Credit Card Quick

How to Work Together as a Couple to Meet Financial Goals

Introduction

Most couples agree that it is important to reach certain financial goals, but most couples do nothing to actually set a plan in motion.

As a couple, you may have many future goals, such as saving for a home, preparing for a baby, or saving for retirement. Because these goals must have a good, financial plan associated with them in order to see them to fruition, it is important that both you and your partner or spouse make a solid game plan to make your dreams a reality.

Here’s how to get started:

• Define the goal and what you both expect from it. What kind of first home do you envision? How much do you want to save before retirement? Although you and your spouse, for example, both agree you want to save for a home, your idea of “in the future” may differ from his or her idea. The best thing you can do to get this goal underway is to visualize the goal and determine the timeline in which you want it to be completed.
• Once you have agreed on your goal and your game plan, it is now time to work together to make it a reality. In short, sit down and make a budget or a plan that includes how spending will be cut, how much will be saved, or where the savings will be directed. If both you and your partner are working, consider how much of each paycheck should be allocated to reach this goal.
• If you currently have debt, make a game plan for paying this off while you’re at it. Use an online calculator to determine how much you can afford to pay on your credit card debt, for example, each month so you have an accurate payoff date. Also, you may want to agree to curtail your credit card spending or even stop spending on credit cards altogether while paying back your debt.
• Don’t forget other future needs. For example, if you’re saving for a first home, don’t forget about other types of savings, as well, such as retirement savings. In other words, don’t neglect other areas of your finances to reach one, particular financial goal.

The Credit Card Trends of 2011

News

What can you expect from the credit card industry in 2011?

Just a few of the trends predicted for the credit card industry for the upcoming year include: tighter credit card regulations, plenty of new credit card offers, and loads of rewards programs and balance transfer offers.

It’s all about the Prime Credit Card Customers

If your mailbox is stuffed with credit card offers as of late, you know you must have good credit. Those consumers with excellent credit scores are being tracked down by credit card companies. Although the credit card industry is still in its recovery stage, it has begun loosening the reins on credit card offers. However, don’t expect to receive credit card offers unless you have the credit score to back it up. In short, creditors and banks are vying for the business of prime credit card consumers, and they are pulling out all the stops in terms of rewards to get their business.

Rewards Programs Soar

Which brings us to rewards programs…If you have great credit, expect many of the credit cards you receive to come with attractive rewards programs. The bottom line is that credit card regulations and interest rates remain fairly high, so it is up to the credit card companies to lure consumers in with another catch; and that is rewards programs. Because there are so many credit card rewards programs floating around out there, take the time to find a rewards program that best fits your lifestyle. You’re sure to find one!

Balance Transfer Offers on the Rise

In addition to attractive rewards programs, most creditors want the best consumers to transfer their balances to their cards, so along come attractive balance transfer offers. Although you may still get a low, promotional interest rate on a balance transfer offer, expect the promotional period to be much shorter than you’re accustomed. In particular, you can expect promotional periods of about three to six months instead of the usual 12 months. It pays to note, however, that great balance transfer offers do still exist, so take the time and find one that best fits your needs and your budget. Again, if you have the good credit score to back it up, it is now quite easy to find competitive credit card offers!

2011: The Return of the Credit Card?

News

Consumers, in general, have gone through a couple of rough years. First, the downfall of the biggest banks, and then the downfall of the housing market and then finally, the tightening of the credit card industry belt.

It’s no wonder, then, that many consumers put their credit cards away. From high unemployment to lenders simply cutting some consumers off, millions of consumers had no choice but to find other ways of paying.

However, some industry analysts see 2011 as a year of change for the credit card industry and consumer spending, in general. In short, it looks as if credit card spending will, once again, see a resurgence, and the debit card industry, which has reigned supreme over the last, couple years, will begin to shrink.

Let’s take a look at a few factors that may change the way we spend in the upcoming year:

• With a stabilizing economy comes consumer confidence. A stabilizing economy, in addition to new jobs, typically spells consumer relief. In other words, if consumers think the economy is getting better, chances are they will begin spending again. And, because there are many indications that employment levels will see a surge in 2011 — Wells Fargo’s Annual Economic Outlook for 2011 shows that employment reports will be positive by the middle of the year and TransUnion reports that that both credit card and mortgage loan delinquencies will experience double-digit free falls — it only makes sense that credit card spending will increase as a result.

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• Competition has begun gaining momentum in the credit card industry, once again. Proof of this is probably sitting in your mailbox right now. If you think you’ve been receiving a lot of credit cards as of late, that is because you probably are. In particular, consumers with good credit are now being bombarded by attractive credit card offers. In fact, according to the marketing research firm, Mintel Compermedia, consumers received about 1.2 billion credit card offers during the third week of 2010, compared with 391 million offers from the same time a year prior.

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• Creditors are upping the stakes when it comes to rewards. In short, expect to see plenty of great rewards programs, provided you have the credit that attracts the attention of the credit card companies. In fact, eight out of every 10 credit cards being offered today comes with some type of rewards program.

Spouses and their Financial Secrets

News

Are you a faithful spouse when it comes to finances?

According to a national survey, you may not be. A recent survey of more than 200 people, in fact, reveals that a whopping 80 percent of spouses make secret purchases behind their spouse’s back. What may be even more shocking is that nearly 20 percent of married couples admit to having credit cards of which their spouse is not even aware.

There are other shocking statistics revealed by this national survey, which was conducted by CESI Debt Solutions, too. For example, 38 percent of married couples are worried that their secret spending would cause their spouse to seek a separation or divorce, while 34 percent of those surveyed say they keep their spending secret as to avoid an argument.

Most couples would agree that hiding money or purchases from their spouse is a type of betrayal; one that could lead to the demise of their relationship. So, what should you do if you are guilty of hiding purchases or credit cards from your spouse?

• Consider why you think you need to hide your spending from your spouse. Is he or she controlling over money, or do you think you may have a problem with overspending? Regardless of the answer, it is likely that you need to have a frank discussion with your spouse about your financial issues.
• Once you have brought the spending out into the open with your spouse, work together to find a solution. The best marriages are those in which each spouse can feel comfortable playing an active role in the family finances. Often times, it is not the spending that is the issue, but the problems with communication in the marriage.
• If necessary, seek counseling to help you and your spouse through this difficult time. Expect your spouse to feel some degree of resentment as a result of your disclosure, as this is normal. However, it may help to seek the advice of a counselor to begin to understand why finances have become such a big issue in your marriage.

Baby Boomers Beware: Identity Theft is a Real Problem

Identity Theft

One thing is certain with identity thieves: they certainly know who to target.

In short, it is the large Baby Boomer population that may be the target of identity thieves, due to a number of factors. First, most of this population has money. Secondly, most of them have good credit. Third, they may have more free time on their hands.

The FBI, for example, reports that nearly 35 percent of the people who file identity fraud complaints with the Internet Crime Complaint Center are 50 or older. Because, let’s face it, this is where the money is.

The problem with identity theft and the retiree population is not limited to a thief stealing information from a mailbox. Instead, identity theft includes a number of scams that look to pull personal information or money out of an individual.

Mortgage Scams

Mortgage scams aimed at Baby Boomers are more than just a phone call. In fact, identity thieves have gone as far as to rent office space and turn their scam into a legitimate-looking operation. In short, these scammers are after social security information and other personal information begin written down by the individual on a fake mortgage loan application.

It is therefore best to avoid working with any lender with which you are not familiar. Instead, it is best to stick with local, established companies with a long history.

Looking to the Obituaries

When it comes to identity theft, thieves are merciless. In fact, it is now quite common for scammers to scan the obituaries for information about recently deceased individuals. For example, the birth date in an obituary could lead the thief to pull the death certificate, which then contains the deceased’s social security number. The thief can then, at least for a short time, open up credit card accounts in the deceased’s name and go on a spending spree.

It is best to avoid listing the birth date or year of the deceased individual; just include the age of death. You may also want to leave out other personal information, such as the deceased’s hometown.

Social Media Problems

Many retirees are turning to social media sites because they have more time on their hands. However, be very careful about putting any personal information on these sites, as identity thieves use them to find out when you are not at home so they can burglarize your home. Avoid posting pictures of your home or any information that details when you will be away from the home.

Features of the Best Credit Cards

Choosing Credit Card

Everyone, of course, wants the best credit card they can get, but what exactly does that mean?

A good credit card may mean something different to each person, but there are a few things that every consumer should be looking for when searching for a credit card:

• A competitive, annual interest rate – The best way to compare current interest rates is to check the web, as there are a number of great websites that detail the most competitive rates on any given day. Once you find this number, you can better narrow down your search for a competitive credit card. Beware of promotional or teaser rates, though, as this could give you a false sense of security. In reality, the credit card with the fantastic promotional rate may also be the card with the high default interest rate once the promotional rate has come to an end. In short, if you want to find a great credit card, skip the promotional rates and instead look for a card with a competitive, fixed interest rate.
• A fair balance transfer offer – If you need to transfer other higher-rate balances, you will want to find a credit card that not only has a competitive interest rate, but a fair balance transfer offer, as well. Make sure to examine the balance transfer fee, as this could often range from two to five percent of the transferred balance.
• An annual fee – Although it may seem like the best credit cards don’t come with an annual fee, the opposite may actually be true. It is important to not rule out the credit cards that charge an annual fee, as these credit cards may be the best in terms of fees, interest rate and terms and conditions. In other words, look at all factors when considering a credit card, not just the annual rate. If you use the credit card frequently throughout the year, an annual fee may seem quite small when compared to the money you could save with a low, fixed interest rate.

Easy Strategies for Keeping more Money in your Pocket in the New Year

Introduction

Have you made a New Year’s resolution? If so, you’re in good company. But I wonder how many people have made a financial resolution? If making a financial New Year’s resolution seems about as plausible as sticking to your New Year’s diet resolution, cheer up: it is possible to change your financial thinking and keep more money in your pocket this year.

Here’s what you can do to change your financial future so the New Year won’t be so frightening in terms of finances:

• Start the New Year out right by ordering a copy of your credit report and clearing up any errors. Ordering a copy of your credit report from all three credit reporting agencies is a great first step to kicking off your New Year’s financial resolution. Simply put: you can’t fix things if you don’t know they exist. Bite the bullet and take a good, hard look at your debt.
• Gather your family around you and set financial goals together. Write them down and make it a family effort to see the goals through. Whether it’s to spend less and give to charity more, or it is to save more money for the family summer vacation, your financial goals should reflect your family values.
• Gather your credit cards together and set a game plan in motion for getting them paid off. It may seem like an impossible task, but the reality is that all you need is a solid game plan for making it happen. It will take perseverance and a good deal of determination, but make a plan for setting aside a particular amount of money each month that you’ll put toward your credit card goal so you can free yourself of the burden of debt.
• Take a credit card vacation and see how it changes the way you spend. Many families spend freely on credit cards but, when faced with paying with cash, are much more frugal. Taking just a one-month break from credit cards may provide you with an incredible amount of insight regarding your spending habits. You may also find that you spend much, much less!

Credit Card Offers Streaming into Mailboxes

News

Things are looking quite a bit different than last year at this time. In particular, you may be surprised to find your mailbox full of credit card offers. According to market research company, Synovate, credit card mailings have nearly doubled to 2.7 billion over the past year.

An Uptick in Credit Card Offers

If you have a strong credit score, it is almost certain that you have seen things pick up regarding credit card offers, especially over the last, few months. However, don’t think that just anyone is receiving credit card offers. In fact, only those prime customers are getting all the attention from creditors.

One of the main reasons creditors are no longer happy to go after subprime customers is that the new credit card regulations enforced by Congress over the last year have greatly limited how much creditors can profit from subprime customers.

Fees Limited, Costs Become more Transparent

For examples, most late fees are now limited to $25, and creditors can’t raise interest rates without warning. In addition, creditors must be much more transparent about the cost of finances charges and carrying a balance, which therefore encourages many consumers to pay back their debt in a more reasonable amount of time.

Although the credit card legislation has helped consumers, credit card customers with less-than-stellar credit are being left out of credit card mailings. Instead, it is the prime customers who are getting loads of credit card offers, and some of them are quite attractive. Expect to see competitive interest rates, low balance transfer rates and plenty of rewards offers.

Prime Customers Reign Supreme

Because prime customers – and wealthy customers – remain very profitable and pose little risk to creditors, they are being courted with loads of new credit card offers. In short, creditors are cutting their closes and are instead concentrating on those customers who mean big business for the credit card industry.

If you are lucky enough to fall into this category, take the time to review your options regarding a new credit card, as many creditors are offering very attractive terms, conditions and rewards.

Are Rewards Credit Cards always Rewarding?

Choosing Credit Card

Americans have come to enjoy the many benefits of rewards credit cards, which is why they are so popular now. From cash back rewards programs to airline miles and free merchandise, there is a seemingly endless variety of rewards credit cards.

However, like any other type of credit card, rewards credit cards are not always created equal and many are more advantageous than their competitors. It is also important to point out that, although millions of consumers benefit from rewards credit cards, they may not always be the best choice for every consumer.

Research Reveals Increased Spending on Rewards Credit Cards

According to researchers at the Federal Reserve Bank of Chicago, for example, it appears that rewards credit cards encourage consumers to spend more and accrue more debt. The researchers found that, on average, consumers earned about $25 back each month in rewards on a one-percent cash back rewards program. However, it also showed that consumers also spent $68 more than they would with a standard credit card during this same period.

The researchers plan to prepare a paper and present it at the upcoming American Economic Association. In short, the paper will reveal that consumer debts grew at a faster rate because consumers reduced their monthly payments and increased their payments when it came to rewards credit cards.

The researchers came to this conclusion after examining nearly 12,000 credit card accounts at an undisclosed financial institution over a two-year period.

The apparent conclusion drawn to this report is that consumers increased their spending because of the rewards offered by the creditor but, in the end, the increased spending and payment of interest rate fees negated any benefit they received from the rewards credit card.

Examining your Spending on Rewards Credit Cards

This report may serve as a very useful wakeup call for millions of consumers who may have never stepped back and examined their spending on their rewards credit cards. It is important to note that failing to pay your balance in full each month on a rewards credit card will likely cancel out any benefits you may receive from the rewards program.

In short, rewards credit cards are best left to consumers who faithfully pay off their balance in full each month.

How Savvy are you when it Comes to Handling your Credit Cards?

Choosing Credit Card

We’d all like to think we are credit card savvy, but with all the changes to the credit card sector over the last year, who can keep up? It seems like every day either the credit card companies or the government are changing the rules when it comes to credit cards usage, thereby leaving many of us in the dark about what’s right and wrong, and good and bad, about our credit cards.

Here are a few True or False statements to quiz yourself on your credit card savvy:

True or False: The more credit cards I have, the better my credit score will be.

False: Although more credit cards may mean a higher available credit and a lower debt-to-income ratio, many individuals with multiple credit cards may find themselves in trouble because of their availability to too much credit. In other words, some individuals may have the best luck using just one or two cards, while other individuals may be able to handle more credit cards. A good rule of thumb when it comes to credit cards is to never take out more than you can reasonably handle in any given month. And don’t worry about your credit score, as a flawless payment history on one credit card will always be better than a spotty payment history on multiple cards.

True or False: My credit score will remain strong as long as I pay my credit card bills on time.

False: Although a large portion of your credit score is determined by your payment history, the credit reporting bureaus also look at several other factors, including your credit history and your debt-to-income ratio. In other words, just because you pay your bills on time each month doesn’t mean you will have the highest credit score on the block. Instead, focus your efforts not only on your payments, but the amount of debt you have.

True or False: I am always better off taking advantage of a balance transfer offer.

False: Don’t assume that just because a credit card company offers you a balance transfer offer with a low, zero-percent introductory offer, it doesn’t mean it is the best financial choice for you. You must also pay close attention to other factors, including: the default interest rate once the promotional rate has ended, the balance transfer fee, and the card’s general terms and conditions.