is you enjoy and then allow me to show you how to create financial independence from your joys in life.
November 06, 2006
Confused About Secured Credit Cards?
I just finished posting an article about acquiring a secured credit card in order to restore credit and provide you with the ability to have a Visa or MasterCard.
Having just got off the phone with a visitor there seems to be some confusion as to how a secured card works.
The question was:
"When I place my deposit on a secured credit card, is the deposit used to pay my monthly bill?"
This is a very good question and the answer is:
No, the security depsosit is only used as an insurance policy for the bank. Quite often the security deposit is tied up for as long as 2 years.
You are still expected (and required) to pay your balance the same as with a regular credit card.
Keep in mind that I am speaking generally here and you MUST read the terms and conditions for the card you are applying for as each bank sets out it's own terms.
If you are looking for a credit card that you pay upfront and the balance is deducted when you make purchases, you will want a prepaid debit Visa or MasterCard.
Prepaid cards are NOT secured cards, Prepaid cards are essentially the same thing as your bank debit card for your savings account with the only difference being that the Visa or MasterCard logo is on the card.
Posted by Colin at 03:26 PM | Permalink | Comments (0) | TrackBacks (0)Got Bad Credit, Want to Fix it?
It is likely that you have bad credit because of a mis-use of a credit card, that is the case with most Americans in your situation.
Now that you have ruined your credit because of a credit card, maybe it's time to get another card. Only this time you will be responsible with your charge card and use it sparingly.
Remember that your credit card IS NOT an infinite well of money
So...If you are one who succumbs easily to temptation, leave your card at home.
But wait a minute...You have bad credit and want another card but the banks won't grant you a new credit card account. What are you to do?
There is one option that will keep you out of financial despair and ruin and that option is a secured card.
The word "secured" in the term secured credit card means that the line of credit is secured by you making a deposit on the card to guarantee that any delinquencies on your account will get paid.
A secured card assures that the bank will get their money back because you pay before you use.
Now, it is important that you get a secured charge card that will report to the credit bureaus because you want to improve your credit score.
I have posted some secured cards that do report to the 3 major credit bureaus here (click)
Posted by Colin at 02:27 PM | Permalink | Comments (0) | TrackBacks (0)