January 15, 2008
Best Credit Card Advice for 2008
You are now a couple weeks into 2008 and have likely blown your New Years resolution to get out of credit card debt already.
Don't despair!
If you feel you have blown it only 2 weeks into the new year, there is still plenty of time to get on track and straighten out your finances. Recently the site has been updated with the best credit card offers by type.
While credit cards might have been the cause of your problems, it could be that you have the wrong type of credit card for your personality.
An example might be that you applied for a low introductory rate credit card 2 or 3 years ago and now have a high interest rate that's costing you a fortune. It might be time to consider applying for a balance transfer to a card that offers 0% APR for 6 to 12 months to help ease the burden of credit card debt.
Maybe you are the type of person that always overspends on a credit card. If that sounds like you then consider applying for a prepaid credit card and leave your rotating debt credit card at home when you go out. If you discipline yourself to do that then you can only spend the amount you have pre-paid on the card thus avoiding further debt.
I know it can be difficult at first to establish good credit card spending habits but in the long run it's worth it. So take a moment to review your current situation and then apply for a credit card that suits your personality and lifestyle.
Posted by Colin at 02:13 AM | Permalink | Comments (0) | TrackBacks (0)January 09, 2008
What is the Best Credit Card
Best Credit Cards
I am often asked “What are the best credit cards?” and there is no single answer to this question. What might be the best card offer for one might not be best for another, it all depends on your lifestyle and credit history.
If you have bad credit you can forget about getting a low interest, high limit, rewards credit card. What you will need to do is focus on restoring your credit rating so you will need to look at the credit cards for people with bad credit, the cards listed on the left menu on the page featuring bad credit offers are the lowest fees and interest you can get and will, if used responsibly, help you restore your credit rating.
Now if you are a business owner you might want to check out the most popular card for business owners, the Advanta credit card offers. Advanta has really great rewards programs that you might want to take advantage of.
If you are into earning reward points but don’t really know where you might use your rewards, possibly you want to go on a trip or maybe you might want to go on a shopping spree. You’re undecided as to how you are going to spend your rewards. If that sounds like you then your best option to apply for the Chase Freedom card. As the name of the card offer suggests, you are free to use your rewards as you see fit. You are rewarded most on your top spending categories. Yes, there are more specific rewards programs out there for those that know exactly what they want that provide higher points earnings but if you are uncertain of how you want to cash in your rewards then Chase Freedom is your best bet.
Before you apply for a credit card, spend a few minutes with a pen and paper and write down the stuff you want most and then seek out an offer that best suits your tastes and style.
It can get overwhelming trying to figure out which card offer is best but don’t panic, simply think about what you want most and apply for the deal that fits your needs. Most card issuers have very similar offers in every category so don’t get too hung up on whether a Chase credit card offer is better than a Discover Card offer. If you find the rewards or perks suitable to your needs then apply for that card and get on with your life.
Posted by Colin at 02:51 AM | Permalink | Comments (0) | TrackBacks (0)December 13, 2007
Get out of Credit Card Debt - Helpful Advice
I just read a news item on Google news where the headline read like this:
Clearing Debt by Getting More Credit Cards
What they are saying essentially is this, if you have a credit card with a 19% intertterest rate you should go apply for another credit card that has a zero percent APR.
Doing this can save you hundreds or thousands of dollars on interest costs and that is a very good thing. I fully agree with this approach as the zero percent introductory rate will help you dig out of credit card debt.
What you need to know when you do this is that every time you apply for credit the banks report this to the credit bureaus and it will have an impact on your credit score if you repeatedly flip credit cards.
So make sure you are mentally ready to be responsible and take advantage of the interest saving by paying as much down as possible during the interest free period on the credit card. What I have been recommending for years is that you take advantage of the interest savings by paying what you were previously paying on your old credit card to bring the outstanding balance down quickly.
Another thing you need to know when you take advantage of an interest free card offer is that you must make all your payments on time otherwise typically you will lose the 0% APR and be paying a much higher rate, this is why I said you should take advantage of the introductory rate when you are mentally prepared so that you are sure to pay your card on time each and every month.
Also note that the interest free period usually only applies to the balance you transfer to the new credit card offer and new purchases and cash advances on the card will be charged at the banks ongoing interest rate. You should take the time to read through the card terms and conditions before you apply.
August 19, 2006
Get Intimate With Tax Laws - Save Your Money
Many of us fear that we don't know enough about tax laws.
Our spouse is good with numbers so we let him/her handle it.
Our spouse makes it clear to us that he/she knows what he's/she's doing.
Everything will be fine.
If we suspect that our spouse or recently divorced spouse may be filing erroneous taxes, we may want to file separately so we are not responsible for back taxes, even if filing separately will cost us more money up front.
Tax laws change every year. If we've never done taxes and don't feel confident filling out tax forms, we spend the money to have a professional do the work.
Today your financial future.
August 15, 2006
Get Out of Debt - Where's Your Attitude At?
We go through stages when we get distracted.
Instead of focusing on our projects at hand, we find something or someone to complain about and make it our mission to let everyone know our thoughts.
Our gripes are big and small.
The banker is a jerk.
The driver who cut us off on the street has a lot of nerve. Our doctor doesn't listen.
What comes around goes around. We remove ourselves from situations where we feel tempted to waste our energy secretly hurting others.
We imagine what it feels like to be the recipient.
We ask our Higher Power for forgiveness and secretly ask those we've harmed for forgiveness.
We make it a habit to act with honor.
Think good thoughts and say good things, your positive enery will go a long way in all aspects of your life.
August 09, 2006
Personality Traits Affecting Your Credit?
If we take the time, most of us could describe the major characteristics of our personality.
We all have good points and some not-so-good points. We may, for instance, be very generous and kindhearted.
On the flip side, we endanger family finances through reckless spending.
If our natural tendency is to focus on our defects, we haven't accepted them.
We write down our character defects.
We read the list over. We acknowledge that, for better or worse, for one reason or another, this is who we are.
Once we accept ourselves entirely, we are at the starting gate for making change.
We're able to exhale.
Today, identify and accept one of your negative traits.
Posted by Colin at 12:42 PM | Permalink | Comments (0) | TrackBacks (0)August 06, 2006
How Many Credit Cards Are in Your Wallet?
We may have five or six credit cards, maybe more.
We juggle the payments, do balance transfers, try to remember what we owe on each balance, what the percentage rates are for each card, and when payments are due.
Our goal is to get down to one or, if we're compulsive spenders or gamblers, zero credit cards.
While we still have a balance due, however, we don't take chances.
We cut up all but one (or all) credit cards so we're not tempted to use them and create more debt.
We keep the card with the lowest interest rate (or a debit card) for emergencies only.
We call the credit card company and ask that our credit limit be lowered.
Today clean your wallet of excess credit cards. Be sure to keep your credit card spending to an absolute minimum.
Posted by Colin at 09:53 PM | Permalink | Comments (0) | TrackBacks (0)August 02, 2006
Money, Debt and Security
Some of us once found money to be a source of security.
We looked at it as a way to solve our problems and to make our future worry-free.
We took great care to save and to not spend foolishly. Now deep in debt, we feel insecure, afraid, and bitter.
We tried hard not to get in debt.
Regardless, here we are.
We learn to view money as a positive energy.
If we don't cling to the energy, and if we trust that all our needs will be met, money flows to us when we need it.
We realize that, no matter how rich or poor we are, anything can happen.
When we had money, we may have felt we didn't need to worry about the future.
Now that we're in debt, we no longer need to worry about losing money.
In debt, we gain a sense of freedom—freedom from the need to be secure.
Today I will ask my higher power to strengthen my faith.
I will know that the less I seek security, the more secure I will feel.
Posted by Colin at 02:21 AM | Permalink | Comments (0) | TrackBacks (0)July 31, 2006
Credit Card Debt - What's Triggering Your Spending
When we first stop using credit cards, we may truly get in some financial binds.
We haven't had time to get over the initial hump.
We haven't fully implemented our spending plan, and we don't yet have a savings account worth mentioning.
We remember that for each and every credit card scenario, there is an alternative.
If we trust ourselves enough, calm ourselves so we're able to think it through, we'll stop reacting with credit and start creating solutions—even before we've reached a point where we have a savings account and a realistic spending plan.
We ask ourselves a few questions:
Is the purchase absolutely necessary?
Can I put it off?
an I do something less expensive?
Can I liquidate an asset?
Can I borrow from a friend in exchange for collateral?
Can I sell something?
Can I withdraw from my savings account?
It is vitally important to stop and think about what emotions are in effect when we spend up a storm.
It is rarely an actual need that brings us to financial ruin but rather an emotional state that drives us to spend.
Posted by Colin at 02:27 AM | Permalink | Comments (0) | TrackBacks (0)July 22, 2006
Commit to a Spending Plan
We most likely adhere to a payment schedule that we need to maintain for at least a couple of years, and, for those of us buried in bills, for many years to come.
We view our payments as a challenge. We may feel some excitement at the thought of making progress. We see, on paper, that it's possible to emerge from the chaos.
Then, despair creeps in, overshadowing the promising thoughts. We have doubts. Obviously, adding to our debt doesn't help toward paying it off.
How do we discipline ourselves to stick to our spending plan for two, three, five, or seven years—or the rest of our life?
We take it a day at a time. Who knows what will happen tomorrow?
Instead of focusing on what we can't have, we concentrate on what we gain—lowered debt, a sense of achievement, integrity, and self-confidence.
Stay committed to a spending plan.
Posted by Colin at 01:02 PM | Permalink | Comments (0) | TrackBacks (0)Do You Have a Spending Plan?
Following a spending plan makes us solvent.
Solvency is the state of having paid all unsecured debts and of being able to pay cash for new expenditures (not necessarily including a car or home).
We plan for necessary major and minor purchases.
We put money in savings for them, even before paying creditors.
We pay cash instead of incurring more unsecured debt.
We feel a great deal of relief. These new spending and saving patterns can make us feel confident.
After all, we are able to meet our basic needs, to live our lives, without getting deeper into debt.
We may also be afraid—afraid we won't have enough—or we may feel guilty for thinking of ourselves first.
We trust that in time confidence will prevail.
Know that solvency based on an honest spending plan will bring tremendous relief.
Posted by Colin at 03:00 AM | Permalink | Comments (0) | TrackBacks (0)July 20, 2006
What Happened to My Paycheck?
We spend without knowing where the money went.
The paycheck is gone, but where did it go?
A spending plan is a positive way to look at where our money is going—to clearly see our spending pattern.
First and foremost, a spending plan recognizes personal basic needs, from food to a savings account.
Before we get to the point where we create a realistic spending plan, we map out an ideal spending plan.
It has no limits. We go to town and write down what we'd truly love to be spending money on.
We start by keeping track of income and expenses for six weeks. We look at how we spend in each category—savings, personal care, baby-sitting, entertainment, medical and dental care, gifts, vacations, and so on. Are we overspending somewhere?
Where do we deprive ourselves?
What are our physical, emotional, mental, and spiritual needs?
Begin to immediately record your daily expenses and income. Also, make note of your emotional state when you are spending.
Understanding your emotions when you spend is going to help you make changes and begin your path to financial success.
Posted by Colin at 01:19 PM | Permalink | Comments (0) | TrackBacks (0)July 19, 2006
Tips for Managing Your Money
Our money is spent before the paycheck comes. Every cent is earmarked to pay bills. We wonder how or if we'll make it till the next check comes.
We scheme. We rob Peter to pay Paul. It feels futile. We want to treat ourselves, even though we've spent our entertainment money for the month.
We say it's Friday and payday; let's go out to dinner or order a pizza. We deserve it.
When we start feeling sorry for ourselves, we challenge our thoughts. We think, think, think—beyond the impulse.
We do deserve it, but treating ourselves doesn't have to mean spending money. There are a million ways to treat ourselves without spending a cent.
Brainstorm a list of simple treats that rely only on me—a hot bath, a walk in the park, an exercise routine. Treats that will not only reward me but also will improve me.
July 15, 2006
Saving Money & Avoided Debt - Things To Do
Our money is spent before the paycheck comes. Every cent is earmarked to pay bills. We wonder how or if we'll make it till the next check comes. We
scheme. We rob Peter to pay Paul. It feels futile. We want to treat ourselves, even though we've spent our entertainment money for the month. We say it's Friday and payday; let's go out to dinner or order a pizza. We deserve it.
When we start feeling sorry for ourselves, we challenge our thoughts. We think, think, think—beyond the impulse. We do deserve it, but treating ourselves doesn't have to mean spending money. There are a million ways to treat ourselves without spending a cent.
Today I will, by myself or with another,
brainstorm a list of simple treats that rely only on me—a hot bath, a walk in the park,
an exercise routine. Treats that will not only
reward me but also will improve me.
July 12, 2006
How's Your Relationship With Money?
Money, like relationships, is an integral part of life. One of the first steps to dealing with money problems is to recognize that we have our own unique way of "being" with money. Some of us may characterize ourselves as penny-pinchers, compulsive spenders, gamblers, overspenders, underearners, or financial wrecks.
How we look at money, how we act with it, and what we expect from it determine how we relate to it and, ultimately, how much we have. If we're not happy in a personal relationship, we might ask ourselves what we don't like. From there, we look at our behavior. What can we change? If we're not happy with the way we're relating to money, if we're uncomfortable with the amount of debt in our lives, we need to look at changing the way we behave with money.
Start now to assess your relationship between you and your money. Note your spending patterns and more importantly the events and emotions that you are currently going through when you are pulling out your credit card.
Get to truly know your relationship with money, this is key to digging out of credit card debt and ultimately keeping more money in your bank account.
Posted by Colin at 08:27 AM | Permalink | Comments (0) | TrackBacks (0)July 11, 2006
What are your priorities?
What are our goals? Have we taken even an hour out of our life to look at what it is we'd truly like to be doing or having one, five, or ten years from now? Doesn't it seem odd that we spend incredible amounts of time and energy worrying about tomorrow instead of creating tomorrow?
We look at our priorities, whether self-care, being a better parent, paying off debt, or buying a home. We address each category. If the category is debt, we may decide that a reasonable goal is to be debt-free (free of unsecured debt) within five years. To achieve that goal, we list several action steps. We can read books on money management, attend free workshops, document all expenses, prepare a spending plan, attend Debtors Anonymous or other support group meetings, see a therapist for our addiction, or visit a financial planner. Each of these action steps usually requires mini—action steps, such as looking up numbers in the phone book or finding a sensible way to record expenses.
Today I will know I can create my future by planning far it.
Posted by Colin at 07:40 AM | Permalink | Comments (0) | TrackBacks (0)July 07, 2006
Yes, Your Credit Card Can Get You Out of Debt
WoooooHooooo...Here I go again
That's right, another trip funded by the rewards points on my credit card. This time I am off to Orlando. It's a business trip but still the point is I am paying nothing for my hotel or flight. The points are covering both costs. Not too mention the trip my family is planning for Disney Land later this summer, all on rewards points again!
That's not really the point of this post though. One of the perks of my credit card is all the free travel I am able to enjoy.
Now that I've got the gloating out of the way - How is it that I am accumulating all these points and I am talking about getting out of debt.
Seems a bit strange doesn't it? Lots of free trips on rewards points means a lot of spending doesn't it?
Spending a lot on a credit card and getting out of debt seem to be completely opposite things.
Here's how it goes:
I am spending a fortune on growing my business. The money I spend on business expenses is placed on my credit card. I spend more, I grow my business more and as my business grows I pay off debt!
Does that sound too good to be true? It's a reality, you can do it. Heck, I'm doing it.
Check out my training material at veoreport.com.
You too can be spending, earning points and paying off your credit cards!
Posted by Colin at 01:32 AM | Permalink | Comments (0) | TrackBacks (0)Yes, Your Credit Card Can Get You Out of Debt
WoooooHooooo...Here I go again
That's right, another trip funded by the rewards points on my credit card. This time I am off to Orlando. It's a business trip but still the point is I am paying nothing for my hotel or flight. The points are covering both costs. Not too mention the trip my family is planning for Disney Land later this summer, all on rewards points again!
That's not really the point of this post though. One of the perks of my credit card is all the free travel I am able to enjoy.
Now that I've got the gloating out of the way - How is it that I am accumulating all these points and I am talking about getting out of debt.
Seems a bit strange doesn't it? Lots of free trips on rewards points means a lot of spending doesn't it?
Spending a lot on a credit card and getting out of debt seem to be completely opposite things.
Here's how it goes:
I am spending a fortune on growing my business. The money I spend on business expenses is placed on my credit card. I spend more, I grow my business more and as my business grows I pay off debt!
Does that sound too good to be true? It's a reality, you can do it. Heck, I'm doing it.
Check out my training material at veoreport.com.
You too can be spending, earning points and paying off your credit cards!
Posted by Colin at 01:32 AM | Permalink | Comments (0) | TrackBacks (0)July 06, 2006
Whacking Credit Card Debt With a Home Based Biz
For those of you who have been following my blog, you will know that I have mentioned that the best way to eliminate credit card debt is to simply go out and make more money.
I know, I know, that seems like an impossible dream, but it is actually very simple to make money on the internet. You just need to find somebody to show you what to do. Well, you found the guy, it's me. I have just completed updating my e-book entitled "The VEO Report" which outlines how to get traffic to a website and turn that traffic into cash. Cash which I urge you to spend on your outstanding credit card and other debt.
If you do take the plunge and start your own online business it is very tempting to start boosting your lifestyle. I know I did! If only I used my money more wisely, I could have been mortgage free with close to $1Million in the bank. Instead, I have the same credit issues as everyone else only with bigger stuff. By the way, stuff doesn't actually buy true happiness. Freedom does!
Here is a quote you should consider living by:
"Money does not buy happiness, money buys comfort and comfort creates happiness"
So consider starting a business to pay off your debt and enjoy the comfort of being financially free!
Posted by Colin at 12:07 AM | Permalink | Comments (0) | TrackBacks (0)July 05, 2006
Credit Card Reviews Ongoing
I know you might have seen that I have added this category to my website and noticed a glaring lack for reviews there.
Why?
Because I take the review process very seriously and have been interviewing card holders for their real life experience with every aspect of the credit cards. I am committed to providing you with only the best deals on card offers.
Cutting through the hype and drilling down to the facts does take some time. I will post the reviews within the next few weeks. However, the reviews will only be posted upon verification of all the details.
In the meantime, if you are not certain of which card is best for you please contact me - For current contact info visit http://www.crediteria.com/about.htm and I will get back to you as soon as humanly possible.
Also, send your personal experiences with your credit card company to me as well. Together we can all make a difference. Let's help each other in cutting through the marketing ploys of the big banks and simply get the best deals possible - After all we don't need more hands dipping into our pockets!
Posted by Colin at 01:02 AM | Permalink | Comments (0) | TrackBacks (0)June 27, 2006
Where Did These Freakin' Credit Card Debt Come From
As summer gets into full swing you are dreaming of all the wonderful places and things you would like to do with your summer holidays.
Then it hits you like a load of bricks - Wow!!! Where did all this credit card debt come from???
Did I really charge all that on my credit card! Credit card debt is one of those things that creep up on you slowly but surely sucking your financial future down the toilet.
Usually it happens because there is still month left at the end of the money, meaning that there are always those few days between paychecks when your car needs gas and you need groceries, there's no money in your bank account so you put enough gas in your tank to get you by and a few groceries to last until your payday.
Doing this a few times over will slowly but surely eat you and put you in a situation where you are sinking further and further into debt and will never get out unless you make drastic changes to your lifestyle.
You only have 2 options to get out of this trap:
1. Cut your costs severly
2. Make more money
My choice a few years ago was to make more money. Yes, it can be done. Making more money is seemingly the more difficult option but how does that compare to down-sizing your home or not driving your car? Is down-sizing your lifestyle a real option? Probably not.
I have been marketing products online for 5 years now and doing this full time for the last 4 years. Yes, within a year I quit my real job and now earn much more and hope to be truly debt free within the next year. That is including becoming mortgage free!
I am in the process of completing some training material to help you earn more money to start chipping away at your credit card debt.
You can check out my site at The VEO Report.
I will provide more information on what you need to start thinking about in order to start your own business on the side and eventually become your main source of income.
Posted by Colin at 01:31 PM | Permalink | Comments (0) | TrackBacks (0)May 30, 2006
When is it OK to rack up credit card debt?
I know I preach not to use your credit cards to excess but sometimes it is a good thing to rack your credit card to it's limit.
Huh??? What is this freak talking about? Is he saying go on a spending spree and all will be well?
It sure sounds like fun to throw caution to the wind and head off and buy stuff...
OK PUT THE BREAKS ON NOW
I am not saying that you should go on a spending spree. I have just racked my credit card to it's max but I am not in a panic about this. Why? Because I have just racked the plastic to it's limit to invest in my business. I am a bit agitated about the $10,000 limit on my card and the delay in online payment processing.
OK, no spending spree on new clothes, toys, gadgets etc...then where did you spend this...what business?
I just spent a lot of money investing in words...that's right words!
How do you invest in words?
Easy, go to Google or any other search engine and you will find what is known as contextual advertiser or in simpler terms "words".
That's right, I have just bought a bunch of words. This month I purchased about $10,000 worth of words. Those words have actually produced $20,000 for me... A net profit of $10,000.
Now the answer to the question: "When is it OK to rack up credit card debt?"
It's OK to do this when you double your money spent on your credit card!
Yes, I am a bit thrilled about this. 100% return on investment in a month, hmmm...I think that is slightly better than any stock market returns.
Off to buy some more words now....
Posted by Colin at 02:37 AM | Permalink | Comments (0) | TrackBacks (0)May 24, 2006
Investing To Get Outta Debt - Agitated with Annual Reports
Ever finished reading one and wondered: What on earth is going on at this company? I certainly have. Some management discussion and analyses offer little more than breathless cheerleading about a public corporation's purported accomplishments, while skillfully avoiding sensible discussion of genuine business challenges. Other reports deluge the reader with reams of opaque financial data, which leave investors no closer to understanding the opportunities and risks of the underly¬ing business. Some entirely fail to mention things you'd really like to read about—you know, those wacky related-party transac¬tions or the under-the-table payments to senior executives, for instance. And don't get us started on companies that encounter chronic difficulties getting their reports out accurately, or on time.
Not all reporting is so opaque. However it certainly raises skepticism when it comes down to trying to gain headway in your personal finances. I am a full time entrepreneur and have dabbled in the stock market and reading through report after report not only created nauseam, there is always a sense of distrust going on. I know the company who produced the report is trying to paint a beautiful and rosy picture of how the company is doing. One could say it’s a bit of spin doctoring that’s going on. Companies can get in severe trouble for not reporting accurately however if they manage to create confusion and put the right spin on the numbers it can certainly leave the average investor under-informed.
There’s my little rant for the day. I must go and try to make sense of a few annual reports now. Why so long? Why not just tell it like it is? Save me some time – If you tell me things are going wrong, say it. I will trust you in the future. Maybe even buy your stock now if it’s at a low. Wouldn’t that be nice Mr. Big Company – Yes, if you were just blunt in your annual reports I just might be more inclined to jump in a pick up your stock. Ok…I am frustrated with these things. Maybe if somebody could help me in reading these things…if you can please leave a comment (Click on Comments below and scroll down to the bottom – Your real name is not necessary – Just looking for any tips on reading these stinkin’ reports)
May 23, 2006
Are you a lose canon with your credit?
What is it about credit that creates the sense of entitlement? In today's world of instant gratification and
the ease at which credit is available certainly gives the average consumer a sense of "I can have it all and have
it now".
Credit card and loan companies have certainly made it easy for us to get credit. A quick call to a lending institute and
sometimes within hours we have a line of credit at our disposal. Now what? We go off and spend up a storm on stuff.
It could be a home renovation or a luxury item such as a boat or car. Cool, we got a neat toy to brag to our friends
about but is that what we really need, bragging rights? We can now go off and live in the moment with our "cool new toy"
but after a day of zipping around the lake in the new boat or whizzing down the freeway in our new car we head home, back
to reality, and there's a mound of bills that need attention. How the heck are they going to get paid? Whoa... Did
we forget that our toy with an internal combustion engine requires maintenance? Did we forget that the cost of fuel
is skyrocketing out of control?
What if that same money was used differently? What if we put off our modernistic "I need it now" attitude and revisted
our parents or grandparents philosophy of save up for the toys we want and then buy them outright? What if we waited a
day, week or even a month before spending on frivilous items? Could we create a better life for ourselves?
Yes we could! How do I know? Well, let me tell you, I have been there done that!
I have been running an incredibly successful business, a business with an income that would well exceed most people's
wildest income expectations. Yet I find myself struggling to make ends meet on an income of $20,000 per month.
How the heck is it possible to struggle at this level? Over-zealous desire for stuff, that's how it becomes
difficult to make ends meet at this level. A new luxury home, 2 new luxury vehicles, over-spending on vacations and some
very fine dining, the list goes on but really what it comes down to is "what the heck...I don't have the cash for that
right now so why not just finance it". That is not a great attitude for creating financial freedom.
I hope my little rant here can save somebody from their "I gotta have it now" attitude - Wait till tomorrow, there will
be a new and improved toy coming out for less money. Consider paying off another debt instead of getting that "whatever it is" today.
May 20, 2006
Paying Off Debt – What’s Your Vice?
I have been looking high and low for ways to pay off some debt. Currently there are 2 lines of credit I have that I would like to see go the way of the dinosaurs. My family could do so much more in the way of vacations and outings if a few debts became extinct.
So, how does one go about paying off debt?
1. Go make more money. For most people this isn’t really a possibility. For me I do have the ability to do this as I operate a small internet based business which I can grow. So I am working harder on my business and planning to hire some help to reach higher levels.
2. Another way to pay off debt if you do not have the ability to increase your income is to find your vice. What thing is it that “nickel and dimes” you out of money? For me I have a bit of an addiction to cigarettes which I am working on giving up. Bought some nicotine patches yesterday and nearing the end of day 1 of no smoking. Where I live it is $8/pack and at a pack a day that’s $240/month (assuming a 30 day month).
When I combine working harder to grow my business with giving up smoking my debt will be paid off quite quickly.
So what’s your vice? Daily lattes? Lunches out?
Everybody has some little vice that costs a small fortune – Find it – Curb it – And get out of debt!
Have you considered ways to make more money? Maybe you have thought about starting a home based business but don’t know how or what to do. If that’s the case please leave a comment here as I am working on producing an affordable training guide to get you going on earning more and paying off debt.
Hey, maybe you could even quite your “real job” like I did. Again, if this interests you please leave a comment by clicking on the “Comments” link directly below here.
May 19, 2006
Credit Card Review Process Ongoing
It is no wonder consumers become overwhelmed when choosing a credit card. I have been going through literally thousands of credit cards and reading the terms and conditions fine print.
I do this for a living and know what to look for, I am finding it to be overwhelming myself. Offers that seem phenominal on the surface are not always what they appear to be. Seemingly awesome credit card offers are less then spectacular after reading the T&C's, this holds true especially when it comes to reward offers. Almost every reward offer I have reviewed really doesn't provide much benefit to the consumer if a balance is carried on the card. My advice after reading the fine print on rewards cards is to apply for an incentive card only if you pay your balance in full regularly if not every month. I do have plans to work on a tool that shows the cost/benefit of a rewards card so you can get a true feel for whether or not the rewards will actually benefit you.
I will be updating Crediteria.com with my reviews soon and have just added a new category to the site for applications. Currently the reviews are in a very rough format and I will be writing the final copy and posting on the site over the next few weeks.
In the meantime, don't be overwhelmed and avoid rushing into a line of credit. The best advice when it comes to taking on more debt is "go slow".
Posted by Colin at 11:30 AM | Permalink | Comments (0) | TrackBacks (0)May 03, 2006
A Word about Store Credit Cards and Financing
Sometimes when people think they won't qualify for a bank loan, they decide to take advantage of store financing. Sometimes store financing looks so attractive, it seems like the best deal going. You've seen those ads that say, "Pay nothing down and make no payments till..." Well, here's what happens if you can't pay off your purchase on time.
Sometimes the store where you bought the item has its own credit financing. When it does, the interest paid is often tied to the store's credit card rate. That means you'll be charged the same rate as you would have been if you'd put the purchase on your credit card. While in October 1992, financial institutions were charging between eight and 10.5 percent annually for a loan, a store credit card was charging 2.4 percent a month, or 28 percent annually. That's a big difference.
Sometimes the store where you bought an item does the financing through a third party. This company takes over your debt, you make your payments directly to them and they charge you a financing cost. One company surveyed was charging 2.233 percent a month in October 1992. That's 26.79 percent a year.
It's all in the paperwork you sign when you buy the item. Make sure you read it carefully before you sign on the dotted line. The last thing you need is to find out, too late, that the financing you agreed to will cost more than you thought.
At that point you might think that all you have to do is get a bank loan to pay off the furniture. It may not be as easy, or as inexpensive, as you think. Often financial institutions tie the money they lend to the purpose of the loan. If you want a loan to pay off a furniture purchase, the financial institution may charge you its credit card rate of interest. (In October 1992, that was about 17 percent.) Why? Simple. They don't want you to use a loan for a purchase you could make on your credit card. They don't want the hassle of going through all the paperwork and procedures for what they consider to be a small loan. Instead, they would rather you used your credit card. So they charge you the same rate of interest to dissuade you from using their loans to finance such small purchases.
Not all financial institutions make their decisions strictly on the basis of purpose. Shop around. There are companies that base their decisions on you, your credit history, and your worth to them as customer. Find a lender who treats you like a person and recognizes your individual needs. Then give him your business. Remember, you're the customer. You have rights, and one is the right not to pay outrageously high interest. Shop around. Be discriminating. Make your decision based on the following:
Is it the best deal going?
Is the price negotiable?
Does this lender deserve my business?
May 02, 2006
Don't Forget the Fees
Many credit cards charge a transaction fee or an annual fee. Prices range dramatically. Some cards have no fees, but these usually don't offer any of the special features such as cash back or travel rewards.
When you're trying to decide which card is best for you, weigh the fee charged against how often you will be using the card. It may be less expensive to have one credit card for which you pay an annual fee for all your purchases than several credit cards for which you pay transaction fees. Perhaps the best solution is one card with all the bells and whistles that suit your needs, for which you will likely pay a fee, and one with no fee at all, which you can use as a backup, if necessary. Remember, not all cards are accepted at all retail locations, so having two different types of cards can he a distinct advantage.
May 01, 2006
Choosing the Right Type of Credit for Your Needs
The type of loan you choose will depend on:
The purpose of the loan will have an effect on which type of loan you choose. If you're financing the purchase of a car, an instalment loan may be your best bet. If, on the other hand, you need access to an ongoing source of credit to use for investment purposes, a PLC may be just the ticket.
Where interest rates are and where they are going also have an impact on the loan you choose. If rates are rising and you choose a variable-rate instalment loan, a demand loan or a PLC/HELC, then the interest you pay will rise too. However, if you choose a fixed-rate instalment loan, you can lock in the current rate for the term chosen. Of course, the opposite is true in periods when interest rates are falling. Then you may wish a loan with a fluctuating rate of interest so you can pay less interest as rates fall.
Also consider how the loan repayment amount affects your overall cash flow. If you want a loan that charges interest only so you can minimize the impact on your cash flow, a demand loan may be the answer. If you want a loan that allows you to make minimum payments, a PLC/HELC can do just that for you. If you are looking for a guaranteed, fixed payment amount for the full term so you can budget accurately, a fixed-rate instalment loan is the answer. If you need an option that lets you make your repayments more often than once a month (i.e., weekly, bi-weekly or semi-monthly) to fit in with how often you are paid, an instalment loan likely meets that need.
Whether or not you qualify is also part of the decision-making. For example, while most instalment and demand loans have no minimum household-income requirements, many financial institutions require that you have a minimum household income of $50,000 a year to qualify for a PLC.
As you can see, there is a wide range of options from which to choose if you need to borrow money. Knowing what you want is the first step. The second step is being flexible so that you can take advantage of any advice offered by the lender. Remember, you're in this together. You need the money to meet your immediate needs. The lender wants to be sure you'll repay the loan in full and on time. Working together, you can both achieve your objectives.
What If You Have Trouble Making Your Credit Card Payments?
It happens to the best of us. There are lots of books written about getting out of debt and there's a good reason. It's far easier to get into debt than to get out of debt. If you run into trouble making your credit card (or any type of credit) payments, you can get out. It just takes time.
Begin by calling the credit card company and explaining the problem. If you've lost your job, or become ill and are not working, tell the credit card company. If you are simply in over your head, tell the credit card company. The important thing is to tell the credit card company. They would much rather talk to you than send you nasty letters and wonder if they will ever be paid. You will probably be able to work out a repayment plan. You may even be able to negotiate with them to reduce the total amount you owe if you make a full payment.
Susie was desperate. She was laid off six months earlier and her credit cards were up to their limits. Her ex-husband hadn't given her any child support for almost a year. She didn't even know where he was. She owed $3,400 to VISA and $2,200 to MasterCard. She didn't have enough to make even the minimum monthly payment. She also owed almost $800 on two store cards, and she hadn't made her car payments in almost three months. She was just starting a new job, but didn't see any way of ever being able to catch up. I suggested she call her creditors and try to work something out. She did, and they were happy to co-operate.
One company set up a payment schedule with her. She could pay $50 a month until she was caught up provided she didn't charge any more on the card. Another agreed to accept a single payment of half of what she owed if paid immediately. She borrowed $1,100 from her mom, which took care of that problem. She called her bank and explained her position. Since she only had six months left on her loan, they agreed to refinance her loan adding the $800 she owed the stores so she could have one single payment she could work into her cash flow. Her dad co-signed the loan and she promised to get on a budget. She was on her way to recovery.
Now, not everyone has a mom or dad willing to bail her out. Susie was lucky. But the steps she took apply to just about everyone:
1. Contact your creditors and tell them what's happening.
2. Try to work out a payment plan that fits with your cash flow.
3. See if the creditor will take less if you agree to make a single repayment.
4. See if your bank will agree to give you a consolidation loan. By doing this you can save a good deal of interest.
5. Put yourself on a budget.
April 28, 2006
How Are My Credit Card Payments Applied?
When payments are received, your account is credited with the payments in the following priority:
Previously billed
To be billed (or "unbilled") - cash advances
If you look at each of these as buckets, it's easier to understand how your payments are applied. Once the first bucket, "previously billed interest," is reduced to zero (emptied), payments are applied to the second bucket, "previously billed cash advances," and so on until all your payment dollars have been applied.
On the next statement date, the credit card system checks to see if all the buckets (except "to be billed purchases") are zero and, if so, the interest accrued on the retail balance is waived.
Interest calculated on a cash advance is NEVER waived, regardless of whether a full or partial payment is made. When partial payments are made, interest accrues on the reduced principal and is charged on the next statement.
April 27, 2006
The Cost of Borrowing on a Credit Card
It's amazing how many people run balances on their credit cards when the interest rates they're charged are so high. About one in two card holders run a balance — paying interest rates from 14 to 24 percent.
Financial statistics show that most people will go out of their way to earn one-half to three-quarters percent more on a GIC. Yet we'll pay seven to 14 percent more interest than necessary, just because it's a credit card. If you have an outstanding balance of $1,000 on which you're paying 17 percent, that's costing you more than $14 a month, or almost $169 a year. And that's after tax dollars! You'd have to have a $1,000 GIC paying better than 24 percent to break even. Now, where can you find a GIC paying 24 percent in today's market?
Instead of carrying a balance on your credit card, you'd be better off taking a loan at 10 percent and paying off your credit card. If you'd go out of your way to earn one-half percent more in interest, how far out of your way would you go to save seven percent in interest costs? Fact is, you don't have to go far — just to your nearest financial institution. What are you waiting for?
April 25, 2006
Credit Cards - The Hidden Interest Charge
Interest is typically calculated on a daily basis if your account has an outstanding balance. Interest calculations begin on transactions the day the transaction is posted to your account, usually within a few days of having made the purchase. However, if you pay the total balance indicated on your statement on or before the due date, no interest will be charged.
Marnie Worldman charged $1,000 on her credit card last month. She paid her balance in full by her payment due date, so she was not charged any interest. Her sister Deborah also charged $1,000 last month. However, Deborah made a partial payment of $400 on the due date so:
Even through Deborah paid off $400 by the due date, she was still charged interest on the total $1,000 up until the date the $400 payment was made. That's because when you make only a partial payment, you are charged interest on the total balance. The only way to avoid paying any interest is to pay off your balance in full every month.
April 22, 2006
Using Credit Cards Wisely
Credit cards are a great way to begin establishing a credit rating. If you find you are a nonentity in the world of credit, get yourself a credit card, start charging, and pay off your balance every month. After about six months, see if you can get your limit raised. Remember, though, not paying off your balance on time will cost you significantly in interest. Failing to make even the minimum monthly payment will cost you on your credit rating.
Credit cards are extremely convenient. They're safer than carrying scads of cash, and they are easier to use than personal cheques. If you pay them off on time, they can be even cheaper than using cheques. There's no question that cards have a place in your credit closet, but you have to be disciplined in managing them, or they can turn ugly.
Choose your credit cards carefully. Some charge higher interest than others. Store cards are notorious for charging the highest interest. Besides which, what do you need a store card for if you have a financial institution's card? It's just a temptation to spend more than you have. And it's hard to keep track when you have zillions of credit cards at your disposal. Get rid of them. Keep only those you can manage effectively.