How To Use A 'Credit' Card Online Safely.

Please use caution when you use a 'credit' card on the
internet. There are 'criminal elements' every-where, and online
is no exception. I will actually go as far as to say that you
should NEVER use a 'credit' card online AT ALL. Hear me out! I
have a PayPal account and it can be quite useful for ebay or
other places that accept it. To get a PayPal account you need
some sort of credit card, right? WRONG! There are two main
types of 'plastic card', the first is a 'CREDIT' card (
potentially very dangerous when used online ). The second card
is a 'DEBIT' card - very SAFE to use online, if you go about it
the right way.

You do not need a credit card to establish a PayPal account. (
or for lots of other online services..) A 'debit' card is much,
much safer and I will explain why. Firstly, if you use a credit
card online and you are unlucky enough to have your card
details stolen or intercepted, then ALL the money that is
available to that card can be lost - permanently. Can you
afford that?? Even if you can afford to lose that money ( lucky
you!! ) do you really want to hand it over to a criminal? My
guess would be no. So don't risk it happening! I don't have a
credit card at all, and that is largely irrelevant, but I can
purchase things online.

What I use is a VISA enabled DEBIT card instead, and this is
how it works. I have two bank accounts, one with all my money
in it, the other is nearly always completely EMPTY. The empty
account has the VISA debit card attached to it. How does that
work if it is empty most of the time? Very easily. The first
account has an online banking facility and I simply transfer
money into the VISA account whenever I need to use it. I only
transfer about ten dollars more than I think I will need to
make a purchase, so that if my VISA card details are
intercepted or used by any criminal organization, they can't
get at ALL my money.

Yes, online banking has potential risks as well, but with the
added layers of security that a bank provides, the risk is much
reduced. Also you can directly visit your bank to sort out any
problems should they occur, but it is much ( very much ) harder
to do that if you are dealing with an online organization that
may be based a different country altogether. So, I hope you
aren't using a credit card online. (!?#!!)

Note 1 : The reason I transfer about 10 dollars more than I
think I will need for any given transaction is to cover
currency conversion variations and un-noticed packaging,
postage, or insurance costs. I also like to leave a balance of
about 20 dollars to feed my online insurance policy. ( see the
paragraph below note 2. )

Note 2 : Most online banking facilities allow an unlimited
number of transactions, with no transaction fees. So you can
use it as much as you want to and it costs you nothing. Now
that's how much I like to pay!! Don't forget that in some cases
you can do direct bank deposits to make a purchase online. That
means even less risk to you because the vendor doesn't even
have the chance to get at your card at all. They only get the
money, and that's just fine by them. If you need to set up
recurring payments for a membership or subscription service,
the best way is by direct bank deposit. You set it up, you
control it, and 'they' can't change what they charge you or add
extra charges without you knowing about them :-)

There is a cost involved with having a second bank account and
that cost is usually thought of as dead money, but if you look
at that monthly ( or annual ) cost as a form of 'pay as you go'
insurance, then it is a lot more acceptable. What I mean by pay
as you go insurance is the charges ( account keeping fees ) for
the usually empty second account are your insurance policy
against losing the contents of your main account to an online
criminal. When you look at it that way, it is really rather
cheap. You also get insurance against financial loss from VISA
if your card is lost or stolen in the 'real world'- not that
there would be a substantial amount available to that card if
you operate it the way I have outlined above. You can use
either type of plastic card on the internet, and the vendor of
whatever you purchase will never know what type you are using,
but I know what type of card I will always use. The debit card.


Footnote : No, I don't have a 'credit' card at all, so without
the services of a debit card I wouldn't be able to purchase
much online. But I wouldn't have a credit card even if I could
'afford' one. I personally think that credit cards are just too
big a temptation for the average person. If you have thousands
of dollars available to be spent as credit, that is just what
most people do, they spend it. Why is that a problem? Well if
you don't have the money to buy whatever you have bought using
your credit card, where are you going to find the money to pay
that credit back?? Oh, and what about the rude amount of
interest that a lot of people end up paying on their credit
cards? Sometimes for years.. I may be old fashioned in this
regard, but saving your money by having a budget, and buying
something when you can afford to do so, really does save you a
lot of money in the long run.


About The Author: Colin Visser is the owner of
http://webdziner.gotdns.com/ and offers web site design &
english proof reading services. Proof reading for web sites,
software, help files, email and news-letters. Free quotes.
Please send comments using
http://webdziner.gotdns.com/email.html

Managing Credit Cards Effectively

Credit cards are almost a necessity in today's society. It has
become harder and harder to get through life without plastic.
If you want to make purchases over the Internet, guarantee a
hotel room, or perform a wide variety of other financial
transactions, a credit card is essential. And, the truth is,
credit cards can be a valuable financial tool, provided you
manage them effectively.

All credit cards are definitely not created equally and the
first step to effective credit card management is shopping
around for the right card in the first place. The factors to
take into consideration are interest rates, annual fees, other
fees, grace periods and aspects like cash back or other rewards
for using the card.

Interest Rates

One of the incentives credit card companies use to try to get
customers to choose their card over all the others floating
around is to offer a special introductory interest rate. An
introductory rate sounds good, but can be a trap for the
unwary. Generally, the customer opts for the low introductory
rate, runs up the charges on the card, and is not able to pay
the card off by the end of the introductory period. That's when
the 'after-introductory' rate kicks in, and you find yourself
paying from 12-20% on your credit card debt. When you are
interest rate shopping, you also need to make sure that the
interest rate won't take a substantial jump if you are late
with a payment. Some companies bump the interest rate if your
payment is even a day late, and the change is permanent. You
don't ever go back to the lower rate.

Fees

Be sure to read the fine print. Credit card issuers have gotten
fairly ingenious about hiding a variety of fees that the casual
consumer, who doesn't bother to read all of the credit card
details, may end up paying and not even be aware. Annual fees
are fairly straightforward. There are cards that charge annual
fees just for the privilege of carrying the card, and there are
others that don't charge annual fees at all. An annual fee is
not necessarily bad, depending on the perks that go along with
it. If there are none, don't bother with cards that charge an
annual fee. On the other hand, if you have no credit history or
a bad credit history, you may have to get a card with an annual
fee, and use it until you can qualify for a different one. In
most cases the annual fee can be rolled into the monthly
payments and doesn't have to be paid up front, although that is
not always the case.

Watch out for hidden fees like closure fees. Some companies
actually charge you for closing your account. The only way to
avoid closure fees are to carefully read all of the credit
card's terms and conditions before accepting it and make sure
that no such fee is attached.

Late fees can be charged when your payment is late, sometimes
even as little as one day late. These fees can vary, but again
are disclosed in the credit card terms, so at least you are
aware and can avoid them by keeping your payments current.

If you travel, beware of overseas transaction fees. Some card
issuers have begun to charge a 1-2% fee off the top for using
the credit card overseas.

Grace Periods

If you plan on paying off your balance in full each month to
avoid incurring any interest fees, make sure your card has a
grace period that allows you to do so. Some cards begin
charging interest at the time of purchase. In that case, even
if you pay off your balance every month, you will still end up
paying interest to the credit card company. Make sure there is
a grace period on your card - that's the amount of time you
have before you start incurring interest charges and it's
usually something like 25-30 days. Be sure to read the card
disclosures carefully so you will know if there is a grace
period during which you pay no interest, or not. If you don't
pay off the balance of your account each month, grace periods
really don't make too much difference because you will be
paying interest anyway.

Other Benefits

Some credit cards offer additional benefits for using their
card - things like airline miles or a percentage of cash back
on all your purchases. If you travel a great deal or routinely
use your credit card for all purchases and then pay them off
before the end of the month, these can be valuable additions.
However, be sure to read all of the fine print and make sure
the perks aren't costing you more in fees and interest than
they are worth.

If you can't get by without a credit card, and very few of us
can in this day and age, at least be aware of all the different
types of offers that exist and choose the one that will benefit
you most in the long run.


About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com

How To: Avoid Foreclosure

In order to avoid foreclosure, you need to find the companies
and the services that are able to provide you with high quality
information. You do not need someone to come in and try to sell
you yet another deal. For honest to goodness help in getting
out of this debt and mess, you need high quality advice. While
it is not easy, you can avoid foreclosure.

First of all, make sure that avoiding foreclosure is the right
thing for you. If you can not make the payments and you cannot
find a way to get around it, letting it go will ruin your
credit, but until it is over it can't get any better. While
this is not news you want to hear, it can be helpful to some.

But, when you do have a shot, you need to take it. To avoid
foreclosure, you need many options. For example, you may want
to actually call the bank and ask them if there is a way you
can work with them to end the problems. Maybe they can extend
your payments so that you can get back up.

You may be able to get a loan that will cover the amount that
you owe as well as any other money that you need. This can then
be paid off in installments. Although hard to find, this is one
method to avoid foreclosure.

You should take the time to speak with the creditors that you
owe money to and see if you can work something out with them.
Be honest and tell them what has happened, what you plan to do
to get out of it, and see if they can help you. If it does come
down to selling the house, do your best to get through it before
it is too late. You can avoid foreclosure by taking the time to
find all the options that you have and then choosing the best
possible answer for you.


About The Author: For more information please see
http://www.avoid-foreclosure-info.co.uk

Credit Reports And Credit Reporting Agencies

We all know that our financial transactions are reported to
credit agencies that track how well and how quickly we pay our
debts and that when we apply for a loan for one reason or
another, those agencies report our credit history to
prospective lenders. However, most of us don't know a great
deal about how that actually happens and how our credit is
rated.

The fact is that credit reporting has evolved to an industry
all of its own. Just a few short years ago, when someone
applied for a loan, he or she put down credit references -
retail stores, banks, or other people or places with whom they
had done business in the past. As a matter of course, the
lender checked the references and decided whether or not to
grant a loan based on an amalgamation of the responses from
them. That really isn't the case any more.

Instead, there are three major agencies that track everyone's
credit and provide a credit rating when contacted by a
potential lender. The three agencies are Equifax, located in
Georgia; Experian, located in Texas; and Trans Union, located
in Pennsylvania. When someone applies for a loan, the lender
generally contacts one of these three agencies and obtains a
credit score and the score helps the lender decide whether or
not to make a loan.

Credit Scores

How is a credit score calculated? Until recently, that was one
of life's great mysteries, but over the past few years new
rules and regulations have made the information more readily
available. Your credit score is a number that ranges from 300
to 900, although the exact formula for determining that number
is proprietary and is not released. This is how it works in
general.

· 35% of the score is based on the history of how you have (or
have not) paid your bills. The agencies track how many of your
bills have been paid on time and how many haven't, as well as
whether or not any of them have been referred for collection.
The more recently you have had a collection or failed to pay
something on time, the worse your score will be.

· 30% of the score is based on the debts you have at the time
of the rating. It is includes car and home loans, credit card
debt, retail store debt and the like. If you have several
credit cards and they are all limited out, your credit score is
lower.

· 15% of the total score is based on how long you have had
credit. If you have never had credit or have only had credit
for a short time, the lower your score will be.

· 10% of the score is based on the number of inquiries that
have been received about your report, particularly if there are
several in the past year.

· 10% of the score is based on your current credit and the
types of credit you have. The number of credit cards and loans
you have, as well as the available credit you have on your
credit cards and considered.

Because your credit score is based on these factors and they
are constantly changing, your credit score changes along with
them. Therefore, there are things you can do to change your
credit rating and bring it up.

Changing your Credit Rating

The first thing to do is get a copy of your credit report and
make sure there aren't any mistakes on it. If there are, take
steps to get them corrected. Errors in reporting do occur,
although the credit bureaus would like for you to think they
are foolproof. Here are a few more tips to improving your
credit rating.

· Don't pay off the entire balance on your credit card. Keep
about 75% of it paid and keep a 25% balance. This applies to
multiple credit cards as well.

· Don't get rid of your older accounts. Keep them open. The
credit reporters look at the age of your accounts and the
longer you have had a particular account in good standing, the
better.

· Pay your bills on time. Experts say that this is probably the
most important factor of all.

· Prevent inquiries to your credit report whenever possible.
Your score drops with the number of inquiries.

The real key, however, is to only get credit when you need it
and when you do get it, use it wisely. You can damage your
credit rating with just a few late pays or collections and it
may take up to a year of paying everything on time to build up
a better rating.


About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com

What Is Foreclosure And How To Avoid It?

Are you having trouble making ends meet? Not paying your bills
on time? Are you not able to keep up with your mortgage
payments and continue to get further and further behind? How do
you get yourself out of this mess and not lose your home?

Avoiding foreclosure may be possible and you should work hard
to avoid it.

What is foreclosure?

Foreclosure is the legal means by which a bank or other secured
creditor sells or repossesses your home or a piece of real
property due to your default on its promissory note. When your
house is foreclosed on, you must move out and it is usually
sold at public auction. When the foreclosure process is
complete, it is typically said that "the lender has foreclosed
its mortgage or lien."

In the United States, there are two sorts of foreclosure in
most common law states. Under "strict foreclosure," the bank
claims the title and possession of the property back in full
satisfaction of a debt, usually on contract. In the proceeding
simply known as foreclosure, the property is exposed to auction
by the county sheriff or some other officer of the court. Many
states require this latter sort of proceeding in some or all
cases of foreclosure, in order to protect any equity the debtor
may have in the property, in case the value of the debt being
foreclosed on is substantially less than the market value of
the property. In this type of foreclosure, a deed is issued to
the winning bidder at auction. Banks and other institutional
lenders typically bid in the amount of the owed debt at the
sale, and if no other buyers step forward they get title to the
property in return.

Some states have adopted non-judicial foreclosure proceedings,
in which the mortgagee, gives the homeowner a legally specified
notice of the default and the mortgagee's intent to sell the
property. If the homeowner fails to cure its default, or use
other lawful means, such as filing for bankruptcy to stop the
sale, the mortgagee or its representative will conduct a public
auction in a similar manner as the auction described above. The
highest bidder at the auction becomes the owner of the property
free and clear of any interest of the former homeowner.

What Should You Do To Avoid Foreclosure?

. Do not ignore letters from your lender. If you are having
problems making your payments, call or write to your lender's
Loss Mitigation Department without delay. Explain your
situation. This shows good faith on your part. Be prepared to
provide them with financial information, such as your monthly
income and expenses. Without this information, they may not be
able to help.

. Stay in your home for now. You may not qualify for assistance
if you abandon your property.

. Contact a HUD-approved housing counseling agency. Call (800)
569-4287 for the housing counseling agency nearest you. These
agencies are valuable resources and they frequently have
information on services and programs offered by Government
agencies as well as private and community organizations that
could help you. The housing counseling agency may also offer
credit counseling. These services are usually free of charge,
and they can help explain possible alternatives.

Some of the possible alternatives you may consider include the
following:

Special Forbearance. Your lender may be able to arrange a
repayment plan based on your financial situation and may even
provide for a temporary reduction or suspension of your
payments. You may qualify for this if you have recently
experienced a reduction in income or an increase in living
expenses. You must furnish information to your lender to show
that you would be able to meet the requirements of the new
payment plan.

Mortgage Modification. You may be able to refinance the debt
and/or extend the term of your mortgage loan. This may help you
catch up by reducing the monthly payments to a more affordable
level. You may qualify if you have recovered from a financial
problem and can afford the new payment amount.

Partial Claim. Your lender may be able to work with you to
obtain a one-time payment from the FHA-Insurance fund to bring
your mortgage current.

Pre-foreclosure sale. This will allow you to avoid foreclosure
by selling your property for an amount less than the amount
necessary to pay off your mortgage loan.

Keep in mind that your lender does not want to force
foreclosure proceedings because it costs them a lot of money to
do so. Therefore, if you are sincere and show good faith, they
are more likely to work with you to find a solution.
Foreclosure can seriously affect your ability to qualify for
credit in the future. So get the help you need and avoid it if
at all possible!


About The Author: Greg Smith publishes information on real
estate issues at http://www.searchexact.com/Real_Estate/. Visit
his web site http://www.searchexact.com/ for top resources on
unique and popular topics. This article may be freely reprinted
as long as the author's resource box and url links remain
intact.

The Human Side: Debt Stress

In all the technical discussion you hear about credit card
debt, the best ways to manage it and pay it off and all the
rest, one thing goes largely ignored. Credit card debt is
extremely stressful, and can have a very negative effect on
your life, if you let it. It's as bad as an addiction, always
hanging over you, bringing you down, making it hard to life
your life the way you want to. In this article, we'll take a
look at how you can recognise debt stress, and what you can do
about it.

The Symptoms of Debt Stress.

There are an awful lot of symptoms that can be caused by
stress. Some of the most common ones are: headaches, not being
able to sleep, feeling depressed and irritable, and being
forgetful and unable to concentrate on what you're doing. If
you're not sure whether your symptoms are related to stress or
something else, you should go and see a doctor.

Who Gets It?

Almost everyone who has debts is stressed about them. Debt is
blamed for millions of days off work every year, and is one of
the leading causes of suicide - it seems like most times you
read about someone who has committed suicide, their name is
followed by "who owed [a very large amount] in debts". Students
and graduates are especially vulnerable, as debt is growing
amongst them faster than in any other group.

The average adult owes many thousands in debts - and since
that's the average, it means that many people must owe much
more. Never forget that you're not alone, and there's always
someone worse off than you.

How to Deal With It.

Stress caused by debts is often considered to be embarrassing,
or shameful. People with lots of debts don't want to talk about
it, even with their family, for fear of upsetting people or
looking like a failure. It is very important, though, that you
do talk about your problems, as keeping it all inside yourself
will make you much, much more stressed. It is especially
important that you talk to your partner - they are the number
one person who can support you.

The best thing to do then is to find two people: one who can
advise you, and one who can be a counsellor. That means a
professional who knows what they're doing in financial matters,
as well as a psychologist or psychiatrist, or some other kind of
counsellor. Don't let stigmas put you off - this is about your
health.

The next thing to do is to have a good think about how you got
that debt to begin with. See if you can find old credit card
statements. What did you spend the money on? You need to sit
down, work out a budget, cut unnecessary expenses and try to
free up as much money as you can to pay back debts. Even if
it'll be a long time before you get everything paid off,
knowing that your debt is gradually going downwards can be an
excellent cure for debt stress.
================== ARTICLE END ==================

For more free-reprint articles by Angie Noack please visit:
http://www.isnare.com/?s=author&a=Angie+Noack

Tips For Vacationing On A Budget

Looking for some vacation money saving ideas? There's nothing
wrong with vacationing on a budget. Hey, we all can't travel
like the rich and famous.

You save all year to get the money for a well earned vacation.
You want to stretch your vacation budget but still enjoy
yourself. Sounds like a good plan. To help you out I've
together some vacation money saving ideas that I hope you will
find useful.

If you have a particular destination in mind it pays to plan
ahead. Research the attractions and facilities. Find out what
specials or discounts they may have going. Look for other
things to do or see nearby so that you can make good use of
your time and cut down on the running from place to place.

Plan your vacation for the off season. You can usually get
better deals on lots of things like plane tickets, hotels, car
rentals, cruises and lots of other things.

If you have friends or relatives nearby your destination
consider asking them if you can stay with them. Don't be a
freeloader though. Even though you help pay for the groceries
and other expenses your host incurs, it's still a good vacation
money saving idea.

If you are flying try to plan your trip for when tickets are
traditionally cheapest. That would be Feb thru May and
September thru December (except the week before Thanksgiving
and the two week period before Christmas). Try to avoid flying
on Friday afternoons as this is often the busiest time of the
week for airlines.

Meals can be expensive at restaurants so you can save some
money by packing food for the road.

When eating out try to avoid the places that obviously cater to
tourists. Find out where the locals eat. Ask around. The smaller
family owned places usually have better food at better prices.
You may have to go a little out of your way but it is usually
worth it for some vacation money savings.

Hotels are typically more expensive the closer you get to a
major attraction. With a little planning you can find a good
balance between price and distance.

When picking hotels don't just go by the ratings. Compare the
amenities they offer. Often you will find that you really don't
need everything offered by that 4 star hotel and you can do very
nicely at the 3 star.with a better price!

Consider buying or renting an RV. You travel at your own pace.
Cooking and bathrooms are always close by. You can meet a lot
of other friendly RVers who will usually be glad to point out
the best places to go.

When traveling by car you can save fuel by renting a smaller
fuel efficient model. Packing light, reducing your speed and
maintaining proper tire air pressure will also cut the gas
costs.

Make sure that your car is ready for the trip. Good tires, oil
change, tune-up and all that good stuff. It's a heck of a lot
cheaper and more convenient to deal with these things before
you go rather than on the road somewhere.

Check out the local transportation system of buses, trains or
trolleys. These can be considerably cheaper than using taxis.

Camping is a great vacation money saving idea. There are lots
of campgrounds around. They are cheap and you may end up with
an experience that outshines anything you can get a fancy
hotel.

Plan activities that don't require a lot of money. Hiking, and
swimming are good ones. Local Museums and historical sites are
often very reasonably priced as well as being quite educational
and fun. The big theme parks have their appeal but you can
really go through the cash at those places.

Plan picnics. These can be excellent vacation money saving
opportunities as well as a chance to really relax and enjoy the
local area.

Avoid buying souvenirs. It's easy to get caught up and blow a
bundle on these overpriced goodies. Set some mental rules ahead
of time about how much you will spend on souvenirs and it will
be easier to stick to it when the time comes.

I hope that you find some of these vacation money saving ideas
helpful. Make a plan and stick to it. There's no reason why you
can't have a great vacation without emptying the bank account.


About The Author: The author, of this article, Peter Shannon,
is the owner of the website http://www.1001-vacation-ideas.com.
Here you will find a large collection of vacation and getaway
ideas for travelers searchable by theme and location.

The Human Side: Debt Stress

In all the technical discussion you hear about credit card
debt, the best ways to manage it and pay it off and all the
rest, one thing goes largely ignored. Credit card debt is
extremely stressful, and can have a very negative effect on
your life, if you let it. It's as bad as an addiction, always
hanging over you, bringing you down, making it hard to life
your life the way you want to. In this article, we'll take a
look at how you can recognise debt stress, and what you can do
about it.

The Symptoms of Debt Stress.

There are an awful lot of symptoms that can be caused by
stress. Some of the most common ones are: headaches, not being
able to sleep, feeling depressed and irritable, and being
forgetful and unable to concentrate on what you're doing. If
you're not sure whether your symptoms are related to stress or
something else, you should go and see a doctor.

Who Gets It?

Almost everyone who has debts is stressed about them. Debt is
blamed for millions of days off work every year, and is one of
the leading causes of suicide - it seems like most times you
read about someone who has committed suicide, their name is
followed by "who owed [a very large amount] in debts". Students
and graduates are especially vulnerable, as debt is growing
amongst them faster than in any other group.

The average adult owes many thousands in debts - and since
that's the average, it means that many people must owe much
more. Never forget that you're not alone, and there's always
someone worse off than you.

How to Deal With It.

Stress caused by debts is often considered to be embarrassing,
or shameful. People with lots of debts don't want to talk about
it, even with their family, for fear of upsetting people or
looking like a failure. It is very important, though, that you
do talk about your problems, as keeping it all inside yourself
will make you much, much more stressed. It is especially
important that you talk to your partner - they are the number
one person who can support you.

The best thing to do then is to find two people: one who can
advise you, and one who can be a counsellor. That means a
professional who knows what they're doing in financial matters,
as well as a psychologist or psychiatrist, or some other kind of
counsellor. Don't let stigmas put you off - this is about your
health.

The next thing to do is to have a good think about how you got
that debt to begin with. See if you can find old credit card
statements. What did you spend the money on? You need to sit
down, work out a budget, cut unnecessary expenses and try to
free up as much money as you can to pay back debts. Even if
it'll be a long time before you get everything paid off,
knowing that your debt is gradually going downwards can be an
excellent cure for debt stress.
================== ARTICLE END ==================

For more free-reprint articles by Angie Noack please visit:
http://www.isnare.com/?s=author&a=Angie+Noack

Top Credit Card Mistakes

When you're dealing with credit cards, you're playing with
fire. Unfortunately, there are plenty of people out there who
don't realise that, and make all sorts of dangerous mistakes
with their credit cards every day.

Paying Late.

If you don't set up any kind of automatic payment, then it can
be tempting to just put your credit card bill on a pile and get
to it when you have time. Before you know it, a few weeks have
gone by and you're late. If you leave it to the deadline, you
might find that the payment won't get there quickly enough -
it's not a deadline for sending the money, it's a deadline for
them receiving it.

Paying late is a big mistake for an awful lot of reasons. You
will almost certainly be charged a late payment fee, and your
late payment will go on your credit report for everyone to see.
You may also find that you lose any good rate you had, and your
debt is automatically thrown onto the very worst rate the
company offers.

To avoid late payment, you should always post your payment a
long time before the due date (at least a week). If you've left
it to the last minute, phone up and try to pay that way.

Being Taken in By Rewards.

It is never, ever worth getting a higher-interest card simply
because it offers some kind of loyalty points, flight miles or
whatever. Even if it offers a cash reward, it is unlikely to be
more than you would pay in extra interest - after all, why would
they give you free money? All 'rewards' do is pay you off with
your own money to make you feel like you're getting something
for nothing. You're not.

Collecting Cards.

Seeing some people opening their wallet or bag is a scary
experience. It looks like they have about a hundred credit
cards in there, some of which they haven't used in years. They
have trouble keeping track of all the different cards, balances
and interest rates. Don't be one of these people. You should
limit yourself to a maximum of three cards at a time - any more
starts to make you look over-committed in your credit report,
and could get you turned down for a bigger loan.

Maxing Them Out.

Your limit is just that: a limit, not a minimum! Whatever you
do, don't get a card and immediately spend your whole limit.
This looks very bad. It is better to spend about halfway
regularly and pay it back. Wait for the company to increase
your limit (which they quickly will), and then you'll get that
extra money without the stigma of having a maxed-out card.

Not Reading the Terms and Conditions.

Finally, as ever, don't sign anything you haven't read! I know
it's hard going and you're busy and all, but if you can't
manage to read the terms and conditions then you shouldn't get
the card. Pay special attention to any future increases in
rates, and what kind of fees you can be charged.


About The Author: Sandra is a credit advisor who has helped
hundreds regain their credit scores to respectable levels. Her
blog can be found online at http://www.mycredit-card.com.

Repairing Your Credit

We live in a consumer society where it seems like more
attention is paid to your credit record than to your criminal
background. Credit has been elevated to a position where it
permeates every factor of a person's life and has even crossed
over into the realm of being a moral question. Have you ever
been made to feel guilty or embarrassed because you can't get a
loan? What about having your credit card rejected at a
restaurant or department store? It's not just that you don't
have money readily available, it's that you suddenly become a
pariah in the eyes of some cashier. And, of course, to everyone
that is standing around within hearing distance.

Nearly everyone has been in one of these situations one time or
another. And, it begins to weigh heavily on your psyche. Don't
despair! Having bad credit does not mean you are a disreputable
person AND there are very few credit situations that are beyond
repair. You just have to know what steps to take and what order
to take them in. If you are careful, payday loans can be an
excellent means of reestablishing your credit.

There are several ways you can go about clearing up your credit
situation.

Payday Loans

A payday loan may be able to help you re-establish your credit.
The way it works is like this. Get the best loan deal available,
with the least fees. Make it small, say for $100. If you can
find a lender who only charges $10 per hundred, you will owe
$110 on your next payday. Even if you have to pay a $25 charge
for the $100 borrowed, the total payment is still only $125.
Pay it off on the due date, in full. Do not be tempted to roll
the loan over because it will just cost additional fees. Don't
borrow unless you know you will be able to pay back the full
amount on the date due and do not borrow from multiple lenders.
Repeat this process several times to build a good reputation
with the company. Payday transactions are ones that may or may
not be reported to credit agencies, but you can generally add
good reports to your own credit profile. It may cost $2-$3 per
lender and you must ask the lender before proceeding.

Credit Cards

According to the Credit Repair Institute, a Visa or MasterCard
are the best credit references you can establish.

At first glance, this may not seem like a great solution
because you are thinking that you probably can't possibly get a
credit card. However, there are banks and other lenders out
there who will issue limited value credit cards to people with
bad credit, on a couple of conditions. First, you will probably
have to pay a fee to get the card in the first place. Then, it
will probably be limited to a small amount, say $200. Pay the
fee, get the card (making sure that it doesn't charge huge
interest) and use it very, very wisely. In other words, go make
a small purchase on the card instead of paying cash for
something that you already intend to buy and have money for.
Then, use the cash you already had set aside to pay the credit
bill, before the due date, so there are no additional interest
fees. Repeat the same process several times, over several
months. Always make sure you are not buying something extra
that you may not have money to pay for, just use the card to
establish good credit.

Other banks issue secured credit cards for which you deposit a
particular amount, for example $200. Make the deposit, get the
card, and then make several small charges on it - again ones
that you know for certain you can pay back in full before the
due date so that you don't accrue any extra interest fees. Shop
around for the card and make sure you get the best deal
available in terms of annual fees, annual percentage rates,
grace periods and any surcharges that may be attached. Secured
cards are nearly as good a means of bolstering credit as
unsecured ones.

Get a Loan

That sounds like crazy advice, but if handled the right way, it
can quickly rebuild your credit. According to the Credit Repair
Institute, this is a fast and reliable method, and can be done
with as little as $400. It involves opening a savings account
at a local bank with about $400. After the account is
established, ask the bank for a loan and tell them you want to
secure it with the savings account. They are likely to grant
you at least 70% of the money you have in savings and, in some
cases, up to 100%.

Take the money from the loan and deposit in a savings account
at a second bank, get a loan against that and deposit that in a
third bank. The money borrowed from the last bank can help pay
the first few payments on the others. Make certain that you
make payments on time and as agreed. Also make certain that the
banks report your payment history to the three major credit
bureaus, monthly.

According to the Credit Repair Institute, this is the quickest
way to rebuild credit quickly. In the meantime you will be
paying for it by paying interest, but the good news is that the
interest earned on the funds deposited in savings will partially
offset the interest payments you will be making back to the
bank.


For more free-reprint articles by Max Hunter please visit:
http://www.isnare.com/?s=author&a=Max+Hunter

The New Bankruptcy Law -- How Will It Affect Debt Negotiation?

In April 2005, Congress made sweeping changes in U.S.
bankruptcy law that will go into effect on October 17, 2005.
It's called the "Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005," and it means big trouble for Americans
struggling with debt problems.

What effect will the new bankruptcy law have on the practice of
Debt Settlement (also called Debt Negotiation)? Will creditors
still be willing to negotiate with consumers seeking to avoid
bankruptcy? Will lump-sum settlements for 30%, 40%, 50% still
be possible now that this tough new law has been passed?

The short answer is "YES." It will be "business as usual" in
the collection industry. People that choose to file bankruptcy
will definitely be affected for the worse, as I'll outline
below, but those who choose to privately negotiate their way
out of debt will notice very little difference. Creditors will
still negotiate. Deals will still be made. And nothing much
will change in the world of collections. In fact, a viable
alternative to bankruptcy will be needed more than ever.

The credit card banks lobbied with millions of dollars to get
this law passed. They've been working at it for about a decade.
Now they are celebrating. These are the folks who think the
bankruptcy system has been abused by wealthy individuals, who
have defrauded creditors when they could have repaid their
debts.

The facts tell a different story:

1. During the period from 1995 to 2004, bankruptcy filings
doubled, while in that same period, credit card industry
profits TRIPLED.

2. Credit card companies have not been held accountable for
their targeting of "easy credit" to individuals who could not
afford such loans, which in turn has contributed to the wave of
bankruptcies over the past decade.

3. For people 60 or older, 85% of bankruptcies are caused by
medical bills or job loss.

4. A divorced woman is 300% more likely to file bankruptcy than
a married woman.

5. African-American and Hispanic homeowners are 500% more
likely to file bankruptcy than white, non-Hispanic homeowners.

6. Approximately half of all bankruptcies are filed because of
medical expenses due to lack of health insurance, or lack of
adequate coverage leading to uncovered expenses.

7. The median income of bankruptcy filers is $25,000. (So much
for the "rich" abusing the system.)

The new law was a GIFT to the credit card banks, pure and
simple. Some estimates show that it will add another $5 billion
to the industry's bottom line. In other words, the bill is about
profits and not much else.

Since my whole approach is about avoiding bankruptcy, I won't
go into a detailed analysis of the provisions of the new law.
But just to summarize, the net effect is that many (if not
most) people seeking relief under Chapter 7 bankruptcy will be
forced to file under the Chapter 13 version instead. In plain
English, that means that most filers will be forced to pay back
a portion of the debt over a 5-year schedule set by the court.

One of the worst aspects of the new bill is the use of IRS
"allowable" expense schedules for determining your monthly
budget. In other words, your actual living expense are thrown
out the window in favor of the IRS standards (and we all know
how generous the IRS can be!). So if your actual rent is $1,300
per month, and the IRS says it should be $1,045 for your county
and state, that's TOUGH! The court will only allow the $1,045,
period.

In short, people attempting to file bankruptcy after October
17, 2005 are in for an extremely rude awakening! Goodbye cell
phones, cable TV, high-speed Internet access, movies, meals
with the family, and anything else beyond the minimum allowable
expenses as determined by the IRS and the courts.

So what makes me so certain that the banks will be as eager as
ever to settle with consumers for 50 cents on the dollar or
less? Simple. Two words: Stealth Bankruptcy.

Hundreds of thousands of Americans are going to discover the
new reality of this tough law, and they are going to forgo the
court system of filing bankruptcy in lieu of what I call
"stealth bankruptcy." A stealth bankruptcy is when you move
(with no forwarding address), change your phone number, and
drop off the radar screen to live on an all-cash, no-credit
basis. Many people already choose this path rather than deal
with the invasion of privacy that comes with formal bankruptcy.
After the new law goes into effect, more people than ever will
take this approach.

Besides the problem of stealth bankruptcy, there are other good
reasons the banks will settle as they always have. Consider
these points:

A. The creditor doesn't know whether or not you'll still
qualify for Chapter 7 or Chapter 13 bankruptcy. They still face
the risk that you will qualify for Chapter 7 and end up
discharging your debt in full, which means they get NOTHING.

B. Even if you file Chapter 13 under the new guidelines, the
creditor will still only receive 30-50% of the debt on average
(much less in some cases).

C. Under Chapter 13, it will still take the creditors 3-5 YEARS
to recover that 30-50%.

D. A lump-sum of 30-50% TODAY is far better than the same
amount collected over 3-5 years.

Of course, I certainly expect debt collectors to use the new
law to harass and intimidate people who don't know and
understand their rights. You can expect them to say things
like, "You can't file bankruptcy under the new law, so you'd
better pay up today!" They will bully and threaten as always,
but at the end of the day, they will still accept reasonable
settlements. After October 17, 2005, it will still be "business
as usual" in the world of debt collections.


About The Author: Charles J. Phelan has been helping consumers
become debt-free without bankruptcy since 1997. A former
executive in the debt settlement industry, he teaches the
do-it-yourself method of debt negotiation. Audio-CD material
plus expert personal coaching helps consumers achieve
professional results at a fraction of the cost.
http://www.zipdebt.com

Reduce College Debt with Scholarships

Reduce College Debt with Scholarships
by Dale Clifton, the Scholarship Doctor

Six Scholarship judges were sitting around an oval
table. Forms were piled into 50 boxes. Each one
had the name of a state. I looked at the boxes and
wondered why some of them were overflowing and
others had just a few. This was the first round of
judging. By the time the contest was over almost
16,000 applications would be examined. Some of the
comments were really critical, "Why did this
person bother to send in an application? It's so
sloppy." "This person put the wrong address on
the envelope, even though the correct one is at
the top of the application." One had a cassette
tape inside. We played it and it was a country
song. The applicant was a good musician.

That was twelve years ago, and many people still
do not know or realize that College Scholarship
Planning could reduce or totally eliminate college
financial debt.

One of the first questions I am always asked is,
"When should we start looking?" Then some answer
their own question with, "I bet we're too late
already huh?" The ideal time is to start is the
8th grade to freshman year. Good planning starts
early, but scholarships are posted monthly, and if
you start planning early, you have a chance to
win, big. Many win the very first time. If you are
a junior or senior in high school, go for it. But
remember, your chances to win increase with every
completed application.

You should start College Scholarship Planning even
if there is a chance your child may decide not to
go to college. But if the decision is yes, you
will have everything in place. And the planning
experience is more than filling out a few
applications.

Another common concern is assuming your family
income is too high to win scholarships. Fact: 80%
of all scholarships are need based and income
related, but 20% are not. This means millions of
dollars are still available. It makes good solid
financial sense to make an effort to win
scholarship money regardless of income.

Always remember, the college scholarship effort is
truly a family affair.

©2005 The Scholarship Doctor, Dale Clifton - All
Rights Reserved - Dale is an educational consultant
and expert at helping families win college
scholarships. To learn more about planning to win scholarships, visit
http://ScholarshipDoctor.com

Debt Free Living - 5 Tips To Get Out Of Debt

A few times I wonder what sort of credit system moved the global economy 200 years ago. If the intention of getting into a business is meant to 'help' fulfill the needs and wants of someone, I don't see how credit card salesmen can drove more people into debt and backruptcy. Clearly most people fail to have a good understanding of the increasingly sophisticated (and complicated) terms and conditions behind the card they apply for, how it benefits the bank more than the applicant and what the ubiquitous card is best used for.
The 'cashlessness' of the advanced world surely works its illusions into the minds of those caught up in the disease of consumerism, who found it too easy to buy anything anywhere with a flash of the card without realizing the interest incurred to the bank everytime a purchase is made. Before you get the math right, you must get personal spending principles and habits right first, and only then you will attain self-awareness and a conservative mindset that lights up a red warning in your head just when you are about to make a purchasing decision.
Here are 5 tips for you to get a headstart:
1) It's not how much money you make (or spend); it's how you can keep. I didn't say this. Robert Kiyosaki said it. Far too often poor people never carry happiness within themselves and depend on external sources for their own happiness, so they either buy to impress others or get a certain 'nice' indulgent feeling for having new things. Mathematically speaking, if that new thing does not serve a purpose or even a significant function, it is a wasted loss.
2) Forget credit; get debit. A debit card is quite similar to your ATM card in that it deducts directly from your account on purchase and can be used worldwide. The credit card enables you to BORROW money from your bank to fulfill a particularly expensive purchase provided you pay back the loan PLUS the interest incurred in the form of monthly bills. Based on track record, if you have always fulfilled your credit obligations, your credit ratings will get better, leading to better protection and concessions. But unless you typically deal with large transactions and understand your spendings cycle, you are better off making your life simpler just knowing exactly where YOUR money--not the bank's--goes if not into your account.
3) Be conscious of your financial balance. Do a monthly plan-and-review for your savings and expenditure. Those items that you have to buy with your card...how necessary and regular is it? Why is it an investment to you and to other people like your family? What else can be cut down? Sometimes you must realize your financial decisions do impact your immediate loved ones and this is a significant consideration to take care of.
4) Use your card only for emergencies. I don't know how many times I've been reminded by my elders but don't get rebellious for the sake of it.
5) If you are facing a tighter budget, you did better confront the problem sooner than later. Discuss with your immediate loved ones and financial advisor where the finer problems lie and they are sure to help, not to aggravate your situation, because if it doesn't affect you, it will affect them and your relationships.
The debt problem is not one on a personal scale but a prevalent one worldwide. It is a sickness infecting people who grow too worried witnessing the exorbitant increase in the cost of living everywhere they go, whether it's in the New York or Kuala Lumpur, so they keep on borrowing in order to 'stick their neck out'. Wrong thinking: it becomes a vicious cycle that feeds on itself, pushing you closer to losing it all than ever before.
Come one day, you finally wake up from your debt problem when the bank or creditors start knocking on your door, and you don't want that to happen. Stop being influenced by what goes on around you but to take good stock of your financial attitude and well-being. You have a choice not to get involved with your bank 'deeper' than you need. It's time to be happy living within your means. Be grateful for what you have now and work the most out of your current resources, then you will find better use for your pair of scissors than to cut up credit cards.

Justin Koh is a freelance writer whose articles have appeared in most major ezines. You can find the latest news and articles at: http://www.debtcenter.info

Ready, Set, Credit!

A credit card is a great financial tool. It can be more
convenient to use and carry than cash and it offers valuable
consumer protections under federal law.

At the same time, it's a big responsibility. If you don't use
it carefully, you may owe more than you can repay, damage your
credit rating, and create credit problems for yourself that can
be difficult to undo.

Chances are your mail is full of solicitations from credit card
issuers. How do you know if the time is right for a credit card?
Here's some important information that may help you determine
whether you're ready for plastic, what to look for when you
select a company to do business with, and how to use your
credit card responsibly.

Qualifying for a Credit Card

If you're at least 18 years old and have a regular source of
income, you're well on your way to qualifying for a card. But
despite the invitations from card issuers, you'll still have to
demonstrate that you're a good risk before they grant you
credit. The proof is in your credit record. If you've financed
a car loan or other purchase, you probably have a record at a
credit reporting bureau. This credit history shows how
responsible you've been in paying your bills and helps the
credit card issuer decide how much credit to extend.

Before you submit a credit application, get a copy of your
report to make sure it's accurate. It's available from the
three major credit bureaus:

EQUIFAX PO Box 105873, Atlanta, GA 30348; (800) 685-1111 (up to
$8 fee)

EXPERIAN (formerly TRW), PO Box 8030, Layton, UT 84041; (800)
392- 1122 (No charge)

TRANS UNION PO Box 390, Springfield, PA 19064; (216) 779-7200
(up to $8 fee)


Establishing A Credit History

Suppose you haven't financed a car loan, a computer, or some
other major purchase. How do you begin to establish credit?
First, consider applying for a credit card at a local store and
use it responsibly. Ask if they report to a credit bureau. If
they do - and if you pay your bills on time - you'll establish
a good credit history.

Second, consider a secured credit card. It requires that you
open and maintain a bank account or other asset account at a
financial institution as security for your line of credit. Your
credit line will be a percentage of your deposit, typically from
50 to 100 percent. Application and processing fees are not
uncommon for secured credit cards. In addition, secured credit
cards usually carry higher interest rates than traditional
non-secured cards.

Third, consider asking someone with an established credit
history - perhaps a relative - to co-sign the account if you
don't qualify for credit on your own. The co-signer promises to
pay your debts if you don't. You'll want to repay any debt
promptly so you can build a credit history and apply for credit
in the future on your own.

A positive credit history is an asset, not only when you apply
for a credit card, but also when you apply for a job or
insurance, or when you want to finance a car or home.

If Your Application is Denied

If you're turned down for a card, ask why. It may be that you
haven't been at your current address or job long enough. Or
that your income doesn't meet the issuer's criteria. Different
credit card companies have different standards. But if you are
turned down by several companies, it may indicate that you are
not ready for a credit card.

If you've been denied credit because of information supplied by
a credit bureau, federal law requires the creditor to give you
the name and address of the bureau that supplied the
information. If you contact that bureau within 30 days of
receiving the denial, you are entitled to a free copy of your
report. If your file contains accurate negative information,
only time and good credit habits will restore your
credit-worthiness. If you find an error in your report, you are
entitled to have it investigated by the credit bureau and
corrected at no charge.

Getting the Best Deal

Fees, charges, and benefits vary among credit card issuers.
When you're choosing a credit card, shop around. Compare these
important features:

Annual Percentage Rate (APR). The APR is a measure of the cost
of credit, expressed as a yearly interest rate. Check out the
"periodic rate," too. That's the rate the issuer applies to
your outstanding balance to figure the finance charge for each
billing period. For example, if you have an outstanding balance
of $2,000, with 18.5 % interest and a minimum monthly payment,
it would take over 11 years to pay off the debt and cost you an
additional $1,934 just for interest, which almost doubles the
total cost of your original purchase.

Grace Period. This is the time between the date of a purchase
and the date interest starts being charged on that purchase. If
your card has a standard grace period you have an opportunity to
avoid finance charges by paying your current balance in full.
Some issuers allow a grace period for new purchases even if you
do not pay your balance in full every month. If there is no
grace period, the issuer imposes a finance charge from the date
you use your card or from the date each transaction is posted to
your account.

Annual Fees. Many credit card issuers charge an annual fee for
granting you credit, typically $15 to $55. Some issuers charge
no annual fee.

Transaction Fees and Other Charges. Some issuers charge a fee
if you use the card to get a cash advance, if you fail to make
a payment on time, or if you exceed you credit limit. Some may
charge a flat fee every month whether you use the card or not.

Customer Service. Many issuers have 24-hour toll-free telephone
numbers.

Other Benefits. Issuers may offer additional benefits, some
with a cost, such as: insurance, credit card protection,
discounts, rebates, and special merchandise offers.

Credi-Quette

Once you get a card, sign it immediately so no one else can use
it. Note that the accompanying papers have important
information, like customer service telephone numbers, in case
your card is lost or stolen.

File this information in a safe place.

Call the card issuer to activate the card. Many issuers require
this step to minimize fraud and to give you additional
information.

Keep your account information to yourself. Never give out your
credit card number or expiration date over the phone unless you
know who you're dealing with. A criminal can use this
information to steal money from you, or even assume your credit
identity.

Keep copies of sales slips and compare charges when your bill
arrives. Promptly report in writing any questionable charges to
the card issuer.

Don't lend your card to anyone, even to a friend. Your credit
privilege and history are too precious to risk.

You're Responsible

While a credit card makes it easy to buy something now and pay
for it later, you can lose track of how much you've spent by
the time the bill arrives if you're not careful. And if you
don't pay your bill in full, you'll probably have to pay
finance charges on the unpaid balance. What's more, if you
continue to charge while carrying an outstanding balance, your
debt can snowball. Before you know it, your minimum payment is
only covering the interest. If you start having trouble
repaying the debt, you could tarnish your credit report. And
that can have a sizable impact on your life. A negative report
can make it more difficult to finance a car or home, get
insurance, and even get a job.

Federal Protections. Federal law offers the following
protections when you use credit cards.

Errors on Your Bill.

You must notify the card issuer in writing within 60 days after
the first bill containing the error was mailed to you. In you
letter, include your name; account number; the type, date, and
amount of the error; and the reason why you believe the bill
contains an error. In return, the card issuer must investigate
the problem and either correct the error or explain to you why
the bill is correct. This must occur within two billing cycles
and not later than 90 days after the issuer receives your
billing error notice. You do not have to pay the amount in
question during the investigation.

Unauthorized Charges.

If your credit card is used without your authorization, you can
be held liable for up to $50 per card. If you report the loss of
a card before it is used, the card issuer cannot hold you
responsible for any unauthorized charges. If a thief uses your
card before you report it missing, the most you will owe for
unauthorized charges is $50. You should be prompt in reporting
the loss or theft of your card to limit your liability.

Kinds of Credit Accounts

Credit grantors generally use three types of accounts:
Revolving Agreement. A consumer pays in full each month or
chooses to make a partial payment based on the outstanding
balance. Department stores, gas and oil companies, and banks
typically issue credit cards based on a revolving credit plan.

Charge Agreement. A consumer promises to pay the full balance
each month, so the borrower does not have to pay interest
charges. Charge cards, not credit cards, and charge accounts
with local businesses often require repayment on this basis.

Installment Agreement. A consumer signs a contract to repay a
fixed amount of credit in equal payments over a specific period
of time. Automobiles, furniture, and major appliances often are
financed this way. Personal loans usually are paid back in
installments, too.


About The Author: Mark Daoust is the owner of New Credit Guide.
You can visit new credit guide by going to
http://www.newcreditguide.com

What To Expect From A Credit Repair Company

It would be great if everyone had good credit. But the fact of the matter is, many people do not, and they have to suffer the consequences of having a bad credit score. A bad credit score means a lot more than not being able to buy a home or a new car. A good credit score can also mean the difference between getting a job and getting a decent auto insurance rate. Most people with bad credit would like to fix their credit, but they aren't sure how to do this. One way that is becoming very popular is to enlist the services of a credit repair company. These companies work very hard to help people improve their credit so that they can get the things they want to in life. Using a credit repair service is actually a good idea, because it is not an easy task to fix your credit on your own, and it can take a lot more time doing it yourself than working with a credit repair agency.

Companies that offer to fix your bad credit are not miracle workers. They don't have some magic formula to make your credit score improve drastically overnight. It takes time and effort, both on your part and theirs.

These credit repair services are completely legal. They do not do anything that is shady or underhanded. They are credit experts that are well versed in your credit rights and responsibilities. They know a lot more about credit than the average person, and they put that knowledge to work for you. They simply use your rights under the Fair Credit Reporting Act to improve your credit record. They work with the credit bureaus to remove inaccuracies, update your records, and clean up any misleading information. They work with your creditors to provide accurate information to the three major credit bureaus, and then work with the credit bureaus to make sure that your credit report is accurately updated in a timely manner. The results are that your credit score gradually improves and you are able to get the credit you want at better rates.

Of course, it is always smart to shop around for the best credit repair service. Many of them are available online and you can begin working with them quickly once you find the credit repair service that best suits your needs. Make sure you check out their prices, if they have any kind of guarantee or warranty, how long they have been in business, and what kind of reputation they have. Most of them have some type of guarantee, and you can expect to see some differences in your credit report within about 45 days after you being working with a credit repair company. A person can expect to see major differences in their credit score in about six months. Which is not bad, considering it usually takes longer than that to destroy a credit report. Their fees are affordable, and usually consist of a payment to being working with them and then a monthly charge each month until your credit report is improved to your satisfaction.

Just because you use a credit repair agency to fix your credit, it doesn't mean that you can't pay your bills or that you can buy anything you want without planning how you are going to be able to pay for it. Many of these credit repair companies also offer advice on learning how to live within your budget and using credit wisely.

Bob Hett offers great tips and advice regarding all aspects concerning Credit Repair.
Get the information you are seeking now by visiting http://www.creditrepairoutline.info

You Can Fix Your Bad Or Poor Credit

Tips on how to get started now.

You will not be able to build good credit overnight. It will
take discipline and persistence on your part to change your
credit for the better. After you have fixed and improved your
credit rating in the eyes of lenders, you will notice more
opportunities offered to you to borrow money at more desireable
terms than when your credit was bad. Just because you have bad
credit does not mean that you can not borrow money or get a
loan, it just means that less opportunities will be available.
The funds you can get will come at a greater cost in terms of
higher interest rates and more stringent repayment terms.

Many banks and lending companies are less likely to make loans
to people with bad credit. Therefore, it only makes sense that
you strive to improve your creditworthiness in order to
convince potential lenders that you are a good credit risk.
Once you have improved your credit history and track record you
will be have better opportunities to buy a car, finance a
personal loan, or buy a house. If you have already been trying
to financed for any large purchases, then you may have noticed
the hurdles you've been put through trying to get approved.

Fixing your credit rating may be as easy as getting any
inaccurate statements off of your credit report. Therefore it
is important to frequently check yours to see if everything on
it is correct. If you do find inaccuracies immediately contact
the credit bureau and work with them to get them corrected and
off of your credit report.

For others, fixing or repairing their credit rating may be a
lot more involved and complicated. Start by getting your
personal budget balanced. You should not be spending more each
month than what you bring in each month. If you are, then get
that straightened out immediately. Cut out all unnecessary
spending and charging. It is critical that you get your budget
and debt repayment plan balanced, while making all debt
payments on time. Not making on time payments each month
increases the late payment fees you will have to pay, bring
about increased interest rates and continue to negatively your
credit rating. Once you start making and continue to make your
monthly debt payments on time, you should see your credit score
start to rise.

If you find that you can not do this on your own, there are
many companies that can provide debt consolidation services.

So in essence to improve your credit:

. Create and live by a personal budget that balances your
monthly income with your monthly expenses.

. Create a plan to save money and pay off your credit cards and
debt.

. Use credit wisely.

. Pay your bills on time every month.

Once you have put all of these tips into action and your credit
score begins to improve, you should see your borrowing
opportunities improve as well. But remember, good credit habits
must be worked at every day, so do not give up and make it a
lifetime habit.


About The Author: James Smith publishes
http://www.all-credit-types.com/. Visit the personal finance
web site for more credit information and resources. This
article may be freely reprinted as long as the author's
resource box and url links remain intact.

What Is Foreclosure And How To Avoid It?

Are you having trouble making ends meet? Not paying your bills
on time? Are you not able to keep up with your mortgage
payments and continue to get further and further behind? How do
you get yourself out of this mess and not lose your home?

Avoiding foreclosure may be possible and you should work hard
to avoid it.

What is foreclosure?

Foreclosure is the legal means by which a bank or other secured
creditor sells or repossesses your home or a piece of real
property due to your default on its promissory note. When your
house is foreclosed on, you must move out and it is usually
sold at public auction. When the foreclosure process is
complete, it is typically said that "the lender has foreclosed
its mortgage or lien."

In the United States, there are two sorts of foreclosure in
most common law states. Under "strict foreclosure," the bank
claims the title and possession of the property back in full
satisfaction of a debt, usually on contract. In the proceeding
simply known as foreclosure, the property is exposed to auction
by the county sheriff or some other officer of the court. Many
states require this latter sort of proceeding in some or all
cases of foreclosure, in order to protect any equity the debtor
may have in the property, in case the value of the debt being
foreclosed on is substantially less than the market value of
the property. In this type of foreclosure, a deed is issued to
the winning bidder at auction. Banks and other institutional
lenders typically bid in the amount of the owed debt at the
sale, and if no other buyers step forward they get title to the
property in return.

Some states have adopted non-judicial foreclosure proceedings,
in which the mortgagee, gives the homeowner a legally specified
notice of the default and the mortgagee's intent to sell the
property. If the homeowner fails to cure its default, or use
other lawful means, such as filing for bankruptcy to stop the
sale, the mortgagee or its representative will conduct a public
auction in a similar manner as the auction described above. The
highest bidder at the auction becomes the owner of the property
free and clear of any interest of the former homeowner.

What Should You Do To Avoid Foreclosure?

. Do not ignore letters from your lender. If you are having
problems making your payments, call or write to your lender's
Loss Mitigation Department without delay. Explain your
situation. This shows good faith on your part. Be prepared to
provide them with financial information, such as your monthly
income and expenses. Without this information, they may not be
able to help.

. Stay in your home for now. You may not qualify for assistance
if you abandon your property.

. Contact a HUD-approved housing counseling agency. Call (800)
569-4287 for the housing counseling agency nearest you. These
agencies are valuable resources and they frequently have
information on services and programs offered by Government
agencies as well as private and community organizations that
could help you. The housing counseling agency may also offer
credit counseling. These services are usually free of charge,
and they can help explain possible alternatives.

Some of the possible alternatives you may consider include the
following:

Special Forbearance. Your lender may be able to arrange a
repayment plan based on your financial situation and may even
provide for a temporary reduction or suspension of your
payments. You may qualify for this if you have recently
experienced a reduction in income or an increase in living
expenses. You must furnish information to your lender to show
that you would be able to meet the requirements of the new
payment plan.

Mortgage Modification. You may be able to refinance the debt
and/or extend the term of your mortgage loan. This may help you
catch up by reducing the monthly payments to a more affordable
level. You may qualify if you have recovered from a financial
problem and can afford the new payment amount.

Partial Claim. Your lender may be able to work with you to
obtain a one-time payment from the FHA-Insurance fund to bring
your mortgage current.

Pre-foreclosure sale. This will allow you to avoid foreclosure
by selling your property for an amount less than the amount
necessary to pay off your mortgage loan.

Keep in mind that your lender does not want to force
foreclosure proceedings because it costs them a lot of money to
do so. Therefore, if you are sincere and show good faith, they
are more likely to work with you to find a solution.
Foreclosure can seriously affect your ability to qualify for
credit in the future. So get the help you need and avoid it if
at all possible!


About The Author: Greg Smith publishes information on real
estate issues at http://www.searchexact.com/Real_Estate/. Visit
his web site http://www.searchexact.com/ for top resources on
unique and popular topics. This article may be freely reprinted
as long as the author's resource box and url links remain
intact.

Credit Card Features

Do you know anyone who doesn't have a mailbox overflowing with
credit card offers? Open any of them up and you'll find in
large print just what makes this card perfect for you. At first
glance, this all looks good on paper, but it's the small print
that you don't pay attention to that will come back and bite
you in the end. All credit cards offer a variety of features.
Knowing and understanding these features will help you to
decide which card is right for you.

Fees

Most credit cards charge fees for various things, and it is
important to know what these fees are and how to avoid them.

The annual fee

Some credit card companies charge you an annual fee just for
using their card. Because of stiff competition, you can often
negotiate this fee away if you call and speak to a customer
service representative.

Cash Advance Fee

Most credit card companies will charge you a fee for cash
advances. These fees can vary but are usually somewhat hefty.
Not only will they charge you a one-time fee, but the interest
rate for this money will be at a considerably higher rate.
Plus, unlike a regular purchase, where interest begins accruing
after some grace period passes, cash advances accrue interest
charges from day one.

Many card companies are competing for your business and are now
offering an introductory cash advance and balance transfer rates
for a specific amount of time. This lower rate can be applied to
any balances you may wish to transfer from another card.
Although it sounds good, some companies will charge you a fee
for the transfer. Know what the fee is before you transfer any
balances.

Miscellaneous Fees

Things like late-payment fees, over-the-credit-limit fees,
set-up fees, and return-item fees are all quite common these
days and can represent a serious amount of money out of your
pocket if you get whacked for any of these fees.

Incentives

Since there are so many credit card companies, competition is
stiff. Adding incentives to their offers is one of the more
popular ways to tip the scales in their favor. Incentives like
rebates on purchases, frequent flyer miles on certain airlines,
and extended warranties on purchases are just a few of the
bonuses that card companies will now offer.

For those of you who collect and use your frequent flyer miles,
they also have added incentives like travel insurance and car
rental insurance for your convenience. Of course, they are
hoping that with all this traveling, you are using their card
to foot at least some of the bill.

Rewards

Many card companies are looking to keep your business and are
therefore making it worth your while to use their card. Just
simply by using their card you can accumulate points that will
in turn earn you rewards. What kind of reward depends solely on
the amount of points you accumulate. Since you can't accumulate
these points without charging things on your card, this is a
classic case of 'you have to spend money to save money'.

Bottom line is this: Know what you need and what you don't. No
sense in paying for any features that you won't use.


About The Author: Keith Baxter made it his mission after
college to educate as many people as possible to the advantages
and disadvantages of credit through a widespread re-education
initiative. You can find out more about Keith and what he's up
to at http://www.bankcreditcardlist.com

Credit Card Debt Problems

What to Do If You Hit the Debt Mire

When debt goes bad, it becomes more than just a financial
problem. It can take over your life. If you have a debt problem
the earlier it is handled and dealt with, the less likely it'll
turn into a crisis, and the more money you'll save in the
fullness of time.

The very nature of borrowing means that interest increases over
time and if it isn't dealt with promptly, it can spiral out of
control and land you into trouble. Particularly with credit
cards, when interest payments are large, and a minimum payment
offers a seemingly manageable solution; what is actually
happening is this: the balance is being eroded like the sea
bites away at the shore. It'll disappear into the ocean
eventually, but might take many years to do so. What you need
is a more radical approach, where chunks of debt are eaten away
each month.

Being in debt can be a stressful time. Many people are scared
to tell husbands, wives, friends - anyone. There's a kind of
stigma attached to the problem, but there is always a way out.

Traditional debt advice proscribes borrowing your way out of a
problem. Yet this ignores the reality of most debts. A more
advisable and realistic approach would be to never borrow more
to get out of debt trouble. If it is possible to borrow more
cheaply elsewhere to replace existing borrowing and consolidate
your debt, then this is an eminently sensible approach.

The first step should always be to work out your monthly
outgoings and try and trim down your spending on luxuries and
things you can do without. This doesn't mean you have to live
the life of a monk and forgo all worldly pleasures! But by
adopting sensible spending patterns you can redirect some of
your monthly income into paying off your outstanding balances.
Always keep at the front of your mind the fact that the longer
the debt smolders away, the more you spend in interest
payments.

Those with big debts may save thousands a year in interest by
reconsidering their borrowing commitments. Do this in three
ways:

i) Lower the interest if possible by moving your debts to
reduce the interest cost.

ii) Pay the worst first: prioritize paying off the highest
interest rate debts first

iii) Utilize any free debt advice there is. A non-commercial
agency will give you good advice, focus you on your priorities,
and place any problems in context. Things may not be as bad as
they first seem.

Of course, there's other basic, practicable things you can do
on your own. It's incredibly important to get on top of credit
card debts as soon as possible. Don't default or miss payments.
Let the credit card company know if you are going to be unable
to pay - it's always better to talk to them than putting your
head in the sand.

If things aren't that bad, there's a variety of easy strategies
you can implement that will help ease things for you. Consider a
credit card balance transfer to a lender offering a lower rate
of APR. This will mean you spend less on interest payments each
month and start to attack the overall balance with real venom.

You could take out an unsecured loan as a way of consolidating
your debt. Personal loans can give you a consistent cheap debt,
and as you must make the repayments each month, it helps provide
structure to your repayments. Those with poorer credit scores
might not always get decent rates, but it's still often a
cheaper option than paying back credit card debt each month,
and overall a faster method of repayment.

If you have them, use savings: The interest paid on savings is
usually far less than interest charged on borrowing, so paying
off debts with savings makes eminent sense. Even if you think
of your savings as an 'emergency cash fund' or money for the
future, better to fall back on it in the short term and pay it
back later, than paying interest to a credit card company so
that money for some far flung eventuality is at your disposal.

It's worth mentioning that for many people, credit cards
provide sensible short term, flexible lending, that's both
cheap and convenient. You should always try and proceed
cautiously, but credit card debt woes are not an inevitable
consequence of taking them out. Tens of millions of Americans
use credit cards cheaply and conveniently every year.

For those who feel they are in trouble, don't feel stigmatized
by your debt woes and don't pretend they're not there. Help is
at hand should you seek it, and a solution is never far away.


About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Home Loans
or any other type of credit issue please visit us at
http://www.creditcardunlimited.com


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Credit Card Debt Elimination

3 Simple Ways to Use Online Credit Reports to Improve Your Personal Credit

Like most Americans you may be skeptical of why an unseen online agency would want to "help" you by checking your credit score for free. I mean, aren't they just out there to get your money? The truth is, these credit checks can really help you, especially if you are trying to improve your credit.

First, by checking your credit online, you avoid "dings," which lower your score. Many consumers are afraid to investigate their credit because they think their score might drop, putting them in even worse shape. This isn't true with online credit reports. Thus, without dinging your credit, online sources allow you to check out your score, for better or worse.

Alternately, if you have been denied credit within the last 30 days, you can ask the credit bureau for a free report that won't ding your credit. You do have to use a local reporting agency, which can take more time than using an online source. Most people go in person to the agency to request the report and then pick it up. Both of these steps seem quite tedious when compared to online credit checks.

Another benefit of online credit reports is the ability to see both good and bad credit you have on your report from the privacy of your own personal computer. No nosy bankers trying to get your a credit card or auto loan. Without sales pressure, you are less likely to get into more debt and lower your credit score.

Lastly, you can verify the accuracy of your credit. The online report will be taken from each of the three national credit bureaus. Occasionally you will see accounts that you dispute, which gives you the opportunity to contact the bureau. To do this, you must write a letter explaining exactly what is incorrect or disputed. The agency must investigate. When they contact the creditor, he has 14 days to respond or the item is deleted off your credit. A little known secret is that if the item is less than $500 or older than one year, most creditors won't bother responding, whether your dispute is accurate or not. Disputing bad credit is the most direct way you can improve your credit. When your bad credit is reversed your credit score will increase. Most importantly, after your score goes up you have the right to demand that your updated credit report be sent to all those who have denied you credit in the last six months. Good news!

So, if you wonder how good, or bad, your credit score is, don't be afraid to check it out online. The report is excellent information that arms you with power to change and improve your credit. Most people with bad credit don't know much about how it gets that way or how to fix it. Your knowing both is a good start to improving your credit.

Best Credit Report Info.com offers valuable information on credit reports and what to do if you've had credit difficulties. For more information, see the website at http://www.bestcreditreportinfo.com

Know Your Debt Consolidation Options

Nobody likes being in debt or the additional stress it adds to their life. Additionally, most individuals have some form of debt that is weighing heavily on them and they simply want to get rid of it. If you are in this situation then you might consider debt consolidation. When it comes to debt consolidation there are basically two options you have. You can either borrow money and pay off all your bills and then just pay the one loan payment each month or else you may choose to use a debt consolidation or credit counseling services. The option that is best for you is most likely the option you qualify for. The following pros and cons of each debt consolidation option will help you see which option is best for you as well as inform you regarding each option.

Borrowing to Pay off Bills

The first option you have to pay off all of your debts is to apply for a debt consolidation loan or a home mortgage loan. However, this particular option requires you have good credit and equity in your home if you are applying for a mortgage loan. As a result, many people do not qualify for this particular option. Although, there are pros and cons for this option for those individuals who do qualify.

The pros of borrowing to pay off your bills include paying off all of your bills at once and dramatically decreasing your monthly payments. You will have to make a monthly payment on the debt consolidation loan you received, but this will be significantly lower than the total of all the other monthly payments you were paying. As a result, a debt consolidation loan will grant you some serious relief in your monthly expenditures. Another benefit of paying off all your debts at once is that if you were at risk for collection of your debt you will not need to worry any longer. Once your debt is paid off any debt collection activities will be stopped in their tracks and this will grant a significant amount of relief as well. Another major benefit that is important to everyone is that when you borrow to pay off your loans your credit will not have any negative marks and you will likely experience an increase in your credit rating simply because you decreased your debt ratio.

These benefits may have you excited; however borrowing to pay off your debts also has its drawbacks. For instance, if you receive a home mortgage loan to pay off your debts and you cannot make the monthly loan payment then you risk losing your home. This is a significant drawback and if you do not believe you will be able to make the monthly payment on the mortgage loan you should avoid this option. Another negative is that you are not eliminating your debt; you are simply changing the way you pay for it. As a result, the stress of the overall amount you owe still exists and you can easily overextend yourself again because you have a false sense of security that you have your debts under control.

If you qualify for a home mortgage or debt consolidation loan then you should work with a loan counselor to help you meet your monthly obligation and avoid any other negative impacts of your debt. However, if you do not qualify for a loan you may very well qualify for help from a debt consolidation service or credit counseling service.

Debt Consolidation and Credit Counseling Services

This option helps you in a variety of ways, yet is significantly different than receiving a debt consolidation loan. Many individuals have found success by using these services while others do not recommend them at all. You must review the following benefits and drawbacks and compare them to your personal financial and debt situation before you can make the right choice for you.

The benefits of the debt consolidation and credit counseling services include an immediate decrease in your monthly payments. This provides significant relief immediately for individuals suffering from too much debt. Also, any debt collection actions in progress will likely be reduced because the debt consolidation agency informs your debtors that you are actively trying to pay your bills. Frequently, these services can also help eliminate late payment fees as well as decrease interest rates. A required element in using these services is learning money management skills that will help you avoid getting in debt and over your head. With your money management skills you will understand how much money you have and not try and live beyond your means. However, there are cons that exist with this option of debt consolidation as well.

When you use these debt consolidation services you will not be allowed to use any credit you have, so basically your credit is on hold. Also, there are debt minimums you must meet before you qualify for these types of services. If you have a very low amount of debt then you will likely not qualify. Additionally, debt consolidation services only provide services for an individual's unsecured debt and not all individual's unsecured debt will qualify. And finally, when you use these services it might negatively impact your credit score. However, it will not impact your credit any worse than not using the services and continuing to make late payments and getting behind.

As you can see there are two viable options for debt consolidation and both are widely different with their own sets of pros and cons. Once you have evaluated the options for consolidating your debt you need to compare them to your personal financial situation in order to make the best decision for paying off and managing your debt. If you are over your head in debt then one of these options will certainly help you, it is just up to you to figure out which one provides you the most benefits and the least drawbacks.

People have many options when selecting a debt consolidation service. I wrote this article to help people understand these options. www.freedebtconsolidationquote.net