September 2008

Ah, the holiday season! Truly a season of giving. Unfortunately most of us suffer from the gift that keeps on giving: holiday debt. Americans on average will take 6 months to pay off Christmas debt. Here are a few tips to keep your holidays bright and debt free this year.

Before the holidays arrive, do some careful plotting and planning. A few hours spent in preparation can mean less money spent on gifts. You don’t have to be Scrooge, you just have to be smart.

1) Decide how much you are willing to spend, and stick to it. Pretend you are spending cash. How much can you afford out of pocket this month? If you cannot afford it right now, consider that you cannot afford it at all.

2) Make a list of everyone you will be buying gifts for, and estimate how much you want to spend on each person. Include the smaller gifts for teachers or your mailman. Include the price of cards and stamps, because Christmas cards count as gifts when it comes to your budget. Then, add it up and compare the total to your budgeted amount. Make the necessary adjustments. Your brother-in-law may only get socks this year.

3) Cut down your list. This may sound harsh, but look closely at who you are buying gifts for. When saving money is an issue, you don’t need to give gifts to everyone you know.

4) Be creative. Determine if maybe some people wouldn’t be happy with a nice card or maybe some home-baked cookies. Remember, the holidays aren’t about presents, but about good will towards man. Good will comes in many forms and does not always need wrapping paper. If you have a skill or a hobby, use it: needlework, knitting, art, poems. Make a photo album, or offer to plant their garden.

5) Carry your shopping list with you. Take every opportunity to shop. Start early and look for sales. This gives you a chance to comparison shop. It also takes away some of the stress and reduces your risk of overspending just for the sake of getting shopping over with.

6) Have willpower. Stick to your estimates and you won’t go over budget. eBay is a wonderful shopping tool if you remember to start early enough to account for shipping time. Find the right item, bid your budget price and leave it. If someone outbids you, don’t get into a bidding war, just bid on something else within your price range.

7) Increase your income for the season. During the holidays there are lots of ways to make a little extra money. Many stores hire part-time workers for the holidays. Since it is a party season, babysitting is in high demand. Be imaginative. You could be the Official Gift Wrapper in your neighborhood and wraps gifts for friends and neighbors for a small fee.

Last January, when you started paying those credit card bills, you probably mumbled to yourself, “Next year will be different!” It can be. A few hours spent planning can save you lots of money come January, and can make next year start off happy and holiday debt free.

American Credit Foundation offers a free self-help holiday spending guide. You can get one by clicking on the following link for a debt free holidays handbook.

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A debt consolidation loan has many advantages for those struggling with a large burden of debt, particularly credit card debt. Consolidation eliminates the hassle of multiple monthly payments by combining several different debts and loans into one. If an individual is dealing with a large amount of debt from several credit cards, it may be a good idea to consider card debt consolidation.

One of the most appealing advantages to consolidating a debt consolidation loan is that it makes paying back your debt a simpler process. Instead of a number of debts to pay, all with different due dates each month, consolidating debt allows one payment per month. The consolidating company is responsible for making sure the payments get to each creditor. Be it a student loan consolidation or credit card debt consolidation, the situation allows the individual to focus time and energy on finding other ways to improve the financial situation.

Another way in which a debt consolidation loan is helpful is that it lowers the rate of interest. Credit cards tend to have high interest rates, so it is always good news when an individual finds a loan at a lower rate. This lower rate also lasts for the duration of the payment period, though with a consolidated payment plan, individuals pay off the loan for an extended period. Be sure to keep an eye on current interest rates. Interest rates will be determined in large part by what is going on nationally.

It is entirely possible to use this plan to help seek a more stable financial standing. Finding a reputable consolidation company, however, is paramount. Take as much time available to research the many options. The best bet is to go with companies that are familiar and well known.

A debt consolidation loan is a tool to help individuals get on the road to financial health and out of trouble with too much debt and collection agencies, but it is up to the individual to stay out of debt permanently. These individuals must develop good spending habits and learn how to manage finances responsibly. Taking out more loans to pay off existing ones is never a good idea, so after card debt consolidation, learn how to budget effectively.

If faced with unmanageable debt, a debt consolidation loan can be of considerable assistance. It will simplify monthly payments by reducing them to one, and it can lower high interest rates. Card debt consolidation can only help if the individual does his or her part by curbing overspending and learning smart money management. If you are drowning in debt and need help swimming to shore, a debt consolidation loan may be what you need.

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The following provides some things to consider when deciding between Debix and LifeLock.

Everyone knows that LifeLock is the market leader when it comes to identity protection services. They do all the work for their clients even though many things could be done yourself for free such as ordering your credit report. In order to get attention and show how confident they are in being able to protect your identity, Lifelocks CEO actually made his social security number public. This is how I first became conscious of them. LifeLock is also able to generate positive public relations for itself because they have been recognized by multiple agencies.

Life Lock has some illegal databases for your private to ensure it is not being sold. TrueAddress checks with databases that your address has not been changed by a criminal. LifeLock the only identity theft protection service who can truly protect children from identity theft.

LifeLock is ISO 27001 certified which shows that their security procedures at company headquarters in Tempe, Arizona is the best of the best. They seem to have invested in such which makes them able to provide real protection of the information that people hand them. They also were the first to offer the $1 Million identity theft insurance offer.

Debix, another identity protection company gaining traction in the identity theft racket, is almost as good as LifeLock. They also put a Debix Safe Number in your credit file, not your phone number. This keeps personal phone numbers private. Also, during the credit approval request process, reporting fraudulent credit requests is easy to report to law enforcers by just pushing a button. Simply hit star to be connected to a licensed investigator who will help you contact the appropriate authorities.

Debix has a patented system that offers a secure interface for credit protection. Debixs utilization of fraud alerts is simply the best. There is also an audit trail that ensures the creditor can’t lie about not calling you.

Both Debix and LifeLock place fraud alerts for you and get you a copy of your three bureau credit report. They also stop the flood of junk mail. Debix also stops telemarketing calls. The essential differences are Debix’s innovative fraud alert system and low price $24/year compared to LifeLocks additional services including Erecon, TrueAddress, WalletLock and, of course, the $1 million guarantee.

This should help you evaluate which company is right for you. In my opinion you get better identity protection with LifeLock but at $24 a year Debix is certainly worth considering. $75 a year is a lot cheaper.

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There are a number of credit repair scams out there. These scams often promise to help free you of bad credit, when in reality the “experts” offering these services will either overcharge you, involve you in illegal activity, or actually put you in a worse financial situation.

1) Credit repair companies that tell you to lie on loan applications or suggest that you develop a second identity. This is illegal and dishonest. If a company suggests that you open accounts in a new name or falsify your information on loan applications, run, don’t walk, away. This has nothing to do with real debt help or debt consolidation.

You can be charged with fraud for doing this - and you will be held responsible for your actions, even if you were acting under the company’s advisement. You certainly don’t want to add legal troubles to your credit woes.

2) Credit repair companies that charge you fees or hidden fees for things you could do for free yourself - such as work out a budget. Also be wary of companies that ask for money up front.

3) Credit repair companies that promise to pay your creditors from money you pay to them and which they keep in an escrow account. This is a common scam..

Here’s how it works: the debtor gives money to the credit repair company, presumably for paying off debts. The company places the money in an escrow account where it grows. The idea is that the company will eventually pay off your debts when the amount reached in the account matches the debts. The problem is that in the meantime, the credit repair company is removing some money from the account for administrative fees while creditors are becoming more and more anxious, increasing the interest on the debts and even starting legal action against the debtor.

4) Credit repair companies that pressure you, don’t listen to you, or want you to sign a contract you have not read.

5) Companies that offer you fast or instant credit repair - no matter how bad your credit. No matter what you might be looking for a solution to serious problem and try to avoid bankruptcy. This is simply a misleading a claim that no company can legitimately deliver on.

In many cases, these companies will claim that they can remove your poor credit history from your credit report by disputing it. This is false information. You simply cannot remove true and accurate information from your credit report. It is true that a credit bureau must investigate a claim of inaccurate information within thirty days, but this does not mean that the company will automatically remove the information.

In fact, if the information is accurate, the data will stand. Credit bureaus are aware of this common credit repair scheme and have become very good at detecting it. Many credit repair companies (and even some individuals) will try to dispute every ding on a credit report, hoping that the backlog of disputes will cause the credit bureau to automatically remove the offending items from the report. This technique is a scam and is dishonest since you are not disputing inaccurate information. Refuse to do business with credit help companies that use this practice.

6) Companies that don’t tell you your rights or try to take money for things you could do yourself. You can get copies of your own credit reports and have the errors on them fixed for free yourself - a company that does not tell you can do this yourself ifs taking money form you for things you can easily do yourself.

Also, if a company does not advise you of your credit rights, then that is an indication that they are not really on your side in the first place. Why would you want to do business with a company that does not help you?

P.S. Need practical tips that help you to save the daily-burning paper money into something more valuable? Please read about buy junk silver.

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For many families and individuals, the greatest financial burden is that of credit card debt,and a debt consolidation loan can help. For those shouldering unmanageable debt, a credit card consolidation loan can help ease the situation by simplifying repayments and correcting money management problems. credit consolidators offer many benefits and can be an invaluable tool in financial recovery.

The use of credit has become an everyday situation, but it is quite shocking if one takes into consideration that your average household has an outstanding debt of $ 7,000 in debt.While credit cards are convenient they can also land you in grace financial problems.

First, debt places stress on families, as they worry about how best to relieve their financial burdens.During this time the debt escalates due to continuing charges of interest and late fees.Generally when someone is in hot water they tend to make some bad decisions, such as taking out a loan to cover the debt they have due to their credit cards.All the while, people’s credit rating is being ravaged, thus making it nearly impossible to eventually own a house or car.If you are to the point that you are using one credit card to pay off another, you should consider a credit consolidation loan.

If you already have a poor credit record or serious debt problems you should remember that a debt consolidation loan is not a quick fix.What basically happens if you have a dept consolidation loan it will decrease your monthly debt, may save you elevated interest costs and will help you establish a monthly budget you should follow very closely to avoid further problems.If everything goes according to plan the credit agencies will notice the improvement and your rating will become better over time.Over time the situation will improve and your debt problems will be written down as history.

Now if you have decided to take out debt consolidation you may wonder how much your monthly installment will be. The consolidators will negotiate the lowest amount possible which your creditors will allow.At this point, all you have to do is make the payments to your consolidating company, and the company will be responsible for distributing your money to your creditors.

After you have dealt with the situation it should encourage you to totally avoid using a credit card and to spend only what you have.Bad credit is extremely frustrating, and borrowing money to pay debts is an exercise in futility.It is difficult living to a strict budget and the temptation of buying things even greater so be warned and never use your credit card with carelessness. Always think back of the penalties witch go hand in hand with overspending.Learning to manage one’s finances responsibly is far more rewarding in the end.

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In the world of credit cards, topics like “credit card debt problems ”, “how can you go to prison over debts ”, or “debt elimination programs ” are all too common. Debt from credit cards can be so stressfull, and lead to a very crippling situation in terms of finance. No one is immune to credit card debt, as even students can have debt with their credit cards as well. With people using their credit cards more these days, more and more people continue to take the plunge into debt. Debt is never good, as it leads to bankruptcy and the destruction of your credit report.

If you want to know more ideas on how to get rid with your credit card debt, online resources can help you as there are many credit card debt review and other information you can find online. All you need to do is to type keywords like “credit card debt facts statistics”,”how can you go to prison over debts”, or “legal credit card debt elimination”. For sure you will be prompted with number of sites which bear information that you need.

Here are more information that can be useful to you:

If you have other credit cards that you do not utilize, such as store credit cards that are known for high interest rates, you should dispose of them. If you have a lot of open accounts, you should look into debt consolidation, which will combine all of your debts into a single payment so you can get them out of the way quicker. By using debt consolidation services, you will only have one bill to manage.

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Most people admit to being out of control when it comes to spending and managing their money. They simply do not where the money went at the end of the month. Oftentimes, the money becomes in control of the person instead of the other way around. When this happens, a person continues to spend even when there is no cash to spend, primarily through credit cards. This is why so many people are debt-ridden and struggling financially.

If you are starting to feel like the only reason you are working is to pay the bills and yet your financial obligations never seem to end or at least lessen or you seem to be living from paycheck to paycheck despite a job that gives a decent pay, then you need some help in budgeting control. You need to know where all the money is going and why there is never enough to save.

In budgeting control, the first step is to know how much you need to control – this refers to your income. You know this figure by heart and yet at the end of the month, you have no idea where all of it went. This is where the next step comes in – know you expenses. List them down item by item starting with the necessities such as utility bills, rent, gas money, and etcetera.

Then, in a separate category, you should list down your other payables such as credit card payments, auto payments, insurance and etcetera. In another category, write down all your other expenses, no matter how small. A great way to do this is to collect receipts of all your transactions or spending within a month whether it is a haircut, a movie, a new shirt or your daily Starbucks coffee. Add up all your expenses per category and you will see exactly which spending area takes up most of your earnings every month.

Now, you are ready to proceed with the most crucial part of budgeting control – making adjustments. As you will find, the area that will require the most changes is the non-essential spending. This is where you need to apply the word ‘control’. In other words, limit your spending over things that are not necessary. Notice that the word used is ‘limit’ and not ‘eliminate entirely’. This is because total restriction is not an effective strategy in budgeting control. It will only make you feel as if you are being punished and this will likely reduce your motivation to work on improving your finances.

Instead, adopt a balanced approach in budgeting control wherein the necessities remain top priority but you still allow yourself a few indulgences from time to time. Willingness is very important in budgeting control and this will only come if you really understand why you need to control your budget. You would have your own reasons, just focus on them to succeed in keeping your finances well under your control.

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One of the most important practical life skills is personal budgeting. Learning budgeting basics is essential to financial success. Whether you are in a good financial status now or you are struggling to fix your finances, it is always a good idea to track how much you are earning and how much you are spending.

The first step of budgeting basics is simple – write the numbers down. Start with the amount of your after-tax salary. There is no point to budgeting if you do not actually see the figures. You may know how much you are earning a month but as you write down the numbers, you will be surprised to find out how you are actually spending your money.

To find this out, proceed with the next step of budgeting basics – gather your bills and receipts for the month such as your house rent or mortgage, credit card bills, car payment, insurance payment, utilities, groceries, magazine subscriptions and etcetera. List down all the important expenses first and then the non-essentials. When you are done with this part, it would be like your vision clearing up because you will see where all your money is going to. Individually, the small expenses seem nothing but when you add them all up in this way, the truth of your spending will hit you.

This is where you can now identify where you are overspending and find ways to change your spending habits. You do not have to completely give up the fun stuff like eating out. You can still do this but not as frequently. Treating yourself once in a while is important because it actually increases the chances of you sticking with your budget since it is not too restrictive. So do not forget to budget for your recreation and relaxation as well.

In addition, build up an emergency fund. Obviously, the money you set aside for this fund are for emergencies or unexpected situations only. A surprise 1-day sale at your favorite shoe store is not considered an emergency. Be strict about how you save for your emergency fund and how you use it so when the real emergency comes up – car repair, illness, accidents, and etc. – you have something to use. Unforeseen events are common budget busters so make sure you factor them in your monthly budgeting.

To summarize the personal budgeting basics discussed above, collect your bill statements and receipts each month, list down how much your expenses come up to and subtract this from your net income. Do not forget to make some allowance for your daily needs like food, gas and etcetera. Set aside a small amount not tied to any particular expense.  These budgeting basics will not work if you do not keep it up each and every month. Managing your finances takes commitment so do everything you can to stick with your budgeting. Later on you will recognize your spending patterns and identify strategies to better control them.

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Budgeting is very important and yet a lot of people fail to do it. Many families find budgeting very difficult because they need to devote time and effort to it. Budgeting does require commitment but it is a worthwhile task that will only benefit a person who commits to it. Below is a list of budgeting advice to help you plan your finances:

1. Know Both Income and Expenses – One very simple but important budgeting advice is to list down all of your income sources and list all of your fixed expenditures like house rent, credit card payment and the like. Total the amount of your expenses and then subtract them from your income. The money left is what you can use for your variable expenditures such as groceries, recreation, clothing and etcetera.

2. Lessen Fixed Expenditure – Gather all your bills and figure out realistic cost-reduction strategies. It is important to identify what you really need and get rid of the extras that you have no real use for. This common budgeting advice may seem difficult especially for impulse shoppers but unless you stop overspending on things that you do not need, you will not reach your goal of keeping your finances on track.

3. Keep a Spending Record – You can use a journal or a budgeting program in keeping a record of your spending. A lot of people find using these budgeting tools very effective in planning their finances because it allows them to monitor and record their spending in an efficient manner.

4. Study Your Spending Habits – This budgeting advice is considered a critical part in financial planning. After knowing your spending habits for a month, try to figure out how you can lessen your spending. If your phone bill is too high because of long-distance calls, try to use the Internet and send e-mails instead. If you always eat lunch outside the office then consider bringing your own lunch to work a few days in a week.

Simply following all the budgeting advice listed above will greatly improve your financial status. It is important to note, however, that the change will not happen overnight. Even the necessary actions that you need to do to effect the positive change in your finances will take time. But with serious commitment, you will be rewarded by all the budgeting advice that you took to heart with the peace of mind that comes with being financially secure.

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Many families face financial problems because of poor budget management. Whether you are good or bad at numbers, household budget management is necessary to keep your spending under control and avoid running up debt.

If you are in heavy debt, it is hard to face all your obligations and write them all down but this step is necessary to eliminate your financial woes and start better budget management. Your household budget is one of the most valuable tools that you can use to prevent or get rid of debt.

The act of writing down a budget itself creates a positive message that you are dealing with your financial problem and it can put you in the right mind set that will motivate you to check and update your budget every month and make sure that you are doing the necessary actions to eliminate debt.

Planning your household budget does not have to be difficult. Especially now that there are so many PC tools that you can use to help you in budgeting. However, all you really need to do is write down your take-home pay (you and your spouse’s) and itemize your household expenses. You can do this with just a pen and a paper. There are no special computations involve just basic math skills. Add up your total net income and add up your total monthly expenses. You can divide the expenses into several categories such as household bills, credit card debt, loan payments, and all other expenses including movie tickets, toiletries, and etcetera.

After you have jotted down all these information, you will obviously see that your debt payments are eating up a big percentage of your income. Budget management can help you reduce debt in two ways – it can help you set aside the amount you need every month to settle your monthly dues on time as well as show you where you are overspending. A budget can in fact be a wakeup call. It can show you the real status of your finances and make you realize what you can really afford to spend every month so as not to further accumulate debt.

As you can see, budget management is actually a simple process that only becomes daunting because it requires discipline and commitment. But when you know the real value of budget management and when you focus on what it can help you achieve in your finances, then it becomes a part of your life. Remember that the key to successful budget management is consistency. Take small steps but be sure to keep repeating those steps each month. Eventually, you will develop an awareness of your spending, make a habit of proper budget management and get rid of your debt altogether.

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