Credit Card Quick

The Quickest Way to Financial Security

Introduction

There is only one route to take when it comes to financial security, and that is responsible spending and saving. However, there are a number of factors to consider when seeking financial security.

• Always pay yourself first – Before you even touch your paycheck, pay yourself first. This means taking a percentage of your paycheck (aim for 10 percent) and putting it into a high-yield savings or money market account.  If you want to build a financial cushion in case of unemployment, disability or personal emergency, you will need to save a portion of your income, each and every paycheck, without fail. Many economists and financial experts recommend aiming to save at least six months of income in an easily accessible savings or money market account.
• Never carry a credit card balance – The number-one rule when it comes to credit cards and financial stability is to always pay off your balance. Credit cards are practical and convenient, and are often a useful way to build a great credit history. However, they can also be financial sink holes, plunging us into debt and creating a financial problem that magnifies if we can’t afford to pay more than the minimum balance. The easiest way to avoid financial trouble and to secure a healthy, financial future is to never spend more than you can afford to pay off each month.
• Be cautious about what you purchase on credit – There are a few things that may be purchased on credit, such as a car or a home; otherwise, wait until you have saved up to make other large purchases. Using credit to buy furniture, clothing and to take vacations is the quickest way to get in over your head in debt. A good rule of thumb is to only purchase within your means, and that may mean saving up for things you want most – not charging them for instant gratification.
• Always, always take advantage of an employer-based 401K plan – If your employer matches up to a certain percentage of your 401K contributions, then you must take advantage of it; otherwise you are essentially turning your back on free money.

How to Handle Finances with your New Spouse

Introduction

Once married, many of us begin to share finances. From checking and savings accounts to mortgage payments and credit cards, finances for newly married couples can be a tricky endeavor, particularly if you don’t plan ahead and ask the right questions.

Here’s what you will need to consider when it comes to finances and your new spouse:

• Don’t automatically begin sharing finances if you and your spouse aren’t prepared – If you are recently married, and you haven’t yet had serious conversations about everything from a household budget to credit card spending, keep your finances separate. Some couples keep their finances separate throughout their marriage, and that’s okay; it’s about whatever works best for you as a couple.
• Keep the lines of communication open – If you must make a large purchase, inform your spouse and get his or her input. Expect your spouse to do the same. Keeping financial decisions from each other is a recipe for disaster, and it may lead to trust issues within the marriage.
• Talk about debt and how to get rid of it – If you or your spouse has credit card debt or student loan debt, for example, make a game plan for paying it off. It just doesn’t make good, financial sense to enter into a marriage with loads of debt, so the sooner you pay it off the sooner you’ll have the money to afford large purchases, like a home.
• Talk about monthly spending – If your spouse is a spender, keep him or her in check by setting a monthly spending limit, and follow it yourself, too. Keep each other honest by charging purchases on one, joint credit. Doing so can also allow you both to examine your monthly spending habits and find ways to cut back.
• Order a copy of your credit report, and ask your spouse to do the same – It’s nearly impossible to set financial goals together as a couple if one or both of you has past credit problems. Carefully review both credit reports so you can better gauge where you stand in terms of finances. Then, aim to repair your credit, if necessary, or to correct any errors or discrepancies.

Report Shows American Still Owe Big on Credit Cards

News

We’ve all heard about the trend taking place across America: Americans are using credit cards less and cash more often. However, even as Americans continue to pay off their debt and use cash more often, Equifax found, in a recent report, that many households in the United States are still carrying a burden of debt.

In fact, Equifax found that many Americans pay as much as 17 percent of their current income toward credit cards. The report also found that the major, metropolitan areas of the U.S. are the hardest hit, in terms of credit card debt, and residents of Florida, North Carolina, Ohio, Texas, Washington and California are having the most trouble with their credit card debt. Here is the amount of credit card debt the top metropolitan areas of the country are dealing with:

• California: $90,566,978,302
• Texas: $48,833,824,544
• Florida: $47,568,265,541
• Ohio: $28,985,502,668
• North Carolina: $22,386,064,118
• Washington: $18,288,819,367

If you are one of the millions of Americans struggling to pay off credit card debt, there are several things you can do today to begin cutting that debt down:

• Make a budget and figure out why you are spending on credit cards. Often times, overspending on credit cards is due to little more than not keeping a close eye on our monthly spending. Because of this, taking the time to sit down and make a reasonable budget – and stick to it! – is vital for conquering the credit card beast.
• If you are having difficulty making ends meet and you are worried that you will fall behind (or are already falling behind), it may be time to contact a non-profit credit counseling agency who can help negotiate better terms with your creditors and help you pay off debts without filing for bankruptcy.
• Make sacrifices to cut down on your debt. Although making large changes to your lifestyle may be difficult to do, the pride of paying off your debts and living debt-free will most certainly make up for your reservations about moving to a one-car family or getting rid of the cable television.

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.

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!

Drowning in Debt? Why it’s Vital to Act Now

Credit Card Debt

If you are having more and more difficulty paying your bills each month, it is time to act. In other words, don’t wait until the month comes when you can’t pay your bills, as you are simply delaying the inevitable. In other words, if things don’t change, you can’t expect to miraculously start covering your bills. Thus, if you act sooner than later, you will likely be able to save your credit score and get your debts under control.

Here’s what you need to do now to begin digging yourself out from underneath your debt:

• Strategize and develop a plan – Without a plan you can’t expect to begin undoing the damage. In short, you must sit down with your partner and make a budget. If you can recognize where your money is going each month, then you can begin making changes now. Your first order of business should be to collect at least three months of bills, credit card statements and bank statements. Then, take the time to review this paperwork so you can examine spending trends.
• Start cutting back – It may seem quite obvious, but now is the time to see if your bills are bigger than your income. If this is the case, you will need to determine which of these bills are essential and non-essential, and begin eliminating the non-essential bills. If your income still covers your bills, but you are still finding it difficult to pay bills each month, then your spending is the problem. In this instance, you will want to begin keeping a detailed journal of your spending so you can find ways to cut back on your monthly expenses.
• Find the money and put it to good use – Once you have a good idea of your monthly income versus your monthly bills and spending, you will be able to either recognize areas in which you can cut back to better begin paying down your debt. A few extra dollars may not seem like a big deal but, in the long run, it can make a serious dent in your debt. Take all extra money each month and put it towards your highest interest rate debt and work your way down.

The Credit Card Conversation you must have before saying ‘I Do’

Introduction

We often get so wrapped up in wedding plans that we fail to recognize the financial planning that goes into making a marriage work. So, before you meet your future spouse at the end of the aisle to say, “I do,” take the time to sit down and discuss your finances.

There are a set of questions the engaged couple should be asking one another. After all, there is nothing worse than finding out your soon-to-be-spouse is burdened by debt, bad credit, or even a bankruptcy. It’s better to get all financial issues out on the table so that there won’t be any surprises once the excitement from the wedding day has faded and reality has set in:

Q: What is your income?

Although this is, of course, a very personal question, the fact of the matter is that you both must know this information if you are going to rent or purchase a home.

Q: What is your credit score?

Again, this is a personal question, but a very important one to ask your future spouse. If your fiancé is unaware of his or her credit score, now is a great time for both of you to order a copy of your credit report from all three, credit reporting bureaus. Ordering your credit reports is also beneficial at this time because you and your fiancé can remedy any mistakes or inconsistencies long before you decide to purchase your first home or make any other type of large purchase.

Q: How much debt do you have?

In order to get an accurate picture of your future financial situation as a couple, you will need to add up your combined debt. This may include credit cards, student loans, car loans and personal loans, just to name a few.

Q: How many credit cards do you have, and do you carry balances on these cards from month to month?

It may prove to be quite advantageous to both you and your future spouse if you work together to pay off credit card debt before you are married. This will put you in a much better financial situation once you are married and looking to purchase a home, for example.

Credit vs. Debit: Which One Should you Use?

Introduction

The big debate continues: credit or debit?

Debit card advocates say that debit cards are the way to go because you can never spend more than you have, while credit card advocates tout the many safety benefits of using a credit card. So, which one is right?

To further confuse you, the truth is that both sides are right on the debit card vs. credit card debate. In other words, what may work well for one individual may not be such a great deal for another individual.

So, you’re at the checkout line at the grocery store, which one should you swipe? Here are some factors you may want to consider before deciding whether using a debit card or a credit card (or a combination of the two) is right for you:

• Credit cards allow you to pay for multiple purchases and then pay them off at once when the bill arrives, or in several increments, depending on your budget and financial situation.
• Because a debit card is tied to your bank account, you will not be approved for the purchase if you don’t have enough in your bank account to cover it. For some individuals, this is a good thing, while for other individuals this can prove to be quite embarrassing or inconvenient.
• If you’re not careful, credit card debt can wreck your finances and your credit score. On the other hand, the proper and responsible use of a credit card can boost your credit score and afford you lower interest rates on many types of loans and lines of credit.
• Large purchases are typically protected if you pay for them with a credit card. Some of the benefits of using a credit card for large purchases include warranty protection, theft protection and return protection.
• If you make travel reservations, hotel reservations or rental care reservations, you can expect the company to put a large hold on your account. This may not be a good time to use a debit card, as this could freeze a good deal of your money for a short period of time.
• For online purchases, credit cards are probably your best bet, as there are great protection laws placed on credit cards. In fact, according to the National Consumers League, credit cards offer stronger fraud protection and better security than debit cards.

Are your Credit Cards Stressing you Out?

Introduction

If you seem to stress out every month the credit card bill arrives, and you stash it under the other bills, avoiding it as long as possible, you could very well be suffering from credit card burnout.

However, it is unlikely the credit card itself is a source of your stress; instead, it is likely how you are handling your credit card that is the problem.

If you want to de-stress yourself from your credit card troubles, and you don’t want to abandon them altogether because you understand their worth, there are a few ways in which you can begin to enjoy a healthy relationship with your credit cards, and your finances in general:

• If you have more than handful of credit cards and you find managing them every month is a chore, it may be time to pare down your credit card collection. In particular, consider ridding yourself of retail credit cards, which generally come with hefty interest rates and fees and instead choose a major credit card with a competitive, fixed rate on which to make your purchases. Consider, too, that possessing too many credit cards can result in you forgetting payments, which could ultimately damage your credit.
• Use your credit card for good! Yes, it may sound like an odd concept, but the reality is that credit cards can offer you great insight regarding your monthly spending habits. Use your credit card to make everyday purchases, from groceries to clothing and birthday gifts, and you can soon begin to see spending patterns when you examine your monthly credit card statement. With awareness comes knowledge and knowledge can propel you to make the necessary changes to better manage your finances.
• If your spending habits are out of control or not in line with your priorities or goals then use this information to make important changes in your life. Once you begin to understand the importance of mindful spending, credit cards can no longer overwhelm you. In fact, once you have mastered the art of responsible spending and budgeting, you may actually begin to look forward to opening your credit card statement each month!

Seniors and Credit Card Debt: The Link to Bankruptcy Filings

Bankruptcy

We all know about the financial challenges facing many million Americans. However, what we may not be aware of is the fact that elderly individuals are also suffering from the effects of the credit and housing crisis.

In fact, seniors, unlike most of the younger generations, are living on fixed incomes and may rely on personal savings, Social Security payments and pensions to make ends meet. However, many seniors, in an attempt to meet their daily expenses when other sources just don’t cut it, are turning to credit cards.

The Problem with Seniors and Debt

The difference between seniors and younger individuals, however, is that they may have no means with which to pay off credit card debt, thereby leaving them with few alternatives.  It is no wonder, then, that credit card debt is the leading cause of bankruptcy among seniors, according to Forbes. In fact, Forbes reported that more than two-thirds of seniors who filed for bankruptcy claimed credit cards with high interest rates were the main cause. Conversely, just 53 percent of younger individuals reported credit cards as the reason for filing bankruptcy.

The number of individuals aged 65 and older filing for bankruptcy increased from 2.1 percent in 1991 to 7 percent in 2007. The median age of individuals seeking bankruptcy protection also increased during this time, growing from 36.5 to 43 years old, according to Forbes.

Why Seniors may Struggle with Debt

In addition to older Americans filing for bankruptcy, a report shows that this age group is also far less likely to ask for help from family and friends. Many individuals in this age group may also be experiencing financial difficulties because of high medical bills. Finally, older individuals may be less likely to negotiate their debt with creditors before seeking protection under the bankruptcy laws.

Even despite the stricter bankruptcy rules and costs, seniors are still struggling with finances and subsequently filing for bankruptcy. These statistics are undoubtedly linked to higher medical bills, smaller, fixed incomes and few options regarding repayment of their credit card debt.